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Item No. 1. 
MEETING DATE: May 27, 2025
 
TO: PLANNING COMMISSION
 
FROM: SUSAN KIM, DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT
By: Ash Syed, Senior Planner

 
SUBJECT:
A DULY NOTICED PUBLIC HEARING TO CONSIDER REQUESTS FOR DESIGN REVIEW 24-0009 (DR2PH 24-0009) TO COMPREHENSIVELY REMODEL AN EXISTING MULTI-TENANT COMMERCIAL BUILDING AND SITE, CONDITIONAL USE PERMIT 25-0002 (CUP 25-0002) TO ALLOW THE ESTABLISHMENT AND OPERATION OF TWO RESTAURANTS, A COMMERCIAL SCHOOL FOR MARTIAL ARTS AND AN AUTOMOBILE SERVICE/REPAIR FACILITY, CONDITIONAL USE PERMIT 24-0016 (CUP 24-0016) TO PERMIT REDUCED ON-SITE PARKING FOR THE PROPOSED MIXED OCCUPANCIES SUPPORTED BY A PARKING ANALYSIS, AND CONDITIONAL USE PERMIT 24-0011 (CUP 24-0011) TO IMPLEMENT A SIGN PROGRAM FOR THE SUBJECT COMMERCIAL SHOPPING CENTER AT 301-341 NORTH HARBOR BOULEVARD (ASSESSOR’S PARCEL NUMBER 022-324-24)

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The Project was reviewed pursuant to the guidelines of the California Environmental Quality Act (CEQA) and determined to be categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301, Class 1: “Existing Facilities” of the CEQA Guidelines as the Project involves a negligible expansion of use. The Project consists of the renovation of the exterior of an existing shopping center building where all necessary public services and facilities are readily available and no expansion of building square footage is proposed.

The Project is not subject to any of the exceptions for exemption under Section 15300.2 of the CEQA Guidelines. The cumulative impact of this Project, and the approval of similar projects in the vicinity, is not expected to have any significant environmental impact. The Project is not located along any state-designated scenic highway nor within any designated hazardous waste site. The Project will not cause a substantial adverse change in the significance of any historical resource because the building and property where it is located is not listed on any National, California or Local Registers. Staff does not anticipate any significant impacts or unusual circumstances related to the approval and construction of this Project. Therefore, the Project is categorically exempt from CEQA.

RECOMMENDATION:

That the Planning Commission approve and adopt:
 
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, MAKING THE REQUIRED FINDINGS AND APPROVING DESIGN REVIEW 24-0009 (DR2PH 24-0009) TO COMPREHENSIVELY REMODEL THE EXTERIOR OF AN EXISTING MULTI-TENANT COMMERCIAL BUILDING AND SITE, CONDITIONAL USE PERMIT 25-0002 (CUP 25-0002) TO ALLOW THE ESTABLISHMENT AND OPERATION OF TWO RESTAURANTS, A COMMERCIAL SCHOOL FOR MARTIAL ARTS AND AN AUTOMOBILE SERVICE/REPAIR FACILITY, CONDITIONAL USE PERMIT 24-0016 (CUP 24-0016) TO PERMIT REDUCED ON-SITE PARKING FOR THE PROPOSED MIXED OCCUPANCIES SUPPORTED BY A PARKING ANALYSIS, AND CONDITIONAL USE PERMIT 24-0011 (CUP 24-0011) TO IMPLEMENT A SIGN PROGRAM FOR THE SUBJECT COMMERCIAL SHOPPING CENTER AT 301-341 NORTH HARBOR BOULEVARD (ASSESSOR’S PARCEL NUMBER 022-324-24), AS PER THE APPROVED PLANS AND SUBJECT TO CONDITIONS, AND MAKING THE DETERMINATION THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTION 15301, CLASS 1: "EXISTING FACILITIES" OF THE CEQA GUIDELINES.

DISCUSSION:

The Applicant, Kevin Lee of Berkshire Hathaway Commercial Real Estate, on behalf of the property owner, Diamond Harbor LLC, is requesting approval of the following:
  1. Design Review 24-0009 (DR2PH 24-0009) - to comprehensively remodel an existing multi-tenant commercial building and site, known as the La Habra Shopping Center, addressed as 303-341 North Harbor Boulevard;
  2. Conditional Use Permit 25-0002 (CUP 25-0002) - to allow the establishment and operation of two restaurants, a commercial school for martial arts, and an automobile service/repair facility in specific suites within said shopping center;
  3. Conditional Use Permit 24-0016 (CUP 24-0016) - to permit reduced on-site parking for the proposed mixed occupancies in said shopping center; and
  4. Conditional Use Permit 24-0011 (CUP 24-0011) - to implement a Sign Program for the subject shopping center.
The Project involves an existing 21,086 square-foot, multi-tenant shopping center building on a 1.7-acre site (the "Project"), located at the northwest corner of Harbor Boulevard and Stearns Avenue (see Exhibit 1 below and Attachment 2).

Exhibit 1: Vicinity Map
 
The General Plan designates the project site for Highway Commercial (0.3 FAR) land use. The project site is within the Commercial (C-2) Zone, which implements the General Plan's Highway Commercial land use designation. Land use information for the site and each of the surrounding properties has been summarized in Table 1 below:
 
Table 1: Surrounding Properties 
Location Zoning Designation Land Use Designation Existing Land Use
Site: Commercial (C-2) Highway Commercial
(0.3 FAR)
La Habra Shopping Center
North: Commercial (C-2) Highway Commercial
(0.3 FAR)
West Coast Collision
Auto Body Shop
East, across Harbor Blvd: Commercial (C-2) Community Shopping
Center 1 (0.5 FAR)
Harbor Square
Shopping Center
South, across Stearns Ave: La Habra Boulevard
Specific Plan (SP-1)
Mixed-Use Center 3 Vacant
West: Multi-Unit Dwelling (R-4) Residential Multi-unit 1
(Up to 15-24 units/ac)
Villa Monaco
Apartment Complex
 
The subject shopping center (a.k.a. the La Habra Shopping Center) was constructed in 1965. Over the years, a variety of commercial businesses have been permitted to establish and operate at this shopping center. However, the center has experienced a significant decline in recent years. Currently, the only business permitted to operate within the shopping center is Winchell's Donuts. However, tenant improvement plans have been submitted for the following units:
Table 2: Tenant Improvement Permits
Unit Address Use Status
309 General Retail (Nail and Eyelash Studio) Plans Under Review
311 Restaurant - Food-to-Go (Chicken Box) Under Construction
313 Restaurant - Food-to-Go (Juice Bar) Plans Under Review
315 General Retail (Ark Spa Hair Salon) Under Construction

In addition, permits have been issued for grading and on-site improvements to upgrade site accessibility under the Americans with Disabilities Act (ADA). The above uses and ADA upgrades are not subject to Planning Commission approval; however, they must meet all applicable federal, state and local requirements. In an effort to further revitalize the main shopping center, the Applicant is requesting approval of the entitlements above, which are subject to Planning Commission approval. Since Winchell's Donuts is located in its own detached building, the Applicant is not proposing to make any facade improvements for Winchell's.

There is an open Code Enforcement Case (CE Case 20-33) for the property for the following violations: trash and debris, maintenance of detrimental property conditions, exterior structure property maintenance graffiti, uses operating with a CUP and/or business license, broken windows, and building improvements completed without permits and/or inspections.

As depicted in Exhibit 2 below, and Attachment 3, the main shopping center building was constructed with an L-shaped building footprint with the parking lot situated at the front of the building, adjacent to Harbor Boulevard and Stearns Avenue. There is an existing eight-foot-high wall/fence (comprising of six-foot-high CMU wall with two feet of wrought iron on top along the north and west property lines. The Applicant intends to leave the wall/fence as-is. 

Exhibit 2: Site Plan
 
Vehicular access to the site is available from three driveways along Harbor Boulevard and three driveways along Stearns Avenue. Two of the driveways along Harbor Boulevard provide customers with direct access to the parking lot. The northernmost driveway along Harbor Boulevard provides access to the rear of the shopping center as well as access to existing automotive service bays. As part of the Project, the Applicant is proposing to remove the easternmost driveway along Stearns Avenue, next to Winchell's Donuts. As a result, there will be one driveway along Stearns Avenue that provides direct access to the parking lot and another one that leads to the rear of the shopping center.  All driveways for the Project will allow for both vehicle ingress and egress.
 
Building Remodel (Design Review 24-0009 (DR2PH 24-0009)) 
The Applicant is proposing to comprehensively remodel the entire facade of the existing 21,086-square-foot, multi-tenant commercial building by replacing it with a fresh, contemporary architectural style. Since the proposed remodel will affect more than 25 percent of the building area, a Design Review approval is required pursuant to paragraph 2 of La Habra Municipal Code (LHMC) Section 18.32.050.C (Design Review). As depicted in Exhibit 3 and Attachment 4, the proposed contemporary style features the following:
  • New stucco cladding, horizontal scoring, and rectangular foam accents in Sherwin-Williams "Olympus White" and "French Moire" applied to the upper fascia above the storefronts;
  • Horizontal composite siding with faux wood appearance along select storefront exterior walls (Behr Premium "Golden Beige")
  • Smooth stucco cladding along select storefront exterior walls (Sherwin-Williams "Arcade White");
  • New wood deck with commercial grade metal railing (Behr "Black Semi-Gloss") adjacent to Suite 303;
  • Landscaped mini-courtyard in front of Suites 325, 327, and 329;
  • Architectural metal building screens consisting of a vertical, louvered design (Sherwin-Williams "Oak Creek");
  • Raised precast concrete planters with a faux wood appearance and commercial grade metal railing (Behr "Black Semi-Gloss") across the building frontage along the pedestrian walkways;
  • Integrated wall planters and/or permanent commercial grade potted plants; and,
  • Architectural metal rooftop screens that are designed to cover both existing and proposed mechanical equipment.
At peak, the top of the roof parapet will reach 18 feet, well under the maximum building height of 50 feet, as permitted for commercial buildings in the Commercial (C-2) zone. The roof of the building is and will remain flat, but will include solar panel arrays of predetermined sizes, as required by the California Energy Code. Prior to occupying each tenant space, every new tenant is required to submit plans for interior tenant improvements to the City's Building and Safety Division to ensure building code compliance. Interior tenant improvements will be negligible since interior improvements will not result in creating a larger building than what already exists today.

Exhibit 3: Elevations

Eastern Elevation (facing Harbor Boulevard)


Southern Elevation (facing Stearns Avenue)




Northern Elevation


Western Elevation



 
The proposed landscaping is subject to the requirements of Chapter 18.16 (Water Efficient Landscaping and Water Conservation) of the LHMC. Pursuant to paragraph 2 of LHMC subsection 18.16.060.A (Landscape Requirements), the amount of landscaping provided must be equal to the sum of seven percent of the parking lot area. The Conceptual Landscape Plan depicts 14% of the parking lot as landscaped, surpassing the City's minimum requirement of seven percent, and includes landscape planters with a minimum width of 30 inches, as required by paragraph 2 of LHMC subsection 18.16.060.A, for planters within a commercial shopping center. Exhibit 4, below, and Attachment 5 depict the Project's Conceptual Landscape Plan, which features a variety of drought-tolerant trees in addition to shrubs and ground cover well-suited to the local climate. Common olive trees are proposed to be placed along both the Stearns Avenue and Harbor Boulevard frontages. Crape Myrtle trees are proposed to be placed along the landscape planters throughout the parking area, the patio deck in front of Suite 303, and the courtyard outside Suites 325, 327, and 329. The landscape planters proposed to be located along the southern and eastern boundaries contain Creeping Rosemary groundcover as well as Clara Indian Hawthorne and Waxleaf Privet shrubs. As a condition of approval, the Applicant is required to submit a final landscape plan, at which time, staff will work with the applicant to refine landscape details to ensure the landscaping will complement the building facade. These include requirements to ensure appropriate tree types/sizes, aesthetically pleasing wall and/or pedestrian planters and/or compatible outdoor furnishings.
 
Exhibit 4: Landscape Plan

 
Existing and Proposed Land Uses (Conditional Use Permit 25-0002 (CUP 25-0002))
The subject multi-tenant shopping center is located in the C-2 (Commercial) Zone. LHMC Table 18.06.040A lists the types of land uses that are permitted, conditionally permitted, or not permitted within the C-2 Zone. The Applicant is proposing a total of 13 tenants, including the existing Winchell's Donuts. It is anticipated that nine tenants will operate businesses that are identified as uses permitted by right in the C-2 Zone. More specifically, this includes five tenant spaces for general retail, three tenant spaces for food-to-go businesses and one administrative office use. The Applicant is also requesting approval of one CUP for the land uses summarized in Table 3 below.

Table 3: Proposed Land Uses Subject to CUP
Unit Address Square Footage Type of Use
#303 2,950 Full Service Restaurant
#323 4,000* Commercial School for Martial Arts (Private training sessions allowing a maximum 16 students and five instructors/coaches to operate within the school at the same time)
#325
#327
#331a 1,966 Full Service Restaurant
#339 3,004 Automobile Service/Repair
* The Applicant intends to merge existing Suites #323, #325, and #327 into one suite for a commercial school for martial arts.

The proposed restaurants will each offer a full-service dining experience. It is expected that each floor plan will accommodate a customer waiting area, dining area, kitchen, equipment/storage and restroom facilities. No other land uses (i.e. live entertainment, alcohol sales, etc.) are being proposed in conjunction with either of the restaurants. To help ensure compatibility with the adjacent multi-unit dwellings to the west, a condition of approval has been added requiring the restaurants' truck deliveries to occur between 8:00 AM and 6:00 PM. All deliveries must comply with the City's Noise Ordinance. The Applicant will provide architectural rooftop screening of any vents that may be required to accommodate any interior modifications, such as adding cooking equipment, so that these modifications will not detract from the shopping center remodel.

The proposed commercial school for martial arts will combine three suites for one business. It is anticipated that the commercial school will include area reserved for martial arts training/exercise, martial arts equipment/storage, dressing area, lockers, restroom facilities and limited office space and/or customer area. The proposed commercial school will operate with a maximum of five instructors/coaches offering instruction for a maximum of 16 students at any one time. No outdoor activities associated with the commercial school are being proposed. Conditions of approval specify the commercial school shall operate within the building only with closed doors as needed to minimize noise to the surrounding tenants and properties.

The Applicant is proposing to establish an automobile repair/service business within a suite that was formerly occupied by a similar automobile repair/service business. The subject suite currently has four service bays and 696 square feet of interior sales area. All automobile repair work will take place within the building. No equipment associated with the proposed automobile repair/service will be located outside. The property owner and operator of the automobile repair/service will be required to make sure that all on-site drive-aisles are maintained free and clear of any impediments. Further, they will not be permitted to utilize parking spaces for overnight vehicles or any vehicle-related storage. This use, as well as all the other uses within the shopping center, must comply with the City's Noise Ordinance.
 
Reduced On-site Parking with Parking Analysis (Conditional Use Permit 24-0016 (CUP24-0016))
Pursuant to LHMC Section 18.14.060 (Number of Spaces Required), if the subject multi-tenant building is occupied by all 13 of the proposed tenants, including Winchell's Donuts (Unit #301), the LHMC would require the property to provide a minimum of 115 parking spaces based on each land use and square footage devoted to each land use as shown in Table 4 below. 

Table 4: Proposed Project Parking Generation per La Habra City Municipal Code Section 18.14.06
Unit Address Square Footage Type of Use Parking Calculation Parking Spaces Required
#301 1,396 Restaurant –
food-to-go
3.3 spaces per 1,000 SF 5
#303 2,950 Restaurant –
full service/dining
10 spaces per 1,000 SF 30
#309 1,000 General
Retail
3.3 spaces per 1,000 SF 4
#311 1,010 Restaurant –
food-to-go
3.3 spaces per 1,000 SF 4
#313 600 Restaurant –
food-to-go
3.3 spaces per 1,000 SF 2
#315 1,020 General
Retail
3.3 spaces per 1,000 SF 4
#319 1,020 General
Retail
3.3 spaces per 1,000 SF 4
#321 1,020 General
Retail
3.3 spaces per 1,000 SF 4
#323 4,000* Martial Arts Studio
(Maximum
number of 16 students per
session and 5 coaches)
1 space per student or coach 21
#325
#327
#329 900 General
Retail
3.3 spaces per 1,000 SF 3
#331a 1,966 Restaurant –
full service/dining
10 spaces per 1,000 SF 20
#331b 1,200 Administrative Office 3.3 spaces per 1,000 SF 4
#339 3,004 Auto Service/
Repair
(4 bays + 696 SF of interior sales area)
2 spaces per service bay +
2.7 spaces per 1,000 SF (interior sales and office area)
10
Total 115
* The Applicant intends to merge existing Suites #323, #325, and #327 into one suite for the commercial school for martial arts. The remainder of the units will remain as-is.

Pursuant to subparagraph (a) of LHMC subparagraph 18.14.060.D.1 (Mixed Occupancies), the number of required parking spaces may be reduced upon the approval of a CUP by the Planning Commission, provided a parking study is prepared by a California-licensed civil or traffic engineer and approved by the City Engineer. The Applicant submitted a parking study that was prepared by P2SK Engineers in April 2025 to determine the parking demand dynamics of the proposed Project (Attachment 5). The parking study analyzed the demand for each of the proposed uses/businesses and when the anticipated peak business hours would be. Because there are only 76 parking spaces available on the site in total, this study evaluated how available parking spaces could be shared between businesses at various times of the day. The parking analysis includes each of the proposed uses and accounts for the mix of occupants based on the peak demand times for on-site parking, as shown in Table 5 below:
 
 Table 5: Weekday Parking Hourly Characteristics
Time of Day General
Retail
Restaurant –
sit down
Restaurant –
food to-go
Martial Arts
Studio
Total Parking Demand Surplus Parking
% of peak demand # of parking spaces % of peak demand # of parking spaces % of peak demand # of parking spaces % of peak demand # of parking spaces
6 am 1% 1 0% 0 0% 0 50% 9 10 66
7 am 5% 2 0% 0 75% 16 50% 9 27 49
8 am 15% 5 0% 0 100% 21 55% 10 36 40
9 am 35% 11 0% 0 65% 14 100% 18 43 33
10 am 60% 18 85% 26 60% 13 40% 8 65 11
11 am 75% 22 90% 27 45% 10 40% 8 67 9
12 pm 100% 29 100% 30 40% 9 35% 7 75 1
1 pm 100% 29 90% 27 30% 7 35% 7 70 6
2 pm 95% 28 50% 15 25% 6 60% 11 60 16
3 pm 85% 25 45% 14 25% 6 90% 17 62 14
4 pm 85% 25 45% 14 20% 5 90% 17 61 15
5 pm 85% 25 75% 23 20% 5 100% 18 71 5
6 pm 90% 27 80% 24 25% 6 100% 18 75 1
7 pm 80% 24 80% 24 5% 1 100% 18 67 9
8 pm 65% 19 80% 24 0% 0 0% 0 43 33
9 pm 45% 13 60% 18 0% 0 0% 0 31 5
10 pm 15% 5 55% 17 0% 0 0% 0 22 54
11 pm 5% 2 75% 23 0% 0 0% 0 25 51
12 am 0% 0 25% 8 0% 0 0% 0 8 68
 
Per the weekday parking accumulation calculations, provided in Table 5 above, the peak weekday parking demand is anticipated to occur daily at 12:00 PM and 6:00 PM. Based on the Urban Land Institute's (ULI) time-of-day factors, the peak weekday demand for both peak hours is 75 parking spaces. As a result of this analysis, the Applicant is proposing to provide 76 parking spaces (including 4 ADA-compliant parking spaces) on the Project site, yielding a surplus of one parking space during the peak demand within the shopping center. The proposed layout was designed to allow sufficient ingress/egress and on-site circulation to accommodate the projected number of trips for the proposed uses noted above. The City's Traffic Engineer reviewed the aforementioned parking analysis and agrees with its findings.

The Project was also screened through the North Orange County Collaborative VMT (Vehicle Miles Traveled) Traffic Study Screening Tool. Per the Office of Planning and Research (OPR), small projects can be screened from VMT analysis if it is determined that the daily net trips will be less than 110 trips. Based on the Institute of Transportation Engineers (ITE) trip generation report, the net daily trips for this Project are anticipated to be 108 trips and, therefore, is not subject to a VMT analysis.
 
Signs (Conditional Use Permit 24-0011 (CUP 24-0011)
Pursuant to subparagraph 2 of LHMC Section 18.23.050.A (Applicability), any redesign, remodel, or redevelopment of an existing multi-tenant or mixed-use development that does not have an existing sign program is subject to the approval of a new sign program. Furthermore, pursuant to LHMC Section 18.23.050.D (Approval), a sign program that deviates from the City’s sign standards in LHMC Chapter 18.23 (Sign Standards) is subject to the approval of a CUP by the Planning Commission.
 
Exhibit 5: Signs
 
In conjunction with the Applicant’s effort to enhance the building and site, the Applicant prepared a sign program (see Exhibit 5 and Attachment 7) for their redesigned multi-tenant shopping center (excluding Winchell's Donuts) under Conditional Use Permit 25-0011 (CUP 25-0011), which will allow for customized signs as follows:
  • One primary wall sign, measuring 8 feet x 2.25 feet (maximum 18 square feet total area) for each tenant storefront with an entry that consists of either non-illuminated letters with external lighting or halo-illuminated letters.
  • Exposed neon that may be utilized as part of each maximum 18 square foot wall sign as an accent.
  • A second wall sign, not to exceed the size of the primary wall sign, may be added along a secondary elevation with an entrance.
  • One plaque sign made of metal, wood or stone and measuring at a maximum of two square feet total area, for each tenant storefront for pedestrian identification.
  • A range of temporary signs, including, but not limited to, banners, flags, window signs, and portable signs, consistent with LHMC Section 18.23.090.
  • One double-sided pylon sign that can accommodate multiple tenant identification per the sign program color rendering. The maximum overall height of the sign is expected to emulate the overall size of the existing non-conforming sign, which is 26 feet. All new tenant signs will be limited to the white area bounded by black metal framing depicted on the sign program rendering. The other existing non-conforming sign onsite, a 35-foot-tall pylon sign located on top of the east wing of the building, will be removed as part of the building remodel.
The above sign criteria allow for the Applicant’s unique design preferences. If approved, staff will ensure each tenant conforms with these standards as well as any building code requirements through an administrative review process (i.e., building plan check). Additionally, there are two existing, non-conforming rooftop signs that have been abandoned for many years. As required by LHMC Section 18.23.100 (Removal of illegal and abandoned signs - Public nuisance abatement), the Applicant has agreed to remove the non-conforming signs; a condition of approval has been added to the resolution to help ensure the removal of the signs.
 
ANALYSIS:
Design Review (DR2PH 24-0009)
Pursuant to LHMC Section 18.32.050.F (Design Review), since the proposed Project is located within the C-2 (Commercial) Zone and consists of major remodeling affecting more than 25 percent of the exterior of an existing shopping center, it is subject to Design Review approval by the Planning Commission. Pursuant to LHMC Section 18.68.050 (Findings) of Chapter 18.68 (Design Review), the Planning Commission must make the required findings listed below:

A. The proposed project is consistent with the City’s General Plan.
The proposed Project is consistent with the Highway Commercial General Plan land designation for the site. This designation is characterized by uses that are primarily related to and dependent upon the City’s main arterials for access. The multi-tenant commercial shopping center will include a variety of businesses that will be especially convenient for people that travel north and south on Harbor Boulevard. This includes two full service restaurants, three food-to-go establishments, and an automobile service/repair business in addition to general retail spaces and an administrative office use. The revitalization of this site with the proposed remodel which allows for these mixed occupancies will benefit the residents of the apartment complex to the west as well as other members of the La Habra community. The proposed Project also implements the following General Plan goal:
 
Goal LU 11: Diverse Districts and Corridors
- Comprehensively remodeling an existing building will help revitalize the Harbor Boulevard corridor, a primary thoroughfare in the City. The proposed building enhancements will revive the overall shopping center by providing a refreshed building design along with a modern aesthetic and new landscaping areas to beautify the property.

Therefore, the proposed Project is consistent with the City’s General Plan.
 
B. The proposed project is consistent with the City’s Zoning Ordinance.
The subject property has a zoning designation of C-2 (Commercial). The proposed Project complies with each of the site development standards pertaining to building height, setback limits, and landscaping requirements, as established in LHMC Chapter 18.32 (C-P, C-1, C-2, C-2s, C-2sH, and C-3 Commercial Zones). The proposed Project exceeds the six-foot maximum height limit for the wall/fencing along the northern and western boundaries of the property; however, the six-foot high, CMU block wall with two feet of wrought iron fencing on top will remain as-is and is considered legal, nonconforming as it was permitted and constructed prior to the development of this shopping center. While the site should provide 115 total parking spaces per LHMC Section 18.14.060 (Number of Spaces Required), the Applicant has provided a parking study as part of a related entitlement, Conditional Use Permit (CUP 24-0016), that analyzed peak parking demand within the site and concluded that only 75 total parking spaces are needed. A total of 76 parking spaces have been proposed as part of this Project. The Applicant has also applied for another related entitlement, Conditional Use Permit (CUP 24-0011), to establish a Sign Program to allow for greater sign flexibility but still create a cohesive feel among the various uses within the shopping center. Lastly, each of the uses proposed as part of this Project is permitted or conditionally permitted within the C-2 (Commercial) Zone. Therefore, the proposed Project is consistent with the City's Zoning Ordinance.

C. The proposed project is in the best interests of the public health, safety, and welfare of the community.
The Zoning Ordinance and General Plan are tools to help ensure that all projects achieve goals that promote the public health, safety and welfare of the community. The proposed Project is harmonious with both the Zoning Ordinance and the policies of the General Plan. The proposed comprehensive remodel to the exterior of the existing shopping center building will be reviewed to conform with all Building Code requirements and confirm that the shopping center will be structurally sound and meet all electrical, plumbing and mechanical requirements to ensure a safe environment for all anticipated tenants. Each new tenant will be required to submit interior tenant improvement plans to ensure building code compliance. As part of the Building and Safety analysis, the Project will be reviewed by Building Inspectors prior to issuing a Certificate of Occupancy for any of the suites. Therefore, by complying with the Zoning Ordinance and various policies of the General Plan, as well as being subject to the Building and Safety review and inspection processes, the proposed Project is in the best interests of the public health, safety, and welfare of the community.

D. The nature of the proposed land use and the design is appropriate for the proposed location and is compatible with the surrounding land uses and improvements.
The shopping center is situated along Harbor Boulevard, a primary thoroughfare in the City, and is surrounded by existing commercial uses to the north, south, and east. The proposed site and building improvements to revitalize the shopping center will be a significant upgrade to an existing building. The Project will also bring greatly anticipated retail and restaurant uses within walking distance to the residents of the existing apartment complex to the west. Lastly, the proposed site improvements will provide a modern aesthetic with better vehicular circulation and will be complemented by landscaping and trees that will further beautify the property. Therefore, the nature of the proposed land use and the design is appropriate for the existing building location and is compatible with surrounding uses and improvements. 

E. The project complies with all requirements of the California Environmental Quality Act, or has been found to be exempt.
The Project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301, Class 1: “Existing Facilities” of the CEQA Guidelines as the Project involves a negligible expansion of use. The Project consists of the renovation of the exterior of an existing shopping center building where all necessary public services and facilities are readily available and no expansion of building square footage is proposed.

The Project is not subject to any of the exceptions for exemption under Section 15300.2 of the CEQA Guidelines. The cumulative impact of this Project, and the approval of similar projects in the vicinity, is not expected to have any significant environmental impact. The Project is not located along any state-designated scenic highway nor within any designated hazardous waste site. The Project will not cause a substantial adverse change in the significance of any historical resource. Staff does not anticipate any significant impacts or unusual circumstances related to the approval and construction of this Project. Therefore, the Project is categorically exempt from CEQA.
 
Conditional Use Permit (CUP 25-0002)
Pursuant to LHMC Section 18.06.040 (Land Uses), full-service restaurants, commercial schools for martial arts and automotive repair/service facilities are subject to the approval of a Conditional Use Permit. The Applicant has applied for a blanket Conditional Use Permit (CUP 25-0002) to establish uses for specific suites within the shopping center, which correlate to the parking spaces required and provided onsite. Pursuant to LHMC Section 18.66.070 (Planning Commission Action) of Chapter 18.66 (Conditional Use Permits), prior to the approval of the Conditional Use Permit, the Planning Commission must make the required findings listed below; following each finding is Staff's analysis of the proposal to meet the required finding.

A. 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 proposed businesses, including two full-service restaurants, a commercial school for martial arts and an automobile repair/service facility will each operate wholly within the building. No outside activities associated with the business will take place. Moreover, all of the subject businesses have been conditioned to adhere to the City's Noise Ordinance. To minimize any adverse impact to the surrounding and adjacent properties, conditions have been added to require the doors be closed for the commercial school during instruction, any truck deliveries for the two restaurants will be required to occur between the hours of 8 am and 6 pm only, the automobile repair/service facility will not be permitted to have on-site storage of vehicles or impede any driveways needed for on-site circulation at all times. WIth the added conditions of approval, it is not anticipated that the proposed uses will be detrimental to the public welfare or unreasonably interfere with the use, possession or enjoyment of surrounding and adjacent properties or impair the character of the zone.

 As discussed, there is limited parking on the site. To ensure that the 76 available spaces on the site are adequate, this entitlement will establish approved uses for each suite. This will also ensure that each future tenant for the respective suites will have adequate parking for their business, based on the anticipated peak demand for the type of use. Therefore, the granting of this blanket Conditional Use Permit will not be detrimental to the public welfare, will not interfere with the use, possession and enjoyment of surrounding and adjacent properties and will not impair the character of the Commercial (C-2) zone.

B. The subject site is physically suitable for the type of project being proposed.
The existing building, where the proposed two restaurants, commercial school for martial arts, and automobile repair/service facility will be located, was designed to be utilized by multiple tenants since 1965. As proposed, the existing building will not be increased in size as a result of this project, but the existing site will be further improved to the greatest extent possible to include a new driveway configuration by removing one driveway along Stearns Avenue, providing sufficient drive aisle space to allow safe on-site circulation and providing new landscaping to complement the building remodel. Access and on-site vehicle circulation were reviewed by the City's Traffic Engineer and deemed adequate for the proposed uses. Therefore, the subject site is physically suitable for the proposed land uses. 

C. The proposed project is conditionally permitted within the subject zone and complies with the intent of applicable provisions of this title.
Pursuant to LHMC Section 18.06.040.D.2 (Land Uses), the proposed full-service restaurants, commercial school for martial arts and automotive repair/service facility are all allowed subject to the approval of a Conditional Use Permit by the Planning Commission. The project plans associated with the CUP have been reviewed for compliance with all applicable development standards. Additionally, entitling the aforementioned suited for the respective uses will ensure that the 76 provided parking spaces on the site is and will remain sufficient. Therefore, the proposed blanket Conditional Use Permit complies with the intent of applicable provisions of the Zoning Ordinance. 

D. The granting of the Conditional Use Permit is consistent with the City’s General Plan.
The property is designated Highway Commercial by the General Plan. This designation is characterized by uses that are primarily related to and dependent upon the City’s primary thoroughfare for access. The site is a commercial shopping center that will include several uses, such as general retail and food-to-go, and, if the Conditional Use Permit is approved, sit down restaurants, a martial arts studio, and an automobile repair/service facility. This mix of uses is necessary to make the shopping center commercially viable, which fulfills the following General Plan policies:

LU 3.2 Places to Meet Daily Needs
- The renovation of the shopping center, and specifically the Conditional Use Permit aims to bring several uses that include sit down restaurants, a martial arts studio, and an automobile repair/service facility to the community.
           
LU 5.5 Revitalization of Obsolete and Underused Properties
- The subject shopping center has remained primarily vacant since last being purchased in 2023. The proposed renovation project, which is proposed as part of a related entitlement, Design Review 24-0009, and the approval of the Conditional Use Permit will bring a variety of different uses and businesses to the community and serve the general public.

LU11.1 Diversity of Uses
- The proposed renovation project, which is proposed as part of a related entitlement, Design Review 24-0009, and the approved Conditional Use Permit will bring a variety of different uses and businesses to the community and serve the general public.

LU 11.5 Cohesive Development
- The shopping center will provide a variety of commercial uses to a location primarily surrounded by existing commercial properties while also providing nearby residents with retail and restaurant access at a walking distance.

Therefore, granting the Conditional Use Permit is consistent with the City's General Plan.

Conditional Use Permit (CUP 24-0016)
Pursuant to LHMC Section 18.14.060.D (Shared Parking), in the case of mixed occupancies, the total requirement for off-street parking is the sum of the requirements for the various uses computed separately. However, the total number of parking spaces may be reduced upon the preparation of a parking study by a California-licensed civil or traffic engineer, approval of the parking study by the City Engineer, and subsequent approval of a Conditional Use Permit by the Planning Commission.

Pursuant to LHMC Section 18.66.070 (Planning Commission Action) of Chapter 18.66 (Conditional Use Permits), prior to the approval of the Conditional Use Permit, the Planning Commission must make the required findings listed below; following each finding is Staff's analysis of the proposal to meet the required finding.

A. 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.
Based on the proposed uses per suite, the shopping center requires a total of 115 parking spaces pursuant to LHMC Section 18.14.060 (Number of Spaces Required), as depicted by the table below:

Proposed Project Parking Generation per La Habra City Municipal Code Section 18.14.06
Unit Address Square Footage Type of Use Parking Calculation Parking Spaces Required
#301 1,396 Restaurant –
food-to-go
3.3 spaces per 1,000 SF 5
#303 2,950 Restaurant –
sit down
10 spaces per 1,000 SF 30
#309 1,000 General
Retail
3.3 spaces per 1,000 SF 4
#311 1,010 Restaurant –
food-to-go
3.3 spaces per 1,000 SF 4
#313 600 Restaurant –
food-to-go
3.3 spaces per 1,000 SF 2
#315 1,020 General
Retail
3.3 spaces per 1,000 SF 4
#319 1,020 General
Retail
3.3 spaces per 1,000 SF 4
#321 1,020 General
Retail
3.3 spaces per 1,000 SF 4
#323 4,000 Martial Arts Studio
(Maximum
number of 16 students per
session and 5 coaches)
1 space per student or coach 21
#325
#327
#329 900 General
Retail
3.3 spaces per 1,000 SF 3
#331a 1,966 Restaurant –
sit down
10 spaces per 1,000 SF 20
#331b 1,200 Administrative Office 3.3 spaces per 1,000 SF 4
#339 3,004 Auto Service/
Repair
(4 bays + 696 SF of interior sales area)
 
2 spaces per service bay +
2.7 spaces per 1,000 SF (interior sales and office area)
10
Total 115
 
As noted in the staff report, the Applicant intends to merge existing Suites #323, #325, and #327 into one suite for a martial arts training facility with one-on-one coaching sessions. The remainder of the units will remain as-is.

A peak parking demand analysis for the shopping center was prepared and concluded the actual demand based on the mix of uses and differing peak times of operation is 75 spaces, as depicted by the table below:

Weekday Parking Hourly Characteristics
Time of Day General
Retail
Restaurant –
sit down
Restaurant –
food to-go
Martial Arts
Studio
Total Parking Demand Surplus Parking
% of peak demand # of parking spaces % of peak demand # of parking spaces % of peak demand # of parking spaces % of peak demand # of parking spaces
6 am 1% 1 0% 0 0% 0 50% 9 10 66
7 am 5% 2 0% 0 75% 16 50% 9 27 49
8 am 15% 5 0% 0 100% 21 55% 10 36 40
9 am 35% 11 0% 0 65% 14 100% 18 43 33
10 am 60% 18 85% 26 60% 13 40% 8 65 11
11 am 75% 22 90% 27 45% 10 40% 8 67 9
12 pm 100% 29 100% 30 40% 9 35% 7 75 1
1 pm 100% 29 90% 27 30% 7 35% 7 70 6
2 pm 95% 28 50% 15 25% 6 60% 11 60 16
3 pm 85% 25 45% 14 25% 6 90% 17 62 14
4 pm 85% 25 45% 14 20% 5 90% 17 61 15
5 pm 85% 25 75% 23 20% 5 100% 18 71 5
6 pm 90% 27 80% 24 25% 6 100% 18 75 1
7 pm 80% 24 80% 24 5% 1 100% 18 67 9
8 pm 65% 19 80% 24 0% 0 0% 0 43 33
9 pm 45% 13 60% 18 0% 0 0% 0 31 5
10 pm 15% 5 55% 17 0% 0 0% 0 22 54
11 pm 5% 2 75% 23 0% 0 0% 0 25 51
12 am 0% 0 25% 8 0% 0 0% 0 8 68
 
Per the layout of the parking area, 76 total parking spaces have been proposed on the site, providing a surplus of 1 parking space during the peak demand times of 12:00 p.m. and 6:00 p.m. within the shopping center. Only peak weekday demand was evaluated as part of the parking study as, per the Urban Land Institute (ULI) guidelines, the peak weekend demand for martial arts studios is further reduced by 10 percent, weekend retail demand by 10 percent, weekend restaurant demand by 12.7 percent, and weekend office rates by 90 percent. These adjustments reflect typical patterns in mixed-occupancy parking utilization and provide a surplus of 14 parking spaces during the equivalent times of peak weekend demand. Therefore, approval of this Conditional Use Permit would not lead to any parking shortages and would not be detrimental to the public welfare nor will it 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.

B. The subject site is physically suitable for the type of project being proposed.
The parking study provided demonstrates that due to the mix uses within the shopping center, reduced parking is suitable for this site. The shopping center has a variety of uses and services including general retail, food-to-go businesses, an administrative office use, full-service/dining restaurants, a commercial school for martial arts, and an automotive repair/service facility that each anticipates different hours of peak foot traffic. The peak demand analysis identified varying times for parking at maximum capacity for the various uses which concluded that 75 total spaces would be necessary to satisfy each of the suites. A total of 76 total parking spaces have been proposed on the site, providing a surplus of 1 parking space during the peak demand times of 12:00 p.m. and 6:00 p.m. within the shopping center. Therefore, pursuant to the parking study, the site is physically suitable for the reduction from 115 parking spaces to 76 parking spaces.

C. The use is conditionally permitted within the subject zone and complies with the intent of all applicable provisions of this title.
Pursuant to LHMC Section 18.14.060.D (Shared Parking), in the case of mixed occupancies, the total requirement for off-street parking shall be the sum of the requirements for the various uses computed separately. However, the total number of parking spaces may be reduced upon: (a) approval of a conditional use permit by the Planning Commission; or (b) a reduction of up to ten percent may be approved by the Director of Community Development. In either case, a parking study must be prepared by a California licensed civil or traffic engineer and approved by the City Engineer. The City’s Traffic Engineer has reviewed and approved the parking study. Therefore, the reduced parking is conditionally permitted within the subject zone and complies with the intent of all applicable provisions of the Zoning Ordinance.

D. The granting of the Conditional Use Permit is consistent with the General Plan.
The property is designated Highway Commercial by the General Plan. This designation is characterized by uses that are primarily related to and dependent upon the City’s primary thoroughfare for access. The site is a commercial shopping center that proposes several uses that include general retail, sit down restaurants, food to go, a martial arts studio, and an auto service center; all of which are uses that vary in peak parking demand periods. The analysis for reduced parking due to mixed occupancies implements the following General Plan policies:

LU 2.5 Places Supporting the Quality of Life
- The proposed Project aims to revitalize an existing shopping center along a primary roadway within the City. The parking analysis identifies the peak demand for each of the uses and determines that a total of 75 spaces is necessary to bring this renovation project to fruition. A total of 76 spaces have been provided.

LU 3.2 Places to Meet Daily Needs
- The renovation of the shopping center aims to bring several uses that include general retail, sit-down restaurants, food to go, a martial arts studio, and an auto service center to the community. The parking analysis identifies peak parking demand for each use and concludes that 75 spaces are required for the proposed Project. 76 total spaces have been provided.
           
LU 5.5 Revitalization of Obsolete and Underused Properties
- The subject shopping center has remained primarily vacant since last being purchased in 2023. The proposed renovation project will bring a variety of different uses and businesses to the community and serve the general public. The parking analysis identifies the provided parking to be sufficient in satisfying the peak parking demand for this site.
 
LU11.1 Diversity of Uses
- The proposed renovation project will bring a variety of different uses and businesses to the community and serve the general public. The parking analysis identifies the provided parking to be sufficient in satisfying the peak parking demand for this site.

LU 11.5 Cohesive Development
- The shopping center will provide a variety of commercial uses to a location primarily surrounded by existing commercial properties while also providing nearby residents with retail and restaurant access at a walking distance.

Conditional Use Permit (CUP 24-0011)
Pursuant to LHMC Section 18.23.050.D.2 (Conditional Use Permit), a sign program that deviates from the design standards of Chapter 18.23 (Sign Standards), and/or includes signs that are subject to the approval of a conditional use permit, shall be processed as a conditional use permit. Since the Project proposes building-mounted signage that deviates from the regulations established in LHMC Section 18.23.080 (Sign Regulations – Nonresidential), it is subject to the approval of a Conditional Use Permit by the Planning Commission. Pursuant to LHMC Section 18.66.070 (Planning Commission Action) of Chapter 18.66 (Conditional Use Permits), the Planning Commission must make the required findings listed below; Staff has provided justification in support of each finding:

A. 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 proposed Sign Program provides design specifications that will provide uniformity and orderly placement of multiple signs on a building for a cohesive aesthetic among each of the anticipated businesses/uses. Conditional Use Permit 24-0011 (CUP 24-0011) takes into consideration the property's location along a primary corridor within the City and provides signs sized to fit above each tenant's entrance. The proposed Sign Program, which will only apply to building-mounted wall and temporary signs, will provide visitors/patrons with clear identification of each tenant's location. There are also two existing, non-conforming, freestanding signs of 26 and 35 feet on the site. The 35-foot-tall sign, located on top of the east wing, will be removed as part of the building remodel. The 26-foot-tall sign, located along the Harbor Boulevard frontage, will be modified, keeping the overall sign frame and structure, but renovated to match the rest of the renovation project with modern wood paneling and metal accents. Additionally, there are two existing, non-conforming rooftop signs that have been abandoned for many years. As required by LHMC Section 18.23.100 (Removal of illegal and abandoned signs - Public nuisance abatement), the Applicant has agreed to remove the non-conforming signs; a condition of approval has been added to the resolution to help ensure the removal of the signs. Therefore, the granting of this Conditional Use Permit for the proposed Sign Program will not be detrimental to the public welfare, will not interfere with the use, possession and enjoyment of surrounding and adjacent properties, and will not impair the character of the C-2 (Commercial) Zone.

B. The subject site is physically suitable for the type of project being proposed.
Appropriate signage is expected to help identify businesses. Conditional Use Permit 24-0011 (CUP 24-0011) proposes a Sign Program that aims to satisfy the needs of the multi-tenant shopping center while also creating a consistent and cohesive feel. Patrons will be able to clearly identify each tenant location by a sign atop the wooden paneling that will complement the building’s modern aesthetic. The subject site can physically accommodate the proposed signage. Therefore, the subject site is physically suitable for the proposed Sign Program.

C. The proposed project is conditionally permitted within the subject zone and complies with the intent of all applicable provisions of this title.
Pursuant to LHMC Section 18.23.050.D.2 (Conditional Use Permit), processing of a Conditional Use Permit for a sign program provides greater design flexibility than what is permitted under LHMC Section 18.23.080 (Sign Regulations – Nonresidential). Conditional Use Permit 24-0011 (CUP 24-0011) will allow for building-mounted wall signs above primary and secondary entrances that will be up to 18 square feet in size. The proposed Sign Program will also remove the requirement to provide sign illumination provided an external light source illuminates the plaque sign. Further, the Sign Program will permit halo and neon signs as well as storefront glazing. Therefore, the proposed Sign Program is conditionally permitted within the C-2 (Commercial) Zone and complies with the intent of applicable provisions of the Zoning Ordinance.

D. The granting of the Conditional Use Permit is consistent with the City’s General Plan.
The proposed Sign Program implements the following General Plan policy:

Goal LU 11.6 Enhanced Design Character
- The Project includes customized signage that will further enhance the proposed modern building design. The proposed Sign Program includes sign placement and sizing guidelines that will help reduce visual clutter.

Therefore, the proposed Sign Program is consistent with the City's General Plan.

FISCAL IMPACT/SOURCE OF FUNDING:

The Applicant has paid for the processing costs associated with a Design Review, which totals $6,759.00, as well as three Conditional Use Permits, which total $ 20,277.00

NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES):

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. A Non-Priority WQMP shall be prepared and submitted for review.

GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:

The project is consistent with the following General Plan policies:

LU 2.5 “Places supporting the Quality of Life.”
- The proposed Project aims to revitalize an existing shopping center along a primary roadway within the City. The site layout, design, and blanket CUP will establish specific uses for each suite to ensure that the peak demand for each use identified in the parking analysis concludes that 75 spaces remains the necessary parking count for this project.

LU 3.2 Places to Meet Daily Needs
- The renovation of the shopping center aims to bring several uses that include general retail, sit down restaurants, food to go, a martial arts studio, and an auto service center to the community.
           
LU 5.5 Revitalization of Obsolete and Underused Properties
- The subject shopping center has remained primarily vacant since last being purchased in 2023. The proposed renovation project will bring a variety of different uses and business to the community and serve the general public.
 
LU11.1 Diversity of Uses
- The proposed renovation project will bring a variety of different uses and business to the community and serve the general public.

LU 11.5 Cohesive Development
- The shopping center will provide a variety of commercial uses to a location primarily surrounded by existing commercial properties while also providing nearby residents with retail and restaurant access at a walking distance.

LU 11.6 Enhanced Design Character
- Applicant shall provide customized signage that will further enhance the proposed modern building design. The proposed sign program includes sign placement and sizing guidelines that will help reduce visual clutter.

The project is consistent with the following City Council goals and objectives:

Goal 5: Development Activity and Business Assistance
Objective B: Identify underutilized commercial properties that have sales tax generating potential and work with property-owners and the brokerage community to develop land to its highest and best use
Objective C: Work closely with commercial and residential property owners to improve and maintain the appearance of their properties
Objective D: Continue to improve the City’s business retention and expansion program

Attachments