This project was reviewed pursuant to the guidelines of the California Environmental Quality Act (CEQA) and determined to be Categorically Exempt pursuant to Section 15301, Class 1: "Existing Facilities" of the CEQA Guidelines in that the request to allow the sale of beer and wine would be a negligible expansion of the existing use.

That the Planning Commission approve:

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, MAKING THE REQUIRED FINDINGS AND APPROVING CONDITIONAL USE PERMIT 22-30 TO ALLOW THE SALE OF BEER AND WINE UNDER A TYPE 41 LICENSE ISSUED BY THE DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL FOR AN EXISTING RESTAURANT LOCATED AT 1460 SOUTH HARBOR BOULEVARD, AS PER THE APPROVED PLANS AND SUBJECT TO CONDITIONS, AND MAKING THE DETERMINATION THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15301, CLASS 1: "EXISTING FACILITIES" OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES

The Applicant, DMI Harbor Hills, LLC, is requesting approval of Conditional Use Permit 22-30 for the sale of alcoholic beverages under a Type 41 (On-Sale Beer and Wine) license issued by the Department of Alcoholic Beverage Control (ABC) at an existing restaurant (Furai Chicken) located at 1460 South Harbor Boulevard. The restaurant occupies a 1,649 square foot tenant space that is centrally located in "The Row on Harbor" shopping center. The entire shopping center comprises 27,062 square feet and is situated on a 1.58 acre site. "The Row on Harbor" has 13 additional suites including Akafuji, Bodhi Leaf Coffee Traders, Eggbred, Cuzco's Peruvian, Feu Noodle Bar, Harbor Mexican Cafe, Pirates Kitchen La Habra, Sisu (retail store), Beauteous Nails, Code Ninjas, The Office, Club Pilates, and AKT fitness.

The site is located on the east side of South Harbor Boulevard between Las Riendas Drive and Las Palmas Drive as shown below in Exhibit 1. The General Plan designates the subject property as Neighborhood Commercial land use, and it is within the Commercial (C-2) Zone, which implements the General Plan Neighborhood Commercial land use designation. The subject property is bordered on the north side by another commercial property. To the east of the subject property, across Ladera Terrace, are multifamily residences; and to the south, is the Las Palmas Medical Plaza. To the West, across Harbor Boulevard, are a couple of commercial properties, multifamily residences, and a church, all of which are located within the City of Fullerton. Exhibt 2 shows the delineation of the Fullerton/La Habra city boundaries in relation to the subject property.

EXHIBIT 1


EXHIBIT 2


Furai Chicken restaurant has operated in La Habra since 2021 under CUP 19-23. Furai Chicken is a Korean style fried chicken restaurant that offers a variety of chicken wings and sandwiches. Hours of operation are 11:30 a.m. to 9:00 p.m, Tuesday to Sunday. The restaurant closed on Mondays. No changes are being proposed to the current hours of operation under CUP 22-30. The restaurant operates with four employees.

The applicant is proposing to sell beer, and potentially wine, because they believe that it will complement their food menu and cater to requests from their patrons to purchase beer with their meals. A floor plan of the restaurant is shown below in Exhibit 3. The indoor dining area provides seating for up to 16 customers, additionally, the patio area provides seating for up to 16 customers. Alcoholic beverages will be stored in the existing display refrigerator at the front of the restaurant as well as in an existing walk-in cooler located at the rear of the restaurant. No interior and/or exterior tenant improvements are being proposed that would result in additional square footage to the existing restaurant.

EXHIBIT 3


The sale of beer and wine at the restaurant requires approval of both a CUP from the City and a Type 41 license, referred to as an "on-sale" license, from the Department of Alcoholic Beverage Control (ABC). ABC has established standards for over-concentration of on-sale licenses per census tract. If the ratio of licenses to census tract population exceeds a certain threshold, the tract is considered to be at a level of "Undue Concentration." ABC's standards for determining undue concentration within a census tract do not take into consideration existing development patterns. Presently, ABC would allow for up to five on-sale licenses in the subject census tract (Census Tract 16.04) before rising to a level of undue concentration.  The subject Census Tract is shown in Exhibit 4. There are currently five active on-sale licenses within the Census Tract (Akafuji, Pirate's Kitchen, Eggbred, Feu Noodle Bar, Harbor Mexican Cafe) and Furai Chicken would be the sixth on-sale license requested. Before ABC can issue any additional alcoholic beverage license(s) within an area of undue concentration, ABC will require the applicant to demonstrate that the Public Convenience or Necessity (PCN) would be served by the issuance of a license. In order to support the required PCN, staff added certain conditions of approval to the subject CUP to ensure compatibility and compliance with City codes and ordinances. This includes, but is not limited to, requiring the applicant to: 1) demonstrate, on an ongoing basis, that their primary business is a public bona fide eating establishment ; 2) comply with all ABC licensing requirements; and, 3) verify that all employees selling alcohol complete a certified training program by ABC. 

EXHIBIT 4


The proposed on-site sale and consumption of beer and wine is not anticipated to significantly change the character of the existing restaurant or its relation to the surrounding businesses. Rather, allowing Furai Chicken to offer the onsite sale of beer and wine will simply add to the variety of restaurants in the area, which also justifies the PCN. With the incorporation and implementation of the conditions of approval included within the draft resolution (Attachment 2), staff believes that the proposed use will be harmonious with the surrounding land uses.

ANALYSIS

Pursuant to La Habra Municipal Code (LHMC) Section 18.06.040.A, the approval of a Conditional Use Permit (CUP) is required for alcoholic beverage sales and services. In order to grant the CUP for this request, the Planning Commission must make the findings below. Following each finding, staff has provided the justification to make said finding.

1. The granting of the Conditional Use Permit will not be detrimental to the public welfare and will not unreasonably interfere with the use, possession and enjoyment of surrounding and adjacent properties and will not impair the character of the zone in which it is to be located.

The attached conditions of approval for the CUP ensure that the proposed on-site sale and consumption of beer and wine under a Type 41 license will not be detrimental to the public welfare and will not unreasonably interfere with the use, possession and enjoyment of surrounding and adjacent properties. Through compliance with these conditions of approval, the addition of the sale of beer and wine at the subject existing restaurant will not impair the character of the C-2 zone. It is expected that the sale of beer and wine will be ancillary to the restaurant use.

2. The subject site is physically suitable for the type of land use being proposed.

The 1,649 square-foot suite where Furai Chicken restaurant is located is part of an established retail commercial center. The day-to-day operation and use of the existing restaurant, without issue, demonstrates that the tenant space, within the existing retail commercial center, and its associated parking, is adequate in size, shape, and topography to accommodate the existing restaurant. While the approval of CUP 22-30 will allow the sale of beer and wine, it will not result in substantial changes to the existing restaurant operation. No interior and/or exterior modifications are proposed that would result in new square footage, nor will there be any site alterations. Therefore, the subject site is physically suitable for the City to allow the existing restaurant to add the sale of beer and wine to their menu.

3. The use is conditionally permitted within the subject zone and complies with the intent of all applicable provisions.

Furai Chicken restaurant is located in the C-2 Zone, which allows alcoholic beverage sales and services with a conditional use permit (La Habra Municipal Code Section 18.06.040.A). Five other restaurants located in the same commercial center have conditional use permits allowing the on-site sale of alcoholic beverages. With the approval of the CUP, Furai Chicken will be able to offer beer and wine to complement their customers’ food orders and further enhance their dining experience. With the incorporation and implementation of the conditions of approval, the use will be harmonious with other businesses in the commercial center and the surrounding land uses and will comply with the intent of all applicable provisions of the La Habra Municipal Code.

4. The granting of the Conditional Use Permit is consistent with the General Plan.

Granting CUP 22-30 to allow the on-site sale of beer and wine under a Type 41 license will be consistent with the La Habra General Plan, specifically Policy LU 11.1, which encourages “the development of a broad range of uses in La Habra’s commercial centers and corridors that reduce the need to travel to adjoining communities, and capture a greater share of local spending.” Furai Chicken restaurant is situated within “The Row on Harbor” commercial center, which presently features a variety of food, retail, and fitness offerings. By adding beer and wine to its existing menu, Furai Chicken can continue to meet customer needs and contribute to the variety of dining choices in the La Habra area. Granting CUP 22-30 is also consistent with General Plan Policy LU 3.2, which promotes “uses that meet daily needs...within walking distance of residences.” Furai Chicken is conveniently located nearby existing multi-family residential units to the east of the commercial retail center. The addition of beer and wine to the existing menu expands the restaurant’s offerings to these residences within walking distance as well as the greater La Habra area.

Related Cases

• On April 22, 1974 the Planning Commission approved a Conditional Use Permit to establish a restaurant at 1460 South Harbor Boulevard.
• On August 27, 2018, the Planning Commission approved Conditional Use Permit 18-12 to operate a remediation system at the subject property.
• On August 1, 2019, the Planning Commission approved Conditional Use Permit 19-11 and Conditional Use Permit 19-12 for a restaurant with an ABC Type 41 alcoholic beverage license at 1450 South Harbor Boulevard (Akafuji Restaurant).
• On August 1, 2019, the Planning Commission approved Conditional Use Permit 19-16 for a restaurant at 1452 South Harbor Boulevard (Bodhi Leaf Coffee Traders Restaurant).
• On August 1, 2019, the Planning Commission approved Conditional Use Permit 19-14 for a restaurant with an ABC Type 41 alcoholic beverage license at 1454 South Harbor Boulevard (Tori Haus Restaurant).
• On January 27, 2020, the Planning Commission approved Conditional Use Permit 19-23 to establish a restaurant at 1460 South Harbor Boulevard.
• On March 23, 2020, the Planning Commission approved Conditional Use Permit 19-27 and Conditional Use Permit 19-28 for a restaurant with an ABC Type 41 alcoholic beverage license at 1464 South Harbor Boulevard (Originally Hog and Hen, now Pirate's Kitchen Restaurant).
• On April 27, 2020, the Planning Commission approved Conditional Use Permit 19-26 to establish a health club, a Pilates Studio at 1470 South Harbor Boulevard (Club Pilates).
• On April 27, 2020, the Planning Commission approved Conditional Use Permit 19-24 to establish a health club, a dance studio at 1476-1478 South Harbor Boulevard (AKT).
• On July 13, 2020, the Planning Commission approved Conditional Use Permit 20-08 for a restaurant at 1466 South Harbor Boulevard (Originally Orot Kitchen, use changed to a retail store called Sisu).
• On September 28, 2020, the Planning Commission approved Conditional Use Permit 20-11 for an ABC Type 41 alcoholic beverage license in conjunction with a restaurant at 1456 South Harbor Boulevard (Fue Noodle Bar).
• On November 9, 2020, the Planning Commission approved Conditional Use Permit 20-15 for a restaurant at 1458 South Harbor Boulevard.
• On December 14, 2020 the Planning Commission approved Conditional Use Permit 20-19 for an ABC Type 47 alcoholic beverage license in conjunction with an existing restaurant.

The Applicant has paid for the processing costs associated with the Conditional Use Permit, which total $6,491.00.

The Applicant's proposal has been reviewed pursuant to the requirements of the City's National Pollutant Discharge Elimination System (NPDES) Municipal Permit, the Local Implementation Plan (LIP), and the Model Water Quality Management Plan (WQMP), Section 7.2. Since no disturbance of soil will occur, the project is exempted by the Water Quality Ordinance from the preparation of a WQMP.

The proposed project is related to the following General Plan policies:

• LU 3.2: Uses to Meet Daily Needs. Encourage uses that meet daily needs such as grocery stores, local-serving restaurants, and other businesses and activities within walking distance of residences to reduce the frequency and length of vehicle trips.
• LU 11.1 Diversity of Uses. Provide for and encourage the development of a broad range of uses in La Habra's commercial centers and corridors that reduce the need to travel to adjoining communities, and capture a greater share of local spending.

The proposed project is related to the following City Council Goal and Objective:

• Goal 5 - Development Activity and Business Assistance
  • Objective D: Continue to improve the City's business retention and expansion program.