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HomeMy WebLinkAboutProtect Coastal Huntington Beach - PCHB - Bill Garrisi - Jeff Smith - Pierside Pavilion, LLC - Joe Daichendt - 2013-04-26 • CITY OF HUNTINGTON BEACH Interdepartmental Communication TO: JOAN FLYNN, City Clerk FROM: SCOTT FIELD, Assistant City Attorney DATE: May 14, 2013 SUBJECT: Protect Coastal Huntington Beach v. City of Huntington Beach Case No. 30-2012-00606587 Last year, the City was sued concerning the Pierside Pavilion Project, in a case known as Protect Coastal Huntington Beach v. City of Huntington Beach, Orange County Superior Court Case No. 30-2012-00606587. The case was resolved by way of a Settlement Agreement between the Petitioners/Plaintiffs, the City, and Pierside Pavilion, LLC and Joe Daichendt, the owners of the Project. Since the City was paying no money, and in fact was reimbursed its litigation expenses by way of the Settlement Agreement, the City Attorney signed the Agreement. (Attached.) A copy of the Settlement Agreement should be kept in the permanent records of the City, preferably associated with the original lawsuit filed in the Clerk's Office. If you have any questions, please don't hesitate to contact me. SCOTT FIELD Assistant City Attorney c: Jennifer McGrath Michael Vigliotta (without attachment) 96329.doc SETTLEMENT AGREEMENT This SETTLEMENT AGREEMENT (the "Agreement") is dated for reference purposes as of the 26th day of April, 2013 (the "Agreement Date"), and is made and entered into by and among PROTECT COASTAL HUNTINGTON BEACH, a non-profit California public benefit corporation ("PCHB"), BILL GARRISI, an individual ("Garrisi"), JEFF SMITH, an individual ("Smith") (PCHB, Garrisi, and Smith sometimes hereinafter being collectively referred to as "Petitioners"), CITY OF HUNTINGTON BEACH, a California charter city ("City"), CITY COUNCIL OF HUNTINGTON BEACH, the legislative body of the City of Huntington Beach ("City Council") (City and City Council sometimes hereinafter being collectively referred to as "Huntington Beach"), PIERSIDE PAVILION, LLC, a California limited liability company ("Pierside"), and JOE DAICHENDT, an individual ("Daichendt"). PCHB, Garrisi, Smith, City, City Council, Pierside, and Daichendt are sometimes hereinafter individually referred to as a"Party" and collectively as the"Parties." RECITALS A. On September 17, 2012, the City Council approved Mitigated Negative Declaration 11-007, Coastal Development Permit No. 11-012, Conditional Use Permit No. 11-021, Entitlement Plan Amendment No. 11-007, and Variance No. 11-005 and the City as Successor Agency to the dissolved Redevelopment Agency of the City of Huntington Beach (the "Successor Agency") approved and the Successor Agency and Pierside entered into that certain "Second Amendment to the Owner Participation (Pierside Pavilion, LLC)" (such actions and agreement being collectively referred to herein as the "Project Entitlements") which authorize an approximately 40,000 square 112/029925-0001 5497150.5 a04/26/13 -1- foot expansion of the existing Pierside Pavilion development project (such expansion project, including all of the terms, conditions, and mitigation measures relating thereto which are the subject of the Project Entitlements being referred to herein as the"Project") to be located at 300 Pacific Coast Highway, Huntington Beach, California (the "Project Site"). The Project Entitlements approve the Project site plan, floor plans, elevations, and section elevations dated May 4, 2012, and revised building footprint and elevations submitted on behalf of Pierside to City on September 17, 2012 (collectively, and as so revised, the "Approved Site Plan"). Not by way of limitation of the foregoing, the Project Entitlements and Approved Site Plan for the Project provide for enclosure within the building on the Project Site of the outdoor patio currently occupied by the Black Bull Chop House (300 Pacific Coast Highway, Space#112) and relocation/reorientation of the outdoor patio area for said tenant/restaurant space to the portion of the Project Site facing out toward Walnut(herein, collectively, the"Black Bull Chop House Improvements"). B. On October 19, 2012, Petitioners filed a Verified Petition for Writ of Mandate and Complaint for Declaratory and Injunctive Relief(the "Petition") in Orange County Superior Court (Case No. 30-2012-00606587-CU-PT-CXC) (the "Action") alleging that the City's approval of the Project violated various state and local laws and regulations and was illegal, invalid, and unenforceable, and seeking a writ of mandate, declaratory and injunctive relief, and attorney's fees and costs with respect thereto, all as more particularly set forth and referred to in the Petition. Petitioners filed a Second Amended Petition on December 6, 2012, naming Pierside Pavilion, LLC as a real party in interest. 112/029925-0001 5497150.5 a04/26/13 -2- C. Pierside is the owner of the Project Site, Pierside's agent applied to the City for the Project Entitlements and processed said application on Pierside's behalf, and Pierside is a real party in interest in the Action. D. Daichendt is affiliated with Pierside and in that capacity is benefitted by a settlement of this litigation and, accordingly, is also willing, in addition to Pierside, to agree to be bound by the provisions of this Agreement pertaining to the payment of the "Settlement Amount"referred to in Paragraph 1 below. E. The Parties have determined that it is desirable and in their mutual best interests to settle the Action and all of their disputes relating to the Project on the terms and conditions set forth herein. TERMS OF AGREEMENT Based on the foregoing Recitals, which are incorporated into this Agreement by this reference, and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by all Parties, Petitioners, Huntington Beach, Pierside, and Daichendt agree as follows: 1. Settlement Amount. Pierside and Daichendt shall pay Petitioners and Petitioners' legal counsel certain monies (Settlement Amount) in the amounts specified in that certain separate confidential letter agreement between the Petitioners, Pierside, and Daichendt dated April 26, 2013, pursuant to the terms set forth in that letter agreement, the terms of which are incorporated herein by this reference as if set forth in full. Such separate letter agreement, including the Settlement Amount(s) and the payment terms 112/029925-0001 5497150.5 a04/26/13 -3- therein, shall remain confidential and shall not be included in the Court, City, or other public records. 2. Covenant; Dismissal With Prejudice of the Action. Concurrently with their execution and delivery of this Agreement, Pierside, Garrisi, and Smith shall each execute (in recordable form) and deliver to Pierside's counsel that certain Agreement Containing Covenants Affecting Real Property in the form attached hereto as Exhibit "A" (the "Covenant"). Pierside shall cause the Covenant to be recorded against the Project Site. Within five (5)business days after the later of(i) the date on which Pierside and/or Daichendt pay the full Settlement Amount pursuant to Paragraph 1 and the separate confidential letter agreement referred to therein and (ii) Pierside delivers evidence to Petitioners that the Covenant has been recorded against the Project Site, Petitioners shall file a dismissal with prejudice of the entire Action and promptly deliver a copy of said dismissal with prejudice to City and Pierside. 3. Certain Ongoing Obligations of Pierside and Petitioners With Respect to Project. Pierside and. Petitioners agree that the following specific obligations shall survive the dismissal with prejudice of the Action. Such obligations shall not apply to or be binding upon City or Daichendt: A. Noise Monitoring. On or before July 1, 2013, Pierside, at its sole cost and expense, shall acquire and deliver to Petitioners one (1) new, complete, and assembled item of noise monitoring equipment to be owned by Pierside but installed .by Petitioners at an outdoor location within Pier Colony selected by Petitioners that faces the existing and future Project building. The item of noise monitoring equipment shall be of a type that 112/029925-0001 5497150.5 a04/26/13 -4- (i) is capable of monitoring noise levels generated from the portion of the Project Site facing Pier Colony on a continuous basis, (ii) will record and store decibel levels (but not the actual noise events) in a format that can be retrieved and verified at a later date, and (iii) is suitable for placement in an outdoor environment exposed to rain and the type of year-round weather conditions to which it is likely to be exposed. Petitioners and Pierside agree to cooperate in good faith to identify and mutually agree, before June 1, 2013, on the precise type of noise monitoring equipment to be acquired; provided, however, that if Petitioners and Pierside do not so agree, Pierside shall have the authority to .select the item of noise monitoring equipment to be obtained as long as it satisfies all three criteria listed in the preceding sentence. If installation of the noise monitoring. equipment at the location selected by Petitioners requires any permits or approvals from City, the homeowners' association for Pier Colony, or any other owner/occupant in Pier Colony, Petitioners shall be solely responsible for obtaining such permits or approvals at their sole cost and expense. In addition, Petitioners shall be solely responsible for the cost of installing the noise monitoring equipment within Pier Colony and providing any utility service to the noise monitoring equipment that is required to enable it to properly function. Petitioners shall utilize the noise monitoring equipment to monitor noise levels generated by activities on and within the Project Site for compliance with the exterior noise standards established in the City's noise control ordinance (Chapter 8.40) 112/029925-0001 5497150.5 a04/26/13 -5- and in accordance with the procedures established by the City's noise ordinance, as the same may be amended from time to time. Petitioners shall provide access to the noise monitoring results to Pierside through a password secured account that can be accessed online. For ten (10) years after dismissal of prejudice of this Action, Pierside, at its sole cost and expense, agrees to own, maintain, repair, and replace (with an equal or better standard/quality of equipment), as reasonably necessary, the noise monitoring equipment mutually agreed to be purchased. Should said equipment be stolen or vandalized, Pierside shall not be obligated to replace or repair such equipment. Pierside shall identify one or more individual representative(s) and their corresponding telephone number(s) that may be called and reached 24 hours per day, 7 days per week, to notify Pierside of any violations of City's noise ordinance occurring on the Project Site. Petitioners agree to make reasonable efforts to first address violations of City's noise ordinance occurring on the Project Site through use of the designated representative(s) before calling the City police or filing noise complaints, and will urge other Pier Colony residents to do the same by distributing the designated name(s) and telephone number(s). B. As set forth in the Covenant, Pierside covenants. that the above-ground portion of the southerly edge of the building on the Project Site facing the Pier Colony residential project will not extend closer to the property line with Pier Colony than is authorized by the Project Entitlements and the Approved Site Plan, as depicted in the portion of the Approved Site Plan 112/029925-0001 5497150.5 a04/26/13 -6- set forth in Attachment No. 3 to the Covenant. It is understood and agreed that the Covenant will not apply to any of the following: (i) below-grade improvements; (ii) awnings, signage, and minor architectural details that may project from the exterior of the building; (iii) non-building improvements and structures such as moveable carts and kiosks, benches and seating areas, landscaping, and the like; and (iv) any construction City may elect to undertake consistent with its public access easement between the building on the Project Site and the building on the Pier Colony property. Garrisi and Smith shall be solely responsible at their cost for causing the Covenant to be recorded against their respective condominium unit parcels within Pier Colony. In addition to the foregoing, Garrisi and Smith shall have the right to cause the Covenant to be recorded against the entire Pier Colony property and Pierside agrees to cooperate in executing any supplemental documents that may be required in connection therewith, at no cost or expense to Pierside. C. Pierside shall cause the Black Bull Chop House Improvements referred to in Recital A to be completed in accordance with the terms and conditions of the Project Entitlements and Approved Site Plan. 4. No Opposition to Project. From and after the Parties' approval, execution, and delivery of this Agreement and contingent upon Pierside's and Daichendt's performance of their obligation to pay the Settlement Amount in accordance with Paragraph 1, Petitioners covenant (i) to not administratively or judicially oppose, litigate, sue, challenge, or otherwise contest the Project, the Project Entitlements, and/or any 112/029925-0001 5497150.5 a04/26/13 -7- subsequent Project approvals that may be sought or obtained by Pierside with respect thereto, including without limitation grading and excavation permits, encroachment permits, building permits,occupancy permits, and the like, (ii) to not counsel others to, directly or indirectly, initiate, aid, request, encourage, file, fund, or participate in any administrative hearing, litigation, or other action related in any way to any aspect of the approval, permitting, entitlement, implementation, development, construction, or operation of the Project, the Project Entitlements, and/or any such subsequent Project approvals that may be sought or obtained by Pierside, and (iii) to not state public opposition to the Project, the Project Entitlements, and/or any such subsequent Project approvals that may be sought or obtained by Pierside, including without limitation comments to the news media or to public forums; provided, however, that Petitioners' covenants in clauses (i)-(iii) shall not apply to the extent that Pierside requests future changes in the Project or Project Entitlements and Petitioners reasonably determine that such changes are either inconsistent with the express provisions set forth in Paragraphs 3.A-3.0 of this Agreement or such changes will result in an unmitigated significant environmental impact on Petitioners. 5. Complete and Final Settlement; No Admission of Fault Liability, or Damages. Petitioners, Pierside, and Daichendt agree that Pierside's and Daichendt's payment of the Settlement Amount, Petitioners' filing of the dismissal with prejudice of the Action, and Pierside's and Petitioners' ongoing performance of their respective covenants set forth in Paragraphs 1-4 of this Agreement are intended to effectuate a complete and final settlement of the Action and the Parties' dispute with respect to the Project, the Project Entitlements, and all other disputes related to or arising out of any of 112/029925-0001 5497150.5 a04/MM -g- such matters. The Parties agree that this Agreement is a compromise of disputed claims and that nothing contained herein shall be deemed or treated as an admission of fault or liability of any kind by any Party. 6. Costs. Huntington Beach acknowledges that Petitioners previously paid to City the sum of Three Thousand Five Hundred Dollars ($3,500) to reimburse Huntington Beach a portion of its costs incurred in assisting in preparation of the Administrative Record in the Action and Pierside previously paid to City the sum of Six Thousand Two Hundred Dollars ($6,200) to reimburse Huntington Beach the remaining amount of attorney's fees and costs incurred by Huntington Beach with respect to the Action. City shall be entitled to retain such payments. Except as expressly set forth in Paragraph 1 and this Paragraph 6, each of the Parties shall be responsible to bear its own costs and attorney's fees with respect to the Action, including without limitation with respect to the negotiation, preparation, and approval of this Agreement and the Administrative Record in the Action. 7. Release Covenant Not to Sue and Mutual Indemnity. Each Party to this Agreement hereby releases, disposes, and forever discharges each other Party, including its officials, officers, managers, partners, directors, trustees, employees, agents, representatives, attorneys, insurers, successors, and assigns, and each of them (collectively, the "Released Parties") from and against any and all claims, complaints, demands, causes of action, obligations, damages, costs, expenses, liens, attorneys' fees, warranties, rights and liabilities of any nature whatsoever, whether known or unknown, suspected or not suspected to exist, claimed or not claimed, that have arisen in connection with the Action, the Project Entitlements, and the Project (collectively, the 112/029925-0001 5497150.5 a04/26/13 -9- "Released Claims") and each Party covenants not to institute or maintain any administrative or judicial proceeding against any of the Released Parties with respect to any of the Released Claims; provided, however, that the Released Claims do not include any of the obligations arising out of this Agreement or obligations that this Agreement expressly provides shall survive the execution and delivery of this Agreement. To the full extent of the foregoing release of the Released Claims, each Party also expressly waives all "unknown claims" as against the Released Parties and expressly waives its rights under Civil Code Section 1542, which reads as follows: A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. Each Party hereby completely and unequivocally waives as against each of the Released Parties the provisions of Civil Code Section 1542 as it applies to the Released Claims. In this regard, each Party acknowledges that it may hereafter discover facts different from or in addition to those facts which it now believes to be true with respect to the Released Claims and the foregoing release shall be and remain effective in all respects notwithstanding any such additional or different facts or said Party's belated discovery thereof. Except as may be expressly set forth herein, no Party nor any of its agents has made any statement, promise, or representation to any other Party regarding any fact relied upon by any other Party in entering into this Agreement, and each Party expressly acknowledges that it is not relying upon any such statement, promise, or representation in entering into this Agreement. Each Party has made such investigation of the facts 112/029925-0001 _10- 5497150.5 a04/26/13 pertaining to this Agreement and of all other matters pertaining hereto as it deems necessary. Petitioners, on the one hand, and Pierside and Daichendt, on the other hand (each, an "Indemnitor"), agree to indemnify, defend, and hold Harmless one another and the Released Parties affiliated with such Party(ies) (herein, the "Indemnitees") from and against any and all claims, liabilities, and losses for any type of damage whatever arising out of any administrative action, arbitration or mediation proceeding, or litigation filed against the Indemnitee(s) as a result.of the Indemnitor's breach of any of its obligations set forth herein, including without limitation a breach of any of the Indemnitor's representations and warranties set forth in Paragraph 8.A. 8. Miscellaneous. A. In entering into this Agreement, each Party represents and warrants to the other Parties that: (1) the description of such Party's status as an entity or individual in the introductory paragraph of this Agreement is true and correct; (ii) he/she/it is the owner of all of the rights attributed to such Party in this Agreement and he/she/it has not assigned, transferred, or encumbered any of such rights to any third party; (iii) he/she/it has the authority to enter into and perform his/her/its obligations set forth in this Agreement; (iv) he/she/it has taken all actions necessary to approve and execute this Agreement and no approvals of any third party are required to make this Agreement binding and enforceable upon such Party; (v) the person(s) executing this Agreement on behalf of such Party is (are) duly authorized to do so and no other person's signature is required to make this Agreement binding and enforceable upon such Party; (vi) such Party's entering into and performing its obligations set forth in this Agreement will not 112/029925-0001 5497150.5 a04/26/13 -1 1- constitute a breach or default by such Party of its obligations to any third party; (vii) this Agreement is binding and enforceable against such Party except to the extent of limitations on creditor's rights due to general law, bankruptcy or insolvency, and/or the equitable powers of the courts; (viii) such Party is not insolvent and is not the subject of any voluntary or involuntary bankruptcy petition; and (ix) such Party has read all of the terms of this Agreement, he/she/it understands and voluntarily accepts the terms of this Agreement, and he/she/it has,discussed the terms and conditions of this Agreement with his/her/its attorney or has had a full and fair opportunity to do so and has voluntarily elected to forego the advice of legal counsel. In addition to the foregoing, Petitioners Garrisi and Smith make each of the aforedescribed representations and warranties on behalf of PCHB. B. This Agreement shall be interpreted in a fair and objective manner, based on the terms and conditions set forth herein. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event of a dispute arising out of the interpretation or enforcement of this Agreement, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. C. This Agreement sets forth the entire understanding of the Parties in connection with the subject matter addressed herein and supersedes any prior discussions, negotiations, and agreements relating thereto. No Party has made any statement, representation, or warranty in connection with this Agreement that has been an inducement for any other Party to enter into this Agreement, except as may be expressly 112/029925-0001 5497150.5 a04/26/13 -12- set forth in this Agreement. It is expressly understood and agreed that this Agreement may not be altered, amended, modified, or otherwise changed in any respect whatsoever except by a writing duly executed by authorized representatives of the Parties hereto. The Parties agree that they will make no claim at any time or place that this Agreement has been orally altered or modified or otherwise changed by oral communication of any kind or character. D. This Agreement shall be governed by the internal laws of the State of California, without regard to conflicts of law principles. Venue for any lawsuit arising out of this Agreement shall be the County of Orange. F. In the event any portion of this Agreement is deemed to be unenforceable, or is in conflict with applicable law, the remainder of this Agreement shall be enforced and shall remain in full force and effect, unless the unenforceable portion is a material consideration to a Party to this Agreement. G. In the event any litigation is filed arising out of this Agreement between or among Petitioners, Pierside, and/or Daichendt, the prevailing party shall be entitled to recover its attorney fees and costs in addition to whatever other relief to which it may be entitled. H. Except to the extent that the release and indemnity provisions set forth in Paragraph 6 of this Agreement expressly benefit certain designated persons, nothing in this Agreement shall be construed to create any third party beneficiary rights. I. Each Party agrees to cooperate fully and to execute any and all documents and to take all additional actions that may be necessary or reasonably 112/029925-0001 5497150.5 a04/26/13 -13- appropriate to give full force and effect to the basic terms and intent of this Agreement, and which are not inconsistent with its terms. J. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. K. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns. L. All notices or communications delivered pursuant to this Agreement shall be in writing and shall be sent or delivered to the Parties at the following addresses: (i) notices to Petitioners shall be addressed as follows: Jeff Smith, 200 Pacific Coast Highway #320, Huntington Beach, CA 92648, with copies to Bill Garrisi, 200 Pacific Coast Highway, #123, Huntington Beach, CA 92648, and Andrea K. Leisy, Esq., Remy Moose Manley, LLP, 455 Capitol Mall, Suite 210, Sacramento, CA 95814; (ii) notices to Huntington Beach shall be addressed as follows: City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648, Attention: City Attorney; and (iii) notices to Pierside and Daichendt shall be addressed as follows: Joe Daichendt, 1 Hammond Road, Ladera Ranch, CA 92694, with a copy to Jeffrey M. Oderman, Esq., Rutan &Tucker LLP, 611 Anton Boulevard, 14`h Floor, Costa Mesa, CA 92626. Any 112/029925-0001 5497150.5 a04/26/13 -14- party may change its address for notice purposes by delivering notice of such change of address in accordance with this Paragraph 8.L. Notices may be delivered in person, by certified mail, postage prepaid, return receipt requested, or by reliable messenger or overnight courier that provides a receipt confirming the date of delivery. Notices shall be deemed to have been delivered on the date of receipt or, if the date of receipt is not a business day, on the next business day. M. As used in this Agreement, the term "business days" shall exclude Saturdays, Sundays, and all holidays and other days on which Huntington Beach City Hall is closed. PROTECT COASTAL HUNTINGTON BEACH DATED: April2�, 2013 By: Its: DATED: AprilV, 2013 BILL GARRISI DATED: April' 2013 JE CITY OF HUNTINGTON BEACH AND CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DATED: April_, 2013 By: Its: PIERSIDE PAVILION,LLC DATED: April_, 2013 By: Its: 112/029925-0001 5497150.3 a04/26/13 —15— party may change its address for notice purposes by delivering notice of such change of address in accordance with this Paragraph S.L. Notices may be delivered in person, by certified mail. postage prepaid, return receipt requested, or by reliable messen--er or overnight courier that provides a receipt confirming the date of delivery. Notices shall be deemed to have been delivered on the date of receipt or, if the date of receipt is not a business day, on the next business day. M. As used in this Agreement, the term "business days" shall exclude Saturdays, Sundays; and all holidays and other days on which Hunting-on Beach City Hall is closed. PROTECT COASTAL HUNTINGTON BEACH DATED: April 2013 By: Its: DATED: April 2013 BILL GARRISI DATED: April 201 JEFF SMITH CITY OF HUNTINGTON BEACH AND CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DATED: April-X� 2013 B . JENN F'ER MCGRATA- Its: City Attorney fit` PIERSIDE PAVILION, LLC DATED: April 2013 By: Its: 112/029925-0001 54971503 a04/30/13 —1�— party may change its address for notice purposes by delivering notice of such change of address in accordance with this Paragraph 8.L. Notices may be delivered in person, by certified mail, postage prepaid, return receipt requested, or by reliable messenger or overnight courier that provides a receipt confirming the date of delivery. Notices shall be deemed to have been delivered on the date of receipt or, if the date of receipt is not a business day, on the next business day. M. As used in this Agreement, the term "business days" shall exclude Saturdays, Sundays, and all holidays and other days on which Huntington Beach City Hall is closed. PROTECT COASTAL HUNTINGTON BEACH DATED: April , 2013 By: Its: DATED: April 2013 BILL GARRISI DATED: April 2013 JEFF SMITH CITY OF HUNTINGTON BEACH AND CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DATED: April , 2013 By: Its: PIERSIDE PAVILION, LLC DATED: April,�e, 2013 �---� —�—' By: t,e-,cjy Its:-A ze- A e- 112/029925-0001 5497150.3 a04/26/13 -15- DATED: April , 2013 JOE DAICHENDT 1 1 2/0299 2 5-000 1 5497150.3 a04/26/13 '16- EXHIBIT "A" AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY [See attached pages] 4971 0.5 a0401 EXHIBIT"A" 5497150.5 a04/26/13 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Pierside Pavilion, LLC c/o Joe Daichendt 1 Hammond Road Ladera Ranch, CA 92694 (Space Above This Line For Recorder's Use) AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY This Agreement Containing Covenants Affecting Real Property(the"Covenant") is dated for reference purposes as of the 24th day of April, 2013, and is entered into by and between PIERSIDE PAVILION, LLC, a California limited liability company("Pierside"), and BILL GARRISI, an individual ("Garrisi"), and JEFF SMITH, an individual ("Smith") (Garrisi and Smith sometimes being collectively referred to herein as the"Pier Colony Owners"). Pierside, Garrisi, and Smith are sometimes individually referred to herein as a "Party" and collectively as the"Parties." RECITALS: A. Pierside is the fee owner of that certain real property commonly known as Pierside Pavilion located at 300 Pacific Coast Highway, Huntington.Beach, CA 92648, and more particularly described in Attachment No. 1 hereto (the"Pierside Pavilion Property"). B. Garrisi is the owner of the residential condominium unit located at 200 Pacific Coast Highway#123, Huntington Beach, CA 92648 (the "Garrisi Parcel"). Smith is the owner of the residential condominium unit located at 200 Pacific Coast Highway#320, Huntington Beach, CA 92648 (the "Smith Parcel"). The Garrisi Parcel and Smith Parcel are more particularly described in Attachment No. 2 hereto. The Garrisi Parcel and Smith Parcel are airspace parcels located within a residential condominium project commonly known as Pier Colony. C. The Pierside Pavilion Property and Pier Colony are adjoining properties. D. Pierside, Garrisi, and Smith are parties to a Settlement Agreement of even date herewith (the"Settlement Agreement") relating to a lawsuit filed by Garrisi, Smith, and a non- profit public benefit corporation against the City of Huntington Beach and City Council of the City of Huntington Beach(collectively, the "City") that arises out of the City's approval of an expansion of the existing commercial development on the Pierside Pavilion Property. One of the terms of the Settlement Agreement obligates Pierside, Garrisi, and Smith to execute(in recordable form), deliver, and record this Covenant to restrict future development on the Pierside Pavilion Property in favor of the Pier Colony Owners. 112/029925-0001 5497150.5 a04/26/13 COVENANTS: For good and valuable consideration, the receipt and sufficiency of which is acknowledged by Pierside and the Pier Colony Owners, the Parties hereby agree as follows: l. Restrictive Covenant Applicable to Pierside Property. From and after the recordation of this Covenant, Pierside covenants that the above-ground portion of the southerly edge of the building on the Pierside Pavilion Property facing Pier Colony will not extend or project closer to the property line with Pier Colony than the building limit line depicted in Attachment No. 3 hereto. It is understood and agreed that this Covenant shall not apply to any of the following: (1) below-grade improvements; (ii) awnings, signage, and minor architectural details that may project from the exterior of the building; (iii)non-building improvements and structures such as moveable carts and kiosks, benches and seating areas, landscaping, and the like; and(iv) any construction City may elect to undertake consistent with its public access easement between the building on the Project Site and the building on the Pier Colony property. This restrictive covenant does not convey any right to the Pier Colony Owners to occupy or use any portion of the Pierside Pavilion Property. 2. Covenants Run With The Land. The terms and conditions of this Covenant shall be appurtenant to and constitute covenants running with the land and shall burden the Pierside Pavilion Property in favor and for the benefit of the Garrisi Parcel and the Smith Parcel in accordance with the provisions of California Civil Code Section 1468. In addition, Garrisi and Smith shall have the right to cause the Covenant to be recorded against the entire Pier Colony property and Pierside agrees to cooperate in executing any supplemental documents that may be required in connection therewith, at no cost or expense to Pierside, and in such event this Covenant shall also benefit the balance of the Pier Colony property. This Covenant shall inure to the benefit of and be binding upon the heirs, representatives, successors, and assigns of each of the Parties. 3. Counterparts. This Covenant may be executed in counterparts and each such counterpart is hereby declared to be an original; all, however, shall constitute but one and the same agreement. IN WITNESS WHEREOF,the Parties have executed this Covenant on or about the day and year first above written. 112/029925-0001 _ 5497150.5 a04/26/13 —� PIERSIDE PAVILION, LLC DATED: AprilA 2013 2- '� q By: 5 c e ,G�c"� Its: DATED: April , 2013 BILL GARRISI DATED: April 2013 JEFF SMITH 112/029925-0001 _ 5497150.3 a04/26/13 _3 PIERSIDE PAVILION, LLC DATED: April_, 2013 By: Its: DATED: Apri�? 2013 -- —`�g BILL GARRISI DATED: Aprii(/�, 2013 JEFF S ti 112/029925-0001 5497150.3 a04/26/13 State of California ) County of Orange ) On l; 1 L . Z �`. 2 cv[ , before me (insert name and title of the officer) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(swhose name(s) is/are subscribed to the within instrument and acknowledged to me that he/s-he/they executed the same in his/her/their authorized capacity(i-es), and that by his/her/their signature(son the instrument the person(s)-or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature l `— (Seal) L.PESCARMONA o COMM.#1987588 NOTARY PUBLIC CALIFORNIA 54 ORANGE COUNTY ro State of California My Comm.expires Sep.6,2016 It County of Orange ) On , before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 112/029925-0001 5497150.3 a04/26/13 _4_ State of California ) County of Orange ) On O n;x\ before me,?e' " _Q-1Qf4 CA , —�— _ (insert name and title of the officer) Notary Public, personally appeared Li", ),,, , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNES and official seal. Signature (Seal) �• PEDRO D. GARCIA COMM...1967418 w NOTARY PUBLIC-CALIFORNIA --i ORANGE COUNTY [J My Term Exp.Jan.23,2016 State of California ) County of Orange ) On Pall 2 1-7 D before me, -Feco-o -)D ctrC.,Q (insert name and title of the officer) Notary Public,personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. PEDRO D. GARCIA COMM...1967418 n NOTARY PUBLIC-CALIFORNIA -j III � ' ORANGE COUNTY W My Term Exp.Jan.23,2016 112/029925-0001 —4— 5497150.3 a04/26/13 WITNESS my hand and official seal. Signature (Seal) State of California ) County of Orange ) On , before me, (insert name and title of the officer) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 112/029925-0001 _ 5497150.3 a04/26/13 _5 ATTACHMENT NO. 1 Legal Description of Pierside Pavilion Property That certain real property located in the City of Huntington Beach, County of Orange, State of California, more particularly described as follows: LOT 1 OF TRACT NO. 13722,AS SHOWN ON A MAP FILED IN BOOK 636,PAGES 38 TO 41 INCLUSIVE OF MISCELLANEOUS MAPS,RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING FROM A PORTION OF SAID LAND,AN UNDIVIDED ONE-HALF INTEREST IN AND TO ALL OIL, OIL RIGHTS,MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS,AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN,LOCATED WITHIN OR UNDER, AS RESERVED IN THE DEED FROM BETTY HOLT WEAVER AND OTHERS,RECORDED AUGUST 15, 1985 AS DOCUMENT NO. 85-305251 IN OFFICIAL RECORDS OF ORANGE COUNTY. ALSO EXCEPTING FROM A PORTION OF SAID LAND,ALL OIL, GAS AND OTHER HYDROCARBON SUBSTANCES BELOW A DEPTH OF 500 FEET,BUT WITHOUT THE RIGHT OF SURFACE ENTRY,AS RESERVED IN THE DEED FROM AAFKE ROMPLEMAN,A MARRIED WOMAN,RECORDED AUGUST 10, 1960 IN BOOK 5367, PAGE 297 OF OFFICIAL RECORDS. ALSO EXCEPTING FROM A PORTION OF SAID LAND,ALL OIL,GAS,MINERALS AND OTHER HYDROCARBON SUBSTANCES LYING BELOW A DEPTH OF 500 FEET, BUT WITHOUT THE RIGHT OF SURFACE ENTRY,AS RESERVED IN THE DEED FROM ELSIE M. BAKRE SMITH,A MARRIED WOMAN,RECORDED MARCH 14, 1961 IN BOOK 5655, PAGE 693 OF OFFICIAL RECORDS. ALSO EXCEPTING FROM A PORTION OF SAID LAND ALL OIL, GAS, HYDROCARBONS AND MINERALS BELOW A DEPTH OF 500 FEET FROM THE SURFACE OF SAID LAND, WITHOUT, HOWEVER, ANY RIGHT OF SURFACE ENTRY AS RESERVED BY CALIFORNIA RESORTS INTERNATIONAL, INC., IN A DEED RECORDED MARCH 13, 1989 AS INSTRUMENT NO. 89-127442 OF OFFICIAL RECORDS. 112/029925-0001 5497150.5 a04/26/13 -6 ATTACHMENT NO. 2 Legal Descriptions of the Smith and Garrisi Parcels Smith Legal Description A Condominium Comprised of Parcel No.1: An undivided 1113e interest in and to lot I of tract no. 13478,in the City of Huntington B,-=h,County of-Orange,State of California,as per map reworded in book 636,pages)42 thra 44 ai miscellaneous reaps,Orange county,California. Excepting therefrom units 101-132 inclusive,134450 inclusive,M9,`417,M29,M30,M40,M1 50,206,208,209,211,216-218, inclusive,220,226,229-231 inclusive,233,239,240,245;250,3Q0-304 inclusive,306,307,309,311-317 inclusive,319,32Q, 322-326 inclusive, 328,329,332,334-337 inclusive,339,341-343 inclusive,345-350 inclusive,402,404,406,408,411,413, 415,416,41%418,420,422,424,426,436,439,443,445,447 and 449 as defined and delineated on the Condornini m Plan recorded MAy 2,1990 as instrument no.90-231114 of Official Records. Except tberefrom all oil,gas,n-daeral,and other hydrocarbons;as reservod and/or granted m the document(s)recorded September• 17, 197 i in book 9702,page(s)438,August 23,1973 in book 10967,pagc(s)60,August 15,1985 as instrunrcart no.85-305251, Lune 14,1975 is book 11432,page(s)1742 and June 11,1959 in book 4752,page(s)467 all of Official Records. Bxszpting therc6om exclusive right for all uses and purposes of parking spaces and lockr±rs together with the right to grant the same to others as provided in the declaration(as defined below),over and across those portions of said lx4 defined herein on the parking and locker plan recorded June 5,1990 as instrument no.90-299649,Official Records and amended October 1,1990 as instrument no.90-523655,Official Records. Parcel No.2: Utit 320 as shown and delineated on the above ref.d to Condominium Plan. Parcel No.3: An exclusive easement appurtenant to pals 1 and 2 above,for all uses and purposes of a balcony over and across that portion of lot I of said tract no.1.3478 defined and delineated as"exclusive use common area"320B on the above-ref=mcd Condominium Plan. Parcel No.4: An exclusive eas=ent appurtenant to parcels 1 Ord 2 above,for all uses and putposcs cif a storage space over and=oss.that portion of lot 1 of said tract no. 13479 defined and delineated w"exclusive us,-common area"320E oa.the above-referenced Coadorrdaiu,Plan. 112/029925-0001 5497150.5 a04/26/13 -7 Garrisi Legal Description Real property in the City of Huntington Beach, County of orange, State of California, described as follows, PARCEL NO. 1; An undivided 1J130th interest in and to Lot 1 of Tract No. 13478,as per map recorded in Book 636,Pages 42 thru 44 of Miscellaneous Maps,Orange County. California.. EXCEPTING THERErROM units 101-132 inclusive,134-150 inclusive,M9,M17, M29, M30, H40, M50,206, 208,209, 211, 216-218 inclusive, 220, 2261 229-231 inclusive, 233, 239, 240,245, 250,300-304 inclusive,306,307, 309,311-317 inclusive,319, 320,322-326 inclusive,328,329,332, 334-337 inclusive,339,341-343 inclusive, 345-350 inclusive,402,404,406,408,413,413,415,416,418,620,422,424,426, 436,439, 443,445,447 and 649,as defined and delineated on the Condominium Plan recorded May 2, 1990 as Instrument No. 90-231114 of Official Records. Excepting from a portion thereof all oil,.gas and other hydrocarbon substances and minerals lying below a depth of 500 feet from the surface of said land, but without the right of surface entry at any time upon said land or within the top 500 feet thereof,for the purpose of exploring for,developing, producing,removing and marketing said substances, as granted to Paul H. Maier and Heim Crawford and Cecelia Hoefee and Anna Castig and Effie Nation and Laura Mullens by deed recorded September 17,1971.in Book 9702, rage 433 of Official Records and as granted to: Robert J. Bunn and Jane G. Bunn in Deed recorded August 23r 1973 in Kook 10867, Page 60 of Official Records, Also excepting from a portion thereof all rights,title and interest now belonging to or hereinafter inuring to the lessors or their,successors or.assignees and to the lessees or their successors or assignees in that certain community oil and gas lease,known as'Original East Huntington Beach V Community Oil and Gas lease,dated August 21, 1954,executed by Ann�'Thomas as to said land and another as to`other land,as . lessors,and Jack B. Crawford,as lessee,recorded December 1:5. 1956 in Book 2897, Page 332 of Official Records. Also excepting from a portion thereof all rights,title and interest now belonging to or hereinafter inuring to the lessons or their successors or assignees and to the lessees or their successors or assignees in those two certain community all and gas leases, known as Tast Huntington Beach V Community Oil and Gas Lease,Counterpart A', each dated August 21. 1954,executed by Ann Thomas as to said land and others as to other land as lessors`and:Tack B.Crawford, as lessee, recorded March Z1,19551n Book 3003,Page 251 of Official Records and April 1, 1955 in (look 3018, Page 40 of Official Records. Also excepting from a portion thereof all oil,gas,minerals lying below a depth or 500 feet from the surface thereof, but without the right of surface entry at any time upon said land or within the top 500 feet thereof,for the purpose of exploiting for, developing producing,removing and marketing said substances. Also excepting from a portion thereof all rights,title and interest now belonging to or. 112/029925-0001 5497150.5 a04/26/13 _g hereinafter inuring to the lessors,or their.successors or assignees,,and to the lessees, or their successors or assignees, in those two certain community oil and gas leases, known as`East Huntington Beach V Community Oil and Gas Lease,Counterpart A', each dated August 21, 1954,executed by Samuel L. Hancock as to said land,and by others as to other land,as lessors,and by Jack B.Crawford,as lessee,recorded March 21,1955 in Book 3003,Page 251 of Official Records of said County,and April 1, 1955 in Book 3018, Page 40 of Official Records of said County,as modified by an instrument dated February 21. 1955,executed by Samuel L..Hancock and another,as `lessors'and Jack S. Crawford,as`lessee y recorded March 21, 1955 In nook 3003; Page 255 of Official Records. Also excepting from a portion thereof, an undivided one-half interest in.and to all rail, oil rights, minerals, mineral rights, natural gas rights,and other hydrocarbons by whatsoever name known, located within or under said portion,as reserved in the Deed from Betty Molt Weaver and others, recorded August 15,1905 as Instrument No. 85-305251 in Official Records,records of Grange County. Also excepting from a portion thereof all oil,gas,minerals,hydrocarbon and other related substances in and under said real property,together with and any and all royalties that my accrue from the same,as granted to Mabel Pierence Graham and Edna Myrth Hopson in document recorded June 17, 1975 In Book 11432,Page 1742 of Official Records. Also excepting from a portion thereof all crude oil, petroleum,gas, Brea,asphaltum and all kindred substances and other minerals under and in said land,as reserved by Bank of America in the Deed recorded June 11, 1959 In Book 4752,Page 467 of Official Records. PARCEL 2: Unit 123 as shown and delineated on the above referred to Condominium Plan: PARCEL 3: An Exclusive right to use,appurtenant to Parcels i and 2 above,for all uses and purposes of a parking space over and across that portion of Lot 1 of said Tract No. 1347S as created in the Declaration as defined below)and as shown on the Parking and Locker Plan recorded June 5. 1990 as Instrument No. 90-299649,Official Records subject to the right of the Board of Directors of she Huntington Pier Colony Condominium Homeowners'Association to reassign such parking spaces as provided in the Declaration. (as defined below). If the parking space is reassigned or transferred pursuant to the terms and conditions of the Declaration,then such reassignment or transfer shall be reflected in future Grant Deeds. PARCEL 4: An exclusive easement appurtenant to Parcels 1 and 2 above,for all uses and purposes of a Balcony over and across that portion of Lot 1 of said Tract No, 1.3478 defined and delineated as`Exclusive Use Common Area,'13 on the above-referenced Condominium Plan. PARCEL 5, 112/029925-0001 5497150.5 a04/26/13 _9 An exclusive easement appurtenant to Parcels 1 and 2 above,for all uses and . purposes of a Storage Space ever and Across that portion of Lot I and said Tract NO' .. 13478 defined and del.neated as'Exclusive Use Common.Area/S-1.,S-2 on the . above-referenced Condominium plan. PARCEL 6; An exclusive right to use, appurtenant to parcels Iand 2 above,for all uses and purposes of a locker over and across that portion of Lot I and said Tract No. 1.a476 as, created in the Declaration (as defined below)and as shown on the Parking and Locker Plan recorded June 5, 1990 as Instrument No.90-299649, Official Records, subject to the right of the Board of Directors of the Huntington pier colony. Condominium Homeowners`Association to reassign such locker is reassigned or . transferred pursuant to the terms and conditions of the Declaration.,then such reassignment or transfer shall be reflected in future grant deeds. APN: 939-50-532 112/029925-0001 1 Q- 5497150.5 a04/26/13 i WAUiUT AYEW E - -- I _1 ADJACENT W ' lull ADJACENT Mt1*L�d85 QOS4[ti �w. U r 1 I y: i BLeIIUWG z f d VI x� — • � �.�"��.. � rB� .e LU y� `•� __ _ __ ...ram "R°'"� [ 'a'mww J i.1 NQY loN N N PACIFICCGA5THL811WAY ••� "'•'"^�•�Pa••. CONS7�u g .+ &IiElLAN6$GAP[PL4H ��;"'�,;; CV ti d h V 1 2 3 4 5 6 7 8 SUPERIOR COURT OF THE STATE OF CALIFORNIA 9 COUNTY OF ORANGE, CIVIL COMPLEX CENTER 10 11 PROTECT COASTAL HUNTINGTON ) CASE NO. 30-2012-00606587 BEACH, BILL GARRISI and JEFF SMITH 12 a California limited liability company, ) [JUDGE GAIL A. ANDLER,DEPT. CX101] 13 Petitioners/Plaintiffs, ) 14 V. ) ) 15 CITY OF HUNTINGTON BEACH, CITY ) COUNCIL OF HUNTINGTON BEACH; ) 16 and DOES 1 through 20, inclusive ) 17 Respondents/Defendants. ) 18 19 MICHAEL ADAMS and MICHAEL C. ) Petition filed October 19, 2012 ADAMS ASSOCIATES, JOE DAICHENDT ) 20 and THEORY R. PROPERTIES, LLC; ) and ROES 1 through 20, ) u Real Parties in Interest. ) 22 ) 23 24 I hereby certify that the attached is a true and correct transcript of the City of Huntington 25 City Council Meeting of September 17, 2012. 26 27 Dated: Febru .;/ , 2013 Robin Es anislau, Asst. City Clerk 2s City of Huntington Beach 1 HUNTINGTON BEACH CITY COUNCIL TRANSCRIPT 2 Monday, September 17 , 2012, 6 : 00 PM 3 HUNTINGTON BEACH COUNCIL CHAMBERS 4 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648 5 6 MAYOR HANSEN: That takes us through the balance of the 7 consent calendar for this evening, moving us to Item No. 14 . Approval 8 of Mitigated Negative Declaration No. 11-007, Coastal Development 9 Permit 11-012, Conditional Use Permit 11-021, Entitlement Plan 10 Amendment No. 11-007 and Variance No. 11-005, which is an appeal of a 11 plan on commission denial. City Manager. 12 CITY MANAGER WILSON: Then we' ll start tonight' s discussion 13 with a presentation of the project by the planner, Ethan Edwards . 14 MR. EDWARDS: Thank you and good evening Mayor and Council 15 Members . The applicant is requesting approval to modify and expand 16 the existing Pierside Pavilion Development. Project site is located 17 at the northeast corner of PCH and Main Street. It ' s currently 18 developed with a four-story, 90-foot high, mixed-use building 19 consisting of approximately 89, 415 square feet of retail, restaurant, 20 and office uses and 296 parking spaces within two subterranean levels 21 with access from Walnut Avenue. 22 The site consists of one lot with an area of 23 approximately 76, 650 square feet. The project includes a mitigated 24 negative declaration, which analyze the potential environmental 25 impacts of the proposed project . CDP and CUP applications were 26 submitted to demo 400 square feet of the existing structure and 27 construction of a 400 . . . or connecting four story up to 90-foot 28 1 City Council Meeting 1 09-17-12 1 high, 27, 772 square-foot mixed use building, and 9, 401 square-foot 2 infill expansion by means of extending existing store fronts by 3 enclosing arcade areas within the existing footprint. 4 Retail area is proposed on the first level facing the 5 perimeter of the building and office space is proposed behind or 6 within the interior portions of the first level . Restaurant area is 7 proposed on the second level and additional office is proposed on the 8 third and fourth levels . Outdoor dining is proposed on the second 9 floor balcony and rooftop deck. The sale and consumption of alcoholic 10 beverages is proposed within the restaurant areas including the 11 outdoor dining areas and a request for shared parking is included. 12 Entitlement plan amendment application to amend the City Council- 13 approved retail cart locations within the sidewalk along Main and PCH 14 is also requested. Lastly, a variance to permit a maximum building 15 height of 68 feet, plus up to 90 feet for mechanical housing, in lieu 16 of a maximum of 45 feet is requested. 17 The primary issues reviewed during staff' s analysis 18 include the suggested modifications, consistency with the general 19 plan and local coastal program, compatibility with the surrounding 20 uses and the view corridor. Staff is suggesting the following 21 modifications to support the proposed project and in some instances 22 to ensure compliance with the General Plan and Downtown Specific 23 Plan, including design guidelines . 24 Require rooftop deck walls to be 42 inches in height, 25 rooftop mechanical equipment to be set back 15 feet from the exterior 26 edges of the building, requiring a full-height glass window at the 27 28 2 City Council Meeting 1 09-17-12 1 eastern elevation of the outdoor dining area located on the second 2 floor. 3 Require that the reference to the new office area on the 4 first floor plan be removed. Only visitor-serving commercial uses are 5 allowed anywhere on the ground floor. 6 Revise the proposed four-story elevation' s colors and 7 materials to address building mass issues and have the DRB review the 8 overall design. 9 Require the roof element of the eastern stairwell to 10 contrast with the existing building roof design. 11 Require that the use of the rooftop deck be prohibited 12 until a revised noise study is submitted that demonstrates compliance 13 with the City' s noise ordinance and the design of the deck is 14 compatible with the surrounding uses . 15 Revise the proposed car locations to comply with 16 Conditional Use Permit No. 10-17, conditions of approval and code 17 requirements for carts at Pierside. 18 Require that the maximum building height is decreased from 19 top of parapet height of 68 feet to 62, to match the height of the 20 existing building. 21 Restaurant uses with alcohol are proposed within the 22 second floor rooftop deck and infill restaurant areas . These areas 23 are subject to comply with the standardized conditions of approval 24 pursuant to City Council Resolution 11-06 . These standard conditions 25 pertain to limiting the scope of operations to ensure that any 26 proposed establishment functions primarily as a bona fide restaurant 27 28 3 City Council Meeting 1 09-17-12 I and to ensure that potential impacts to surrounding properties are 2 minimized. 3 Additionally, the Police Department suggests several 4 conditions of approval to ensure public safety such as limiting the 5 hours of outdoor dining to 10 : 00 pm within the second floor area and 6 rooftop deck of the four-story addition building. Requiring the 7 rooftop use to be in conjunction with the second floor restaurant 8 only and enhance surveillance and security. 9 A total of 530 parking spaces are required for the proposed 10 project and the existing development. The property currently shares 11 up to 300 of the 826 parking spaces within the adjacent city parking 12 structure located at 200 Main Street pursuant to prior entitlement 13 and an existing Owner Participation Agreement. A total of 296 parking 14 spaces will be provided on site within the existing subterranean 15 parking area, and a minimum of 234 parking spaces will be utilized 16 via shared parking within the adjacent municipal parking structure as 17 allowed per the Downtown Specific Plan. 18 Development was originally permitted in 1988 with a shared 19 parking concept that allowed a mix of uses including the former 20 theater use to be satisfied through a combination of on-site parking 21 and other public downtown parking. The current request will continue 22 to function similarly, however because the theater no longer exists 23 and the mix of uses include a significant office use allocation, the 24 total required parking is reduced and will not impact the downtown. 25 One new mitigation measure was identified, which is 26 proposed to address tree replacement requirements and is noted in the 27 environmental assessment. All applicable mitigation measures adopted 28 4 City Council Meeting 1 09-17-12 1 as part of the Downtown Specific Plan are applicable to this project 2 as well. 3 As proposed, the use does not comply with the General Plan 4 because the height of the roof deck walls exceed 42 inches and 5 therefore constitutes as a fifth story. However, with staff suggested 6 modification to lower the roof deck walls to 42 inches, the proposed 7 project will comply with the general plan and not exceed the four- 8 story maximum. 9 Downtown Specific Plan requires a visitor-serving 10 commercial uses are required for all ground floor square footage in 11 the District One Visitor-Serving Commercial Overlay. The submitted 12 plans indicate that new offices proposed on the ground floor. Staff 13 is suggesting a condition of approval that would require any 14 reference to new office area on the first floor be removed from the 15 plans . 16 All exterior mechanical equipment is required to be 17 screened from view on all sides and rooftop mechanical equipment is 18 required to be set back at minimum of 15 feet from the exterior edges 19 of the building. 20 The plans show mechanical equipment with screening within 21 the minimum setback. Staff suggests the condition of approval to 22 require that all rooftop mechanical equipment and associated 23 screening be set back a minimum of 15 feet from the exterior edges of 24 the building. 25 Proposed project is subject to the Downtown Specific Plan 26 Design Guidelines, which provide the minimum qualitative design 27 expectations for the downtown. All development is required to comply 28 5 City Council Meeting 1 09-17-12 1 with the spirit and intent of the Design Guidelines where a 2 commercial mixed-use buildings are neighbors to residential buildings 3 or where infill buildings are being constructed. Consideration of 4 scale, detail, and materials is very important. The project was 5 reviewed by the City' s Design Review Board and the DRB made 6 recommendations to address the building' s size and scale to ensure 7 further compatibility with the surrounding neighborhood, however the 8 DRB took action on the project and recommended approval with only one 9 modification to change the roof element of the eastern stairwell to 10 contrast with the existing building roof design. 11 As a result, staff recommends that the Council condition 12 the project to revise the proposed four-story building and 13 elevations, colors and materials to address to building mass issues 14 which can be achieved by providing additional upper story setbacks 15 and prove architectural compatibility with the existing structure in 16 the adjacent buildings and overall Design Guidelines . Because this 17 will result in design and elevation changes, it is recommended that 18 the DRB review and provide recommendations to the Director. 19 As mentioned earlier, the new restaurant areas within the 20 fourth story addition include the second floor with outdoor patio 21 dining and a rooftop deck, the applicant provided a noise study that 22 concludes that impacts related to noise will be less than 23 significant, based on 8-foot screen and roof deck walls . Today, staff 24 received a revised noise study that includes the project with 42 inch 25 roof deck walls as suggested by staff. Although, not fully reviewed, 26 the conclusion of the report indicates compliance with the City' s 27 noise ordinance. 28 6 City Council Meeting 1 09-17-12 1 Additionally and as mentioned earlier, restaurant uses with 2 alcohol are subject to the standard conditions of approval and the 3 Police Department suggests several suggestions of approval to ensure 4 public safety, reduced noise and provide enhanced security. 5 The applicant requests a variance to exceed the maximum 6 height of 45 feet. The project proposes four stories with the 7 building height of 68 feet, topped with roof deck walls and an 8 architectural tower up to 90 feet . The design intent is to match the 9 existing building height, and floor plates to allow more efficient 10 access and internal circulation. However, the existing fourth floor 11 top height exceeds the minimum required floor height and as such, 12 staff recommends a condition of approval to decrease the building 13 height from top of parapet of 68 feet to 62 feet. This would allow 14 for the proposed design intent to match floor plates and at the same 15 time, limit the extent of the variance request to exceed the maximum 16 height. 17 The applicant is' also requesting an amendment to CUP No. 18 10-17 approved by City Council in 2010, which permitted the 19 establishment and operation of 18 carts . The request is to replace 20 the previously approved layout with the current site plan dated May 21 4, 2012 . However, the current layout does not comply with the 22 approved conditions of approval that relate to customer queuing; 10- 23 foot wide clear passage areas adjacent to any customer queuing areas; 24 minimum 8-foot wide clear separation between carts; other 25 restrictions limiting the placement of carts . Staff suggests the 26 modification to amend the site plan showing the location of carts in 27 compliance with the conditions in code requirement set forth in CUP 28 7 City Council Meeting 1 09-17-12 1 No. 10-17, as approved by Council, to ensure compatibility with the 2 proposed expansion. 3 On August 14, the Planning Commission denied the project 4 due to concerns related to the public view corridor between Pier 5 Colony and Pierside Pavilion. This decision was appealed by Council 6 Member Carchio, to review the overall project including staff' s 7 issues and the applicant' s proposal. 8 The original conceptual site plan for Pierside Pavilion was 9 approved in 1988 . We have an exhibit on the wall, behind Council 10 Member Bohr that shows this conceptual site plan with the 40-foot 11 separation between the proposed conceptual Pierside Pavilion 12 development and Pier Colony, and on the bottom plan we have the 13 proposed site plan that shows how the 40-foot separation is 14 maintained. 15 The site plan, the one on top, depicted in approximately 16 45-foot wide separation between Pierside and Pier Colony, which was 17 in the location of the then proposed 3rd Street vacation. At the same 18 time this project was being considered, the City was in its final 19 phase of revising in the Downtown Specific Plan. The staff report 20 acknowledged there were revisions to the Downtown Specific Plan and 21 the project conformed with the proposed changes . 22 The only stipulation was that the project not take effect 23 until the revisions to the Downtown Specific Plan were approved by 24 City Council. This condition only limited when the permits take 25 effect and did not address the 40-foot separation. Therefore, by not 26 modifying the entitlement condition, staff concluded that the 40-foot 27 28 8 City Council Meeting 1 09-17-12 1 separation was contemplated and is consistent with both versions of 2 the Downtown Specific Plan, including the view corridor requirement. 3 The applicant was issued building permits and the project 4 was constructed as approved via the entitlements and conditions of 5 approval with approximately a 40-foot wide separation. The proposed 6 project maintains the existing width of approximately 40-feet and the 7 proposed square footage is within the maximum development threshold 8 analyzed in the Downtown Specific Plan, Program EIR adopted for the 9 October 2011 Downtown Specific Plan Update. 10 Staff recommends approval of the Mitigated Negative 11 Declaration because the project with mitigation will have no 12 significant environmental impacts and recommends approval of the CDP, 13 CUP, EPA and variance with modifications based on conformance with 14 the General Plan, Downtown Specific Plan and zoning ordinance and 15 that the development complies with all minimum standards with the 16 exception of the variance . That concludes my presentation. The 17 applicant and the applicant' s representatives and myself are 18 available to answer any questions . Thank you. 19 MAYOR HANSEN: Thank you. Ethan, are there any questions for 20 staff at this time, before we open the public hearing? Council 21 Member Boardman? 22 COUNCIL MEMBER BOARDMAN: Thanks, I have one quick question. 23 I noticed in the staff report, the staff is recommending that the 24 first floor remain visitor-serving commercial but the applicant is 25 interested in office. Would we have to go back to the Coastal 26 Commission to change the LCP if there was a. different use allowed 27 other than visitor-serving commercial? 28 9 City Council Meeting 1 09-17-12 1 ETHAN EDWARDS : That would be correct . 2 COUNCIL MEMBER BOARDMAN: Okay. Thanks . 3 MAYOR HANSEN: Thank you. Any further questions for staff 4 before I open the public hearing? Seeing none, we ' ll open the public 5 hearing. Are there speakers? 6 CITY CLERK FLYNN: We do have 24 speakers . Before they come 7 I would like to just read into the public record. Our supplemental 8 communications which were received after the packet was distributed 9 for Item No. 14; we have Communications from: Gary Baker, Barry Cole, 10 William and Bonnie Copeland, Bill Garrisi, Thomas McCann, Mark 11 Miller, R. and S . Stookey, Robert Mayer, Karen Jackle, Steve Daniel, 12 Jeffrey Oderman and Jeff Smith. 13 Our first eight speakers . The first speaker is Mr. Patrick 14 Winters, he will be speaking in behalf of the applicant and he will 15 have six minutes, he will go first. Mr. David Abu will then approach 16 the podium, Jeff Smith, Bill Garrisi, Tom McCann, Robert Bryant, Gary 17 Baker and Mike Meyer. 18 MR. WINTERS: Good evening Mayor, City Council Members . My 19 name is Patrick Winters . I'm with Nadel Architects, architects for 20 the project . I just want to make a brief presentation. I think I have 21 six minutes . Is that correct? 22 MAYOR HANSEN: Yes . 23 MR. WINTERS: The project, as you can see on the screen 24 here, it really is a continuation of the modernization theme that 25 started with a sort of a higher end office client Grupo Gallegos 26 moved into the rear portion of the building and as such, we have 27 really attempted, in this new renovation addition, to maximize the 28 10 City Council Meeting 1 09-17-12 1 ocean views, etcetera. It' s really a three-part composition: the old 2 building, the tower in between, and the new addition, so rather than 3 look at those pieces separately, they really work together as a 4 three-part collage. In terms of the old building, we are freshening 5 it up. In terms of the new building, we believe that it relates, it' s 6 sort of the DNA of some of the original design, but it takes a 7 strategically different approach, but it does relate according to 8 what I think is the spirit of the design guidelines, and then there' s 9 a new linkage which is the new tower that connects both, which will 10 be the new main entry and vertical circulation of the building. 11 I want to talk about the Specific Plan and all the work 12 we' ve put in to conform to this Specific Plan tonight. There' s two 13 parts to the Specific Plan: Book 1 is the plan itself, Book 2 is the 14 design guidelines and it goes to great lengths to differentiate 15 standards versus guidelines . 16 Standards are all the required things you need to have: the 17 zoning, the setback, the massing, etcetera. We believe, with the 18 exception of the height variance that is requested as part of the 19 application, we've met all the standards . I want to talk instead 20 about the guidelines tonight and these are not mandatory. They 21 encourage design quality, flexibility and creativity on the part of 22 the designers, and we've put a great deal of thought into this . 23 In terms of conforming to the specifics of the guidelines, 24 I just want to walk through a few slides that show some of the things 25 we've done. There are lots and lots of guidelines and I'm just going 26 to talk about a few of them. 27 28 11 City Council Meeting 1 09-17-12 1 For example, site layout: use recesses and building forms 2 to create small pedestrian plazas along the street. Well we have a 3 brand new paseo coming into the building in a big recess in a new 4 main entrance. The building really does not have a very good office 5 entry right now. This is going to improve that. 6 Views . Buildings should be designed to take advantage of 7 ocean views by providing windows, balconies, stairways, etcetera. 8 Essentially, we've created this new lighthouse ocean theme addition 9 which will complement the existing, but is really the small windows 10 on the existing do not provide superior office space and we ' re 11 attempting to upgrade that here. 12 Paving treatments . Special paving should be provided 13 adjacent to building entries or facades . All of this paving on PCH 14 and coming back along the inner portion there, on 3rdStreet. 15 Alignment is going to be new upgraded pavement. 16 Public open spaces . We have defined public open spaces 17 which include the recess, the main entry, and the balconies . This is 18 in addition to the open space on the corner of Main and PCH. 19 Massing. Step-back. We are not suggesting circles on the 20 building but all of those dots are talking about, there are a lot of 21 differentiation wall planes on this building, whether it' s 22 differentiations of 16 feet or 16 inches, or 8 inches or 10 inches, 23 this is not just a box, there' s a tremendous amount of in and out, 24 the windows are all recessed. That' s all very expensive to do, it' s 25 not cheap to do and we've got a long ways to try to do whether with 26 spandrels, recessed windows, projecting balconies, cantilevers, 27 etcetera. A lot of differentiation in the massing of this building. 28 12 City Council Meeting 1 09-17-12 1 Proportion. Again, although superficially the addition does 2 not look the same, the proportions have been extracted in terms of 3 horizontal datum lines etcetera from the existing building. We've 4 been very careful about that. 5 Rhythm, as you can see, your design guidelines, talk about 6 a 25- to 30-foot vertical rhythm, that' s in the existing building, 7 it' s in the new addition, very very specifically. 8 Storefront should be open and inviting. We are moving the 9 existing ones out from the existing building. On the new building, of 10 course, we have a similar situation, with open, inviting storefronts . 11 Articulation, 360 degree architecture, as a whole collage, 12 every part of this building is articulated, there are no flat walls, 13 there are no undifferentiated sides in this building. Tower spires 14 become landmarks, we have 3 tower elements . I'm almost complete here . 15 We've incorporated the old building into the new. In terms 16 of the roof forms, they are extremely varied, when you look at them 17 on the elevation. Main entryway, again, extremely recessed, very 18 identifiable as to how do you get into the main office entry and 19 upper floors of this building. I'm sorry some of these slides are not 20 showing up so well. Recessed windows, we talked about. 21 Colors . Soft tones ranging from white to light pastels are 22 preferred, that' s what we have . Materials, materials on this building 23 include tile, includes the stone at the base of the plasters and 24 includes the roof materials, it includes the windows, it includes the 25 painted canopies and includes the awnings and several other things . 26 27 28 13 City Council Meeting 1 09-17-12 1 Now, in conformance to the spirit of the guidelines, we are 2 going to go to Book 1 . It talks about implement development standards 3 and encourages development of unique architecture. 4 MAYOR HANSEN: Is that six minutes? 5 MR. WINTERS : This is the last slide. Due to those specified 6 architectural styles dictated and third, to provide opportunities for 7 broad interpretation of the architectural style, so we've, again, my 8 point, we've put a lot of thought into this and we appreciate your 9 time. 10 MAYOR HANSEN: Okay, thank you. I' d probably stay close, I'm 11 sure there' ll be questions after. Thank you. Next speaker, please. 12 MR. ABU: Mayor, Council members, good evening. My name is 13 David Abu and I'm a resident of Pier Colony and I worked in the 14 downtown area for over the past 22 years . I'm in opposition of the 15 Pierside expansion. Over the years I've witnessed the stunning growth 16 of our city. Everywhere I turn I see a number of new faces, new 17 visitors from different part of the country along with that 18 international travelers that seem to grow every year. 19 They are coming to see our crown jewel, which is our pier, 20 surf beaches and the weather. Can you imagine the residents of our 21 city and the visitors that come to our city walking down the pier and 22 the horror on their face, looking at the building that is being 23 proposed to be built tonight? This building, this big block of blocks 24 is an unattractive building, awkward and totally out of character 25 with the rest of our shoreline. 26 The Planning Commission that you appointed denied this 27 approval and if each Council Member truly studied the images of -this 28 14 City Council Meeting 1 09-17-12 1 project being proposed tonight, none of you would be in favor of. Not 2 only does the developer not live in our city, in his actions involves 3 to ram this project through with very little consideration to the 4 residents of Pier Colony. 5 That project was built as one, and when the city took away 6 the properties from the people that were on 3rd Street, they gave us a 7 view corridor, and that view corridor now will be gone, and again, 8 the city has taken away from many, to give to one. 9 If anybody doesn' t think there a parking problem in the 10 downtown Huntington Beach area, does not come down here quite a bit. 11 It' s a massive problem and it needs to be addressed before any. I n-I Jeu.,�L 12 project is completed. The developer states that he can pay annua 13 parking fees for fictitious parking spaces that do not exist and that 14 parking needs to be addressed and it needs to be addressed now. If 15 anybody who was down there for the Summer Festival this year, it was 16 a total nightmare . The people had no idea where to go, the traffic 17 was dodging in and out, the skateboarders were going almost in- 18 between every car, the bikes, it' s amazing nobody got seriously 19 injured, but no one knew where to go. 20 Everybody that came in my office, their first question was, 21 "Where do I park?" With this proposal, the additional cars with 22 Pacific City coming on board, we are going to have a major, major 23 problem. 24 MAYOR HANSEN: Thank you, sir. 25 MR. ABU: In consideration, I would like you to consider the 26 values of the residents of Pier Colony because they will be severely 27 hurt by this project. Thank you. 28 15 City Council Meeting 1 09-17-12 1 MAYOR HANSEN: Thank you for your comments . Next speaker, 2 please. Yes, there' s really no order at this point so whoever is 3 prepared to go, just let' s populate both podiums to keep efficiency. 4 MR. SMITH: Good evening, Mr. Mayor, ladies and gentlemen of 5 the Council. My name is Jeff Smith and I'm an 8-year home owner at 6 Pier Colony. Tonight, I 'd like to show you evidence of the proposed 7 Pierside expansion, that violates city code and the original use 8 permits of the development. 9 What I have to show you will demonstrate that a 60-foot 10 view corridor requirement exists between Pier Colony and Pierside 11 Pavilion buildings. The proposed expansion will bring Pierside 12 Pavilion buildings within 40 feet of Pier Colony. 13 In 1988, Conditional Use Permit 88-7, for the Pierside 14 Project, was approved, but would not go into effect until 1988 DTSP 15 was finalized. Exhibited here is a city letter stating this fact as 16 well as an excerpt, from the Planning Commission meeting on April 5, 17 1988 . Part of that Pierside Project included vacating 3rd Street 18 between PCH and Walnut, further 1988 DTSP: "Any street is vacated in 19 this area must provide a view corridor of no less than the width of 20 the former street. " 3rd Street is and was 60 feet wide. This section 21 of the 1988 DTSP is referenced here . 22 To provide further proof that such a view corridor exists 23 and that requirement is written in the law, note that both City 24 Council and Planning Commission meetings in 1988 upheld the view 25 corridor language in DTSP. 26 In this case it is clear that a view corridor shall exist 27 in place of the vacated 3rd Street. Even the plans for the new 28 16 City Council Meeting 1 09-17-12 1 Pierside Expansion Project acknowledged this view corridor in the 2 width of 60 feet, however, in the most recent set of plans that have 3 been submitted, as part of your information package, the 60 foot view 4 corridor notation has been removed from those plans and deemed a 5 mistake. 6 It is suspicious to me that someone can draw in specific 7 width view corridor to follow city law and then call the notation a 8 mistake and remove it from the subsequent plans, both before and 9 after plans are noted here. 10 The evidence that 3rd Street is and was 60 feet wide is 11 extremely clear. On this slide you' ll see a Record of Survey, a 12 Google Earth measurement and an original track map from 1904 that 13 will show that all the streets being 60 feet wide. 14 Even the circulation element from the HB General Plan shows 15 the street widths includes sidewalks, curbs and roadways . Sorry, 16 these are out of order. If more evidence is needed on the intended 17 street width language, we can reference back to interdepartmental 18 communications from 1988, regarding the environmental impacts of the 19 project. 20 The Assistant Planner at the time said that the view 21 corridor should be maintained along existent right-of-ways and under 22 the City definition of right-of-way, thoroughfare shall include that 23 adjacent public easements . Again, the total width of 3rd Street 24 includes the roadway and the sidewalks and it' s 60 feet. 25 Finally, if any conflict or doubt remains, we can reference 26 back to the Huntington Beach Coastal Element. Under General Resource 27 Protection Policy shown here you' ll find the following framework for 28 17 City Council Meeting 1 09-17-12 1 interpretation if conflicts related to coastal resources arise and a 2 view corridor is considered a coastal resource. 3 In summary, there was a mistake made on the view corridor 4 requirement for this project in 1988 and the existing stairwells are 5 in violation of city code. If this project is approved as is, we' ll 6 be compounding a mistake that was made 24 years ago. Please, only 7 consider a project that fully complies with the law and let' s work 8 together to design a project that is mutually beneficial to all . 9 Thank you. 10 MAYOR HANSEN: Thank you. 11 [APPLAUSE] 12 MR. GARRISI: Hi, my name is Bill Garrisi, I'm a resident at 13 Pier Colony. I've done a pretty substantial amount of research both 14 into this proposed project as well the documentation surrounding the 15 original Pierside Pavilion Pier Colony Redevelopment Project. 16 You've already heard from Jeff Smith discussing some of the 17 details regarding the issue of 3rd Street vacation. We've raised many 18 of these issues with staff and they rebutted them in the documents 19 submitted prior to this meeting, as well as some of the stuff that we 20 heard earlier today. 21 After reading through the staff rebuttals, I've identified 22 three major points that were raised regarding that particular issue. 23 These are: no view corridor requirement existed prior to the 24 development, the original Conditional Use Permit approval was 25 contingent upon the acceptance of the 1988 DTSP, they deemed that to 26 be procedure, not a necessity and that any potential view corridor 27 would be 40 feet wide and not 60 feet. 28 18 City Council Meeting 1 09-17-12 1 The requirement of the view corridor, if you actually look 2 back at the original project, the original project was contingent 3 upon approval of the 1988 DTSP. The 1984 DTSP, which is one 4 immediately prior to that, specifically did not allow residential 5 uses south of Main street. 6 The project could not have been built if they had followed 7 the original DTSP, they had to wait for the ' 88 one to start up. The 8 1988 DTSP was modified to allow residential in District 3 but also 9 required that multi-block consolidations maintain view corridors 10 along any vacated streets between Walnut and PCH. 11 This view corridor requirement was discussed concurrently 12 with the addition of residential to D3 . Had the intent been to simply 13 get the project approved and off the ground, they could've just set 14 up a variant or could've just requested a variance and tried to get 15 residential allowed by doing that rather than modifying the DTSP. 16 In the early planning stages, it was noted that a view 17 corridor will be maintained along the vacated 3rd Street. Discussion 18 of this issue was raised as early as February of 1988, well in 19 advance of the public comment period. Attachment 7 for these meeting 20 notes seen behind you actually shows the original conditional of use 21 permit. This is actually, the writing on it is actually something 22 current. 23 That is not what the original Conditional Use Permit had 24 written on it. This is part of a larger document showing the 25 conditions of approval before the proposed project. On that same 26 document, it specifically says that the number of units in the 27 condominium project should be reduced from 160 to 130, that' s a 200 28 19 City Council Meeting 1 09-17-12 1 reduction in size, in order to create a greater separation of the 2 residential from the commercial portions of the project, increase and 3 provide greater view opportunities . 4 There is the original document. With the view corridor. I 5 go back and forth between a bunch of different things, on exactly how 6 a street is defined, but basically, street line is defined as the 7 boundary line between a street and an adjacent property. That' s 60 8 feet. You see it over here. 9 MAYOR HANSEN: You just need to wrap up. 10 MR. GARRISI : All right, it shows that it' s are 60 feet 11 there, 60 feet there . Summary, the project could not have been built 12 if they hadn' t started with the 1988 DTSP. 13 MAYOR HANSEN: Thank you, sir. 14 MR. MCCANN: Thank you, gentlemen. Ladies . It' s a pleasure 15 to be here and to address the City Council, Mayor Hansen and Council 16 Members . My name is Tom McCann, I own and live with my wife Carol on 17 the North side of the Pier Colony on the 4th floor. Our balconies face 18 Pierside Pavilion. First, a picture of the project as it exists today 19 and as you note, there a nice area here that' s very airy and open to 20 the public and a lot of pedestrian traffic goes through there. We 21 have here on the right, there' s Pier Colony and you can see our new 22 paint job which is consistent with the city parking garage which we 23 try to upgrade and spend about $300, 000 doing this with new 24 landscaping. 25 There are 36 residences here, facing Pierside Pavilion and 26 notice that these residences have some pretty good views across here 27 28 20 City Council Meeting 1 09-17-12 1 because the structure that I will show you in a minute, sort of 2 dominates this thing and the views are gone, pretty much. 3 The Fire Department access with the proposed Pierside 4 Pavilion modification is addressed in attachment 4 . 12 on page 76, of 5 the 201 page Pierside Pavilion Staff Report. Fire lanes . The Fire 6 Department review of the plan included a site visit and evaluation of 7 the fire lanes called down in the plan. 8 Fire Protection Analyst Joe Morelli writes, `Fire lane is 9 shown as shown 24 . 5 feet on the plan with the actual width currently 10 provided to 17 feet clear. The rooftop deck would make the proposed 11 structure the highest at the property. The proposed four-story 12 structure with the rooftop deck will hinder the Fire Department' s 13 aerial ladder access to the existing four story structure Southside, 14 which would make prompt rescue difficult and will lessen the 15 probability of finding a fire in upper stories from the exterior. " 16 For those of us who live in a four story structure, 17 Southside, i.e. Pier Colony, on the third and fourth floors facing 18 Pierside Pavilion, this is a very serious issue. None of us want to 19 be toasted. This is that corridor we've been talking about. Notice 20 these stairwells, that are no longer existent, no longer used, stick 21 out into it and on the right hand side this is fairly consistent with 22 the side, on this side of Walnut Street, but in any case, the 23 original construction was an error to the Downtown Specific Plan. 24 Here is a rendering produced by the developer of the modifications 25 proposed. The views of the residences are severely compromised, the 26 public property has been eliminated. The fire lane is not wide enough 27 to accommodate a ladder truck and I quote Mr. Daichendt in 28 21 City Council Meeting 1 09-17-12 1 yesterday' s Orange County Register, "We have always designed the 2 project with Pier Colony in mind. " We have no evidence that' s the 3 case. 4 MR. BAKER: Mr. Mayor, Council Members, staff, great 5 citizens of Huntington Beach, first, I' d like to thank you for this 6 opportunity to speak to you this evening. Let me thank you for your 7 service to our community. I know that your job is very difficult and 8 sometimes, maybe, we take you for granted, but we do appreciate your 9 efforts and your work. 10 I' d also like to thank you immensely for your very wise 11 decision in your selection of your appointed Planning Commissioners . 12 In my short experience, I found them to be extremely professional and 13 very thorough in their investigation of this Pierside Pavilion 14 Expansion. 15 My name is Gary Baker. I'm a resident and owner at Pierside 16 at Pier Colony. 17 There seems to be several questions here that have come up 18 on and on and on. We have' the view corridor on whether it' s 40, 50, 19 or 60 feet wide as 3rd Street was. There' s a noise study that was 20 conducted on off-season in a different piece of property. Thefire 21 lane and its safe distances, a fourth-story rescue would be difficult 22 according to the fire department. 23 Upper-story setbacks, that' s certainly an issue because 24 everybody had to conform to that. Pier Colony had to conform so did 25 Pierside Pavilion on these original plans . Parking, a study was done 26 in 1988 and really has not been updated in today' s time. It was done 27 28 22 City Council Meeting 1 09-17-12 1 for theatre and not for office space parking. Another issue that 2 really needs to be addressed a little further than it is currently. 3 Public view. We' re taking away the public view with some of 4 these new buildings that we' re looking at here in front of you. The 5 public open space, the only thing that I really see and according to 6 the plan is there is going to be a lot of maybe second tier for the 7 office building, but the public actually is going to lose a lot of 8 theirs. Building shadowing, I noticed that in the Pacific City, it 9 was requested that they do some shadowing effects . Shadowing was done 10 in two different seasons - one, summertime and one in wintertime 11 showing the difference that a four-story building will have on 12 surrounding areas . I see nothing like that was ever provided for this 13 type of development. Now, maybe, because they' ve already got it 14 existing, but if they' re going to move it that close, I would think 15 they should have some kind of shadowing effect that should be there . 16 There' s more of those things that come up. 17 Your Planning Commissioners have investigated and 18 researched as you knew they would when you appointed them, so trust 19 their judgment and deny this Pierside Pavilion Expansion. Where there 20 is this much smoke, there has to be a fire. I'm not convinced you' re 21 receiving all of the information needed as I believe your packet map 22 at 3-25-88, it shows a conceptually approved plan. 23 The American Land and Title Association Survey of July of 24 1988 clearly shows the 60-foot wide corridor that goes from 3rd Street 25 all the way down to Pacific Coast Highway. It was not a conceptually 26 approved plan. It was a survey of 1988 in July. We've been after this 27 sub-proposal. 28 23 City Council Meeting 1 09-17-12 1 They tell you everything that is really nothing, and 2 nothing of what is everything. Do not be fooled by what they are 3 saying. Please listen carefully and try to hear what they are not 4 saying to you. A half-truth is a deceptive statement that- include's 5 some elements of truth. The statement that might be partly true, the 6 statement may be totally true, but only part of the whole truth or it 7 may utilize some deceptive element. Please do not allow yourself to 8 compound this error of 1988, 1989. Thank you. 9 MAYOR HANSEN: Thank you. 10 MR. BRYANT: Good evening and thank you for the opportunity 11 to let our voices be heard tonight. I've been a resident of Pier 12 Colony since 1999. My name is Rob Bryant. 13 I thought you'd be interested in seeing this photo which is 14 in front of Pierside Pavilion. It would appear that the developer 15 knew for several months how you were going to be voting tonight. What 16 gave them that idea? I can tell you it wasn' t the Planning 17 Commission. 18 Tell the developer to take down his sign. It' s premature. 19 Tell him to take down the sign because it' s arrogant and presumptive. 20 Tell him to take down the sign because you believe that an 21 independent environmental impact report is required prior to your 22 decision. Tell the developer that he can' t get away with constructing 23 a four-story, 90-foot high building with about 90, 000 square feet 24 destroying our view corridor in the process, without an environmental 25 impact report. 26 Tell him not on our watch. Tell him on behalf of all the 27 good citizens of Huntington Beach, who made you their elected 28 24 City Council Meeting 1 09-17-12 1 representatives, that you need the assurances of an environmental 2 impact report. Tell him that you need assurances that there will be 3 ample parking, and that safety and noise issues have been addressed 4 to your satisfaction. 5 Tell him not on my watch will the City .Council allow the 6 bright and breezy 3rd Street Corridor to be wiped out without due 7 process. Tell him to take his sign down, that you need more time to 8 learn the full and lasting impact this expansion will cause. After 9 all, what' s the rush? 10 There' s only been two public meetings and the good people 11 of Pier Colony who own the 35 units facing the Pavilion have only had 12 two months to marshal support to avoid this potential catastrophe . 13 That confounded sign has been up there longer than that. 14 We believe an environmental impact report will state the 15 obvious, that this expansion will only serve to increase what' s wrong 16 with the downtown area like far-too many alcohol-related crimes and 17 traffic issues, while decreasing or eliminating what makes the 18 downtown so great. 19 Tell him not on your watch, that you will not allow any 20 developer to so drastically change the spirit and letter of the 21 Downtown Specific Plan without due process . Let him know that you 22 won't abandon and ignore what your predecessors on prior City 23 Councils envisioned and implemented without an adequate review. Tell 24 him this Council wants assurances . The citizens of Huntington Beach 25 deserve assurances . Tell the developer to take down his sign and get 26 an environmental impact report, that you are a council with a 27 conscience and not a rubberstamp. Thank you for your consideration. 28 25 City Council Meeting 1 09-17-12 1 CITY CLERK FLYNN: The next eight speakers are Cecilia 2 Andrade-Havaianas, Tom Shields, Jonno Wells, Rudy Perez, Thomas 3 Mauriello, Debbie Cook, and Jerry Wheeler, and also Grace Winchell, 4 and I'd like to recall Mike Meyer. 5 MAYOR HANSEN: If you' re prepared, please go ahead. 6 MS. ANDRADE: Me? 7 MAYOR HANSEN: Yeah, sure . 8 MS . ANDRADE: Hello. Hi. My name is Cecilia Andrade. I'm 9 here to talk about I'm in favour of Pierside Pavilion. Why? First of 10 all, I'm the owner of Havaianas store . I'm one of the retailers of 11 Pierside Pavilion. I don' t know if you guys know, but Havaianas is 12 one of the most important and famous flip-flop brands in the world. 13 We have stores all over the world, and our first and only store in 14 the United States is located in the Pierside Pavilion. Why we chose 15 that location? Because it' s a strategic location, and the city is a 16 strategic city I think for this entire county.' 17 Why am I in favour of this project? Because definitely, it 18 will create a more sophisticated atmosphere and a more sophisticated 19 area, and it will attract different kinds of customers to this part 20 of downtown Huntington Beach. 21 Today, we have customers, we have visitors, but I think it 22 could attract other kind of visitors that today that do come to 23 Huntington Beach. This is the presentation. I don' t know if they can 24 move forward. 25 Yes . I just want to explain why because our customers, they 26 are a little bit different than the regular customers that come to 27 Huntington Beach. Can you pass please? Go ahead. Please see. First US 28 26 City Council Meeting 1 09-17-12 1 store. Go ahead. See, our locations of Havaianas all over the world 2 are located in sophisticated places . Today, we are suffering of that, 3 because we don' t have our customers there. Go ahead please. 4 Celebrities, we are having celebrities now. They' re coming 5 to Huntington Beach specifically to visit our store. With the 6 extension of Pierside Pavilion, definitely, we' d have more people 7 coming because it will attract more this kind of people. Go ahead 8 please . . . Go ahead. More. More. A little bit more. Next slide 9 please. I think we don' t have time to go. Move forward. 10 See, those are our customers, families, and people that 11 come to specifically for . . . They spend vacations here. Go ahead 12 please. Definitely, we' ll have a more attractive place for this kind 13 of tourists . It would attract new high end in business and their 14 employees and different kind of people that, today, they don' t come 15 to Huntington Beach, or they come and they don' t stay. They come. 16 They stay just a few hours and they leave for Fashion Island because 17 we don' t have attractions for them. I think we' d have more. That' s 18 it . Thank you. 19 MAYOR HANSEN: Thank you. Yes sir. 20 MR. SHIELDS : I'm Tom Shields . I operate Spark. It' s 21 actually ground zero what we' re talking about. I 've got to tell you 22 I've been torn on this project for the whole time I've heard about it 23 as to whether or not it'd be good for me or not good for me. I've 24 come to the conclusion that, in the long run, this project will be 25 good for Spark, strictly because the plaza, as it stands now offers 26 nothing to Spark or that side of the building as far as foot traffic 27 28 27 City Council Meeting 1 09-17-12 1 or a draw off of PCH. PCH is where the action is . That' s where things 2 happen. 3 Being a second floor restaurant has always been a drawback. 4 Being a second floor restaurant that is as far South as anything else 5 in the city or at least downtown has been a drawback. My feeling is 6 that having some more retail and restaurants based south of me will 7 help my business . I mean this may be strictly selfish viewpoint on my 8 part, but that' s I guess my point. I know this is brief, more brief 9 than most, but that was my opinion. 10 MR. MAURIELLO: Good evening, Mayor, Council Members . My 11 name is Thomas Mauriello. I'm an attorney. I represent the Pier 12 Colony Home Owners Association. I submitted a letter about a week 13 ago. Fortunately for the Council, my comments tonight will be much 14 briefer, and I want to just hit a few general points that I think are 15 maybe helpful or useful to the Council. 16 The Pier Colony Home Owners Association does oppose this 17 project. We believe that, in addition to violating the Downtown 18 Specific Plan, violating the view corridor which we believe to be 60 19 feet,the project violates the California Environmental Quality Act as 20 proposed with this mitigated negative declaration. We believe that 21 the impacts are significant enough that an environmental impact 22 report is called for under CEQA, under the case law, under the 23 guidelines, under the statute. 24 CEQA has a very low threshold for requiring environmental 25 impact reports as many of you know. The standards as the so-called 26 fair argument standard, the issue is whether substantial evidence 27 supports a fair argument that there may be significant impacts . 28 28 City Council Meeting 1 09-17-12 1 Substantial evidence meaning credible evidence, facts, not 2 speculation. Fair argument means a reasonable argument, not to a 3 certainty. 4 There may be, not shall be, may be significant impacts 5 means that there might be. In other words, we stand before you not 6 having to prove that the project is going to have significant impacts 7 in order to have the Council be required to prepare an EIR, but that 8 it may. 9 Legalities aside, that is an important legality because 10 that standard of review, as your Council can tell you is all 11 important in your decision today. Putting the legalities aside, there 12 are three main impacts that my client is concerned with - views, 13 aesthetics, and noise. Blocked views both from the vantage point of 14 windows and from the corridor is a significant impact under CEQA, and 15 it' s something that applies not only to the Pier Colony residences, 16 but to all visitors and citizens who are in that vicinity. 17 The aesthetics, having to do with this monolithic block 18 building filling out the corner. No matter what minor design tweaks 19 we can do on the fly, some of which we saw tonight, it doesn' t change 20 the footprint, it doesn' t change the scale or the shape and noise. 21 Although these impacts are more prevalent to my clients, 22 who happen to live next door, these are impacts that apply to all 23 citizens, residences, and visitors of the downtown area. 24 MAYOR HANSEN: Thank you, sir. 25 MR. MAURIELLO: I would just ask that the Council consider 26 that compliance with the law in this case is also good planning. 27 Thank you very much. 28 29 City Council Meeting 1 09-17-12 1 MR. WELLS : Good evening Mr. Mayor and Council . My name 2 is Jonno Wells . I'm the CEO of Surfline/Wavetrack. We are tenants of 3 Pierside, and we' re one of the first tenants in the building back in 4 the `90s . Since then, we've grown to over 50 employees . We' re on the 5 third floor, in office space . We've seen the building plans and we 6 wanted to speak for the things that we liked in what we saw. 7 First of all, we need more office space. That' s a demand 8 that is on us as a growing business in the city. We'd like to see 9 better use of the vacant plaza space. While we enjoy the corridor 10 that exists there, the vacant plaza space attracts homeless, under- 11 aged drinkers that sit up and around the stairwells in all sorts of 12 times during the day and evening. 13 It lowers the desirability of the area for everyone. I 14 would think including the residents nearby that have homeless and 15 kids drinking and smoking in the open corridor areas . Someone reached 16 into our window the other day and grabbed the laptop, stole it from 17 our office because of the way the structure is designed. It' s 18 dangerous and a nuisance for after hours . It really doesn't . . . It' s 19 not a productive area at all, the way it' s structured now. 20 We look forward to new elevators that will get people in 21 and out of the building more smoothly and be more accommodating to 22 visitors and guests to get in and out of the businesses . 23 We believe investment in the building will improve the 24 downtown area and should increase revenue for the city. It sounded 25 like there were a number of needs for that in the earlier discussions 26 so that concludes my comments . Thank you. 27 MAYOR HANSEN: Thank you. 28 30 City Council Meeting 1 09-17-12 1 MS. WINCHELL: Hi. My name is Grace Winchell . I've been a 2 Huntington Beach resident for 43 years . I was a City Council member 3 from 1986 to 1994, during the time the Pierside Pavilion was approved 4 and built. I urge you to deny this project as currently proposed. 5 A little history. In 1986, downtown was just beginning to 6 be redeveloped. The two blocks that now make up Pier Colony and 7 Pierside Pavilion were some of the first to be redeveloped and were 8 considered key to setting the tone for the entire redevelopment plan. 9 Design guidelines, height restrictions, view corridors, adequate 10 parking, pedestrian-friendly walkways, public amenities, artistic 11 features, mix of uses, all these elements were considered very 12 carefully in an overall attempt to create an inviting, visitor- 13 friendly and vibrant downtown. 14 The city considered vacating the 60-foot wide 3rd Street 15 that existed between Pier Colony and the Pierside Pavilion, for with 16 consolidation, the block could provide enhanced visitor-serving 17 amenities . 18 After careful consideration of the potential impact on 19 traffic and pedestrian circulation and on the views, light, and air 20 movement for interior streets, the Council accepted the proposal for 21 vacating 3rd Street between PCH and Walnut, but only with the 22 condition that the 60-foot street vacation be preserved without 23 structures over 42 inches . 24 This was to be preserved for view, ocean breezes, light, 25 pedestrian walkways, and overall, visitor-serving ambiance. This 26 preservation was not to be temporary. There was no expiration date. 27 28 31 City Council Meeting 1 09-17-12 1 The public street was vacated for a specific purpose, an open space 2 corridor. 3 Today, the application before you proposes a major 4 encroachment onto the 60-foot vacated 3rd Street open space corridor, 5 making it a virtual alley. A variance in height above the existing 6 limit, an increase in square footage with office uses not commercial 7 or visitor-serving, a shared parking scheme that needs careful 8 scrutiny to protect the rest of the downtown businesses, a much 9 larger building footprint on the site increasing lot coverage. A 10 bulky, unpleasing design unlike the overall theme and design 11 guidelines for downtown, a decrease in public open space and fewer 12 public amenities, these applications should be denied as proposed. 13 For the benefit of all Huntington Beach residents, I urge 14 you to carefully maintain all the downtown view corridors, and you 15 can start with this 60-foot 3rd Street Corridor. Don' t change the 16 rules to the detriment of our Huntington' s Beach residents, 17 particularly the residents or Pier Colony which was built with views 18 and purchased with view value added. Stick with the principles, 19 conditions, and design elements of the original agreement regarding 20 this consolidated block. This is a discretionary action on your part. 21 Please represent the residents of Huntington Beach and deny 22 this proposal with findings that maintain the integrity of past 23 agreements for downtown specific plan and the coastal element. Just 24 say no and give firm and specific guidelines . 25 MAYOR HANSEN: Thank you, Ms . Winchell. 26 MS. COOK: For the record, my name is Debbie Cook. I first 27 got involved in city politics on the heels of this project. I was not 28 32 City Council Meeting 1 09-17-12 1 a fan of redevelopment. I did not see the benefit of giving ten 2 ocean-front lots to the developer for $1 . I have never found any 3 redeeming qualities in pink stucco architecture. It had a night club 4 that was a nightmare for the Council and residents because of bad 5 design. It had a movie theatre that was doomed from the start because 6 of its location and the fact that half of its potential ticket buyers 7 were fish. It had a fountain that blocked street level retail. It had 8 a third and fourth floor that couldn' t be leased and ended up being 9 used as a warehouse for flip-flops and bikinis . 10 It had an ocean-front courtyard that was like a dangling 11 participle with no clear connection or purpose. In short, it was as 12 if someone had inadvertently printed the plans upside down and 13 backwards and then started construction. 14 The only thing that could have justified a fraction of the 15 massive amounts of public subsidies this project received was the 16 view corridor and access that was required in the right-of-way 17 created by the vacated 3rd Street, but we couldn' t even get that 18 right . Somehow, the staircases were built and view-obstructing walls 19 and landscaping encroached on both views and access . 20 For 22 years, every time I have driven past this project, I 21 have cursed those walls, the lack of vision demonstrated by the head 22 of planning and our failure to honor the soul of Downtown Huntington 23 Beach. 24 I never thought I would have an opportunity for a public 25 rant about this project. I never thought someone would come along and 26 propose to make Pierside even worse. This project, barely two decades 27 old should be bulldozed. Short of that, it should be studied for its 28 33 City Council Meeting 1 09-17-12 1 failures so that we don' t repeat them. Instead, what we see tonight 2 is a project that far exceeds the original 60o site coverage approved 3 in 1988, a project that ignores all the principles of good 4 neighbourliness and attempts to rewrite history and the promises that 5 were made in 1988 . 6 Public assets have always been sought after by private 7 speculators whether encroaching on a walkway, proposing projects and 8 parks and on beaches or acquiring land from vacated streets . 9 Developers will always ask for more. 10 I spent my political career watching as some play by the 11 rules and others hire lobbyists to revise history and redefine words . 12 I will never forget in 1990 how the former head of planning, Mike 13 Adams, wax-poetic about the newly approved Pierside restaurant 14 project for the ocean side of PCH. 15 For those who don' t remember, it was 57, 000 square feet 16 across PCH blocking the view from Pierside from the pier to the 17 lifeguard headquarters . He called it a new-view opportunity. Oh, the 18 irony. Had I not sued the Coastal Commission and won, the developer 19 of this project would have been a recipient of the type of new-view 20 opportunity his successor is trying to impose on his neighbours 21 today. Thank you. 22 [APPLAUSE] 23 MR. PEREZ : Mayor, City Council members, thank you for 24 allowing me the opportunity to speak this evening. My name is Rodi 25 Perez . I operate a kiosk on the corner of PCH and Main Street. I've 26 been selling sarongs and beach related items down there for the past 27 four years . Originally, I'm from Israel, and I moved here from 28 34 City Council Meeting 1 09-17-12 1 Florida in 2008 . Surfing is my passion and Huntington Beach has a lot 2 of surfing and much more to offer. I decided to settle here and start 3 my business . 4 The kiosk has been a great opportunity for me to attract 5 the locals and a lot of the tourists with quality products along PCH. 6 I always try to improve my merchandise and the way it' s displayed. I 7 think it adds a lot to the downtown beach vibe. 8 The expansion would be really helpful for my business by 9 attracting more customers down PCH toward 2nd and 15t Street. More 10 people will be coming to Pierside Pavilion to shop, eat, and work in 11 the office space you' re going to have there. 12 I'm also very excited about the proposed bench and the palm 13 trees that they' re going to have there. I feel like it' s going to 14 create a bordered-like pedestrian walkway. It' s going to be a little 15 bit more safe because I see a lot of kids running around in the 16 street and the parents have got to chase them around so they don't go 17 into the road. I' ll feel safer myself from the passing cars . I think 18 it' s going to have a nicer look. 19 I look forward to the improvements this project will bring 20 to the area. I know that a new building will add more profit to the 21 surrounding businesses . I hope that you will approve this project. 22 Thank you very much for your time. 23 MR. WHEELER: Good evening Mr. Mayor, members of the 24 council. My name is Jerry Wheeler. I'm the president, CEO of the 25 Huntington, Beach Chamber of Commerce and also a resident here of 26 Huntington Beach. I'm here tonight to speak on behalf of the Pierside 27 Pavilion Expansion Project. This project takes an under-utilized 28 35 City Council Meeting 1 09-17-12 1 parcel of land in a prime location here in our Downtown Huntington 2 Beach and turns it into something that will bring new visitors to- 3 downtown, new employees to downtown, will generate additional 4 property tax revenue and additional sales tax revenue at a time when 5 every good penny we can raise without raising fees and tax rates will 6 certainly help the City' s bottom line . 7 It' s one more piece of an overall puzzle cementing 8 Huntington Beach as a true destination for shopping, dining, and 9 professional opportunities with approximately 36, 000 square feet of 10 additional retail, office and restaurant use . 11 The ground floor will provide new retail options that will 12 complement what already exists on the street. The second floor 13 provides a new high-end restaurant that will complement its neighbour 14 Spark, already a great addition to our downtown scene . Floors three 15 and four will create much needed professional office space, and we 16 understand tenants are already lining up for these opportunities . 17 Development does exist next to downtown residential 18 development. While it is consistent with the newly amended Downtown 19 Specific Plan, every effort, I understand, will be expanded to 20 address over time the concerns of their residential neighbours . 21 Perhaps the most important part of this equation is the 22 developer itself, Theory Properties . It' s a local family who is in 23 this for the long haul. They want happy tenants and happy neighbours 24 and will work to ensure that this indeed happens . 25 As an added bonus for this development is that the entire 26 building, the existing building, as well as the expansion will also 27 be receiving a facelift that will create a much more pedestrian- 28 36 City Council Meeting 1 09-17-12 1 friendly along PCH and provide more visibility for the retail stores 2 that are located on the first level. 3 Finally, this is about jobs, over 100 potentially new jobs 4 and good paying jobs as well . The development will blend retail 5 opportunities, a high end restaurant, but the meat of and the 6 development are the great jobs and new energy the available office 7 space will bring to the downtown experience. 8 Both Innocean and Grupo Gallegos are great examples of 9 blending professionals into a mixed use downtown environment . This 10 new expansion will only enhance this process that has already 11 successfully begun. We' re discussing improvements in our downtown 12 core here, not a quiet treeline suburb. 13 Anytime we have residents in the business community 14 cohabitating in the same place, there are bound to be concerns on 15 both sides . It' s understandable as both often have different needs, 16 but I urge you to allow this project to move forward and help it 17 become a case study for how business and residents can work together 18 to make a busy environment along one of the busiest highways around a 19 safe and respectful place to live, work, and play. Thank you. 20 MAYOR HANSEN: Thank you. 21 CITY CLERK FLYNN: The final eight speakers are Mike 22 Sheldon, Robert Stookey, Linda Couey, Leila Marcos, Mark Bixby, Jeff 23 Oderman, Mike Adams and Joe Daichendt . 24 MR. SHELDON: Hi, good evening, Mayor Hansen, City Council 25 Members . I didn't get the memo on the dress code, I came straight 26 from AUI, coaching the U8 soccer so I apologize. 27 28 37 City Council Meeting 1 09-17-12 1 We currently have four stores in Huntington Beach. I'm from 2 Huntington Surf and Sport, and we hope to expand the current location 3 at the Pierside Pavilion. We see several areas where Huntington Surf 4 and Sport will benefit from the future expansion and the associated 5 improvements that would be done at the same time. We would like to 6 stress to the Council how much these improvements will allow us to 7 meet our future goals . 8 We are stoked about the renovations to the existing 9 building as Theory R. Properties is planning on reskinning the 10 building for a fresh new look for the Pierside Pavilion. They are 11 also going to push out all the retail space on the ground floor to 12 the dirt line so we will have more window exposure on PCH. We also 13 like the newly proposed low wall and benches separating the 14 pedestrian from the traffic that keep them safe as well . 15 We feel that all this focus on the project will attract 16 more customers to the area and keep the Pierside Pavilion building as 17 a landmark in Huntington Beach. Our company is what Surf City is all 18 about. We encourage you to approve this project. Together we can help 19 revitalize the downtown area. Thank you for your consideration. 20 MS . COUEY: Good evening Council, Mayor. My name is Linda D. 21 Couey. I'm a Huntington Beach resident, and I' ve been here for almost 22 30 years . Today, I'm speaking on behalf of Huntington Beach Tomorrow. 23 Huntington Beach Tomorrow' s mission is to promote and 24 maintain a high quality of life in our wonderful Huntington Beach. A 25 primary area of the HBT advocacy is to work to preserve open space, 26 especially keeping our beaches in the public domain. That applies to 27 all aspects of beach open space including our view corridors . Our 28 38 City Council Meeting 1 09-17-12 1 beaches and coast are valuable public assets for our community. We 2 must be vigilant against encroachment of any kind especially against 3 encroachment by a favoured few. 4 There are no great overriding considerations here. It does 5 not serve the greater public interest to subvert the law put in place 6 to retain the protection of public view corridors when public streets 7 are being vacated in order to consolidate multiple blocks into mega 8 projects . 9 While others will cite the details in opposition to this 10 proposal and have, to us, it' s very simple. We quote the late Peter 11 Douglas, "The coast is never saved. It is forever in the process of 12 being saved. Part of that is seeing that past obligations are 13 honoured." 14 Huntington Beach Tomorrow asks that this Council follow the 15 law on our past obligations and reject this proposed encroachment on 16 property that was meant to remain open to the public in perpetuity. 17 Thank you very much. 18 [APPLAUSE] 19 MS. MARCOS : Good evening. I own a unit in Pier Colony. I 20 purchased my unit back a couple of years ago. I invested a large 21 portion of my assets in purchase mainly to enjoy the partial view of 22 the pier and ocean. The sunlight and privacy of my living space was 23 also a big contributing factor to my purchase decision. I also 24 expected an increase in my value of my investment with time. 25 The proposed project if accepted would have a dramatic 26 impact on my living condition. All of the owners on the north side 27 and the side of the proposed project of the building will also be 28 39 City Council Meeting 1 09-17-12 1 negatively impacted. The increase in the new building size will 2 infringe our privacy and further depress our property value. My 3 partial view of the pier will be dramatically reduced. 4 Between the Mortgage Owner Association and property taxes, 5 I'm paying a large monthly payment specifically for this view and 6 privacy. Please give a thorough evaluation to your decision before 7 taking away the beauty of our building. Who will compensate us for 8 this drastic reduction in the value of our property if this project 9 is approved? 10 My unit will turn into a dark home due to the increase on 11 the new building height, resulting in the decrease of the incoming 12 sunlight. In addition, I'm losing my privacy. I do not want to 13 experience extreme noise all day and night from the outdoor patio, 14 the chimney effect of the underground garage that' s right under my 15 unit and increase in activity created by the new design. 16 Please give proper consideration to the life and safety of 17 the neighbour of this project . This huge project and its many 18 variances will affect the quality of life of those living in 200 19 Pacific Coast Highway in an extreme negative way. It will strip 20 current homeowner of many of the things which brought them to this 21 home to begin with. Thank you, that' s all. 22 [APPLAUSE] 23 VICE-CHAIR BIXBY: Hi. My name is Mark Bixby. I am the vice- 24 chair of the Planning Commission. Chairman Mantini asked me to come 25 down here tonight to say a few words on behalf of the Commission 26 majority opinion to deny the project. 27 28 40 City Council Meeting 1 09-17-12 1 The Commission was generally supportive of staff-suggested 2 modifications in so far as they went to make a non-compliant project 3 more compliant and better or compatible with the community, but what 4 led me to a motion to deny was the view corridor issue which has been 5 covered in great detail today by current speakers. I'm not even going 6 to try and talk to Debbie Cook because that' s not possible. Let me 7 just try to touch on some of the key details there. 8 The historical record is very clear on this . It' s as clear 9 as it gets . The Planning Commission explicitly voted to extend view 10 corridor protection to 3rd Street three weeks before they voted to 11 approve the Pierside Project on April 5 of 1988 . The Planning 12 Commission then demonstrated intent to preserve the 3rd Street view 13 corridor. 14 Now, staff has said a lot about intent of only preserving 15 40 feet of this while the demonstrated intent was to preserve the 16 full 60 . By making the project conditioned on the passage of the 17 DTSP, the actual language in the notice of action conditioned on the 18 entire set of changes . It didn' t say just a part that benefits our 19 project, it said the entire DTSP is contingent on being able for us 20 to go forward with Pierside. 21 It' s clear that the street vacation walls rules intended to 22 apply to Pierside which was approved after the DTSP was approved. 23 That action incurred the obligation to protect that view corridor in 24 perpetuity, and if you' d like modern standard of review to address 25 the view corridor, that' s also required to be protected by the 26 current Coastal Element Visual Resource Protection Policies of the 27 28 41 City Council Meeting 09-17-12 1 General Plan. It' s clear a view corridor exists that needs to be 2 preserved. 3 Now, I' d like to state, for the record, what it was that 4 actually brought us all here tonight. It was because on one of the 5 applicants own plans, somebody in the employee, of the applicant, had 6 written 60 feet view corridor and drew a line, and you see the new 7 building extending a great deal into the view corridor. Somebody on 8 the applicant' s team had reason to believe that the view corridor 9 obligation existed that might be a real interesting thing to ask the 10 applicant team when he' s up here following me . 11 The Planning Commission was standing on a solid ground when 12 we denied the project. I ask you to do the same because the view 13 corridor is simply not preserved by what' s proposed. Thank you. 14 [APPLAUSE] 15 MR. STOOKEY: Hi. My name is Robert Sookey. Mr. Mayor and 16 Council Members, I think you've heard a lot of the residents. You've 17 heard the logic and the fact. I don' t know how you can sit there and 18 deny all the facts and everything that has been presented to you. I 19 do want to just address something else. 20 If you just turn around and look at that picture, you've 21 seen it over here, you've seen it up here, is that the look that you 22 want for Huntington Beach? Is that the look that the Downtown is 23 really wanting? 24 That behemoth is going to be there and I think you as a 25 Council, when the citizens of Huntington Beach walk along and see 26 that building when it' s completed, they' re not going to like it. 27 28 42 City Council Meeting 1 09-17-12 I Who are they going to blame? You' re the people that are 2 going to okay this if you think that is the right thing to do, which 3 we are hoping you don't, listening to your own Planning Commission, 4 listening to all the facts and figures . You might want to think of 5 yourselves, too, when the public hates that building, because there ' s 6 nothing, there ' s absolutely nothing in that building to like. 7 I don't see how you can ever think that has anything to do 8 with how Huntington Beach should look. If you walk down Main Street, 9 if you look at the rest of the buildings, that building is nothing 10 like that. In fact, the meeting that we went to when the owners were 11 presenting this to us, they were proud of the fact that it didn't 12 look anything like the rest of Downtown. They want it to stand out 13 because then it will be different and people will want to come to it. 14 They don' t care about the rest of Huntington Beach. 15 Hopefully, you people should care about Huntington Beach and what the 16 overall look of what we want for Huntington Beach is . I. just came to 17 California. It was a lifetime dream I 've had my whole life to live in 18 California. 19 I chose Huntington Beach because of so many factors . One of 20 them, of course, is the property that I own, that I think will lose 21 value now, and all kinds of things . The other thing is just the 22 atmosphere. The Downtown. If you have been downtown, if you have 23 walked downtown at all in the summer, and you think this building is 24 now going to come closer to PCH, and I don't know about this guy in 25 his kiosk but I don't know where he' s going to be. I 'm glad he thinks 26 it' s a good thing because I don't where he ' s going to be when that 27 building comes closer and people are going up and down that. street 28 43 City Council Meeting 1 09-17-12 1 and they' re putting big cement things with palm trees there, blocking 2 other people from walking. I think it' s going to be a bad thing. 3 In the article on Sunday, if you look at that article about 4 this, the owner said, "I have the right to do this . " Well, I may have 5 the right to paint a huge, black swastika on my patio, but should I 6 do that? Thank you. 7 [APPLAUSE] 8 MR ODERMAN: Good evening, Mayor, members of the Council. My 9 name is Jeff Oderman with the law firm of Rutan & Tucker, I represent 10 the property owner and the applicant. I will address one issue which 11 is the so-called former 3rd Street view corridor issue that was the 12 one issue that the Planning Commission got hung up on. 13 The starting point for you in determining whether this 14 expansion project for Pierside Pavilion complies with the Downtown 15 Specific Plan is what' s on the ground now? What exists? How does this 16 proposed project change existing conditions? We' re not asking you to 17 approve or re-approve a project that was approved and built in 1988 . 18 We ' re asking you to approve an expansion project today. 19 While I went down, what does exist? You know very well what 20 exists . I walked down on Walnut Street and down the public walkway 21 about an hour before the meeting. There are staircases between the 22 building' s trash enclosure, a landscape structure over the entrance 23 to the subterranean parking garage, walls that step up on the side of 24 Pier Colony Project. 25 There- is no 60-foot public view corridor. There isn't, you 26 can' t see it. This project will not impact existing views . That's why 27 the speakers from Pier Colony are trying to take you back to 1988 . 28 44 City Council Meeting 1 09-17-12 1 They want to roll the clock back a quarter of a century and ask you 2 to create a view that doesn't exist and was never intended. 3 It so happens I was the attorney for the applicant for this 4 project in 1988 . I have some history with this project. What was the 5 City' s intent in 1988? It was exactly what you see. The City' s intent 6 is best reflected in the City' s action. It approved the project that 7 exists today. It was not a mistake. 8 The plans that were submitted to the Planning Commission, 9 the Pier Colony people have proved their case. They show that a 40- 10 foot wide corridor was intended. The Planning Commission considered 11 the language in the Specific Plan at the very same meeting that they 12 approved that they approved this project and the view corridor wasn't 13 even raised as an issue. There were many conditions and changes that 14 were required to be made and none of them related to separation or 15 setback between the buildings or view corridor. 16 The language in the Specific Plan at that time talked about 17 the corridor being the width of the former street. Well, I think of 18 the width of the street as being curb to curb. After 1988, I don't 19 know when or how long, but at some point after 1988, the Specific 20 Plan was changed to say that the view corridor should be measured by 21 the width of the former right-of-way. There was a reason for the 22 change. Before that, it was curb to curb and afterward, it was 23 changed to the right-of-way. 24 We think what the Commission approved in 1988 is, was legal 25 and what the City Council should review is the project that' s before 26 you now, not what was back in 1988 . 27 MAYOR HANSEN: Thank you, Mr. Oderman. Thank you. 28 45 City Council Meeting 1 09-17-12 1 MR. ADAMS : Evening Mr. Mayor, members of the City Council. 2 My name is Mike Adams, representing the project this evening. I, too 3 will take you back a little bit to the time when the Downtown 4 Specific Plan was first discussed back in the early ' 80s . 5 The site on the drawing above Councilman Bohr actually 6 reflects a project that was never built. It showed a plaza area on 7 Main Street and Pacific Coast Highway, that went into an interior 8 courtyard that then popped out onto the side paseo. 9 The reason for that at the time was that the 130 units, and 10 at that time it was in 160 unit condominium project was anticipated 11 to be a hotel . The hotel project did not work. The idea that the 12 hotel could be there, shops along the paseo, interconnecting the 13 Pacific Coast Highway and crossing was the original master plan. 14 The developer convinced us, the Council at that time, that 15 let ' s not pursue the hotel, let ' s pursue a condo project. The 160 16 unit condo project was born. That didn't fly for a number of reasons, 17 knocked down to 130 units . Through that process, the corridor was 18 discussed. The idea of keeping the right-of-way in place was 19 discussed. It was actually knocked down to the area between curb to 20 curb saying that because of the area above 3rd Street with the trees 21 and so forth, that was not a visual corridor of the full right-of- 22 way, the full visual corridor truly only was between the curb lines . 23 That ' s how the 40-foot number came about. 24 Going back to just the last couple of years, the Downtown 25 Specific Plan went through the couple of years through of a lot of 26 discussion. If the view corridor issue had been an important issue it 27 should have been brought at that time throughout the Downtown. Pasecs 28 46 City Council Meeting 1 09-17-12 1 were introduced at that time. The idea that paseos need to be part of 2 all major projects, that you connect one block to the next with a 3 pedestrian walkway. That was what was considered important with this 4 last go around the Downtown Specific Plan. Views were not considered 5 important. 6 The idea was that how do we rejuvenate the Downtown area 7 into getting more economic return into the Downtown? That was the 8 reason for the reroute of the Downtown Specific Plan. This was the 9 exact kind of project that was envisioned. The theater project just 10 didn't work in this location. The idea of the plaza area below the 11 theaters was for gathering for pre-shows and so forth. There could be 12 all kinds of shops there. People could have dinner or go for the 13 movies . Once the movie theater leaves, there' s the plaza area at the 14 bottom that is not necessary any longer. It needed to be re-looked at 15 for reuse and this is the proposed reuse . 16 As far as the design issues, is a contemporary design. The 17 last project was built by a committee of a bunch of citizens and 18 Council members that had changed continuously until what you see was 19 built . The current contemporary approach is more modern and it picks 20 up a lot of line work from the former design. Again, refer back to 21 your professionals which is the Design Review Board. They reviewed 22 this project twice and they approved it. Thank you. 23 MR. DAICHENDT: Mr. Mayor Hansen, members of the Council, my 24 name is Joe Daichendt applicant for the project. The project before 25 you will host an expansion to Huntington Surf and Sport, an expansion 26 to Havaianas, Subway, Stuffed to create new locations for new 27 retailers . This will create a new restaurant with the best ocean view 28 47 City Council Meeting 1 09-17-12 1 in Orange County and finally an expansion of Grupo Gallegos and 2 Surfline. 3 Tonight we have heard a number of Pier Colony residents 4 argue view that there is a public view corridor that should exist. I 5 don't completely disagree . In the proposed expansion, the space 6 between the Pier Colony retaining wall and the last column line of 7 Pierside will see improvements to the public view. The space I 've 8 defined is 1000 on my parcel . 9 The space I 've defined is being improved so that someone 10 standing in Walnut or driving down to 3rd Street will able to now see 11 the ocean. The same is not true on the Pier Colony property as that 12 property has a retaining wall. When standing on Walnut or driving 13 down 3rd Street, you cannot enjoy an ocean view. 14 My final comment about the subject and alleged public view 15 corridor is in the word, "public" . All the comments from neighbouring 16 private property owners tonight are asking for private views to be 17 awarded by some taking or grabbing and from another private property 18 owner. 19 These requests of you, while numerous, are not right to 20 ask. As a property owner, I've continually invested and taken steps 21 to take Downtown Huntington Beach the right direction. After losing 22 the movie theaters, I took a chance and invested millions in the 23 worst recession of most of our lifetimes, and brought downtown HB the 24 world renowned Grupo Gallegos, the largest Hispanic advertising 25 agency in the US, a hundred plus employees with 300 of staff fully 26 relocated and buying homes in HB. 27 28 48 City Council Meeting 1 09-17-12 1 Just recently we had the grand opening of Stuffed and 2 competitor Chipotle and prior to that we opened up the first US 3 location of Havaianas . The project before you is supported by many 4 groups and individuals . I have additional letters of support for your 5 review from business owners on Main Street, businesses at Pierside, 6 hotel and property owners who want to see the downtown thrive all 7 year long and not just in the summer. 8 In closing I want to address two final items . The Planning 9 staff has worked hard on this project; I'm very appreciative of their 10 time. Scott, Herb, Ethan and many others, have invested a lot of 11 time. We have been successful in coming to an agreement on 95% of 12 this project, and the following handout entails the remaining items 13 I' d like to ask that you take action on tonight. 14 Lastly, in conversation with Council members, I felt that a 15 majority were not completely satisfied with the massing. In a call 16 with Councilman Devin Dwyer, he asked that I consider additional 17 changes to help the overall design. I have gone ahead and 18 incorporated those changes and others and they' re there for your 19 review. 20 These changes include bringing more traditional wedding 21 cakes step-back on the fourth floor and further improvements to the 22 view at Pier Colony. This is my second preference. Ultimately, the 23 decision here is yours . Thank your time, I'm available for any other 24 questions? 25 MAYOR HANSEN: Thank you, Mr. Daichendt. I think Council 26 Member Boardman has a question. 27 28 49 City Council Meeting 1 09-17-12 1 COUNCIL MEMBER BOARDMAN: Yes . You heard my Planning 2 Commissioner, Mark Bixby earlier, indicated that on drawings that you 3 submitted, or your employees submitted, that they had drawn in a 60- 4 foot view corridor, and so I was wondering, if there' s no history or 5 there ' s supposed to be a 60 foot view corridor, why would plans that 6 you submit, have it indicated? 7 MR. DAICHENDT: Great question. We've always maintained that 8 there is no view corridor. The reason the dash line shown the 60 feet 9 is on there is that was request from staff. We complied, but 10 ultimately, we didn't feel there is any meaning into it. 11 COUNCIL MEMBER BOARDMAN: Okay. Thank you. 12 MAYOR HANSEN: Are there any additional speakers that wish 13 to address the Council before the public hearing is closed? I see 14 none? I will close the public hearing. 15 MAYOR HANSEN: Mr. Daichendt and staff, I guess as we' re 16 handing out this material, I' ll leave it to your discretion who' s to 17 come forward, but we have a list of six amendments or modifications 18 that are brought forth, who'd be most appropriate, maybe to give a 19 brief outline of what the proposal would be? 20 JOE DAICHENDT: Briefly on the six items, number one, remove 21 the suggested modifications being set back of rooftop mechanical 22 equipment and all associated screenings . This has numerous benefits 23 for not only the screening of the equipment, but also for noise and 24 sound barriers to our neighbors at Pier Colony. 25 The same is true of number two. Number three amend the 26 suggested modification regarding another DRB review placing 27 director' s review, and the reason why I'm asking that is we' ve been 28 50 City Council Meeting 1 09-17-12 1 to the DRB three times . The second option that you are reviewing now 2 is minor, and I believe that a director' s review would be more than, 3 would be able to resolve that. 4 We are asking for the same hours of operation as Spark, the 5 variance on the height is exactly what we proposed, and the revised 6 and approved cart locations per the submitted plan is number six. 7 MAYOR HANSEN: Thank you. Council Member Boardman. 8 COUNCIL MEMBER BOARDMAN: Okay, let' s see. On the handout 9 that just came out, number one is to remove the suggested 10 modification on any setback of rooftop mechanical equipment and all 11 associated screening. I'm a little confused about what that means . 12 Does that mean to remove the screening, remove the setback of the 13 mechanical equipment? 14 MR. EDWARDS: I guess I need to defer to the applicant on 15 this particular one. I'm not sure if these modifications pertain to 16 the revised plans . I guess I would need clarification on that, or do 17 they pertain to the existing proposed plans . 18 MR. DAICHENDT: They would apply to both. 19 MR. EDWARDS : Okay. 20 MR. DAICHENDT: We' re looking to have the mechanical 21 screening equipment, just not the 10-foot setback from the edge of 22 the building. We want to cover all the mechanicals fully and screen 23 it from sight. 24 COUNCIL MEMBER BOARDMAN: Has there been any kind of noise 25 study done to analyze how noisy that equipment would be? 26 MR. DAICHENDT: There has . There' s three different 27 variations I guess of the project, depending upon what you ultimately 28 51 City Council Meeting 1 09-17-12 1 choose, and all three variations have a noise study. We've gone 2 through great lengths in all three of those and they are with the 3 staff. 4 COUNCIL MEMBER BOARDMAN: Are they within the City' s limits 5 in decibels? 6 MR. DAICHENDT: Yes, I believe they' re well within the 7 limits . 8 COUNCIL MEMBER BOARDMAN: Okay. The restaurant hours, that' s 9 pretty clear. I'm a little confused now about number five . Could you 10 kind of go into a little bit more detail there? 11 MR. DAICHENDT: Absolutely. Number five is exactly what' s on 12 those drawings, to the inch. In staff' s presentation, they were 13 requesting six-foot reduction of the overall building. We' re just 14 asking it right. I believe it' s roughly six feet. Is that correct? 15 MR. EDWARDS : Six feet. 16 MR. DAICHENDT: Six feet. We' re asking that the six feet 17 remain. 18 COUNCIL MEMBER BOARDMAN: Okay. 19 MR. DAICHENDT: I think that' s a more complicated way of 20 saying the same thing. 21 COUNCIL MEMBER BOARDMAN: Thanks . I think that clears up 22 many questions in my mind I've had about the handout you've just 23 passed out. 24 MAYOR HANSEN: Council Member Carchio. 25 COUNCIL MEMBER BOARDMAN: I have questions for staff. 26 MAYOR HANSEN: I'm sorry. 27 28 52 City Council Meeting 1 09-17-12 1 COUNCIL MEMBER BOARDMAN: Okay, so, does anyone know how 2 tall the Pier Colony building is? It would be immediately adjacent to 3 the extension. What' s the height on the condominium building? 4 Mr. Hess: We don' t have that information available at this 5 time. 6 COUNCIL MEMBER BOARDMAN: Okay. Well, there are graphics 7 down here showing that the condominium building' s basically dwarfed 8 by the size of the proposed building and I wanted to make sure if 9 those were to scale or accurate and ... Not sure? Okay. 10 I've wanted to ask a little from the Fire Chief. There were 11 some comments made about concerns the Fire Department had regarding 12 access in that area, if this building was constructed, to access the 13 fourth floor in case there was a fire with the condominiums . 14 FIRE CHIEF: Yeah. I think I' ll ask our Fire Marshall to 15 come down and address those. While he' s making his way down, the 16 width of that fire department access originally would have been 24 17 feet. We measured it this week. It is 17 feet currently, with the 18 planters and things that are there at the time. Obviously, adding 19 another building would somewhat restrict our access . However, the 20 current building is sprinklered. The new building will actually have 21 to meet high-rise standards which will include additional fire pump, 22 pressurized stairwells, and other protection features in the new 23 building as well . Now, I' ll ask the Fire Marshal to talk a little bit 24 about that access . 25 FIRE MARSHALL: Thank you, chief. Honourable Mayor and 26 Council Members, as the Chief has indicated, Fire staff has 27 extensively looked at this project from the inception including a 28 53 City Council Meeting 1 09-17-12 1 detailed plan check in several site visits. I was actually down there 2 and viewed the fire lane as well. As stated on the original plans 3 before you, on the wall back there, it' s at 24 feet, however 4 currently it' s actually 17 feet and that' s primarily attributed to 5 the fact that there are several portable planters there, as well as 6 some lights, so there are a couple of options there as indicated in 7 the Fire Department plant checker notes . 8 The building will meet high-rise requirements, although 9 another possible fix would be to simply just remove those planters 10 and the lights that are obstructing the view. Quite frankly, this 11 fire lane will and can assist our Fire Department_ access, however 12 it' s quite common that fire departments access the corner of the 13 buildings and wouldn' t necessarily put the fire apparatus in between 14 the two structures so as much as that fire lane is on the plans I 15 would normally access the building from the corners of the building. 16 In addition to that, we have full access to both Pierside 17 Colony as well the proposed project from three' sides of the building, 18 so we do have pretty good access and with that, I' d be happy to 19 answer any other questions you may have . 20 COUNCIL MEMBER BOARDMAN: Okay, no, I just want to hear from 21 you about access for both the condominiums and protection of the 22 residences, as well as the workers and the proposed building. 23 FIRE MARSHALL: Thank you. 24 COUNCIL MEMBER BOARDMAN: You feel confident that, with the 25 sprinkling and with the standards this new building would meet, that 26 you could safely both for fire personnel, access the building with a 27 17-foot corridor between the two? 28 54 City Council Meeting 1 09-17-12 1 FIRE MARSHALL: Absolutely, and keep in mind too, that when 2 you get structures that tall, even within our own community, other 3 than that, it goes beyond the standard ladder truck access, that' s 4 why we have high-rise standards, that' s why the building standards 5 are more stringent, there' s fire pumps that protect not only that 6 building, but buildings adjacent to them, in this case, Pierside 7 Pavilion, the condos across the way there. 8 COUNCIL MEMBER BOARDMAN: Okay. I guess I have a question 9 for staff now, about the 60-foot width of the view corridor that 10 appeared on the applicant' s plans to begin with. The applicant said 11 that it was there because of something staff had recommended or said, 12 so what' s the source of the 60 feet? 13 MR. EDWARDS: One of the original plan check comments was to 14 show a view corridor on the plans . We didn't have to stipulate the 15 width or anything like that, we just said, "Can you show that in the 16 plans?" 17 COUNCIL MEMBER BOARDMAN: Show the view corridor and they 18 came up with 60 feet? 19 MR. EDWARDS : That' s correct. 20 COUNCIL MEMBER BOARDMAN: The applicant came up with 60 21 feet? 22 ME. EDWARDS: That' s correct. 23 COUNCIL MEMBER BOARDMAN: Okay. I' ll save some of my other 24 questions . 25 MAYOR HANSEN: Council Member Carchio. 26 COUNCIL MEMBER CARCHIO: Joe, if I can ask a question here. 27 On your handout here, on number six, can you give us an idea of how 28 55 City Council Meeting 1 09-17-12 1 the positioning of the, with the new location, how the positioning of 2 the carts is going to be. 3 MR. DAICHENDT : Sure . 4 COUNCIL MEMBER CARCHIO: I think some folks had some 5 concerns about that. 6 MR. DAICHENDT: Yes, the area of greatest concern is on PCH, 7 so we paid special attention in there and there' s actually a low seat 8 wall, that now, if you are familiar with the shops along PCH at 9 Pierside, they have an interesting dilemma where the doors open up at 10 about two feet, then you hit the column line, then you hit planters, 11 then you hit trees and now you' re pushed out towards traffic when you 12 are walking and the carts currently are approved against the 13 building, which further pushes out the pedestrian traffic. What we 14 are looking to do is get rid of the step and the grade, create a seat 15 wall on PCH and tuck the carts into the seat wall, so there' s an 16 actual physical barrier, so one, it is safer and there' s a perception 17 that people can walk down being engaged with shops on both sides and 18 not feel like they are right next to traffic as they do today. A 19 nicer paseo feel as well as a safer element with the seating wall. 20 COUNCIL MEMBER CARCHIO: So, is that going to take any 21 public space on the walkway? 22 MR. DAICHENDT: There will be more walkway on that project 23 than there is today. The carts will be oriented differently and the 24 landscaping will be consolidated into the seat wall . 25 COUNCIL MEMBER CARCHIO: Now are the carts going to change 26 on Main Street? 27 28 56 City Council Meeting 1 09-17-12 1 MR. DAICHENDT : No, they don't change on Main Street. 2 Correction, there' s essentially four approved today. I believe it was 3 about two years ago. The Council was gracious enough to approve four 4 and the idea was to come back and look at six months or a year, 5 ultimately we just never followed up on that. 6 COUNCIL MEMBER CARCHIO: Because you were going to make some 7 changes in front of the building also? 8 MR. DAICHENDT: We would just add two more, so that they 9 would wrap the big . . . I forgot the name of those palms, but the 10 thicker palms that are on Main Street. 11 COUNCIL MEMBER CARCHIO: Okay, thank you. 12 MR. DAICHENDT: Thank you. 13 COUNCIL MEMBER CARCHIO: The other question I have is for 14 staff. I noticed in one of the, I don't know if it' s Scott or not. In 15 one of the photographs, it showed a retaining wall along side of the 16 Pier Colony; was that retaining wall put in there when the Pier 17 Colony was built or was that retaining wall that separates the homes, 18 the property line for the homes . Was that added later on? Are they 19 patios from the outside part of the homes for the condominiums? 20 MR. EDWARDS : Is the landscape area, patio areas? 21 COUNCIL MEMBER CARCHIO: Yes . 22 MR. EDWARDS : I'm not sure about that. However, the 23 landscape areas where constructed as part of the original building. 24 COUNCIL MEMBER CARCHIO: With the original building? 25 MR. EDWARDS : Correct. 26 COUNCIL MEMBER CARCHIO: Okay, thank you. I' ll have some 27 other questions later. Thanks. 28 57 City Council Meeting 1 09-17-12 1 MAYOR HANSEN: Council Member Shaw. 2 COUNCIL MEMBER SHAW: Hi, yes, we just received these new 3 plans . If someone from the developer could tell us how these plans 4 differ from the original. Please, go over that with us . 5 MR. DAICHENDT: Yes, the " changes are minor in the overall 6 footprint, with a couple of caveats that along PCH, the building 7 actually angles to make it more friendly on the pedestrian level. As 8 it applies to the wedding cake or step-backs, you' ll see more 9 variations . The building will pull back quicker and will have steps 10 at every level . 11 COUNCIL MEMBER SHAW: Does that include the Pierside Colony 12 side? 13 MR. DAICHENDT: On the alley side, it remains the same . 14 There are eyebrows and some different elements of variations, but 15 that remains the same. We keep ... 16 COUNCIL MEMBER SHAW: They will change the sides of the 17 Pierside Colony. 18 MR. DAICHENDT: That' s correct, but views will be improved 19 with the multiple step-backs or wedding cake. 20 COUNCIL MEMBER SHAW: Will there be step-backs on every 21 level or all the way around? 22 MR. DAICHENDT: Just on the PCH facing side, correct. 23 MAYOR PRO TEM DWYER: I got some questions for staff. We've 24 been going back and forth over this definition of street width versus 25 right-of-way and kind of the timeline as well, because it sounds like 26 there' s either a timeline that the home owners are putting forward, 27 that should've been incorporated or is this grandfathered under a 28 58 City Council Meeting 1 09-17-12 1 different view corridor, because of the definition and when did that 2 change? 3 MR. HESS: Looking back at the records, because the project 4 planner Mr. Edwards and myself did go through and looked as much at 5 the history as we could and actually, Mr. Bixby helped fill in some 6 of the gaps in terms of actions on the code amendment as well as the 7 timing for the project, because, as Mr. Bixby indicated, the Planning 8 Commission reviewed the code amendment at the same time or three 9 weeks before the Planning Commission acted on this, he is correct in 10 that the Planning Commission was fully aware that there should be 11 some separation as required by this specific plan. 12 I do have the original specific plan that we reviewed, this 13 Pierside Pavilion by, and at the time it said it shall dedicate a 14 view corridor or maintain a view corridor equivalent to the street to 15 be vacated. 16 It did not say ultimate right-of-way, there is not 17 definition of street. Is that 40 feet curb to curb? Is it 60 feet 18 from back of sidewalk to back of sidewalk, do you add landscaping? 19 There was no definition, so it was up to the Planning Commission to 20 decide what should be that ultimate width to comply with the intent 21 of the view corridor. 22 The conceptual plan that was approved behind Council 23 Member Bohr is the conceptually approved plan. That, as you know, 24 some of you who have been on the Planning Commission before, when you 25 approve a conceptual plan, the setbacks and everything aren' t always 26 delineated on the plan, but that' s basically what the intent of the 27 28 59 City Council Meeting 1 09-17-12 1 approval is and if it was a concern by the commission, they would 2 have said, "Modify the separation to 60 feet. " 3 That is given by an example, if you look at the conditions 4 of approval, from back to 1988, there were other provisions required 5 like: the Commission had a concern that the separation of the 6 condominiums to that 40 foot separation should be raised up 8 feet, 7 because they were concerned about the noise; so you would have some 8 buffering of the landscaping in that area, but that was a condition 9 by the Planning Commission, so it was up to the Commission to decide 10 how to define the intended view corridor. 11 Now, our last revision to the Specific Plan last year, does 12 say ultimate right-of-way, and it is very clear. If we vacate any 13 more streets, they must meet ultimate right-of-way, so that means 14 from back of sidewalk to back of sidewalk. 15 Back then, 1985 to 1989, it just said "street" and that was 16 subject to the definition Planning Commission, when it meets the 17 intent. One of the findings of approval of the project says, "This 18 plan complies with the Specific Plan and the General Plan. " 19 MAYOR PRO TEM DWYER: This picture that we' re looking at 20 there, other than the blue marks, has it been altered in any way? 21 Somebody brought up that it may have been altered_ 22 MR. HESS: Well the conceptual plan is conceptual . There 23 were two plans that the Planning Commission saw, it was a hotel plan 24 as well as a theater plan, but this is the conceptually approved 25 plan. Now, it has changed since that plan as it went through final 26 versions of the plan, so it has been modified since the conceptually 27 approved plan, but the 40 feet has always been maintained. 28 60 City Council Meeting 109-17-12 1 MAYOR PRO TEM DWYER: Yeah, and my point is, it says, "40- 2 foot separation view corridor. " That wasn't added for tonight' s 3 visual. 4 MR. HESS : Oh, that was added for tonight, yes, we did. Just 5 like, we wanted to clarify that ' s the area or the separation. It did 6 not say, "view corridor." That' s why it' s in parentheses, but there 7 was that distance between the condominiums and the retail component, 8 of 40 feet. 9 MAYOR PRO TEM DWYER: You' re just trying to show us the 10 scale of ... 11 Mr. Hess : I 'm actually showing you that' s the conceptually 12 approved plan, so that ' s what is used to go by, for development of 13 the site . Then the bottom exhibit depicts how the addition that ' s 14 being proposed doesn' t encroach into that 50-foot view corridor. I 15 mean 40-foot view corridor. 16 MAYOR PRO TEM DWYER: We ' re going to start a whole other 17 rumor. 18 MR. HESS : That' s another one, yeah. Well we have some 19 streets that are 50 and 52 and 80 feet, so ... 20 MAYOR PRO TEM DWYER: You've had a couple of minutes to see 21 this cake layering that I had spoken to Joe about. With that in mind, 22 I know we talked earlier about the glass walls on the roof deck. 23 Actually, because of our code it specifies that it should be 42 24 inches high, but it seems to me, for all people involved, the glass 25 walls would be best at eight foot high. 26 27 28 61 City Council Meeting 1 09-17-12 1 Does the cake layering work to make that happen? Because 2 you had told me you were worried about a 15-foot setback. Are we 3 within that now, that we are setting back the building? 4 MR. HESS : I ' ll let Ethan add anything, but a preliminary 5 response would be that this revised plan does a lot better job in 6 buffering the rooftop deck to the residence next door, because the 7 majority of that upper floor deck is basically a solid wall encasing 8 the stairways going up to that deck, so that glass partition, if you 9 will, would only stretch about 11 feet of that upper deck, and we 10 could work with the applicant in redesigning how that glass wall 11 might be installed in that upper deck. It' s not much of an issue with 12 this revised layout. 13 Ethan, is there anything else to add? 14 MR. EDWARDS : No, I would just concur that it does get 15 closer to the intent of the design guidelines and to the wedding cake 16 effect that we 've been recommending all along, to the Design Review 17 Board, and I agree with Scott that we could work with the applicant 18 on the upper story deck walls. 19 MAYOR PRO TEM DWYER: Then the other question was the 20 mechanical setbacks, because this building has multiple sides to it. 21 The mechanical equipment is actually aft of the forward structure, 22 but yet it' s on the building edge, and I can see why he would be 23 asking for a variance on that . It' s still hidden. Do you have any 24 problem with the way it ' s designed now? 25 Now that I 've gotten him to decrease that footage up there 26 on the fifth deck, if we push his mechanical in 15 feet, we 're making 27 28 62 City Council Meeting 1 09-17-12 1 it even that much smaller. I was able to get the footage off the 2 front, I 'd hate to make him give up the footage on the back. 3 MR. EDWARDS : Well I guess the intent of that 15-foot 4 setback is to provide additional screening, and not let it be viewed 5 from any public right-of-way, so as long as that ' s meeting the intent 6 of the code and still providing that, I think we can work with that. 7 MAYOR PRO TEM DWYER: What else are my questions here ... I 8 guess that ' s it for now, thank you. 9 MAYOR HANSEN: Thank you. Council Member Bohr. 10 COUNCIL MEMBER BOHR: Thank you, Mr. Mayor. City Attorney, 11 are there any legal issues that you've heard tonight, that we feel we 12 need to address, or some accusations out there of environmental 13 issues and that kind of thing? 14 MS. MCGRATH: Well actually, Michael Vigliotta is here 15 because he did provide advice to the Planning Commission and we ' re 16 still comfortable with the position. Do you have something to add, 17 Michael? 18 MR. VIGLIOTTA: I don't have anything to add, I think we' re 19 comfortable with the legal position. 20 COUNCIL MEMBER BOHR: Great, thank you very much. I attended 21 the Planning Commission meeting for this project by chance and I just 22 want to clarify, it ' s interesting how it ' s been presented. There was 23 only four Planning Commissioners there that night, and there 's 24 actually a two-two tie, to move forward or to deny, and then 25 Chairwoman Mantini, out of an effort to just move forward, seeing 26 that this would come to us anyway, then switched her vote, so three- 27 one denial to come forward. Just to keep it ... it' s basically a tie. 28 63 City Council Meeting 1 09-17-12 1 It' s kind of old home week here, with former Mayor Grace 2 Winchell, one of my all-time favorites, then citizen-activist and now 3 former Mayor Debbie Cook in the back there, Room B8, Mike Adams was 4 Planning Director then, Jeff Oderman, who' s still the attorney for 5 the latest developer. 6 I was on staff actually, redevelopment staff, not planning, 7 don' t call me a planner, and I remember, we were pretty excited about 8 the project even though it was ... it remained to be seen. It was a 6- 9 Plex mann movie theater above Pepper' s Restaurant, a Mexican 10 restaurant with a Golden Bear night club, to bring back the Golden 11 Bear. 12 Johnny Rockets, which has come and gone, and gone over on 13 the Strand side, Blockbuster Movie Rental, when that was kind of new 14 and hip, you couldn't get to it just to run in and drop your video 15 off, unless you parked on PCH double, which is not a good idea. 16 HSS, which was the anchor tenant and has done great, 17 Huntington Surf and Sport, Aaron Pai and his staff do great work. 18 There was a big fountain, six, six and a half feet tall, so you 19 couldn' t see the doors, it cascaded down. They finally got rid of 20 that and put the statue of the Duke Kahanamoku and now the footprints 21 and handprints, and that' s a neat presentation they do every year 22 during the US Open of Surfing. 23 It' s a challenge, that was to become the first big spot as 24 we tried to do this visitor-serving commercial plan for Downtown 25 Huntington Beach. The idea was we had eight and a half miles then, 26 ten miles now of visitor-serving beach, but most people come for the 27 day, paid their $8, $10, $12 back then, buy a couple of hotdogs, a 28 64 City Council Meeting 1 09-17-12 1 couple of beverages and they leave. How do we capture and cover the 2 costs of maintaining the great beaches that we ' re lucky to have here, 3 and yet generate some income for the city as a whole? 4 We've slowly implemented of our plans since 1984, obviously 5 we have the Hyatt and the Hilton, which go a long way towards 6 producing almost $7 million in TOT, and in addition to people from 7 out of town paying that tax, most of us benefit, whether it's from a 8 non-profit fundraising event that we go to, weddings, lunches, don' t 9 want your in-laws staying with you, that' s a good place. 10 The hotels provide some great amenities . With Pacific City 11 and yet a third hotel at the Waterfront Resort, I think that 's all 12 great stuff in progress . I would agree with Ms . Cook, that this is a 13 bit of a lemon that the Daichendts, who bought it, I don' t know, a 14 decade - 12 years ago, something like that, have bought it, they 15 thought, with a great tenant movie theater, but see how the dynamics 16 of things change, right? 17 Now you have to have at least a 16-Plex theater with the 18 cascaded seats and movies starting basically every 15 minutes, so it 19 just doesn' t work. The theaters went away. They spent considerable 20 money and we haven' t had a chance to have an interest, and now most 21 of us toured recently. Grupo Gallegos did an impressive job of ... well 22 I guess the developer, did an impressive job of making these shell 23 for offices, spent a couple of million bucks and then Grupo Gallegos 24 came in and spent another couple of million dollars and have over 100 25 employees. 26 One of the challenges is how do we create this business- 27 serving commercial that ' s required by our Coastal Commission, and yet 28 65 City Council Meeting 1 09-17-12 1 our summer is about six to eight weeks long these days, as far as 2 kids being out of schools, the parents, people going to hotels . We' re 3 trying to get business conferences to come on a year-round basis, and 4 we need a certain amount of office components that can go to the 5 restaurants and the shops, make that work on a year-round basis, 6 because we don' t have high-density tall towers of residential, like 7 maybe Santa Monica or LA. 8 It' s always kind of a balancing act, and it' s interesting. 9 I used to live downtown, in Town Square, mixed-use projects for 15 10 years and you' re close to the action, and sometimes you' re too close 11 to the action. The folks that are here that are original owners tells 12 me there' s a love-hate relationship, that you love being by the 13 ocean, you bought there knowing it, and you haven' t moved or sold 14 even at the height of the market, a few years ago. 15 Understand we ' re all NIMBY' s to some extent, at least in 16 our own backyards . We have a couple of closed school sites now that 17 are looking to have single-family homes built in them, and the folks 18 are all up in arms . There are some single-family homes that have had 19 a community garden built next to them a year or two ago. "Oh my gosh, 20 are you kidding me?" It seems to me there' s almost nothing you can 21 build that doesn' t bother the folks that are next door. 22 The parking was addressed. This has been an ongoing thing 23 that ... we have 297 spaces and two levels below this, and I think it 24 was like 588 who were applied to this from the Main Street Promenade 25 for the movie theaters . That was part of the deal, redevelopment step 26 made to make this work. Now, they've got about half of those spaces 27 back to build and accommodate this phase. 28 66 City Council Meeting 1 09-17-12 1 One of the things we 've missed in downtown, in my opinion, 2 is we still don' t have enough great ocean view restaurants . I give 3 Tom credit, one of the best ones still is Spark. If you're near the 4 Hilton or Hyatt, you basically don't see the ... I mean you might see 5 the horizon view of the ocean but you don't see the pier, you don't 6 get those views . 7 I 'm looking for it hopefully, that this developer will 8 finally make that happen. A place that we all look forward to taken 9 advantage of. The sun goes down every single day last I checked, and 10 those sunsets over the pier will make that a strand that was another 11 thing they missed at the Shorebreak Hotel. Didn't take advantage of 12 that view in the sunset. 13 There ' s a couple of lights . Maybe I ' ll wait but I think 14 this is progress, again from what ... did the economics change over 25 15 years? When the time is appropriate, I ' ll make a motion. 16 MAYOR HANSEN: Thank you, Council Member Bohr. Council 17 Member Carchio? 18 COUNCIL MEMBER CARCHIO: I have to agree with Council Member 19 Bohr, that this is a real improvement in the area. Everybody, even 20 the folks sitting up there will agree that this space here is under- 21 utilized, and they can't be happy for what' s going on in that alley 22 around there. I had a business downtown, I know a lot of the people 23 that have businesses in that complex, and there ' s been problems in 24 that alley all along. There' s homeless people there, there ' s people 25 doing drugs there, a multitude of things that are going on. 26 The space is under-utilized. The project, every one of the 27 tenants that I 've checked with, that are in that building, think that 28 67 City Council Meeting 1 09-17-12 I this property owner is a good person, and he tries to make everybody 2 happy. I think, and I 'm pretty sure that he had meetings with all you 3 folks too. 4 AUDIENCE: No ! No. 5 FEMALE: He did not talk to us ! 6 COUNCIL MEMBER CARCHIO: Well then I guess I asked the wrong 7 question. 8 FEMALE: That whole project came to us on very short notice. 9 COUNCIL MEMBER CARCHIO: Okay. Anyway, I 've checked with 10 most of the merchants in the Downtown area, and they are really happy 11 that this project is going to go forward, hopefully. It' s going to 12 increase business downtown, it' s going to increase our sales tax 13 revenue. The folks at Grupo Gallegos, I don't know if any of the 14 folks have had the opportunity to tour the Grupo Gallegos building, 15 but it' s just magnificent inside. 16 They treat their employees like very few companies do . 17 They've got a basketball court in there that 's as nice as the Staple 18 Center, they've got batting cages, they've got workout rooms, they've 19 got fitness centers and a lot of the employees bought homes here in 20 the Huntington Beach. They' re contributing, and as well as any of the 21 new tenants are going to contribute too. 22 If you have businesses and you have properties downtown, 23 it ' s going to increase your property, because a lot of the folks that 24 are going to be down there are going to be earning money, paying 25 more, we' ll get more sales tax revenues . 26 Then I heard one gentleman say that all the people don' t 27 like the building. I guess you' re just assuming that they're not 28 68 City Council Meeting 1 09-17-12 1 going to like the building. A lot of the people that I 've talked to 2 think it ' s a big improvement in the Downtown. They don' t like the 3 building the way it is now, but I think the building is going to be 4 hugely improved when this project is finished, if it gets approved 5 this evening. 6 I 'm really happy with what the applicant has done and has 7 showed us, and I ' ll be supporting the project. 8 MAYOR HANSEN: Mayor Pro Tem Dwyer. 9 MAYOR PRO TEM DWYER: Yeah, I just hope that the maker of 10 the motion would accept the changes that the owners are willing to do 11 with the terracing. The applicant brought up something and I was 12 actually at the Planning Commission meeting and I thought it was a 13 bit of chaos, and from my understanding, I think the DRB meeting may 14 have been as well. 15 Because this now has to go through a process again, is 16 there a way ... I think the applicant talked about it actually being 17 done by Planning Director, or if it comes back to us, so that it 18 doesn't have to go through this chaos again. 19 For those of you that didn' t see it, we' re a seven-member 20 Planning Commission, two of them had to abstain, because of some 21 reason they were attached to the project or they'd taken donations, 22 one happened to be in a car accident so she wasn' t able to make it, 23 so we ended up with four Planning Commissioners, were actually at a 24 deadlock and then had to recess until they could decide how to 25 proceed. 26 COUNCIL MEMBER CARCHIO: And one resigned. 27 28 69 City Council Meeting 1 09-17-12 1 MAYOR PRO TEM DWYER: Yeah, I guess that' s right, and one 2 Planning Commissioner resigned over it. I'd like to avoid all that. 3 What is the process from here, especially if we go with these new 4 drawings that do the layering. 5 MR. EDWARDS: Our current recommendation I think would 6 maintain and would be to ... since we' re changing the design elevations 7 and footprints somewhat, would be to go back to the Design Review 8 Board, with a focused review on these specific changes, with the 9 recommendation to the Director, for the final decision. 10 MAYOR PRO TEM DWYER: Okay, and is that appealable to the 11 Planning Commission or appealable to us or at that point ... I don't 12 want to go through the whole ... 13 MR. HESS: I suppose if you eliminate the Design Review 14 Board recommendation, just say, "Subject to Director Approval, " then 15 it would not be appealable. 16 MAYOR PRO TEM DWYER: Can it be appealable to us? I mean I 17 wouldn' t want to take our authority away, but I do want to try and 18 speed up the process . 19 MR. HESS: Yeah, I think if you send it back to DRB, then 20 that becomes discretionary, it comes back to me, that can be 21 appealed, but_ if you just state, "Staff Approval" then that' s not 22 appealable . If you want it to come back to you, then you would say, 23 "Design Review Board and back to the City Council. " 24 MAYOR PRO TEM DWYER: Right. 25 MR. HESS: It' s your choice how you want the final 26 elevations to be reviewed. 27 28 70 City Council Meeting 1 09-17-12 1 MAYOR PRO TEM DWYER: Yeah, I would think the Director at 2 this point, otherwise it' s just going to go through the whole chain 3 of events again. 4 MR. HESS: I do want to point out we just saw the plans 5 today for the first time, and the recommendations in the staff report 6 are up on the exhibit behind Council Member Boardman, and these 7 address many of the suggested changes, but not all of them. That ' s 8 what you want to consider when you make your motion. 9 MAYOR PRO TEM DWYER: Did you wish to express the ones that 10 you have seen? 11 MR. EDWARDS: Well the primary design recommendations that 12 was different from what was recently submitted would be adjusting 13 massing on the east elevation facing Pier Colony, would include an 14 additional step-back on the fourth floor, as shown in the Recommended 15 Design Changes exhibit behind Council Member Boardman. 16 MAYOR PRO TEM DWYER: Well I guess that ' s for us to discuss . 17 I can't imagine that really affects it structurally, since the 18 staircase is right there. 19 MR. EDWARDS: The other somewhat major design change would 20 be staff' s recommendation regarding the variance to height. We are 21 asking or requesting a six foot reduction in what' s proposed. 22 MAYOR PRO TEM DWYER: I think we got that down, okay. Thank 23 you. 24 MAYOR HANSEN: Council Member Boardman? 25 COUNCIL MEMBER BOARDMAN: Thank you. I think in the Downtown 26 Specific Plan it says that 60o site coverage is allowed. Is that 27 right? 28 71 City Council Meeting 1 09-17-12 1 MR. EDWARDS: That is correct. 2 COUNCIL MEMBER BOARDMAN: Okay, it seems to me this project 3 far exceeds that, so that's one issue I have with it. Tell me about 4 the loss of public open space as well . There was an issue brought up 5 about that. While I don' t think the open space is used very well, in 6 the original plan this was designed to be public open space, and is 7 that being mitigated or made up for in any way? 8 MR. HESS: When the Downtown Specific Plan had a 9 comprehensive of update in the last couple of years, it addressed 10 some of these issues, and Ethan is double-checking on the maximum 11 site coverage, to clarify, to answer your earlier question. 12 Also, it reduced the amount of public plaza area in each 13 one of the districts too, so it was a requirement to have a greater 14 area. This project is creating some carts and kiosks in the area, so 15 it' s complying with the new Specific Plan. 16 COUNCIL MEMBER BOARDMAN: But we' re losing public open 17 space. 18 MR. HESS : Yes, you are reducing the amount of public open 19 space that was required under the former plan, with this plan. This 20 plan is consistent with the current Specific Plan, which had a 21 Program-Level EIR which looked at the difference between the old 22 Specific Plan and the new Specific Plan, and it addressed those 23 issues. 24 COUNCIL MEMBER BOARDMAN: We' re being asked to approve a 25 height variance, there' s issues about the set-back from the property 26 line, the massing of the building on the site. If developers would 27 come to us with projects that complied with the Specific Plan, it 28 72 City Council Meeting 1 09-17-12 1 would be a lot easier for everyone, I think, personally. We have 2 Specific Plans, we have guidelines, we have rules to help developers 3 design projects that it would be difficult to object to. 4 This incredibly tall building next to an existing 5 residential building, I have a real problem with. I have a problem 6 with the height variance. I don't think that this building is 7 consistent with other projects downtown that are built adjacent to 8 residences . I think we have to be sensitive to the fact that there 9 are residences next door now, that people paid a premium for to have 10 a view, and this building is going to impact that. 11 I think views are important. The views of the residences, 12 the views of the public are important to me . I also have a concern 13 about the rooftop restaurant and the impacts of noise to the 14 residences . When the residents bought their condo, they bought the 15 condo knowing that there would be existing uses next door, knowing 16 there was a movie theater, knowing that HSS was there and shops were 17 along PCH. They did not anticipate losing their views because of an 18 expansion, and I 'm glad that Grupo Gallegos is here, I 'm glad that we 19 have tenants on the third floor of that building, but also I have 20 heard ample evidence tonight that that corridor is supposed to be 60 21 feet. 22 I 've heard it from a former mayor, I 've heard it from our 23 staff that the applicant came to us with 60 feet on their documents, 24 so I 'm concerned about the loss of the 20 feet there. For those 25 reasons, while I think that there ' s no doubt the building could be 26 improved and there' s space that' s not being utilized, I just can't 27 support this iteration of the building. 28 73 City Council Meeting 1 09-17-12 1 [APPLAUSE] 2 MR. HESS : Council Member Boardman, just for the record, I 3 want to clarify. The current Specific Plan does not have a maximum 4 site coverage. The previous Specific Plan had 600, the new Specific 5 Plan does not have a maximum site coverage, so I want to make that 6 clarification. Thank you. 7 COUNCIL MEMBER BOARDMAN: Thanks. 8 MAYOR HANSEN: Council Member Shaw. 9 COUNCIL MEMBER SHAW: The first thing I 'd like to say is 10 that I believe that the developer, since he ' s taken over the 11 building, I believe that he really does get what we ' re trying to do 12 downtown and the kind of businesses and other things that will go 13 into this building. I think he understands what we' re trying to do 14 downtown and he ' s trying to do that, but on the other hand I also 15 think that there was adequate proof presented tonight that this was 16 indeed supposed to be a 60-foot corridor there. 17 I don' t know how the staircases got built with the 40-foot 18 distance, but the rest of the building has 60 feet, and for a 19 building that' s been so heavily publicly subsidized, I think that 20 instead of calling people NIMBY' s we should respect that there is a 21 public benefit to having that 60-feet corridor, that 60-feet view 22 corridor. There' s a public benefit to that and I think that the 23 developer could design this building in a way that would respect 24 that, would give him more office space, more restaurant space and 25 still make everyone happy. 26 I think that what ' s been done is it' s all been pushed to 27 the edges and pushed as far as it can go and pushed as high .as it can 28 74 City Council Meeting 1 09-17-12 1 go and see what happens and see if we would bring it down. We're not 2 really bringing it down, we' re probably going to approve it. I 3 however think that that building ... when I first moved downtown, when 4" I first moved into the downtown community and the business community, 5 I owned my business in Plaza Almeria, and I know some people disagree 6 with me, but I think that' s one of the best buildings downtown, Plaza 7 Almeria, and I was very happy with it. 8 I would walk down 3rd Street, I used to live on 3rd Street 9 in a little green house, I used to rent that little house there, and 10 I used to walk down through this view corridor and I used to think, 11 "This is such a great place ." I know no one hardly uses it, but I 12 love walking down this corridor to get to the beach, instead of 13 walking down Main Street. 14 It was a great place, it was a great way to go, however the 15 first thing I did when I saw that building was like, "This is a crap 16 building ! Whoever designed this should be thrown out! " None of the 17 businesses on this side are going to ever prosper. 18 I see the need to change the design of the building, but I 19 do not see the need to change the view corridor. I also do not see 20 the need to mass the building so heavily, to make it so tall, so 21 wide, I do not understand that. 22 For those reasons, I will be voting no on this project. 23 [APPLAUSE] 24 MAYOR HANSEN: Council Member Harper. 25 COUNCIL MEMBER HARPER: Thank you very much. I do appreciate 26 the background and the perspective that Council Member Bohr had 27 brought up, going back to the 180s . I was one of those kids at 28 75 City Council Meeting 1 09-17-12 1 Huntington Beach High School who came out to the Mann Theater and 2 really enjoyed what had been started in downtown, but quickly 3 recognized that some things weren't working as well as they may have 4 been thought in practice. 5 You used to be able to hear the Pepper' s Golden Bear from 6 right under the movie theater at some point, and that became a 7 difficulty of incompatible uses . That corridor did change 8 significantly, because as you pointed out, it had been intended as a 9 space where people would be able to go out to after a concert, or be 10 able to line up prior to a concert. You' ll still see some remnants of 11 the queuing areas, that you' ll see at the House of Blues or at other 12 concert venues that were setup there, ticket booths, etcetera. 13 At this point now, they' re out of date. The building' s been 14 around for over two decades at this point, and for a building so 15 large, so prominent and so central to the important commercial 16 district of the city, it seems very obvious that at this point of 17 maturation, that this is the time for revisions to be able to respond 18 to what the market is looking for. 19 I listen to how Councilman Shaw is acknowledging that there 20 are developments that are happening in downtown. I hear a lot of 21 people calling for differences allowing for the ability to be able to 22 have different tenants and things that have been done like at the 23 Strand attracting Innocean Media, as well as here at Pierside 24 Pavilion being able to attract Grupo Gallegos . 25 It creates a very different dynamic in downtown, in terms 26 of being able to attract professionals, which makes for a very 27 different mix. It makes for people who aren' t just coming in on the 28 76 City Council Meeting 1 09-17-12 1 weekends, or on the evenings, but people who see Huntington Beach as 2 not only a place where they might live, but definitely a place where 3 they work along during the day in the downtown, which is something 4 that' s very different then what we've seen in the past. 5 I see a lot of this as a move in terms of responding to 6 what the market is asking for. In terms of what the demands are for 7 this area, and for what a lot of people are indeed asking for, I 8 don't see this as different or out of character with many of the 9 other structures that are in the area. Whether it be the Ocean View 10 Promenade, whether it be the Strand, whether it be Plaza Almeria. 11 It' s certainly even Pier Colony itself. 12 Each are large structures, that have been planned out and 13 been able to be planned and put together accordingly. With those into 14 consideration, and a lot of the discussion, which I think is 15 appropriate for a project of this nature, I' ll be supporting this . 16 MAYOR HANSEN: Council Member Carchio 17 COUNCIL MEMBER CARCHIO: I just wanted to make two points . 18 One, I heard Council Member Shaw had mentioned Plaza Almeria and how 19 satisfied he was with that, well, Plaza Almeria took 15 years to 20 build. There was a lot of people that didn't like that project 21 either. 22 The other question was for Joe, if you don' t mind. In some 23 of the discussions that I had with some of the residents that lived 24 there, they were quite concerned about the patio at Black Bull. I 25 just thought that it would be appropriate for you to explain to the 26 folks who are listening about the project, about the changes that are 27 going to be made there. 28 77 City Council Meeting 1 09-17-12 1 MR. DAICHENDT: Absolutely. During the three resident 2 meetings with Pier Colony, that was something that was voiced 3 multiple times about Black Bull. Black Bull had a rough start. They 4 had a rough start with the Police Chief, with the landlord and with 5 the neighbors . 6 COUNCIL MEMBER CARCHIO: And themselves . 7 MR. DAICHENDT: And themselves . It created a lot of 8 heartburn for everybody. Ultimately that is something that we worked 9 with in overtime. We were able to remedy that. I call the Black Bull 10 my black eye. 11 In light of all the positive items that we've brought 12 forward in Pierside, many people remember me by that one item. If we 13 look at the last year and a half, we've worked to meet with the Chief 14 every six months, to work with Black Bull as an operator. Then part 15 of this application, we took the outdoor dining, that' s against Pier 16 Colony and in this alley, and we' re now enclosing that, and removing 17 that outdoor establishment and all the noise and potential problems 18 that may come with that. 19 COUNCIL MEMBER CARCHIO: The other part that somebody had 20 brought up about the noise that may come from the rooftop restaurant. 21 I understand that in your standard lease, you have the ability to 22 remove that tenant or change their lease arrangements if they get a 23 numerous amounts of complaints . If you could just relate the 24 situation with Curves, maybe they could understand that. 25 MR. DAICHENDT: Absolutely. Quiet enjoyment is a paragraph 26 that exists in all our leases . What Council Member Carchio is 27 referencing, is when Curves was open, it' s a workout establishment 28 78 City Council Meeting 1 09-17-12 I about 1, 000 square feet, with 8 to 12 stations and music that plays . 2 It' s primarily women that attend and they go around and work out at 3 this facility. 4 It' s a rather docile use. Ultimately, we did receive noise 5 complaints from Pier Colony residents, and we ended up having to shut 6 down that operation. We struggle to find this quasi visitor-serving 7 commercial for that side, to be a good neighbor. It certainly doesn' t 8 work out on the economics . 9 COUNCIL MEMBER CARCHIO: The only way you' re going to know 10 this is if the residents voice their opposition to whoever is in 11 there, and if there' s noise and loud music, if they would let you 12 know. 13 MR. DAICHENDT : We intend to never have those complaints 14 come, because we would want to address that from the start. 15 COUNCIL MEMBER CARCHIO: Right. 16 MR. DAICHENDT: We have three different sound studies going, 17 we have looked at sound baffling, angles at how the noise travels . 18 We' re working in every way, from the operator we choose to the 19 structure we build, to resolve sound from the start . 20 COUNCIL MEMBER CARCHIO: In other words, they have to let 21 you know, they have to be proactive and let you know that there' s a 22 problem and you' ll take care of the problem. 23 MR. DAICHENDT: If there' s a problem, we' ll resolve it . 24 COUNCIL MEMBER CARCHIO: Okay, thank you. 25 MR. DAICHENDT: Thank you. 26 MAYOR HANSEN: Council Member Shaw. 27 28 79 City Council Meeting 1 09-17-12 1 COUNCIL MEMBER SHAW: I just want to clarify something that 2 was said earlier by Council Member Carchio about Blair Farley 3 resigning because of this project. 4 COUNCIL MEMBER CARCHIO: I didn't say that, I said he 5 resigned. 6 COUNCIL MEMBER SHAW: He did not resign because of this 7 project he resigned to spend more time with his family and his job 8 which is the challenge that we all have. I just want to set the 9 record straight. [inaudible 02 : 26 : 151 10 MAYOR HANSEN: Council Member Harper, you want to take 11 exceptions [inaudible 02 :26 : 35] . 12 COUNCIL MEMEBR HARPER: I didn't approve of that. 13 MAYOR HANSEN: Okay. 14 COUNCIL MEMEBR HARPER: That was a member of the previous 15 Council. 16 MAYOR HANSEN: Council Member Bohr. 17 COUNCIL MEMBER BOHR: All right, let me take a shot at this . 18 Staff, if you've not had a chance to look at the suggested 19 modifications, the one through six, speak now or forever hold your 20 peace . 21 MR. EDWARDS: Yes, yes we have. We have some comments on a 22 few of them if you' d like to hear that. 23 COUNCIL MEMBER BOHR: Okay. 24 MR. EDWARDS: On number one, after reviewing the plans, 25 staff is okay with number one suggested modification. Number two, 26 staff is okay with that suggested modification. Number three, staff 27 is also okay with that, however, if the Council supports the proposed 28 80 City Council Meeting 1 09-17-12 1 design as resubmitted today, we would request that this design be 2 approved today and not necessarily go back to DRB or back to the 3 Director for review and approval. 4 COUNCIL MEMBER BOHR: Okay. 5 MR. EDWARDS : Number four, then the restaurant hours of 6 operation. We do not agree with number four. It' s inconsistent with 7 the City Council resolution, which requires restaurants to close with 8 alcohol to close at midnight. Additionally, we have a recommendation 9 from the Police Department to close the outdoor dining patio areas on 10 the second floor restaurant and rooftop deck at 10 PM. 11 Number five, the variance, we still maintain that the 12 height should be reduced to top of parapet at 62 feet. Additionally, 13 number six, the Pierside Pavilion cart program that was approved in 14 2010 has several conditions of approval that talk about location of 15 carts . This originally went to the Zoning Administrator. It was 16 appealed to Planning Commission and wound up at City Council on 17 appeal. Because of public safety, visibility, pedestrian circulation 18 issues, several customer queuing area, minimum areas around the carts 19 were required, as well as ten foot clear passage areas where 20 pedestrian access along the sidewalks and minimum separation between 21 . portable carts and any other obstruction as shown. 22 I haven' t reviewed the cart design with the new plans, but 23 I imagine with these same conditions as approved by you in 2010, it 24 would probably net six or eight carts or so, as opposed to 18 as 25 requested. 26 COUNCIL MEMBER BOHR: Mr. Daichendt, if you please? Let ' s 27 start from the bottom, let ' s go with the carts . 28 81 City Council Meeting 1 09-17-12 1 MR. DAICHENDT: Sure. 2 COUNCIL MEMBER BOHR: Can you explain what' s on your 3 submitted plan from what we approved last? 4 MR. DAICHENDT: Absolutely. Currently, there' s four on Main 5 Street, and we' re requesting six. On PCH, I don' t know the exact 6 count. Exists to-date somewhere around eight to ten that go along 7 PCH, and we' re requesting something similar. 8 COUNCIL MEMBER BOHR: There' s a plan that they have that has 9 that count? 10 MR. DAICHENDT: It is . This plan behind you and the new site 11 plan remains the same on either option A or option B. 12 COUNCIL MEMBER BOHR: On the second? 13 MR. DAICHENDT : On the first or second. 14 COUNCIL MEMBER BOHR: I know at one point, it was a public 15 safety about squad cars driving by those see-through. Chief, are you 16 okay with this suggested modification or . . . 17 POLICE CHIEF: I will answer that question, but before that, 18 when you get to the part about the upstairs dining and restaurant 19 hours, I would appreciate the opportunity to talk about them. 20 COUNCIL MEMBER BOHR: We can do them both right now. 21 POLICE CHIEF: Joe sent me the diagram today for the carts, 22 and I have my staff go out and look at that diagram. We thought that 23 diagram looked fine to us . I know Planning has a concern about the 24 ones along PCH being placed in such close proximity to the highway 25 for fear that somebody might step into traffic or something, but I 26 think, if I heard Joe correctly, there is some sort of a barrier or 27 something between the sidewalk and the traffic light. 28 82 City Council Meeting 1 09-17-12 1 MR. DAICHENDT: There is a seat wall. 2 COUNCIL MEMBER BOHR: Okay. Thank you. Let' s go back to 3 number four which is proposing to match the hours of the Spark 4 Restaurant which is 1: 00 AM closure dining patios and 1:30 AM closure 5 of restaurant. That' s open to the condos now, as it exist? 6 MR. DAICHENDT: You' re correct. Even though the new 7 restaurant will be in closer proximity, there will be additional 8 sound barriers and items to reckon with the sound or to eliminate it. 9 COUNCIL MEMBER BOHR: Okay. Chief? 10 POLICE CHIEF: Joe and I talked about this situation as 11 well. I spent several months of my life and lost several years of 12 life going through the Downtown Specific Plan update and coming up 13 with all of the various rules that was adopted by the City Council. I 14 think they were well thought out. 15 One of them was dining until midnight. I think that makes 16 sense . I think, after midnight, I'm not sure how much dining goes on. 17 I think it' s more drinking and less dining. I think that' s why we pu: 18 the midnight in there. Joe and I talked a lot about the rooftop patio 19 because the Police Department in the original documentation we sent 20 over said no rooftop patio. 21 I think the rooftop patio is something that has a great 22 potential for problems with the neighbours, and your Downtown 23 Resolution for 3rd and 5th Street, which is immediately adjacent to 24 residential areas, instead of midnight, your resolution set the time 25 of closure at 10 o' clock which is why we thought 10 o' clock would 26 work when it' s immediately adjacent to residential. 27 28 83 City Council Meeting 1 09-17-12 1 I know there have been sound studies, but I don' t have a 2 lot of confidence in sound studies when it comes to noise made 3 outside because I think wind and a lot of other environmental factors 4 impact how noise travels . Another condition we had for the outside 5 dining was that there would be no entertainment or dancing and that. 6 alcohol could only be served in conjunction with food service. It 7 wouldn' t be an outside bar. It would be an outside dining area. Now, 8 all those are recommendations from the Police Department, but I know 9 Joe has some comments that he would like to share in regard to those 10 things as well. 11 COUNCIL MEMBER BOHR: Tell me, have you had any of these 12 challenges with Sparks? 13 POLICE CHIEF: Sparks has been absolutely no problem for us, 14 but as you know, when you condition this, those conditions go with 15 the property and they become attached to whatever tenant happens to 16 be in the building. We' re talking about 2012 with this property owner 17 and the planned tenant he might bring in. Those conditions will be 18 there in 2015, 2020, and forever after no matter what property owner 19 and what tenant are there. 20 COUNCIL MEMBER BOHR: I guess I'm open to . . . I think our 21 resolution was that if you had to come in and not have to come to 22 City Council and then fit the core that that' s what you do and you' re 23 next to 5th Street, I think this is a little different situation here 24 on PCH. I guess I'm open to some compromise, but I think that our 25 resolution, and it' s our privy to do so, should be amended in this 26 case. Mr. Daichendt? 27 28 84 City Council Meeting 1 09-17-12 I MR. DAICHENDT: If I could comment, Council Member Bohr, I 2 agree with the Chief. The sound study is I don' t believe are the best 3 thing to go by because they can' t really think through every 4 eventuality. That 's why the hours we' re requesting were aligned with 5 Spark because we think there are quality operators, my favourite 6 restaurant in Downtown. 7 Again, this restaurant will be in closer proximity. It will 8 have additional sound barriers that Spark does not have today. That 9 will not only help Spark, not that there' s an issue but certainly the 10 new restaurant location. We' re looking for a calibre or product that 11 goes a notch up on Spark. We want a synergistic benefit. Speaking 12 with Tom and Bill, the owners of Spark, we talked about the synergy 13 of one restaurant' s very successful and the other is not, there would 14 be benefit of overflow. 15 The hope is not to have Spark isolated out there and not 16 put a restaurant that' s uninhibited with more restrictions . 17 Certainly, we don' t expect the use those hours every night of the 18 year, but we certainly want to extend the operator the flexibility to 19 be as successful as they can. 20 COUNCIL MEMBER BOHR: Okay. I guess the last one is the 21 height. Staff may have the pitch for what I believe wants 62 . You 22 want to justify your recommendation? 23 MR. DAICHENDT: Yes. The height' s important I think to the 24 overall design primarily. If we look at the current structure, the 25 building will be shorter than what exists today. I think the height 26 is necessary, one - for what the space will be on the inside, for the 27 28 85 City Council Meeting 1 09-17-12 1 tenants looking at Grupo Gallegos new office space, but also for the 2 proportion of the structures . 3 I do want to stress the building is not taller, ultimately 4 it' s shorter on the definition of height. The Specific Plan, on a 5 sloped roof takes a mean elevation, on a flat roof it goes to the 6 parapet, but if you were to take an actual measuring tape up, the new 7 building ends up shorter even with the additional six feet. 8 COUNCIL MEMBER BOHR: I apologize. I was coming up with my 9 great compromise on the hours and I missed your answer. Please 10 repeat. 11 MR. DAICHENDT: Let me just summarize this quicker. The 12 height we' re requesting on the new structure is ultimately shorter 13 than what exists today on the existing so the expansion will be 14 shorter. Even with the additional six feet that we' re requesting, on 15 what' s shown on the plans behind you. We think it' s important for the 16 inside of the space, the leasability, the look. 17 The fourth floor, it' s typical to have a four-floor 18 penthouse office space be that next level or higher calibre. I do 19 want to say there' s a Grupo Gallegos is indicating that they' re going 20 to take the entire third floor. They very well may take both floors . 21 Currently, John Gallegos, the founder, has his actual office on 22 Walnut. I think he' d like to have one facing the ocean. 23 COUNCIL MEMBER BOHR: Do these floor plates still line up 24 from one building to the other if you' re at 62? 25 MR. DAICHENDT: I'm sorry. I'm missing a big point on that. 26 To build a new building core, we have to match floor plates . The 27 importance of that is that the elevator, the gurney-rated elevator 28 86 City Council Meeting 1 09-17-12 1 for fire access and to avoid the sloping that would make the project 2 an impossibility. We matched floor plates of the existing structure. 3 We build a new building core with tandem elevators that work in 4 concert and efficiently. 5 COUNCIL MEMBER BOHR: Staffing rebuttals so to speak today? 6 MR. EDWARDS: No additional rebuttal. However, I believe 7 with staff' s recommendation that at 62 feet the floor plates would 8 match, would allow that internal circulation as required and help 9 reduce the overall height and some of the massing issues that have 10 been raised. 11 COUNCIL MEMBER BOHR: Is it correct that the overall height 12 will be less than the existing building or is it just at the cupola, 13 at the corner? I'm actually asking you, Ethan. 14 MR. EDWARDS: Can you please repeat that? 15 COUNCIL MEMBER BOHR: Is the proposed height as modified 16 here, less than the existing building or the tallest part of the 17 existing building? Is that correct? 18 MR. EDWARDS: I don' t know. I'm not sure, to be honest with 19 you. 20 MR. DAICHENDT: Councilman Bohr, I can answer that question. 21 Per the Downtown Specific Plan, the definition of height as we 22 measure sloped roof, it means meets the same height for this Specific 23 Plan. If you were to pull a measuring tape out, if you could for a 24 building that tall, the building will end up being shorter. 25 COUNCIL MEMBER BOHR: Okay. All right, let me give this a 26 shot and see a staff of your following: Both City Clerk and now will 27 be closely and Scott and Ethan. If I were to make a motion staff 28 87 City Council Meeting 1 09-17-12 1 recommendation for approval with the modified design, suggested 2 modifications one, two, three, five and six, with four amended as 3 follows : propose that Sunday through Thursday, the patio closes at 11 4 and the restaurant closes at midnight, Friday and Saturday the patio 5 closes at midnight and the restaurant closes at 1 : 00 am and there' s a 6 one year review to City Council from the time they open to make sure 7 that we've got the right tenant, that' s doing the right job of 8 operating that in those hours, does that motion cover everything? 9 COUNCIL MEMBER DWYER: If I may? Staff actually recommended 10 on three that it be done tonight not that it go . . . 11 COUNCIL MEMBER BOHR: Oh, You' re right. Yeah, that' s fine. 12 Sure. 13 MR. DAICHENDT : Thank you. 14 COUNCIL MEMBER BOHR: Actually, they want to disapprove the 15 plan as submitted, and so three will be eliminated, correct? 16 MR. DAICHENDT: Correct. 17 COUNCIL MEMBER BOHR: Is there anything else to add? 18 POLICE CHIEF: Would you consider the restriction on 19 entertainment on the patio and alcohol in conjunction with food 20 service or two recommendations that we had? Not the patio, but the 21 rooftop. 22 COUNCIL MEMBER BOHR: That there' s no entertainment or just 23 small food being served of food served at same . . . consistent? 24 POLICE CHIEF: No live entertainment or dancing, on the roof 25 and alcohol served only in conjunction with food service. 26 COUNCIL MEMBER BOHR: You want to speak, Mr. Daichendt? 27 28 88 City Council Meeting 1 09-17-12 1 MR. DAICHENDT: Yes . The Chief and I spoke about this, and 2 I'm in agreement with the food being served with the alcohol. No 3 issue there for the type of operation that we want to bring. I would 4 ask that the entertainment be okay. It' s common for Spark to get a 5 wedding. These types of things now, if someone tries to do wedding on 6 a Saturday . . . 7 COUNCIL MEMBER BOHR: They have a guitar player every brunch 8 that we love. Can we get a little tighter on what entertainment is 9 for you, Chief? 10 MR. HESS : If I may I interrupt, Commissioner Bohr, there' s 11 no request for live entertainment with this application. It' s just 12 for alcohol sales . 13 COUNCIL MEMBER BOHR: Does .that have to come in separately? 14 MR. HESS : Right. It'd had to come in separately. 15 Entertainment and dancing is a separate request. It wasn' t advertised 16 for tonight' s meeting. 17 COUNCIL MEMBER BOHR: All right. That' s my motion. 18 COUNCIL MEMBER CARCHIO: Could you read those hours of 19 operations? 20 COUNCIL MEMBER BOHR: Sunday through Thursday, closing time 21 is midnight, patio can be open until 11 : 00 PM Friday and Saturday, 22 the patio can be open until 12 : 00 AM and then closing time is at 1 : 00 23 AM. One year review to the City Council from the time they open. 24 Which will probably be after they get an entertainment permit. 25 MAYOR HANSEN: I' ll second that. 26 COUNCIL MEMBER BOHR: The staff comfortable? 27 28 89 City Council Meeting 1 09-17-12 4 1 MR. HESS: Yeah. Again, just to clarify on the plans . You' re 2 approving the plans that were distributed tonight, the revisions to 3 the elevations? 4 COUNCIL MEMBER BOHR: Right, correct. 5 MR. HESS: Just to clarify. Thank you. 6 COUNCIL MEMBER BOHR: Madame City Clerk? 7 CITY CLERK FLYNN: [inaudible 02 : 44 : 15] verify was, I know 8 that you got the entertainment and dancing, what about the alcohol 9 only with food service, did that stay there or is that coming back? 10 COUNCIL MEMBER BOHR: Yes, the alcohol I guess is moot . I'm 11 sorry. The entertainment is not a part of this at all, and, yes, 12 alcohol with food service was fine. 13 MAYOR HANSEN: It' s been moved and seconded. There are no 14 additional lights so let' s please vote. 15 CITY CLERK FLYNN: The motion passes five-two as amended. 16 Council Member Shaw and Boardman - No. 17 MAYOR HANSEN: Council Members, there' s sort of an add-on 18 item which is Item No. 19 on the Council agenda. It holds on to this 19 discussion and decision so . . . 20 COUNCIL MEMBER BOHR: Let' s talk it out. I motion to move 21 that forward. 22 MAYOR HANSEN: I just say we' ll move it forward without 23 objections, as long as there are no objections, we' ll move item 24 number 19 forward. Seeing none, we' ll take up item number 19. 25 MR. DAICHENDT: Thank you, members of the council. 26 27 28 90 City Council Meeting 1 09-17-12 1 MAYOR HANSEN: Motion to approve the recommended action for 2 19, seconded. Moved by Harper, seconded by Carchio. Any discussion? I 3 see none, please vote. 4 CITY CLERK FLYNN: Motion for item number 19 is passed five 5 to two. Shaw, Boardman - No. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 91 City Council Meeting 109-17-12