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REQUEST FOR COUNCIL ACTION DATE: September 12, 2016 ITEM NO: 13 Department Approval: Administrator Reviewed: Agenda Section: Name Jeremy Barnhart Y"-4 Planning Title Community Development Director Item Description: #16-3856, Saryan Cuisine Development, LLC, o/b/o Paul Agre Company, 2380 Shadywood Road, Conditional Use Permit Application Summary The applicant is requesting a conditional use permit to operate a bakery cafe with integrated production kitchen at 2380 Shadywood Road. A similar use, coffee and bagel shop, is a conditional use in the B-5 zoning district. The proposed business meets the requirements imposed on coffee and bagel shops, including size, seating, and parking. Planning Commission Recommendation The Planning Commission reviewed the proposal at their meeting on August 15t". Minutes are attachec as Exhibit C. The Planning Commission discussed at length the restaurant versus coffee/ bagel business dynamic, ultimately recommending approval noting that coffee/ bagel is not defined, the criteria for coffee/ bagel is met, and the menu is not an ordinance established evaluating factor. Their approval included two conditions: outdoor seating would require a reduction in indoor seating, and liquor is not to be served. In both situations, these features would negate the designation of coffee/ bagel retail, requiring an ordinance amendment. Public Comment The public comment included some concern over parking. The site plan provided by the applicant shows 68 parking spaces. Based on parking requirements for 3,900 square feet of restaurant, 49 parking spaces are required. 18 parking spaces along the east property line are the subject of a parking and access easement with the neighbor to the east. Both parcels has rights to these spaces. The restaurant parking requirements are based on the public areas of the restaurant, other cities include the entire floor area, but have a lower parking to sq ft ratio. Though not supported by the ordinance, the use of the building for production bakery could generate additional parking demand. Applying a manufacturing designation to the production kitchen and backroom area would require 14 spaces (4 plus 1/ 800 square feet of a 8,000 sq ft space). The site provides adequate parking for both uses (14 spaces plus 49 spaces is 63, less than the 68 spaces provided). Both uses occur at different times. Planning Staff Recommendation Planning Staff recommends approval of the conditional use permit for a bakery cafe with integrated production kitchen with the condition that no liquor may be sold, the hours be restricted to no later than 10 pm, and any outdoor seating shall be approved by the City Council.