This project was originally noticed and advertised as being consistent with certified Mitigated Negative Declaration 17-02, approved in conjunction with Planned Unit Development Master Plan 17-01, for the purposes of environmental review, pursuant to the California Environmental Quality Act (CEQA). Upon further review, staff has determined that the proposed project is Categorically Exempt from CEQA pursuant to CEQA Guidelines Section 15303, Class 3 "New Construction or Conversion of Small Structures." This exemption class consists of the construction and location of limited numbers of new, small facilities or structures, including commercial uses not exceeding 10,000 square feet in floor area on sites zoned for such use if not involving the use of significant amounts of hazardous substances where all necessary public services and facilities are available and the surrounding area is not sensitive. As further described in this staff report, the proposed two-unit commercial building would be 3,875 square feet. In addition, the project is proposed on a parcel that was part of Planned Unit Development Master Plan 17-01. The infrastructure required for the implementation of this Master Plan has been constructed. The proposed project does not meet any of the exceptions described in Section 15300.2 of the CEQA Guidelines. The location of the Project is predominantly urban and not considered a sensitive environment; therefore, the Project will not result in any significant impacts that may otherwise occur in a sensitive environmental area. The cumulative impact of this Project, and the approval of other projects like it 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. Staff does not expect any significant impacts or unusual circumstances related to the approval and construction of this Project. Therefore, the Project is categorically exempt from CEQA, pursuant to the provision under Section 15061(B)(2) of the California Environmental Quality Act Guidelines.

RECOMMENDATION:
That the Planning Commission approve:

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING PLANNED UNIT DEVELOPMENT PRECISE PLAN 22-02 FOR THE CONSTRUCTION OF A 3,875 SQUARE FOOT, DUAL TENANT BUILDING AT 711 EAST IMPERIAL HIGHWAY, AS PER THE APPROVED PLANS, AND SUBJECT TO CONDITIONS, AND RECOMMENDING THAT THE CITY COUNCIL MAKE A DETERMINATION THAT THE REQUEST IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15303, CLASS 3: "NEW CONSTRUCTION OR CONVERSION OF SMALL STRUCTURES" AND SECTION 15061(B)(2) OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, MAKING THE REQUIRED FINDINGS AND APPROVING CONDITIONAL USE PERMIT 22-31 TO ALLOW THE OPERATION OF A DRIVE-THROUGH RESTAURANT (DBA: DUNKIN' DONUTS) WITHIN ONE TENANT SPACE AT 711 EAST IMPERIAL HIGHWAY, AS PER THE APPROVED PLANS, AND SUBJECT TO CONDITIONS, AND MAKING A DETERMINATION THAT THE REQUEST IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15303, CLASS 3: "NEW CONSTRUCTION OR CONVERSION OF SMALL STRUCTURES" AND SECTION 15061(B)(2) OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES

The Applicant, Paraj Patel, is requesting to construct a 3,875 square foot, dual-tenant commercial building at 711 E Imperial Highway ("Subject Site"). The Subject Site is located west of the northwest corner of Imperial Highway and Village Drive, as shown on Exhibit 1.  The Applicant is also requesting to operate a 1,880 square foot, drive-through restaurant (dba: Dunkin’ Donuts) within one of the two tenant spaces. The drive-through lane would be located adjacent to the east, south and west sides of the proposed commercial building. The second tenant space, encompassing 1,995 square feet, is proposed to be reserved for a future retail use. The Subject Site is designated by the General Plan for Commercial Industrial and located within the Planned Commercial-Industrial (PC-I) zone with a Planned Unit Development (PUD) overlay, which implements the General Plan Commercial-Industrial land use designation. 

Exhibit 1 below shows the Subject Site as being within a larger vacant property; however, this picture is slightly outdated, in that the majority of the vacant property is under construction or recently completed construction, as further described below. To the north of this larger property are industrial properties; to the east is the Union Pacific Railroad right-of-way, followed by distribution and retail uses; to the south, across Imperial Highway, there are existing multi-family and single-family residential homes; and to the west, there is a small public park, a vacant lot and a Kaiser Permanente medical office building. 

On September 24, 2018, the Planning Commission approved resolutions recommending City Council approval of Mitigated Negative Declaration 17-02 (the "MND"), Planned Unit Development Master Plan No.17-01 (the "Master Plan") and a Development Agreement between the City of La Habra and Greg S. Jones Revocable Trust and Sunny Investments, LLC (the "Development Agreement") for the development of the properties outlined in orange on Exhibit 1. In addition, the Planning Commission approved Tentative Parcel Map No. 2017-154 to divide the larger property identified in Exhibit 1 into four parcels as shown in Exhibit 2; and Conditional Use Permits (CUPs) to allow the operation of a hotel with alcohol sales on Parcel 1 and drive-through restaurants on Parcels 2 and 3.  On December 3, 2018, the City Council approved the MND; and subsequently on December 18, 2018, adopted ordinances approving the Master Plan and Development Agreement.  

Pursuant to Section 18.52.110 (Conformance) of Chapter 18.52 (PUD Planned Unit Development Overlay Zone), after the adoption of a planned unit development ordinance, and prior to the issuance of any building permit, a final development plan is required to be prepared and final subdivision map or parcel map recorded, if either is involved. The final development plan shall conform to the ordinance adopting the planned unit development and shall show to scale all buildings, off-street parking facilities, landscaping, finished grades and such other details as will suffice to indicate conformance with all the features, conditions and characteristics upon which the approval was predicated. Development of the hotel on Parcel 1 is underway and a drive-through Taco Bell has been constructed and is in operation on Parcel 3. The plans that were approved by Planning Commission in conjunction with the CUP for the hotel and the Taco Bell met the requirements for a final development plan, as required by Section 18.52.110. The Final Map for the Tentative Parcel Map was approved by City Council on April 6, 2020, and recorded on May 14, 2020. As of now, all on-site utilities have been installed, the required drive aisles have been constructed, and the required intersection improvements were completed as per the Master Plan.

At the time the Master Plan and Development Agreement were approved by City Council, there were no detailed plans submitted for Parcel 4 that would suffice as a final development plan for the purposes of the above requirement. Therefore, in 2022, a Precise Plan was submitted for the development of 6,250 square foot commercial building on this parcel, which the Planning Commission subsequently recommended for City Council approval on April 25, 2022, and was approved by City Council by adoption of Ordinance No. 1842 on June 6, 2022. A Hallmark store is currently under construction on Parcel 4 in conformance with the approved Precise Plan.

As described above, the Planning Commission approved two CUPs for drive-through restaurants in conjunction with the Council approval of the Master Plan. These CUPs were for a Popeye’s Louisiana Kitchen on Parcel 2, the Subject Site, and the Taco Bell, which has been constructed on Parcel 3. However, Popeye's Louisiana Kitchen chose not to move forward with development of a drive-through restaurant on Parcel 2.

The Applicant is now requesting to develop the Subject Site with a new two-tenant commercial building and allow the operation of a new drive-through restaurant (dba: Dunkin' Donuts) within one of the tenant spaces. As a result, the proposed project requires approval of a new Precise Plan and CUP. Staff has reviewed the Development Agreement and Master Plan that apply to the Subject Site and the larger overall property, and has determined that these documents do not need to be amended to accommodate the proposed project in that the proposed use is in substantial conformance with the uses contemplated by the Master Plan pursuant to LHMC Section 18.52.130 (Re-approval required) and Recital D and Standard Condition No. 1.6 of the Development Agreement.

  As depicted in Exhibit 4, the building is designed using a contemporary architectural style that includes a brown and light gray color palette in keeping with the other surrounding buildings within the same Master Plan to ensure a cohesive look.  The Dunkin’ Donuts tenant also incorporates both brown and dark gray horizontal siding, gray stucco wall cladding with reveals and orange and pink accents consistent with the Dunkin’ Donuts brand design. The most prominent building accents include the orange banding around the building and use of orange metal awnings above the front entry and the pick-up window. The Applicant is also proposing to install three channel-letter, wall signs, that incorporate the Dunkin' Donuts logo and trademark colors on the east, south, and north elevations, and two directional signs that will direct vehicles to the drive-through lane.

Table 1

PC-I Development Standards
	City Requirements	Proposed Project
Building Height	Max. 35 feet	24'7"
Front Setback	Min. 25 feet	Approx. 40 feet
Side Setback East West	Min. 10 feet Min 25 feet	72'3" 39'4"
Rear Setback	Min. 10 feet	77'7"
Floor Area Ratio (FAR)	Max 30,833 sf (80%)	3,875 sf (10%)
Parking	Min. 23 spaces	23 spaces
Landscaping	Min. 2,697 sf (7%)	8,290 sf (21.5%)
Approx. = Approximately Max. = Maximum Min. = Minimum sf= square feet

 

REQUIRED FINDINGS

Precise Plan

Pursuant to LHMC Section 18.36.100 of Chapter 18.36 (PC-I Planned Commercial-Industrial Zone) and LHMC Section 18., the approval of a Precise Plan is subject to the findings shown in italics below. Under each finding, staff has provided a justification for the Planning Commission to make each finding.

 

The subject site is located within a commercial industrial district, and is surrounded by industrial and commercial buildings, restaurants, and medical office uses. The project site is one of four parcels of an approved Master Plan that included two drive-through restaurants, one of which was approved on the subject site, a hotel, and a retail store. The proposed project is fairly similar to the previously approved project on the site and the proposal is to use exterior materials and colors that complement the other buildings that are a part of Master Plan. Additionally, the closest residential properties are situated south across the six-lane Imperial Highway, which are surrounded by 14-foot-tall masonry sound walls and are over 130 feet away. Therefore, the use is not expected to create any impacts to any adjacent residential properties, and the design of the proposed building would be compatible with the surrounding commercial and industrial uses.
 

A Traffic Circulation and Queuing Assessment was conducted on the proposed project, which determined that the project would result in an addition of less than 40 pm peak hour trips when compared to the previously approved project. Per the City of La Habra Traffic-Impact Analysis Guidelines for Vehicles Miles Traveled and Level of Service Assessment, dated August 2021, the project did not necessitate a traffic study. It also determined that the surrounding streets were adequate to support the proposed uses and the other uses on the site. A queuing analysis was also prepared which shows that the drive-through lane, designed to hold up to 12 vehicles, has more than sufficient space to accommodate the maximum peak demand of nine vehicles, as well as three additional vehicles, without encroaching into the drive aisle or impacting traffic circulation on the site.  Additionally, the proposed project would provide the amount of parking required by the LHMC. Therefore, the plan for development will produce internally an environment of stable and desirable character.
 

The Master Plan refers back to the development standards of the PC-I Zone, where the project site is located. The proposed dual-unit commercial building meets all of the development standards of the PC-I Zone and the proposed future retail use is a permitted use within the PC-I Zone. Furthermore, the LHMC permits the proposed drive-through restaurant within the PC-I Zone, subject to the approval of a CUP. The Planning Commission's approval of the CUP for the project, is contingent upon approval of the Planned Unit Development Precise Plan.
 

The tenants of the proposed dual-unit commercial building will consist of a future retail tenant and drive-through restaurant, and would be compatible with other uses within the same Master Plan. The proposed building will include colors and materials such as the use of gray stucco and brown siding which are used on the other buildings on the site to help ensure a cohesive design. Additionally, the layout and orientation of the building as well as the drive-through lane are the same as the adjacent drive-through restaurant (Taco Bell) to the east of the site. As such, the Master Plan will also maintain a cohesive streetscape design. The proposed building pad is designed around the existing drive aisle, driveways, and signalized driveway to ensure that there is no impact to the site circulation and layout. Therefore, the proposed project will be well integrated into its setting.

 

5. Provision is made for both public and private open spaces, at least equivalent to that required by the underlying preceding zoning regulations.
Over 21% of the Subject Site will be landscaped, which will enhance the experience of the customers of the businesses on the site and pedestrians and vehicles that travel along East Imperial Highway. Pursuant to the Development Agreement, the original applicant contributed $130,000.00 in fees towards the construction of a public bicycle path, and dedicated a 10-foot wide area along the east property line, to be used as a segment of a path connecting the La Habra Union Pacific Bikeway Path to the Juanita Cook Greenbelt path in the City of Fullerton, as required by the City’s Master Bikeway Plan.
 

The businesses will be publicly accessible to La Habra residents and visitors via the two driveways along East Imperial Highway and the circulation on site. Although the proposed project meets the LHMC requirements for parking, there is a reciprocal parking and access agreement between the properties that are subject to the Master Plan. Additionally, over 21% of the subject site will be landscaped, which will be maintained by the property owner. This landscaping will enhance the experience of the customers of the businesses on site, as well as travelers along East Imperial Highway.
 

All required in-ground infrastructure, necessary utilities, drive aisles, roads and traffic signals have already been installed, as required by the Master Plan.  Additionally, several documents were prepared in analyzing the impacts as well as the benefits of the Master Plan, which determined that the existing water and sewer service were adequate to serve the project.  The proposal was taken into consideration under the Traffic Assessment, which determined that the inclusion of a new retail space did not trigger a higher traffic demand to necessitate a new Traffic Study. It also determined that the surrounding streets were adequate to support the proposed uses and the other uses on the site. Therefore, it is not anticipated that approval of the subject Precise Plan will negatively impact the City’s ability to provide services to City residents.
 

The proposed project complies with all the applicable development standards of the PC-I Zone. The layout and orientation of the new two-tenant commercial building is similar to the previously approved project, and would include a drive-through restaurant use, which was previously approved for the subject site.

 

A phasing plan was not provided for the proposed project. The surrounding parcels are currently being developed with a La Quinta Inn & Suites and Hallmark retail store and already occupied by a Taco Bell drive-through restaurant. The majority of the development approved by the Master Plan is already underway; all required in-ground infrastructure has been installed, including all necessary utilities, drive aisles, roads and traffic signals. Therefore, the subject site is ready to accommodate the construction of the proposed commercial building. It is anticipated that the proposed project will be completed within the six-year timeline approved for the Development Agreement and Master Plan, which would require development of the subject site by no later than January 16, 2025. The Applicant has indicated that they will begin construction of the project immediately upon completion of the entitlement and permitting process.
 

Staff has determined that the proposed project is Categorically Exempt from CEQA pursuant to CEQA Guidelines Section 15303, Class 3 "New Construction or Conversion of Small Structures." This exemption class consists of the construction and location of limited numbers of new, small facilities or structures, including commercial uses not exceeding 10,000 square feet in floor area on sites zoned for such use if not involving the use of significant amounts of hazardous substances where all necessary public services and facilities are available and the surrounding area is not sensitive. As further described in the staff report, the proposed two-unit commercial building would be 3,875 square feet. In addition, the project is proposed on a parcel that was part of Planned Unit Development Master Plan 17-01. The infrastructure required for the implementation of this Master Plan has been constructed. A drive-through restaurant does not involve the use of hazardous substances, all necessary public services and facilities are available and the surrounding area is not environmentally sensitive. The Project is not subject to any of the exceptions for exemption under Section 15300.2 of the CEQA Guidelines.  The location of the Project is predominantly urban and not considered a sensitive environment; therefore, the Project will not result in any significant impacts that may otherwise occur in a sensitive environmental area. The cumulative impact of this Project, and the approval of other projects like it 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. Staff does not expect any significant impacts or unusual circumstances related to the approval and construction of this Project. Therefore, the Project is categorically exempt from CEQA, pursuant to the provision under Section 15061(B)(2) of the California Environmental Quality Act Guidelines.

Conditional Use Permit

Pursuant to LHMC Section 18.06.040.A, a Conditional Use Permit (CUP) is required for a restaurant within the PC-I Zone. Pursuant to LHMC Section 18.66.070.C, in order to grant the CUP for this request, the Planning Commission must make the findings listed below. Following each finding, staff has provided justification for the Planning Commission to make each finding.
 

The proposed project is part of a Master Plan that includes a hotel, a retail store, and another drive-through restaurant. The site is also surrounded by other commercial industrial properties that also include retail uses, offices, industrial uses and restaurants. The proposed project will comply with all applicable development standards of the PC-I Zone. Furthermore, a traffic assessment and vehicle queuing analysis were conducted, which showed that the site’s driveways and surrounding streets can accommodate the vehicle traffic of the proposed uses, and that the drive lane for the drive-through can accommodate three more vehicles than the maximum average anticipated peak queue, for a total of 12 vehicles without encroaching into the drive aisle. Additionally, the closest residential properties are situated south across the six-lane Imperial Highway, which is surrounded by 14-foot tall masonry sound walls and are over 130 feet away. Thus, no impacts to the residential properties are anticipated. Therefore, the granting of the CUP will not be detrimental to the public welfare or unreasonably interfere with the use, possession or enjoyment of other surrounding and adjacent properties or impair the character of the PC-I Zone, since the proposed project includes comparable uses.
 

The proposed drive-through restaurant will be located within a 3,875 square foot two-tenant building that covers only 10% of the site’s lot area. Additionally, the building orientation and site layout will be similar to a previously approved drive-through restaurant for the subject site, showing that the site has been previously considered appropriate for a similar building. The proposed drive-lane for the drive-through restaurant can accommodate three more vehicles than the maximum number of vehicles expected during peak periods, per the queuing analysis, and the proposed parking meets the parking required by the LHMC for the proposed use. The project is also in compliance with all applicable development standards. Therefore, the site is physically suitable for the type of land use being proposed.
 

Pursuant to La Habra Municipal Code (LHMC) Table 18.06.040.A, the operation of a restaurant located within the PC-I Zone is allowed, subject to the approval of a CUP. The project plans associated with the CUP have been reviewed for compliance with all applicable development standards. A Code-compliant number of parking spaces are provided for the proposed drive-through restaurant. Additionally, there is a reciprocal access and parking easement which was previously approved that allows all of the businesses in the same Master Plan to utilize shared parking spaces. It should be noted that vehicular queuing and parking for the Dunkin’ Donuts and future retail use is expected to be confined to Parcel 2 and no traffic spillover impacts or vehicular traffic impacts are anticipated to the properties within the Master Plan. Therefore, the proposed drive-through Dunkin’ Donuts will comply with the intent of all applicable provisions of the LHMC.
 

The drive-through restaurant is consistent with La Habra’s General Plan Policy LU 2.2 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 which subsequently capture a greater share of local spending.” The proposed restaurant will provide residents of the City and employees/customers of surrounding commercial, industrial, and medical businesses with an additional dining option. It is also consistent with General Plan Policy LU 3.8, which encourages cohesive and integrated development by permitting a use that has been previously determined to be compatible and suitable for the Master Plan. The building will complement the colors and material used on the other buildings to ensure compatibility. Lastly, the proposed project will further fulfill General Plan Policy ED 2.1, which encourages the attraction of national-brand and proven local area businesses that provide fiscal and employment benefits for the City, since the proposed project is for the operation of a national-brand franchise, Dunkin’ Donuts. Therefore, granting the CUP is consistent with the General Plan.

As previously described, the findings contained within Chapter 18.36.100 of the LHMC are required to be made before the Precise Plan and finding for the CUP can be granted.  All of the required findings have been made and are provided within the body of the attached resolutions (Exhibit A and B).  Additionally, staff has identified conditions of approval, which have been included in the resolutions, to ensure that the proposed project will have no negative impacts on the public welfare and to ensure on-going compliance with all appropriate City codes and ordinances. 

The Applicant has paid for the processing costs associated with the PUD Precise Plan and CUP, which total $15,773.00. 

The Applicant’s proposal has been reviewed against the previously approved National Pollutant Discharge Elimination System (NPDES) Municipal Permit, the Local Implementation Plan (LIP), and the Model Water Quality Management Plan (WQMP) and it was determined that the   Since the proposal will constitute the disturbance of more than 5,000 square feet of soil, a Priority WQMP is required.  A Priority WQMP has been prepared and all work undertaken will be required to incorporate Best Management Practices (BMPs) as required by the WQMP.  Also, since more than one acre will be disturbed, a Stormwater Pollution Prevention Plan (SWPPP) was prepared.

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

The proposed project is related to the following FY 2023/24 City Council Goal and Objectives: