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 CEQA pursuant to Section 15301(a), Class 1: “Existing Facilities” of the CEQA Guidelines. Class 1 consists of the operation, repair, maintenance, permitting, leasing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. The project consists of interior tenant improvements to an existing commercial building located within an existing commercial shopping center. No expansion of building square footage is proposed. The project involves no expansion of use. 

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 are 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.
 

That the Planning Commission approve and adopt:

RESOLUTION 26-01 – A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, MAKING THE REQUIRED FINDINGS AND APPROVING CONDITIONAL USE PERMIT 25-0015 (CUP25-0015) TO ESTABLISH AND OPERATE A COMMERCIAL RECREATION FACILITY (A.K.A. FUNBOX) AT 951 NORTH HARBOR BOULEVARD (ASSESSOR’S PARCEL NUMBER 017-371-28), 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(a), CLASS 1: “EXISTING FACILITIES” OF THE CEQA GUIDELINES
 

The Applicant, Muhammad Siddique, on behalf of the property owner, Seth Stuart of SKBB Investments, is requesting the approval of Conditional Use Permit 25-0015 (CUP25-0015) to establish and operate a commercial recreation facility (Funbox) (the “Project”) within an existing tenant space at 951 N. Harbor Boulevard (“Project Site”) in the North Hills Plaza shopping center located on the northwest corner of North Harbor Boulevard and East Whittier Boulevard (see Exhibit 1 - Vicinity Map). The North Hills Plaza shopping center was originally constructed in 1969. As shown below, the shopping center consists of five separate buildings located on eight separate parcels (Parcels A-H). The Project Site historically operated as a Rite Aid Pharmacy until the business closed in 2022. 

Exhibit 1: Project Site



The General Plan designates the Project Site for Mixed-Use Center 3 land use, which is characterized by parcels developed exclusively for retail or office commercial, multi-unit residential, or for a mix of these uses at a maximum floor area ratio (FAR) of 0.8 for community shopping centers, multi-unit residential at a maximum density of 50 dwelling units per acre, or for a mix of those uses distributed horizontally on the site or vertically in buildings with housing above ground level commercial uses at a maximum FAR of 1.5. The Project Site has a FAR of 0.42, which satisfies the General Plan FAR requirement of 0.8. The Project Site is located within the Commercial (C-2) Zone and the Mixed-Use (M-X) Overlay Zone, which implement the General Plan’s Mixed-Use Center 3 land use designation. Pursuant to La Habra Municipal Code (LHMC) Section 18.54.040, the regulations set forth in Chapter 18.54 (Mixed-Use Overlay Zones (MX)) of the LHMC are in addition to the regulations set forth in the base zone (C-2 Zone). In the event of a conflict between provisions of the MX Overlay Zone and the provisions of the base zone (C-2 Zone), the provisions of the MX Overlay Zone prevail. If the MX Overlay Zone is silent in relation to any development standard, the development standard identified in the base zone (C-2 Zone) prevails. Land use information for the Project Site and each of the surrounding properties is summarized in Table 1 below:

Table 1: Project Site and Surrounding Properties Land Use Information

Vehicle access to the shopping center is provided by two driveways along East Whittier Boulevard and three driveways along North Harbor Boulevard. All driveways allow for both vehicle ingress and egress. The driveway located furthest north on Harbor Boulevard provides the most direct access to the Project Site. As noted above, the shopping center is composed of eight individual parcels, identified as Parcels A through H on Exhibit 1. These parcels have a shared parking and access agreement to allow for the shared use of the parking lot and access lanes for all businesses within the shopping center. This parking and access agreement is included as Attachment 5 to this report.

The proposed commercial recreation facility (Funbox) would operate as a large indoor playground that contains a variety of bounce houses, inflatable mazes, and obstacle courses geared for children and a small area for arcade games. The facility will follow all safety regulations pertaining to playground equipment checks, playground safety rules signs, waivers, staff monitoring, and fire alarms to ensure operational safety at all times. The facility would cater to children and specialize in children’s birthday parties and similar children’s events. While the majority of the tenant space will be utilized for the inflatable playground, there would also be six private event rooms and a seating area for parents and spectators. The facility would not sell any food or beverages, but parties would be allowed to bring outside food and drink to the facility for on-site consumption. The facility would operate Monday through Friday from 11:00AM to 8:00PM and on Saturday and Sunday from 10:00AM to 10:00PM. On a normal operating day, 250 people are expected to be present at the site throughout the day, including approximately 6-14 employees that would be on site to supervise guests, manage check-in, monitor attractions, and oversee party rooms. A full summary of operational characteristics can be found under Attachment 6.  Funbox currently operates in Arizona, Maryland, Texas and California. Its California locations are in Arcadia, Sacramento and Escondido, with new locations opening soon in Downey, National City, and Riverside.

The Applicant provided a trip generation report (Attachment 7) prepared by a licensed engineer to analyze how the Project Site's trip generation would be impacted by the change of use from the previous Rite Aid Pharmacy to the proposed commercial recreation facility. Trip generation for the proposed Project was calculated based on trip rates using the Institute of Transportation Engineers (ITE) Trip Generation Manual. The estimates showed that the previous use (Rite Aid Pharmacy) was estimated to generate 80 primary trips during the PM peak hours. The resulting new trip generation for this Project is estimated to generate 30 primary trips during the PM peak hours. The estimated weekday AM and PM peak hour trip generation per ITE for the proposed change in occupancy results in a significant reduction for both AM and PM peak hours. The City's Traffic Engineer determined that no additional traffic analysis is required for the proposed development because the estimated trip generation for the proposed Project is less than 40 peak hour trips.

Since the La Habra Municipal Code does not specify a parking requirement for a commercial recreation use, the Applicant was required to submit a parking impact study to determine the amount of parking required for the proposed use. This study considered the same use in three different locations, in similarly sized buildings and shopping centers, to estimate the impact that the proposed use will have on the site. The parking impact study was prepared by MSQ Engineering Consultants and reviewed by the City's Traffic Engineer. The full study has been included with this report as Attachment 8. 

The expected peak periods for the proposed use were evaluated on the following dates:

The methodology used by the surveyors was to count the number of empty spaces available at the Project Site for the expected peak times. Surveyors also recorded the number of vehicles that entered and left the comparable sites in 15-minute intervals during the peak periods. The net number of vehicles per hour at each of the comparable sites were then compared to the available parking spaces for that hour at the Project Site. Generally, the survey concluded that of the 265 total parking spaces located on the Project Site, there are approximately 140 to 180 parking spaces available during the expected peak periods, while the maximum vehicles per hour observed at the comparable sites was 71 vehicles per hour. Therefore, the Project Site has sufficient available parking spaces to accommodate the peak traffic during expected peak hours and the proposed use is not expected to create any significant parking impact to the Project Site or surrounding uses. 

Exhibit 2 shows the floor plan for the proposed use, which encompasses a total of 20,100 square feet. The proposed commercial recreation facility includes an inflatable park playground area, seating area with tables, an arcade area, six private event rooms, and bathroom facilities. The Applicant will need to submit building plans for interior improvements to ensure compliance with the California Building Codes. These same plans will also be subject to approval from the LA County Fire Department and Public Works Department. No recreational or commercial activities are proposed to occur outside the building. With the implementation of the conditions included in the Resolution regulating noise levels and setting approved hours of operation, staff believes that the proposed use will be harmonious with the surrounding uses. 

Exhibit 2 — Floor Plan


A legal non-conforming pylon sign is currently located on Parcel A along North Harbor Boulevard (see Exhibit 3 below). The subject pylon sign currently exceeds the maximum height allowance of eight feet established by the LHMC, and has not been utilized by an active business since 2021. Pursuant to Section 18.23.110 (Nonconforming signs) of the LHMC, a sign is considered legal non-conforming if the sign was legal at the time of installation, but no longer conforms to the provisions of LHMC Chapter 18.23 (Sign Standards). Section 18.23.110.D. of the LHMC requires that all nonconforming signs be removed at such time the use of any site, building or structure is changed. Therefore, because the sign is a legal nonconforming sign and use of the site is changing from general retail to commercial recreation, the LHMC requires the sign to be removed. In addition, currently, there is no trash enclosure on the subject parcel. As a condition of approval, the Applicant will be required to remove the pylon sign from Parcel A and provide a trash enclosure on site to the satisfaction of the Director of Community and Economic Development and City Engineer prior to the issuance of a Certificate of Occupancy. 

Exhibit 3 — Existing non-conforming pylon sign.


Analysis

Pursuant to LHMC Section 18.06.040.A (Land Use Matrix), approval of a Conditional Use Permit (CUP) is required for the establishment of a commercial recreation facility in the C-2 Zone and the MX Overlay Zone. Pursuant to LHMC Section 18.66.040 (Applications-Investigation and Findings), in order to grant the CUP, the Planning Commission must make the findings below. Following each finding, staff has provided justification to make said finding.

A. The proposed use 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 establishment and operation of the proposed use will require interior tenant improvements only, which will be reviewed during the City’s building plan check process to ensure compliance with the California Building Codes. This process will necessitate inspections by the City’s Building and Safety Staff before a Certificate of Occupancy is issued. Furthermore, the Applicant will be following all safety regulations pertaining to playground equipment checks, playground safety rules signs, waivers, staff monitoring, and fire alarms in place to ensure operational safety at all times. No commercial recreation activities are proposed to occur outside the building. Further, the proposed use will be located within an existing shopping center. The property is located within the C-2 (Commercial) Zone and has a Mixed-Use (MX) Overlay and surrounding uses include a grocery store, laundromat, dentist's office, barber shop, sushi restaurant and UPS shipping store. The conditions of approval for this Project will ensure that the proposed commercial recreation facility will not be detrimental to the public welfare and will not unreasonably interfere with the use, possession, and enjoyment of surrounding or adjacent properties by regulating noise levels and setting approved hours of operation. The Applicant has provided proof through the inclusion of a trip analysis and parking impact study that there will be no significant traffic or parking impact on the site or neighboring businesses. Through compliance with the conditions of approval, the proposed commercial recreation facility in the shopping center will not impair the character of the C-2 (Commercial) Zone or Mixed-Use (MX) Overlay Zone. Rather, it is expected that the proposed commercial recreation facility will integrate harmoniously with other commercial uses within the same shopping center.

Therefore, the proposed use 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. 

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

The subject site is a 20,100 square foot tenant space within an established commercial shopping center. The site is located within the C-2 (Commercial) Zone and has a Mixed-Use (MX) Overlay, which accommodates a variety of commercial uses and services. The plans for the proposed use show that the existing commercial tenant suite is adequate in size, shape, and topography to accommodate the proposed use. Since there are no changes to the exterior of the building and/or site, the existing vehicular access points and on-site circulation will continue to serve the site as it does today. The Applicant also provided a parking study to determine the amount of parking required for the proposed use. This study was conducted by analyzing similar uses in similarly sized buildings and shopping centers to estimate the impact that the proposed use will have on the site. The parking impact study was prepared by a licensed traffic engineer and has been reviewed and approved by the City's Traffic Engineer. The study concluded that of the 265 total parking spaces located on the Project Site, there are approximately 140 to 180 parking spaces available during the expected peak periods, while the maximum vehicles per hour observed at the comparable sites was 71 vehicles per hour. Therefore, the Project Site has sufficient available parking spaces to accommodate the peak traffic during expected peak hours and the proposed use is not expected to create any significant parking impact to the Project Site or surrounding uses.

Therefore, the subject site is physically suitable for the proposed commercial recreation facility.

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

The subject site is located within the C-2 (Commercial) Zone and has a Mixed-Use (MX) Overlay. Both zone classifications implement the Mixed-Use Center 3 land use designation. Table 18.06.040.A (Land Use Matrix) of the LHMC identifies a commercial recreation facility as conditionally permitted within both the Commercial (C-2) Zone and the Mixed-Use (MX) Overlay Zone. Pursuant to LHMC Section 18.54.040.A, the regulations set forth in Chapter 18.54 (Mixed-Use Overlay Zones (MX)) of the LHMC are in addition to the regulations set forth in the base zone (C-2 Zone). In the event of a conflict between provisions of the MX Overlay Zone and the provisions of the base zone (C-2 Zone), the provisions of the MX Overlay Zone prevail. If the MX Overlay Zone is silent in regard to any development standard, the development standard identified in the base zone (C-2 Zone) prevails. There are no conflicts between the provisions of the C-2 Zone and the MX Overlay Zone for the proposed development standards applicable to the Project. The Project does not involve exterior modifications to the building or the site, so the site remains in conformance with all applicable requirements of the Commercial (C-2) Zone and Mixed-Use (MX) Overlay Zone.

Therefore, the use is conditionally permitted within the subject zone and complies with the intent of all applicable provisions of the Zoning Ordinance.

D. The proposed use is consistent with the comprehensive general plan.

The General Plan designates the Project Site for Mixed-Use Center 3 land use, which is characterized by parcels developed exclusively for retail or office commercial, multi-unit residential, or for a mix of these uses at a maximum floor area ratio (FAR) of 0.8 for community shopping centers, multi-unit residential at a maximum density of 50 dwelling units per acre, or for a mix of those uses distributed horizontally on the site or vertically in buildings with housing above ground level commercial uses at a maximum FAR of 1.5. The Project Site has a FAR of 0.42, which satisfies the General Plan FAR requirement of 0.8. This Project is for the establishment of a commercial recreational facility in a preexisting commercial shopping center suite. The existing tenant space is currently vacant and the establishment of the proposed use will enhance the center as a desirable destination as a commercial property.

The proposed Project also implements General Plan Policy LU 11.1: Diversity of Uses, of General Plan Goal LU-11: Diverse Districts and Corridors. This policy 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.” The proposed children’s special event venue and indoor playground will provide a new type of use within this shopping center that is in walking distance of nearby existing residential neighborhoods in the immediate vicinity and add vibrancy and variety to the existing shopping center.  

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

The Applicant has paid for the processing costs associated with a Conditional Use Permit, which totals $7,217.00
 

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 consistent with the following General Plan Policy:

The proposed project implements the following City Council Goal and Objectives: