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ITEM 4

Planning & Zoning Commission Memorandum Development Services Memo No. 24-057

Date:

10/16/2024

To:

Planning and Zoning Commission

Thru:

Kevin Mayo, Planning Administrator
David de la Torre, Planning Manager

From:

Taylor Manemann, Associate Planner

Subject:

PLH24-0031 Sneakerheadz Restaurant and Lounge

Request:

Use Permit approval for a Series 6 Bar Liquor License and for an Entertainment Use Permit to allow outdoor patio speakers/TVs for sporting events and live indoor entertainment including DJs, live musical performances, karaoke, and comedy.

Location:

3002 N Arizona Ave, Suites 18 and 19, at the northwest corner of Arizona Avenue and Elliot Road

Applicant:

Akeem Prince and Carlos Howard, Sneakerheadz Restaurant and Lounge

Proposed Motion:

Move Planning and Zoning Commission recommend approval of Use Permit and Entertainment Use Permit PLH24-0031 Sneakerheadz Restaurant and Lounge, subject to the conditions as recommended by Planning staff.

Background Data:

Subject site is zoned Community Commercial District (C-2)
The C-2 zoning for the subject site was approved in 1985 under zoning case no. Z85-053
The in-line shops in which the subject site is located were constructed in 1986
Zoning code requires Use Permit approval for a bar license
Live indoor entertainment and outdoor patio speakers within 600' of residential properties requires an Entertainment Use Permit

Surrounding Land Use Data:

North

Industrial Development (I-1/PAD)

South

Abutting Daycare tenant (Kids R' Our Future)

East

Abutting Daycare tenant (Kids R' Our Future), then undeveloped parcel across Arizona Ave zoned for a multifamily development

West

San Marcos Pl then Industrial Development (I-1/PAD)

Proposed Business Operations (for Use Permit) or Proposed Development (for PDP)

Size of Business (Indoors)

6,700 square feet

Size of Patio

3,700 square feet

Number of Employees

10 employees

Typical Hours/Days of Operation

Monday-Friday: 10am – 2am
Saturday-Sunday: 11am – 2am

Types of Live Entertainment

Disc Jockeys (DJs), karaoke, live bands, performers, comedians, and dancing
Outdoor patio speakers and TVs for sporting events

Hours/Days of Entertainment

Indoors:
Monday-Friday: 7pm – 2am
Saturday-Sunday: 11am – 2am

Outdoor Patio Speakers:
Sunday-Thursday: 7pm – 9pm
Friday-Saturday: 11am – 11pm

Review and Recommendation:

Zoning Code Requirements
Per Zoning Code section 35-305(4), an Entertainment Use Permit is required when alcoholic beverages are sold or served and if there is entertainment provided indoors with the property being located 600 feet or less from a residentially zoned property. The distance is measured from the closest exterior wall or fence of any indoor or outdoor space occupied by the subject establishment to the closest property line of a residentially zoned property. The nearest residentially zoned property to this project is located approximately 415 feet to the east, across Arizona Avenue. The property is zoned Planned Area Development (PAD) for a multifamily development that has not yet been constructed. The nearest single-family zoned property is approximately 515 feet to the west, passed the industrial zoned properties.

A Use Permit is also required for a Series 6 liquor license for bars to operate within a commercially zoned district. With the Use Permit approval for Series 6 Bar License and an Entertainment Use Permit for live entertainment, Sneakerheadz will operate as a Restaurant and Lounge with live entertainment indoors and speakers/TVs on the outdoor patio. The indoor live entertainment will include disc jockeys (DJs), karaoke, live bands, performers, comedians, and dancing. The outdoor patio will have speakers and four TVs for sporting events.

Sneakerheadz Opening
The subject suite has been previously occupied by multiple other restaurants, most recently Rosa's Mexican Grill, and have operated under a Series 12 Restaurant liquor license. Due to the subject suite recently operating under a previous series 12 license, Sneakerheadz was able to begin operating and have a soft opening in early August using an interim series 12 license. Following this event, City staff began receiving complaints from the adjacent daycare (Kids R' Our Future), which occupies suites on either side of the Sneakerheadz suite. The daycare owner expressed concerns regarding the nightclub environment, safety, and trash being left in the parking lot. The daycare had no issue with the restaurant portion of the business but were concerned that Sneakerheadz was operating more as a nightclub.

Arizona Department of Liquor License and Control
After further review, the Arizona Department of Liquor License and Control (AZ DLLC) determined that the Series 12 license was not appropriate for Sneakerheadz as they were operating as a bar and not as a restaurant. Therefore, Sneakerheadz withdrew their Series 12 restaurant license application. Sneakerheadz is currently operating as a restaurant only, with a full food menu. There is currently no alcohol being sold in the restaurant.

Planning staff completed additional research regarding state requirements for separation between licensed bars and schools/daycares. Arizona Revised Statute (A.R.S.) § 4-207 restricts bar licenses from being located within three hundred (300) horizontal feet from a school. Planning Staff has confirmed with the AZ DLLC that since the daycare does not offer an accredited K-12 program, the separation requirement does not apply. The City of Chandler Zoning Code does not have minimum separation requirements between businesses with a bar license and other surrounding uses and therefore does not regulate the separation between such uses. Approval of a Use Permit for a Series 6 bar license does not override any state liquor licensing requirements. The applicant must comply with all state regulations that pertain to the liquor license.

Staff Recommendation
As noted in the section below, there is opposition to this request mostly from an adjacent daycare. The applicant has agreed to take additional measures, listed in the section below, to ensure greater compatibility with the surrounding businesses and neighbors. With these measures in place, staff finds that the proposed use can be a compatible use within the commercial development. The request is consistent with the General Plan and eligible for consideration within the property's C-2 zoning. As such, staff recommends a 1-year time condition to review the effectiveness of the conditions of approval and reassess its compatibility with adjacent businesses and neighbors.

Public / Neighborhood Notification

This request was noticed in accordance with the requirements of the Chandler Zoning Code.
A neighborhood meeting sign was posted on the site and on social media via NextDoor.
A neighborhood meeting was held on September 17, 2024, Planning staff, four (4) adjacent neighbors, and six (6) people associated with the daycare were in attendance. The attendees' concerns included the following:
- Required separation from daycare/schools
- Types of live entertainment
- Security measures
- Parking lot and patio cleaning
- Smoking on the patio near the daycare
- Server attire and seeing the servers enter the restaurant
- Not wanting to see inside the suite from the parking lot
- Overall "nightclub" operations in the evening
In response to the neighbors' concerns, the applicant plans to implement the following measures to ensure greater compatibility with the daycare and surrounding businesses:
- Hire security for planned events at night
- Hire a maintenance crew to clean up the parking lot and patio areas
- Limit cigarette smoking on the patio to designated areas away from the daycare playground
- Have servers enter through the rear of the building
- Add curtains and window film to the front windows to limit visibility into the suite
- Adjust live entertainment hours to begin after the daycare closes on weekdays
Additionally, the applicant clarified that the types of live entertainment offered will be limited to disc jockeys (DJs), karaoke, live bands, performers, comedians, and dancing.
As of the writing of this memo, Planning staff has received two letters and a couple of phone calls from neighbors. One letter is from a resident south of Elliot with concerns and the second is a letter of opposition from the adjacent daycare. Staff is aware of opposition from an adjacent daycare and has been working with the daycare owner to continue to address their questions and concerns.

Recommended Conditions of Approval

Planning staff recommends Planning and Zoning Commission move to recommend approval of the Use Permit and Entertainment Use Permit, subject to the following conditions:

The Use Permit and Entertainment Use Permit shall remain in effect for one (1) year from the date of City Council approval. Continuation of the Use Permit and Entertainment Use Permit beyond the expiration date shall require re-application to and approval by the City of Chandler.
Substantial expansion or modification beyond the approved exhibits (Site Plan, Floor Plan and Narrative) shall void the Use Permit and Entertainment Use Permit and require a new Use Permit and Entertainment Use Permit application and approval.
The Use Permit and Entertainment Use Permit are non-transferable to other locations.
All pedestrian walkways shall be A.D.A. accessible and shall not be interrupted by any obstacles preventing circulation (i.e. persons with disabilities shall have direct access to all indoor and outdoor pedestrian spaces).
The site shall be maintained in a clean and orderly manner.
No noise shall be emitted from outdoor speakers or live entertainment on the patio(s) in such a manner that exceeds the general level of noise emitted by uses outside the premises of the business and disturbs adjacent businesses and/or residential areas.
Music shall be controlled so as to not unreasonably disturb area residents and shall not exceed the ambient noise level as measured at the commercial property line.
The establishment shall provide a contact phone number of a responsible person (i.e., bar owner and/or manager) to interested neighbors to resolve noise complaints quickly and directly.
The Use Permit does not override any State liquor licensing requirements. The applicant must comply with all regulations that pertain to the liquor license.
Live entertainment indoors may occur Monday through Friday from 7pm to 2am and Saturday through Sunday 11am to 2am. Speakers may be used on the outdoor patio Sunday through Thursday from 7pm to 9pm and Friday through Saturday from 11am to 11pm.
Live entertainment shall be limited indoors to include disc jockeys (DJs), karaoke, live bands, performers, comedians, and dancing. The outdoor patio shall be limited to speakers and TVs for sporting events.
All exterior doors on the outdoor patio and the front of the suite shall remain closed and not be kept open except for when being passed through.

Attachments

Vicinity Maps

Exhibits

Letters of Concern