ZA-2014-1980-MCUB-CUX-ZV - Downtown Los Angeles
Transcription
ZA-2014-1980-MCUB-CUX-ZV - Downtown Los Angeles
ZA-2014-1980-MCUB-CUX-ZV Food + Beverage | Creative Office | Destination Retail ZA-2014-1980-MCUB-CUX-ZV Attachment 1: LEGAL DESCRIPTIONS City Market South 1113-1127 S San Pedro St., 1122 – 1132 S. San Julian St., & 612-624 E 11th St. Los Angeles, CA 90015 1113-1127 S. San Pedro St. LOT FR 16, FR 17 & FR 18 OF BLOCK 17 OF O. W. CHILDS TRACT PER MAP RECORDED IN BOOK 6, PAGE 378 OF MISCELLANEIOUS RECORDS ACCESSOR PARCEL NO. 5145025008 & 5145025009 1113-1117 S. San Pedro - Restaurant 1 Lot Dimensions: 130’ x 50’ Lot Area (sq. ft.): 6,424.8 (sq ft) Total Project Size: 6400 sq ft 1119-1123 S. San Pedro - Restaurant 2 Lot Dimensions: 130’ x 50’ Lot Area (sq. ft.): 6,527.9 (sq ft) Total Project Size: 6500 sq ft. 1125-1127 S. San Pedro - Restaurant 3 Lot Dimensions: 130’ x 50’ Lot Area (sq. ft.): 6,631.0 sq ft. Total Project Size: 6600 sq ft 1122-1132 S. San Julian St. LOT 5, 6, & 7 OF BLOCK 17 OF O. W. CHILDS TRACT PER MAP RECORDED IN BOOK 6, PAGE 378 OF MISCELLANEIOUS RECORDS ACCESSOR PARCEL NO. 5145025002 1122-1132 S San Julian, Unit A-D - Restaurant 4, 5, 6 & Market Lot 5, 6 & 7 Total Dimensions: 150’ x 150’ Total Lots Area (sq. ft.): 22,490.4 sq ft 1122-1132 S San Julian, Unit A – Restaurant 4 Total Project Size: 3800 sq ft. 1122-1132 S San Julian, Unit B – Restaurant 5 Total Project Size: 6500 sq. ft. 1122-1132 S San Julian, Unit C – Restaurant 6 Total Project Size: 4500 sq. ft. 1122-1132 S San Julian, Unit D – Market Total Project Size: 1400 sq. ft. 612-624 E 11th St. FR OF Lots 1, 2, 3, & 4 OF BLOCK 17 OF O. W. CHILDS TRACT PER MAP RECORDED IN BOOK 6, PAGE 378 OF MISCELLANEIOUS RECORDS ACCESSOR PARCEL NO. 5145025001 Bar FR Lot Dimensions: 200’ X 150’ FR Lot Area (sq. ft.): 29348.9 sq. ft. Total Project Size: 9000 sq. ft. CONDITIONAL USE - ATTACHMENT – 2 City Market South 1113-1127 S San Pedro St., 1122 – 1132 S. San Julian St., & 612-624 E 11th St. Los Angeles, CA 90015 Representative: Elizabeth Peterson Elizabeth Peterson Group, Inc. 400 S. Main Street, Suite 808 Los Angeles, CA 90013 T: 213-620-1904 F: 213-620-1587 [email protected] Applicant/Owner: The City Market of Los Angeles 1057 S. San Pedro Street Los Angeles, CA 90015 T: 213-746-0646 F: 213-746-2217 Attn: Peter Fleming, Randy Yamamoto [email protected] [email protected] REQUEST(S): Pursuant to the Los Angeles Municipal Code, section 12.24 W1; the applicant is requesting a Zoning Administrator’s Determination of a Master Conditional Use Permit to allow: 1. Building A - 1113-1127 S. San Pedro St. a. Restaurant 1 - 1113-1117 S. San Pedro - A 6400 square-foot restaurant/brewpub with 126 seats total, 110 indoor and 16 outdoor, having a Type-23 Department of Alcoholic Beverage Control License for a brewpub/ restaurant with on-site sales of beer and wine and off-site sales of on-site produced and bottled beer. Hours of operation 8:00 am to 2:00 am daily, and hours of alcohol sales 11:00 am – 2:00 am Monday through Friday and 8 am – 2:00 am Saturday and Sunday. b. Restaurant 2 - 1119-1123 S. San Pedro – A 6500 square-foot restaurant with 213 seats total, 197 indoor and 16 outdoor, having a full line of alcoholic beverages for on-site sale and consumption with a Type-47 Department of Alcoholic Beverage Control License. Hours of operation 8:00 am to 2:00 am daily, and hours of alcohol sales 11:00 am – 2:00 am Monday through Friday and 8 am – 2:00 am Saturday and Sunday. c. Restaurant 3 - 1125-1127 S. San Pedro – A 6500 square-foot restaurant with 167 seats total, 151 indoor and 16 outdoor, having a full line of alcoholic beverages for on-site sale and consumption with a Type-47 Department of Alcoholic Beverage Control License. Hours of operation 8:00 am to 2:00 am daily, and hours of alcohol sales 11:00 am – 2:00 am Monday through Friday and 8 am – 2:00 am Saturday and Sunday. 2. 3. Building B - 1122-1132 S. San Julian St. a. Unit A - Restaurant 4 - A 3800 square-foot restaurant with 114 seats total, 46 indoor and 68 outdoor, having a full line of alcoholic beverages for on-site sale and consumption with a Type-47 Department of Alcoholic Beverages Control License. Hours of operation 8:00 am to 2:00 am daily, and hours of alcohol sales 11:00 am – 2:00 am Monday through Friday and 8:00 am – 2:00 am Saturday and Sunday. b. Unit B - Restaurant 5 – A 6500 square-foot restaurant with 205 seats total, 151 indoor and 54 outdoor, having a full line of alcoholic beverages for on-site sale and consumption with a Type-47 Department of Alcoholic Beverages Control License. Hours of operation 8:00 am to 2:00 am daily, and hours of alcohol sales 11:00 am – 2:00 am Monday through Friday and 8:00 am – 2:00 am Saturday and Sunday. c. Unit C - Restaurant 6 - A 4500 square foot restaurant with 159 seats total, 97 indoor and 62 outdoor, having a full line of alcoholic beverages for on-site sale and consumption with a Type-47 Department of Alcoholic Beverages Control License. Hours of operation 8:00 am to 2:00 am daily, and hours of alcohol sales 11:00 am – 2:00 am Monday through Friday and 8 am – 2:00 am Saturday and Sunday. d. Unit D - Gourmet Wine Shop and Market – The 1400 square foot gourmet wine shop and market having a Type 20 Department of Alcoholic Beverage Control License for beer and wine for off-site sale and consumption. Hours of operation and hours of alcohol sales 9:00 am to 12:00am, daily. Building C - 612-624 E 11th St. a. Bar – A 9000 square-foot bar with 252 seats total, 204 indoor and 48 outdoor, having a full line of alcoholic beverages for on-site sale and consumption with a Type-48 Department of Alcoholic Beverages Control License. Hours of operation and hours of alcohol sales 11:00 am to 2:00 am, daily. The applicant is requesting the ancillary uses of live entertainment of a pianist or small musical group of up to 4 musicians for all restaurants. Requesting full live entertainment of live musicians or DJ for the bar. Pursuant to the Los Angeles Municipal Code, section 12.24 W 18(a), the applicant is requesting dancing for the bar. Additionally the applicant is requesting 30 outdoor events per year in the private plaza, including but not limited to live outdoor music events, movies in the plaza, marketing events, and craft fairs. Pursuant to Los Angeles Municipal Code, Section 12.27, the applicant is also requesting a zone variance to allow a lease in lieu of covenant as required by LAMC 12.26 E,5 for a number of parking spaces to be determined by the Department of Building and Safety, up to 72 off-site parking spaces and 72 on-site bicycle parking spaces. 2 BACKGROUND The City Market of Los Angeles, was founded in the early part of the 20th century. By the 1990’s, however, many of its spaces were left unfilled or shifted use to serve the needs of the growing South Market (commonly known as the Fashion District) to the west. Now, as a part of the neighborhood’s revitalization, City Market South will serve as a catalyst in establishing the Fashion District as a full-service 24/7 neighborhood. 2 (a) GENERAL CONDITIONAL USE FINDINGS: i). That the project will enhance the built environment in the surrounding neighborhood or will perform a function or provide a service that is essential or beneficial to the community, city, or region. Approval of the requested entitlements of City Market South Master Conditional Use Permit application will facilitate the revitalization of City Market, a vital economic generator and legacy of Los Angeles’s agrarian past. The requested entitlements will allow City Market South to bring a mix of hospitality, creative office and commercial uses to the neighborhood, which is currently lacking in such amenities. While the Fashion District has many daytime visitors, it does not provide them a wide variety of food or many reasons to stay past 5:00 p.m. With the ability to serve and sell alcoholic beverages in conjunction with the proposed restaurant, bar, and market uses, City Market South will be known for dining not only in the Fashion District, but the greater Los Angeles area as well. By offering a gourmet market, City Market South will harken back to its agrarian roots, providing the community with a venue for local fresh fruits, vegetables, meats, and flowers. Featuring six new and local restaurants, a bar, a gourmet market, and creative office space, City Market South will offer a vast mix of restaurant types and services to the community, satisfying a wide array of palates and making the project a day and night destination for dining and entertainment. Not only will City Market South be a unique dining experience, but it will provide a central open space for patrons, tenants, and workers of City Market South to enjoy as an outdoor dining and enjoyment space. City Market South is being redeveloped with today’s active and vibrant lifestyle in mind, with an emphasis on providing excellent amenities in addition to excellent services. City Market South will host events indicative of the mode and character of events of the Market’s illustrious past. Offering events such as outdoor live concerts, movies on the plaza, craft fairs, and seasonal celebrations, City Market South will honor the market’s past festivities and events. By granting the requested entitlements for outdoor events, City Market South’s plaza will become a nexus of outdoor enjoyment for patrons and users, enriching the space with life and celebration and attracting visitors from across the city. With the balanced mix of creative office space, restaurant, and open space, tenants can utilize the outdoor event 3 opportunities to promote their businesses and clients, offering on-site marketing to encourage increased economic development and visibility for the Fashion District. City Market South will not only be a place to find a delicious meal and drink, but a space to enjoy these amenities in a vibrant environment that is improved with activity and outdoor enjoyment. ii). That the project’s location, size, height, operations and other significant features will be compatible with and will not adversely affect or further degrade adjacent properties, the surrounding neighborhood, or the public health, welfare, and safety. As opposed to adversely affecting or degrading adjacent properties and the surrounding neighborhood, reactivating the market and warehouse buildings will provide a cultural, economic, and safety benefit to the surrounding community. City Market South will provide gourmet restaurants and markets to the surrounding communities in the Fashion District, Historic Core, and the Arts District, serving local residents, retailers, and visitors with a wide array of food and activity options. The extensive outdoor dining and events will enliven the neighborhood with a pedestrian and active environment. City Market South will draw visitors to the Fashion District, enhancing street activity as well as drawing patrons to the nearby, existing businesses. In a similar fashion, City Market South will provide an active and vibrant place to dine and have a drink for customers already visiting the Fashion District, enhancing their experience in the community and inviting them back for future exploration and use. Similarly to the already booming success of its sister neighborhoods, the Historic Core and the Arts District, this dynamic cluster of hospitality venues will not only attract visitors but new residents and further commercial and residential investment to the community, establishing the South Market as a diverse and vibrant community. City Market South’s mix of restaurant, bar, gourmet market, and creative office uses will attract patrons throughout the day and evening, activating the street and providing a pedestrian presence that continues throughout the day and evening hours. The surrounding community and properties will benefit from the increased pedestrian activity and fullservice atmosphere throughout the day and evening by having more eyes on the street, improving security through activity and numbers. City Market South will be physically compatible with the surrounding neighborhood because its structures have similar height, massing, and other physical characteristics as existing structures in the surrounding neighborhood. By reutilizing existing structures, the buildings will retain the same footprint and physical structure, but with modern enhancements to increase their use and functionality. Currently, the neighborhood surrounding City Market South houses a concentration of daytime retail and commercial businesses, but it lacks nighttime uses, significant food service options, and creative office space. City Market South’s operations will be compatible with the surrounding neighborhood because it will provide these offerings while also bringing new customers to the area’s businesses and inviting existing customers to stay longer. The investment made into these structures is an investment into the community, as it both raises the property values for the surrounding neighborhood as increased patrons visit the community and enhances the sense of community by encouraging current 4 patrons and workers of this neighborhood to take meals, be entertained, and visit with others. Additionally, as City Market South attracts patrons and encourages existing patrons to remain in the South Market area longer, the neighborhood’s safety will improve because of the added “eyes on the street.” iii). That the project substantially conforms with the purpose, intent and provisions of the General Plan, the applicable community plan, and any applicable specific plan. The project conforms to the purpose and intent of the General Plan and the Central City Community Plan. The site is zoned M2-2D, which allows the requested uses of restaurant, bar, market, and creative office space by right with the sale of alcohol, dancing and entertainment as an added, conditioned service. The requested entitlements will serve the intent of the General Plan by maintaining the City’s fiscal viability by providing jobs to local residents, generating taxes, and activating an underutilized industrial space. Located within the South Market area of the Central City Community Plan, City Market South fulfills the plan’s goals of retaining the economic vitality of South Market to support and preserve the prosperity of the greater Downtown region. City Market South will generate taxable income to support the area as well as draw residents from the greater region into South Market, and ultimately the greater Downtown region. City Market is also located within the Enterprise Zone and the Adaptive Reuse Ordinance zone, which both actively seek to bring new businesses and people to underutilized neighborhoods and structures. The proposed uses of restaurant, bar, gourmet market, and creative office space, combined with outdoor events and live entertainment and dancing, will bring the “24-hour city” to the Fashion District. 2 (b) ADDITIONAL FINDINGS i). Explain how the proposed use will not adversely affect the welfare of the pertinent community. City Market’s proposed use will not adversely affect the welfare of the surrounding community. South Market is comprised primarily of commercial uses focused on daytime commercial activities, and is underserved by restaurants. City Market South will provide additional amenities to support the existing commercial ventures by increasing productive use of existing, underutilized structures and providing new dining and entertainment outlets for visitors, residents, and business owners. The productive reuse of City Market South will create a new commercial nexus that will help neighboring commercial ventures to thrive. The propose use will in fact stimulate and encourage positive development in this area. City Market South will also provide patrons and tenants with an outdoor plaza in which to gather and enjoy outdoor activities. The community will not be burdened by the additional visitors, as there is an adequate amount of parking in the area to serve City Market South as well as multiple public transit options such as the 51, 52, 352, and 66 bus lines. Additionally, 5 the investment made into City Market South will provide a marked improvement in the economic welfare of the community with increased pedestrian and visitor activity as well as significant contributions to tax revenues and numerous local jobs. Potential benefits to the community include safer streets due to a more full-service commercial center with activity taking place during more extensive hours of the day, a new, productive use in an underutilized property, and increased investment in surrounding properties due to a broader use and purpose of the South Market. ii). Explain how the approval of the application will not result in or contribute to an undue concentration of such establishments. The approval of this master conditional use permit will not result in an undue concentration of such establishments. Although the project will include a concentration of establishments serving alcoholic beverages, all but one of the establishments will also serve or sell food. The sale of alcoholic beverages in conjunction with the sale of gourmet food is not likely to lead to the ills associated with the concentration of some types of establishments selling alcohol. In addition, although the project will provide several new establishments, the Fashion District itself is underserved by hospitality venues providing fine dining and entertainment options. City Market South is a one-of-a-kind opportunity. The exceptional mix of beautifully maintained industrial buildings surrounding an open plaza in the heart of Downtown Los Angeles is an opportunity that is only available in this one location, creating an environment that is prime for the development of restaurants and entertainment use, and is almost impossible to duplicate. This site is completely unique and will serve as a desirable use for the area, revitalizing this neighborhood of Los Angeles. iii). Explain how the approval of the application will not detrimentally affect nearby residential zones or uses. City Market South will positively impact and improve the quality of life in the community. The addition of the proposed new restaurant and alcohol uses will provide a service that does not currently exist in South Market, and that the community is currently having to seek out in other neighborhoods across Los Angeles. The proposed City Market South will provide restaurant, nightlife, market, and office options within walking distance of nearby residences, allowing the Fashion District to begin developing the same active and full-neighborhood facilities currently experienced in the other Downtown neighborhoods. The outdoor uses provided by City Market South will also provide the community with heightened pedestrian activity that will improve the safety of residents at all times of day. The nearby uses and properties will not cause undue hardship, as City Market South offers ample parking near to the site as well as many public transit opportunities. The applicant will be providing security to ensure that while visitors and patrons enjoy the amenities offered by City Market South, no nearby uses will be disturbed. Additionally, if approved, the Zoning Administrator will impose additional conditions and limitations, developed with the assistance of LAPD and the Downtown Los 6 Angeles Neighborhood Council, to ensure the enjoyment and use of the surrounding residences. 3) QUESTIONS REGARDING THE PHYSICAL DEVELOPMENT OF THE SITE a. What is the total square footage of the building or center the establishment is located in? 82,000 sq. ft. b. What is the total square footage of the space the establishment will occupy? See request clause for square footage summary c. What is the total occupancy load of the space as determined by the Fire Department? – TBD d. What is the total number of seats that will be provided indoors/outdoors? Building A - 1113-1127 S San Pedro St. RESTAURANT 1 - 1113-1117 S. San Pedro – 110 indoor, 16 outdoor RESTAURANT 2 - 1119-1123 S. San Pedro – 197 indoor, 16 outdoor RESTAURANT 3 - 1125-1127 S. San Pedro – 151 indoor, 16 outdoor Building B - 1122-1132 S. San Julian St. RESTAURANT 4 – 46 indoor, 68 outdoor RESTAURANT 5 – 151 indoor, 54 outdoor RESTAURANT 6 – 97 indoor, 62 outdoor MARKET – 0 total Building C - 612-624 E 11th St. BAR – 204 indoor, 48 outdoor e. If there is an outdoor area, will there be an option to consume alcohol outdoors? – Yes f. If there is an outdoor area, is it on private property or the public right-ofway, or both? – Private a. If an outdoor area is on the public right-of-way, has a revocable permit been obtained? – N/A g. Are you adding floor area? - No h. Parking a. How many parking spaces are available on the site? – 0 spaces b. Are they shared or designated for the subject use? – N/A 7 c. If you are adding floor area, what is the parking requirement as determined by the Department of Building & Safety? – N/A d. Have any arrangements been made to provide parking off-site? – Off-site parking, lease in lieu of covenant i. If yes, is the parking secured via a private lease or a covenant/affidavit approved by the Department of Building & Safety? – Private lease ii. Please provide a map showing the location of the off-site parking and the distance, in feet, for pedestrian travel between the parking area the use it is to serve. – Please see site plan iii. Will valet service be available? – yes iv. Will the service be for a charge? – yes i. Is the site within 1,000 feet of any schools (public, private or nursery schools), churches or parks? – yes j. For massage parlors and sexual encounter establishments, is the site within 1,000 feet of any other Adult Entertainment Businesses as defined by LAMC 12.70 B17? – N/A 4) QUESTIONS REGARDING THE OPERATION OF THE ESTABLISHMENT a. What are the proposed hours of operation and which days of the week will the establishment be open? Please see below request matrix: Building A - 1113-1127 S San Pedro St. Unit Description Hours of Operation Hours of Alcohol Sales Restaurant 1 11131117 S. San Pedro Brewpub/ Restaurant Type 23 Microbrewery and Bonafide Eating Place 8:00 am – 2:00 am, daily 8:00 am – 2:00 am, Sa – Su Restaurant - Type 47 Full Line Bonafide Eating Place 8:00 am – 2:00 am, daily Restaurant 2 11191123 S. San Pedro 11:00 am – 2:00 am, M-F 8:00 am – 2:00 am, Sa – Su 11:00 am – 2:00 am, M-F 8 Restaurant 3 11251127 S. San Pedro Restaurant- Type 47 Full Line Bonafide Eating Place 8:00 am – 2:00 am, daily 8:00 am – 2:00 am, Sa – Su 11:00 am – 2:00 am, M-F Building B - 1122-1132 S. San Julian St. Unit Description Hours of Operation Hours of Alcohol Sales Restaurant 4 Unit A Restaurant - Type 47 Full Line Bonafide Eating Place 8:00 am – 2:00 am, daily 8:00 am – 2:00 am, Sa – Su Restaurant - Type 47 Full Line Bonafide Eating Place 8:00 am – 2:00 am, daily Restaurant - Type 47 Full Line Bonafide Eating Place 8:00 am – 2:00 am, daily Restaurant 5 Unit B Restaurant 6 Unit C Gourmet Market Unit D 11:00 am – 2:00 am, M-F 8:00 am – 2:00 am, Sa – Su 11:00 am – 2:00 am, M-F 8:00 am – 2:00 am, Sa – Su 11:00 am – 2:00 am, M-F Market – Type 20 Off-Site 9:00 am to 12:00 Beer and Wine Sales am, daily 9:00 am to 12:00 am, daily Building C - 612-624 E 11th St. Unit Description Hours of Operation Hours of Alcohol Sales Bar Bar - Type 48 Full Line 11:00 am – 2:00 am, daily 11:00 am – 2:00 am, daily b) Will there be entertainment such as a piano bar, dancing, live entertainment, movies, karaoke, video game machines, etc…? Please specify: Yes, live entertainment is requested for each of the 6 restaurants and the bar. For the restaurants, live entertainment of a pianist or small musical group of up to 4 musicians is requested, daily. For the bar, dancing and full live 9 entertainment is requested for an amplified musical group or DJ. c) Will there be minimum age requirements for entry? If yes, what is the minimum age requirement and how will it be enforced? A minimum age requirement of 21 years will only apply to the bar, and will be verified with electronic age verification devices. d) Will there be any accessory retail uses on the site? What will be sold? In conjunction with the gourmet market, specialty meats, cheese, condiments, and other food items will be sold as accompaniments to the beer and wine. In accompaniment to the live entertainment at the bar, band merchandise may be sold. During the outdoor events, merchandise may be sold in conjunction with craft fairs and similar events, but not in conjunction with movies in the plaza. e) Security i. How many employees will you have on the site at any given time? 90 to 100 per site ii. Will security guards be provided on-site? Yes 1. iii. f) If yes, how many and when? A security plan will be submitted to the file. Has LAPD issued any citations or violations? No Alcohol i. Will there be beer & wine only, or a full-line of alcoholic beverages available? Both, please see list below Building A - 1113-1127 S San Pedro St. RESTAURANT 1 - 1113-1117 S. San Pedro – Type 23 Brewpub, beer and wine only RESTAURANT 2 - 1119-1123 S. San Pedro – Full Line RESTAURANT 3 - 1125-1127 S. San Pedro – Full Line Building B - 1122-1132 S. San Julian St. RESTAURANT 4 - Unit A – Full line RESTAURANT 5 – Unit B – Full line RESTAURANT 6 – Unit C – Full line MARKET – Unit D – Beer and wine only 612-624 E 11th St. Bar – Full line 10 ii. Will “fortified” wine (greater than 16% alcohol) be sold? Yes iii. Will alcohol be consumed on any adjacent property under the control of the applicant? Only as permitted by CPC-2013-4050-GPAZC-HD-SN-CU-MCUP-ZV-SPR iv. Will there be signs visible from the exterior that advertise the availability of alcohol? No v. Food vi. 1. Will there be a kitchen on the site? For Restaurants 1-6, a kitchen will be on site. For the bar and market, a kitchen will not be on site. 2. Will alcohol be sold without a food order? For restaurants 1-6, alcohol will be served typically while waiting for, or with, a food order. For the bar, alcohol will be served without a food order per a Type 48 license. For the market, alcohol will not be served as it is off-site only. 3. Will the sale of alcohol exceed the sale of food items on a quarterly basis? For restaurants, 1-6, the sale of alcohol will not exceed the sale of food items on a quarterly basis. For the bar and market, alcohol will exceed the sale of food items. 4. Provide a copy of the menu if food is to be served. The tenants have not been determined. On-Site 1. Will a bar or cocktail lounge be maintained incidental to a restaurant? No a. If yes, the floor plans must show the details of the cocktail lounge and the separation between the dining and lounge facilities. 2. Will off-site sales of alcohol be provided accessory to on-site sales (“Take Out”)? Off-site sales is requested for Restaurant 1 in conjunction with the Alcoholic Beverage Control Type 23 brewpub license for on-site sales of beer and wine and off-site privileges of on-site 11 produced beers. Off-site sales is also requested for the Gourmet Wine Shop and Market in conjunction to the Alcoholic Beverage Control Type 20 license for the off-site sales of beer and wine. a. If yes, a request for off-site sales of alcohol is required as well. 3. vii. Will discounted alcoholic drinks (“Happy Hour”) be offered at any time? Yes Off-Site 1. Will cups, glasses or other containers be sold which might be used for the consumption of alcohol on the premises? No 2. Will beer or wine coolers be sold in single cans, or will wine be sold in containers less than 1 liter (750 ml)? No 5) CALDERA BILL (CA Business and Professions Code Section 23958 and 23958.4) a. Is this application a request for on-site or off-site sales of alcoholic beverages? Both, please see below i. If yes, is the establishment a bona-fide eating place (restaurant) or hotel/motel? Building A – 1113-1127 S. San Pedro Unit Description Restaurant 1 1113-1117 On and Off-site: Brewpub/ Restaurant - Type 23 S. San Pedro Microbrewery and Bonafide Eating Place Restaurant 2 11191123 S. San Pedro On-site: Restaurant - Type 47 Full Line Bonafide Eating Place Restaurant 3 11251127 S. San Pedro On-site: Restaurant - Type 47 Full Line Bonafide Eating Place Building B - 1122-1132 S. San Julian St. 12 Unit Description Restaurant 4 Unit A On-site: Restaurant - Type 47 Full Line Bonafide Eating Place Restaurant 5 Unit B On-site: Restaurant - Type 47 Full Line Bonafide Eating Place Restaurant 6 Unit C On-site: Restaurant - Type 47 Full Line Bonafide Eating Place Gourmet Market Unit D Off-site: Market – Type 20 Off-Site Beer and Wine Sales Building C - 612-624 E 11th St. Unit Description Bar On-Site: Bar - Type 48 Full Line 6) ADDITIONAL REQUIREMENTS FOR MASTER CUBs/CUXs. Building A - 1113-1127 S San Pedro St. Unit Description Square Footage Seats Restaurant 1 1113-1117 S. San Pedro Brewpub/ Restaurant Type 23 Microbrewery and Bonafide Eating Place 6400 sq. ft. 110 8:00 am – indoor, 2:00 am, 16 outdoor daily. Restaurant Type 47 Full Line Bonafide Eating Place 6500 sq. ft. Restaurant 2 1119-1123 S. San Pedro Hours of Operation Hours of Alcohol Sales 8:00 am – 2:00 am, Sa – Su 11:00 am – 2:00 am, M -F 197 8:00 am – indoor, 2:00 am, 16 outdoor daily 8:00 am – 2:00 am, Sa – Su 11:00 am – 2:00 am, M -F 13 Restaurant 3 1125-1127 S. San Pedro Restaurant Type 47 Full Line Bonafide Eating Place 6600 sq. ft. 151 8:00 am – indoor, 2:00 am, 16 outdoor daily 8:00 am – 2:00 am, Sa – Su 11:00 am – 2:00 am, M -F Building B - 1122-1132 S. San Julian St. Unit Description Square Footage Seats Restaurant 4 Unit A Restaurant Type 47 Full Line Bonafide Eating Place 3800 sq. ft. 46 indoor, 8:00 am – 68 outdoor 2:00 am, daily Restaurant Type 47 Full Line Bonafide Eating Place 6500 sq. ft. Restaurant Type 47 Full Line Bonafide Eating Place 4500 sq. ft. Market – Type 20 Off-Site Beer and Wine Sales 1400 sq. ft. Restaurant 5 Unit B Restaurant 6 Unit C Gourmet Market Unit D Hours of Operation Hours of Alcohol Sales 8:00 am – 2:00 am, Sa – Su 11:00 am – 2:00 am, M -F 151 8:00 am – indoor, 2:00 am, 54 outdoor daily 8:00 am – 2:00 am, Sa – Su 11:00 am – 2:00 am, M -F 97 indoor, 8:00 am – 62 outdoor 2:00 am, daily 8:00 am – 2:00 am, Sa – Su 11:00 am – 2:00 am, M -F 0 seats 9:00 am to 12:00 am, daily 9:00 am to 12:00 am, daily Building C - 612-624 E 11th St. 14 Unit Description Square Footage Seats Hours of Operation Hours of Alcohol Sales Bar Bar - Type 48 Full Line 9000 sq. ft. 204 indoor, 48 outdoor 11:00 am – 11:00 am – 2:00 am, daily 2:00 am, daily 15 ZONE VARIANCE: ATTACHMENT 3 City Market South 1113-1127 S San Pedro St., 1122 – 1132 S. San Julian St., & 612-624 E 11th St. Los Angeles, CA 90015 Pursuant to Los Angeles Municipal Code, Section 12.27, the applicant is also requesting a zone variance to allow a lease in lieu of covenant as required by LAMC 12.26 E,5 for a number of parking spaces to be determined by the Department of Building and Safety, up to 72 off-site parking spaces and 72 bicycle parking spaces. ZONE VARIANCE FINDINGS: 1. That the strict application of the provisions of the Zoning Ordinance would result in practical difficulties or unnecessary hardships inconsistent with the general purpose and intent of the Zoning regulations. The strict application of the provisions of the Zoning Ordinance would result in practical difficulties for the applicant that are inconsistent with the general purpose and intent of the zoning regulations. The applicant is located within the South Market neighborhood of Central City Los Angeles. The communities of Central City, including the Historic Core, Little Tokyo, and the Financial District, are rapidly evolving to become more pedestrian friendly, mixed-use, and active. South Market has been neglected in these positive changes, and this project is one of the beginning movements towards South Market’s rise to the standards of the other Central City neighborhoods. The applicant’s goals also support the Central City’s community plan for South Market that encourages development, particularly those that will create a pedestrian environment and atmosphere. The community plan also supports developments that will link pedestrian activities and success to the Downtown communities. This project’s goals of creating a collection of fine restaurants and entertainment that will foster community and pedestrian activity for both the South Market and Downtown communities fully supports these goals. The project’s goals are in line with the General Plan’s goals of adapting industrial space that is no longer adequate to fulfill the needs of industry. This project will renew the life of several underutilized buildings with uses that are more appropriate for the time and changes that are occurring within the community. The required parking on-site would be an unnecessary hardship inconsistent with the General Plan’s goals of adaptation and reuse of underutilized industrial properties. As this property was originally designed and developed in the early 20th century, automobiles were not as widely used. This, combined with the fact that the majority of automobile uses were delivery and drop-off, parking has never been required on-site. To change this requirement would cause impractical difficulties for the applicant as there is limited space for parking on the already developed parcel. The property is also located within an Enterprise Zone, suggesting the City’s and State’s dedication to the economic and employment revitalization of the neighborhood. The City’s Adaptive Reuse Ordinance also covers this community, demonstrating the City’s desire to creatively reutilize these structures for updated purposes. The project fulfills these goals by rethinking the use of the space, and bringing economic vitality back to the property. Strictly applying the condition of on-site parking would create a hardship that would counteract the demonstrated desires by these two government policies for this area. 2. That there are special circumstances applicable to the subject property such as size, topography, location or surroundings that do not apply generally to other property in the same zone and vicinity. The site was developed as a wholesale produce market and warehouse at a time when cars were rare and parking was not required on-site. During the re-adaptation of the buildings, the building’s shells and floor areas are to remain completely intact. The size of the space between the buildings is limited, and would not allow enough parking for the site to be parked today. Two nearby parcels within 750 feet to the subject site have space for parking, and a lease has been secured to establish the parking required by the Department of Building and Safety, (up to 72 parking spaces). An additional 72 bicycle parking spaces will be available to place on-site as an alternative to 18 parking spaces, as determined by the Department of Building and Safety. 3. That such variance is necessary for the preservation and enjoyment of a substantial property right or use generally possessed by other property in the same zone and vicinity but which, because of special circumstances and practical difficulties or unnecessary hardships is denied to the property in question. The requested variance is necessary for the preservation and enjoyment of the property’s use. The property is being adapted from the original construction, which did not include on-site parking development. The applicant is not changing the footprint or overarching aesthetic of the buildings and the original shells are being retained. To enjoy the intended use of the facility for restaurants, bar, gourmet market, and creative offices, the applicant is requesting the variance to ensure a safe and pedestrian-friendly atmosphere within the project’s limited open space. Requiring onsite parking in the grounds of the facility would cause practical difficulties that would substantially alter the property’s intended use. The situation at the project contrasts with that of surrounding property because other properties in the vicinity are newer, with parking that complies with more modern codes or are not being used for more visitor intensive activities for which large quantities of parking are desired. Further, the project seeks to create a pedestrian-friendly outdoor space, which minimizes onsite parking opportunities. 4. That the granting of such variance will not be materially detrimental to the public welfare, or injurious to the property or improvements in the same zone or vicinity in which the property is located. The granting of such a variance will in no way be materially detrimental to the public welfare or properties located nearby. The project will actually be beneficial to the community, providing dining, entertainment, and office options within walking distance, creating a pedestrian environment, improving security by providing eyes on the street and an active community, as well as restoring use to a currently underutilized block. The requested off-site parking is near the subject site, and well within the required 750 feet of the site. In addition to the available off-site parking, there are several public transportation options including the 51, 52, 352, and 66 bus lines along San Pedro Avenue. Additionally, the applicant is willing to provide ample bicycle parking, both short term and long term to help accommodate transportation needs. The nearby businesses will not be harmed as there will not be an overconcentration of street parking, and the increased use of the subject site will help in drawing business both from the local community and visitors alike. 5. That the granting of such variance will not adversely affect any element of the General Plan. The granting of such a variance will not adversely affect any element of the General Plan, and supports the intended goals of the Land Use and Economic Development elements for industrially zoned lands by adapting buildings that no longer support the intended industry and providing services that will draw people to existing wholesale and retail facilities. The project’s goals also support the Central City Community Plan that works in conjunction with the General Plan to regulate and support continued growth and health of the City. We, therefore, respectfully request approval of the applicant’s zone variance application. BUILDING A BUILDING C BUILDING B labusinessjournal.com LOS ANGELES BUSINESS JOURNAL THE Volume 36, Number 22 COMMUNITY OF BUSINESS TM June 2 - 8, 2014 • $5.00 Up Front Sleepy? Want to buy a $65,000 mattress? Now you’re awake, huh? PAGE 3 RINGO H.W. CHIU/LABJ Buying In: Sean Thorpe, left, and Geoffrey Stewart at West L.A.’s Aristotle Capital. L.A. Managers Stock Up Funds News & Analysis INVESTMENT: New offerings look to share in hot market. RINGO H.W. CHIU/LABJ Moving In: Peter Fleming at City Market South property in downtown L.A.’s Fashion District. California Pizza Kitchen is cooking up new menus and interior design. Buttoning Up PAGE 5 Developer styles Fashion District as new hot spot Real Estate By BETHANY FIRNHABER Staff Reporter Half-empty downtown skyscraper under new ownership. PAGE 33 MAIL TO: longer empty and scary, downtown Los Angeles has become a hopping place after hours. Office workers escape to after-work drinks on Broadway, residents walk their dogs in the Arts District, tourists and sports fans flock to L.A. Live in South Park. The sense of downtown as an after-hours ghost town now lingers only in one large area – the Fashion District. That might soon change. Downtown L.A. developer Lena Group Inc. N O will begin work this month on City Market South, the first phase of a huge effort to transform a 10acre former produce market in the Fashion District into an estimated $1 billion creative office, retail, housing and hotel project. There is even the prospect of an educational campus on the site. The property, bounded by San Pedro, Ninth, San Julian and 12th streets, is owned by City Market of Los Angeles, a real estate investment trust made up of about 300 shareholders whose ancestors once peddled produce there. City Please see REAL ESTATE page 36 By MATT PRESSBERG Staff Reporter L.A. money managers have been generating new THE LIST mutual fund offerings at a faster pace than their colThe 75 largest leagues across the counmoney management try, taking advantage of a firms in L.A. County. hot stock market to open PAGE 14 up opportunities for investors in global markets or as a hedge against interest rate fluctuations. These funds have come both in response to demand from investors seeking new opportunities as well as the firms’ investment advisers seeking a way to introduce their strategies to a wider audience. “There was an entire market we didn’t have Please see INVESTMENT page 37 Muscle Builder Flexes in Court FOOD: Axiom accuses insider of undercutting protein sales. SPECIAL REPORT By ALFRED LEE Staff Reporter Twenty in Their 20s For nearly a decade, L.A.’s Axiom Foods Inc. has doubled its revenue every year on the strength of an obscure product: rice protein. Little-known Axiom has cashed in on the popularity of protein supplements, which have muscled their way out of the province of aspiring bodybuilders and onto the shelves of health food stores. As a wider range of consumers incorporates protein bars and powders into their diets, they’re also snatching up alternatives to traditional protein sources. The result has been big bucks: Last year, Axiom, the dominant player in rice protein, says it hit $45 million in sales. Products made from its protein powders are sold nationwide. But that success, Axiom claims, has bred com- Dating app Tinder has really caught fire, growing at what co-founders JUSTIN MATEEN, left, and SEAN RAD call “an overwhelming rate.” Along with other Angelenos in their 20s who have started their own businesses, Mateen and Rad reveal the challenges and rewards of being young entrepreneurs. BEGINNING ON PAGE 21 Please see FOOD page 10 Nomination Deadline: Friday, June 6, 2014 more information, see our ad on page 8 NOMINATE TODAY! For 36 LOS ANGELES BUSINESS JOURNAL JUNE 2, 2014 ‘Part of the impetus of City Market South is to put the market on the map so these larger master developers recognize that there’s a viable site here to develop.’ ‘Revitalizing that area would be tremendous to help create that walkable, pedestrian-friendly environment that all of us are trying to do in downtown.’ KENT SMITH, L.A. Fashion District BID KEVIN NAPOLI, Lena Group Inc. Real Estate: Project Has Designs on Fashion District Continued from page 1 AL L BL W MA C DOWNTOWN VD O DR AT HA N SA M Y LE Hotel* AL EE NT AG SA H NT 9T EE H SA AN 8T LO LI PE AV E. N LE TH AP 11 S AN GE LE S . SA Education* JU H PI IN 7T YM OC CR TH City Market South 1/8 mile 15 CO BL VD . Retail & creative office . San Pedro Wholesale Mart EA VE PI WN 12 KE R Residential* TO Produce past City Market’s first days as a produce mart began in 1909, when Edward J. Fleming, an attorney, and Au Gee Jong, a leader in the local Chinese community, partnered to buy the land and repurpose it for farmers who came into the city by horse and wagon to sell fruits and vegetables. Growers were required to rent stalls by the day, and to be eligible to rent, they had to own at least 10 shares of stock in the market company. The market thrived for decades, even as it competed with a second wholesale produce market downtown at Eighth Street and Central Avenue. But as grocery stores evolved and refrigeration and other safety standards were implemented, the largely open-air wholesale market slowly became irrelevant. The market celebrated its 100th anniversary in April 2009, then shuttered for good two months later. Since then, some of the smaller buildings on the property have been leased short term to garment tenants. Peter Fleming, a great nephew of Edward Fleming, took over City Market in 1991 when RINGO H.W. CHIU/LABJ Suited Up: Mark Levy, left, Peter Fleming and Kevin Napoli at City Market South in downtown L.A.’s Fashion District. OL Market, working with downtown architecture firm HansonLA and law firm Loeb & Loeb, submitted an environmental impact report to the city earlier this year for a 20-year master plan for the property. While City Market awaits approvals, Lena will forge ahead with plans for phase one, the by-right redevelopment of eight warehouse buildings that sit on three acres at the southern end of the property. The warehouses, grouped around a courtyard, will be converted into 75,000 square feet of retail, restaurant and creative office space. Many of the buildings have bow-truss ceilings, concrete floors and other popular architectural details. Peter Fleming, chief executive of City Market, said that he wants to have final approvals for the entire 10-acre site and a master developer in place before the end of the year. He’s soliciting proposals for a company to step in as the master developer for the site, overseeing construction of several anticipated individual component pieces. “City Market South will set the table for this larger, catalytic project,” he said. “Once it’s done, there’s going to be people here after 6 o’clock; there’s going to be life and activity.” City Market will retain ownership of the site, with Lena being paid fees rather than taking an equity stake in the project. Terms for a master developer will be determined after its selection. Kevin Napoli, who co-founded Lena with Mark Levy, said the goal is to make City Market South a destination for commerce and community in the city, even before other more ambitious development plans for the property commence. City Market plans to spend more than $10 million on the first phase of the project. Napoli said financing for the City Market South portion of the project has been lined up. “This place once had a life and a pulse, and we’re bringing that back,” he said. “Part of the impetus of City Market South is to put the market on the map so these larger master developers recognize that there’s a viable site here to develop; this first bit is crucial to setting up future phases.” Napoli and Levy, who began working with City Market about a year ago, expect City Market South to be ready for office occupancy in about a year, and restaurants and other retail could open about six months later. Map Area LOS ANGELES 5 miles TH *proposed he was 42. He began working with shareholders on a grander vision for the property shortly after it closed. The idea they all agreed on was to find a way to preserve the history of the property but also create long-term value for shareholders. “How much more money are you going to send me a year? That’s the question shareholders asked me, because this is a legacy investment for their families,” he said. “We don’t ever plan on selling the property.” Because development plans are expected to play out over the next two decades, he said he did his best to ensure the pending master plan had lots of wiggle room. For example, the plan will allow developers to build for a variety of commercial uses – retail, restaurant, residential, hotel, office and education – though not all will necessarily be represented in the end. And because buildings on the southern end of the property will be low profile, future buildings to the north could be as tall as 28 stories, if demand persists. “There’s a lot of flexibility, because we know we’re going to go through several cycles, so we’re trying to address future needs early,” he said. Kent Smith, executive director of the L.A. Fashion District Business Improvement District, said the development of the rundown City Market site, which sits between Santee Alley and the San Pedro Wholesale Mart, will be a welcome addition to the neighborhood. “We have this underutilized site that’s between two vibrant fashion areas, and it’s really not a great walk between the two,” he said. “Revitalizing that area would be tremendous to help create that walkable, pedestrianfriendly environment that all of us are trying to do in downtown.” However plans play out for the property, City Market shareholders seem poised to profit. Downtown L.A. development has exploded in recent years, and there are more than 85 office, residential, retails and hospitality projects planned or under construction in the market. That activity has led to an increased desire for land. In the last year property owners within a mile radius of City Market unloaded at least 19 developable lots for an average price of about $16.7 million an acre, according to real estate data company CoStar Group Inc. At that price, the City Market site would be worth at least $167 million. But as vacant parcels disappear and development in South Park, the Arts District and along Broadway and Ninth continues, land prices can be expected to rise even further. Arty Maharajh, vice president of research in the downtown L.A. office of Cassidy Turley Inc., said the plans for City Market will fill a void in downtown development activity. “Up until its announcement, there was redevelopment happening along Broadway and in the Arts District, but not in between that great expanse,” he said. “This could be a nice outcrop of redevelopment to help connect more of the downtown landscape.”