UP 24247 (Perfectly Pressed Carmel): Consideration of a Use Permit for the establishment of a new Specialty Restaurant within Carmel Plaza, Suite 119, located at the southeast corner of Mission Street and Ocean Avenue in the Central Commercial (CC) District. APN: 010-086-006-000.

The applicant is seeking approval of a Use Permit to establish a Specialty Restaurant, “Perfectly Pressed Carmel.”  The restaurant would specialize in the preparation and sale of smoothies, smoothie bowls, and cold pressed juices.

Adopt a Resolution (Attachment 1) approving a Use Permit for the establishment of a new Specialty Restaurant located within Carmel Plaza (southeast corner of Mission & Ocean; Ste 119) in the Central Commercial (CC) District. APN: 010-086-006

The subject tenant space, Suite 119, located at the ground floor of Carmel Plaza, is approximately 1,036 square feet. The applicant is proposing to open a specialty restaurant specializing in the preparation and sale of  smoothies, smoothie bowls, and cold pressed juices. The back of house is proposed to be used primarily for food storage and sanitation, and the front of house area is used for storage, food preparation, serving, ordering, and seating area designed to accommodate a minimum of 14 seats. The proposed hours of operation are from 8:00 am to 6:00 pm, 6 days a week, with slightly shorter hours on Sunday.

While 14 seats and the hours previously noted are proposed, staff is recommending up to 20 seats be permitted and the hours of 7:00 am to 7:00 pm be permitted to allow for future flexibility by the business owner without the need to amend the Use Permit.  The business owner could set their hours of operation within these hours and add seats as demand is needed (up to 20), without a need to return to the Planning Commission to amend the Use Permit. The analysis below has been provided with the staff recommendation in mind as this is a more intense use than the applicant’s proposal.  If the Commission is not supportive of staff’s recommendation and elects to adopt the applicant’s proposal, the project would still meet the applicable findings and requirements.  

Conditional Use Permit Required:  The proposed business requires a Conditional Use Permit as the primary use is a Specialty Restaurant.  The criteria for a Specialty Restaurant is listed below with a staff analysis on how the project complies with the applicable requirements.

Specialty Restaurant: CMC 17.68.050 defines Specialty Restaurants as: “Restaurants providing a limited range of food products for immediate consumption on the site. These restaurants provide seating but are not required to provide table service or menus. Specialty restaurants provide, as a primary use, two or fewer of the following lines of foods: pastries and doughnuts, frozen desserts, candy and nuts, juices, and coffee and tea.”

In accordance with CMC 17.14.030, use classifications, defined in Chapter 17.68, are based on the use classifications listed in the current edition of the North American Industry Classification System (NAICS). Questions as to the inclusion or exclusion of a particular proposed use in a particular category are determined by the Director based on a NAICS Use Categories List. The determination shall be made according to the characteristics of the use, and upon the Director’s interpretation of the land use code, the NAICS Use Categories List and the current edition of the NAICS.

The 2022 Edition of NAICS (most recent year available) describes “Snack and Nonalcoholic Beverage Bars” (NAICS Code: 722515) as:

 This U.S. industry comprises establishments primarily engaged in (1) preparing and/or serving a specialty snack, such as ice cream, frozen yogurt, cookies, or popcorn, or (2) serving nonalcoholic beverages, such as coffee, juices, or sodas for consumption on or near the premises. These establishments may carry and sell a combination of snack, nonalcoholic beverage, and other related products (e.g., coffee beans, mugs, coffee makers) but generally promote and sell a unique snack or nonalcoholic beverage.

Index entries in the NAICS classification (722515), which serve as detailed descriptors to assist users in locating the correct industry classification include directly applicable to the use include juice bars, fixed location refreshment stands, and smoothie shops. Additional index entries not directly related to the use include: bakery cafes, confectionary snack shops, ice cream parlors, doughnut shops.

As such the NAICS classification a “Snack and Nonalcoholic Beverage Bar” (NAICS 722515) is consistent with the city’s land use classification of a specialty restaurant as the business primarily sells juices, smoothies, and smoothie bowls.  

CMC 17.14.040.I.4. - Specialty Food Store Standards

1.  Minimum size: 400 square feet.
   
   Staff Analysis: The subject business space is approximately 1,036 square feet.
   
   
2. The minimum number of customer seats on-site: is 14 seats. The customer seating area must be open to patron use during all hours of operation, and the use must be managed to encourage on-premises consumption of food products.
   
   Staff Analysis: A minimum of 14 seats are proposed (and conditioned) to be located at the front of the business between the business entry and the point of sale.  The seating will be provided through a combination of bench seating, chairs, and bar seating.  Condition of Approval #18 requires a minimum of 14 seats be maintained at all times and open to patron use during all hours of operation, and the use must be managed to encourage on-premises consumption of food products.  Staff has prepared the staff report/resolution to allow for up to 20 seats within the space (without the need to amend the use permit) unless otherwise prohibited by building and/or fire codes.
   
   
3. Sales of soup, salads, and sandwiches may be allowed in up to 10 percent of sales.
   
   Staff Analysis: The sales of soup, salads, and sandwiches are not proposed.
   
   
4. The sale of alcohol is prohibited.
   
   Staff Analysis: The sale of alcohol is not proposed.
   
   
5. Drive-in, fast food, take-out, or formula establishments are prohibited.
   
   Staff Analysis: The proposed use, as represented by the applicant, does not exhibit the characteristics of a Drive-In Establishment, fast food establishment, or take-out establishment. With respect to whether the business is a formula establishment, “Perfectly Pressed Carmel” will be the third restaurant location for business owners and will be differentiated the existing “Perfectly Pressed” establishments located in Salinas and Monterey. The business name, menu, and branding are unique to this Carmel location as is consistent with past practice for differentiation of existing businesses when locating a similar established brand or business to Carmel. As stated by the applicant (refer to Attachment 2):
   
   The attached document provides more clarity on the branding, examples of where it will be used, and the truly unique look and feel that this location will have to feature all the charm of Carmel.
   
   In addition to the branding package, please note that Perfectly Pressed Carmel will have a blend of unique smoothies that can only be found in Carmel as well as a few of our award winners. This will also be the only location featuring four of our brand-new smoothie bowls. We are launching these bowls for Perfectly Pressed Carmel. They are a delicious all natural, non- processed smoothie served in our biodegradable fiber bowls and topped with healthy, fresh, local ingredients…. We are confident that the approach of featuring unique branding, premier shop design and specialty menu items will allow for substantially differentiated “food presentation format” that a consumer will see Perfectly Pressed Carmel as being truly unique to Carmel.
   
   Condition of Approval #22 also requires all products bearing the name of the Business feature the full name approved on the Business License Application, “Perfectly Pressed Carmel” as a means to differentiate the location from other locations and to maintain a consistent branding and unique appearance for this Carmel location. 
   
   
6. The service counter must be located within the interior of the business premises and arranged so that customers must first pass by or through the seating area to reach the counter and patron queues will be contained within the building.
   
   Staff Analysis: The service counter is located in the rear part of the building allowing the queue to be contained within the building. As a patron enters the business, they would first enter the seating area.  After entering the seating area, a small retail wall would be to their right. After passing the retail area and seating area, the customer would reach the service counter and cash register to place their order. 
   
   
7. Outside seating may be allowed, subject to CMC 17.58, Design Review.
   
   Staff Analysis: The applicant is not proposing outside seating.
   
   
8.  All products sold for consumption off the premises, other than frozen desserts, must be placed in covered containers or wrappings.
   
   Staff Analysis: All restaurants within the City utilizing disposable food packaging shall exclusively use biodegradable/compostable or recyclable products and maintain written records as detailed in CMC 8.68. Condition of Approval #9 required that food sold for consumption off-premise shall be placed in covered containers or wrapping in accordance with these code requirements.
   
   
9. Cooking equipment is limited to indoor stoves and ovens.
   
   Staff Analysis: Cooking equipment is not proposed.  Food preparation equipment will utilize refrigerators, freezers, a smoothie machine, blenders, and similar equipment that do not involve cooking.  
    
   
10. The maximum number of food stores and/or restaurants located within structures fronting Ocean Avenue allowed: 15.
    
    Staff Analysis: The proposed business does not front Ocean Avenue. While Carmel Plaza does maintain a street frontage on Ocean Avenue, this provision has historically not applied to building tenant spaces located within the interior of Carmel Plaza due to the location and orientation of the business spaces. The subject business space is located at the ground level of the Plaza and the nearest street (access and proximity) is Mission Street.  To contrast, however, a restaurant or food store with their exterior fronting Ocean Avenue at the Plaza should be considered in this total based on this practice. 
    
    
11. The operator of the use shall be responsible for the clean-up of all on-site and off-site litter generated by the use, including twice-daily clean-up of all sidewalks and gutters within 50 feet of the storefront and twice-yearly steam cleaning of this area. A practical plan for monitoring and implementing this standard shall be submitted for review with the application for a use permit and will be adopted as a condition of approval of the use.
    
    Staff Analysis: The subject located is located on the interior of Carmel Plaza and is not within 50 feet of a public sidewalk or gutter. As such the standard above is not applicable, however, Condition of Approval #20 has been included stating the business operator shall be responsible for clean-up for all litter generated by the use within the immediate vicinity of the business.
    
    
12.  See subsection (I)(1) of this section, All Eating and Drinking Establishments.
    
    
    1. The sale of nonfood merchandise that is directly related to the use may be allowed when determined to be incidental to the primary use. The display of nonfood merchandise shall be ancillary to the primary use.
       
       Staff Analysis: The applicant is proposing a small retail component as identified on the floor plan. The retail display will occupy less than 10% of the floor area of the primary use and will be considered ancillary.  Condition of Approval #3 requires all nonfood merchandise be directly related to the primary use.
       
       
    2.  Adequate facilities shall be provided on the site for the closed storage of trash and garbage generated by the use. The on-site storage shall be designed so that the area can be cleaned and the refuse removed without creating a public nuisance and without being placed on the sidewalks or other public ways. If the method of cooking used will generate hot ashes, a storage facility and disposal method shall first be approved by the Fire Department.
       
       Staff Analysis: The business will utilize the enclosed trash and recycle bins provided by Carmel Plaza.  The existing trash enclosure is located in the garage level of the Plaza.  The proposed use is not anticipated to generate hot ashes.
       
       
    3.  At least one restroom shall be available for use by all persons within, or conveniently adjacent to, the specific business premises and on the same property on which the use is located. This restroom shall comply with all provisions of the State Uniform Building and Plumbing Codes as to the required size, location, and accessibility standards, and shall be available for use by both the employees and patrons of the business.
       
       Staff Analysis: Customer restrooms will be provided by the exiting common area restrooms located on the 3rd floor of Carmel Plaza.  The existing business space has an employee restroom which is proposed to be retained as part of the new use.
       
       

Use Permit Findings. In Accordance with CMC 17.64.010.A, in its review of applications for use permits, the Planning Commission shall evaluate each proposed use in order to consider its impact on the City. No use permit shall be granted unless all of these general findings can be made:

1.  That the proposed use will not be in conflict with the City’s General Plan.
2. That the proposed use will comply with all zoning standards applicable to the use and zoning district.
3. That granting the use permit will not set a precedent for the approval of similar uses whose incremental effect will be detrimental to the City, or will be in conflict with the General Plan.
4. That the proposed use will not make excessive demands on the provision of public services, including water supply, sewer capacity, energy supply, communication facilities, police protection, and fire protection.
5. That the proposed use will not be injurious to public health, safety or welfare.
6. That the proposed use will be compatible with surrounding land uses and will not conflict with the purpose established for the district within which it will be located.
7. That the proposed use will not generate adverse impacts affecting health, safety, or welfare of neighboring properties or uses.

Staff Analysis: As conditioned, the proposed use meets the required findings outlined in CMC 17.64.010. The use contributes to the unique, quality commercial uses that serve the intellectual, social, material, and day-to-day needs of both the local community and visitors (P1-11). As conditioned, the project (use) complies with all applicable zoning standards and approval of the use is not precedent setting for the approval of similar uses. The site has adequate water available for the use, as determined by Monterey Peninsula Water Management District (MPWMD), and the use will not make excessive demands on public services. The proposed use is compatible with surrounding land uses and is consistent with the purpose of the Central Commercial (CC) zoning district.  Some noise may be heard from the internment and short term running of equipment such as blenders. 

According to the California Department of Transportation, Technical Noise Supplement to the Traffic Noise Analysis Protocol (September 2013), a blender at 3-feet away produces approximately 85-decebels. Sound spreads (propagates) uniformly outward in a spherical pattern, and the sound level decreases (attenuates) at a rate of approximately 6 dB for each doubling of distance from a stationary or point source. While the city’s noise ordinance (CMC 8.56) nor Noise Element of the General Plan expressly address impacts that would preclude the proposed use, the Noise Element does include general objectives and policies including:

 O9-2 Consider the compatibility of proposed land uses with noise environment when preparing community plans or reviewing specific development proposals.

 P9-11 The standard noise mitigation measures shall not preclude creative solutions addressing unique situations when there are conflicts between noise levels and land use.

 O9-3 Control unnecessary, excessive and annoying noises within the City where not preempted by Federal or State control.

CMC 17.28.020 states, in part:

The fixed installation of any electrical or mechanical equipment such as generators for electrical power, pumps for hot tubs, swimming pools, fountains or wells, heating or air conditioning systems and similar equipment shall be located, shrouded, muffled or otherwise treated to control noise to protect the use and enjoyment of neighboring properties and the public. All such installations shall be limited to a noise emission standard of 60 db or three db above ambient whichever is greater, as measured at the property boundary… Excessive noise from such installations shall be treated as a Class D noise per Chapter 8.56

While the use of blenders would likely not conflict with CMC 17.28.020 as the sound measurement for electrical equipment (including blenders) described in this section is taken at the property boundary, there is the potential for noise impacts to surrounding businesses and/or the public courtyard area of the plaza.  To further address the objectives and policies noted above, Condition of Approval #23 has been included which requires all noise from all stationary noise sources shall be contained within the subject business space and requires an acoustical analysis prepared by a qualified professional at the property owner’s expense if complaints of excessive noise are received. 

The specific equipment proposed to be used has not been identified in the application and it is not staff’s intention limit or restricts the specific type of equipment.  Rather, it shall be up to the business owner and property owner to ensure that all noise is contained within the business space. Regardless, it is not anticipated that the blenders or other equipment will cause a disturbance to the adjacent tenants or the public courtyard and the business owner and property owner can take their own measures to reduce and/or eliminate any unanticipated noise impacts, however, Condition #23 is included to insure unintended impacts are addressed appropriately.  

Commercial Use Permit findings. In accordance with CMC 17.64.020, in addition to the general finings required for all use permits listed above (CMC 17.64.010.A), no use permit shall be granted for commercial or business uses unless all of these general findings can be made:

1.  That allowing the proposed use will not conflict with the City’s goal of achieving and maintaining a balanced mix of uses that serve the needs of both local and nonlocal populations.
2. That proposed use will provide adequate ingress and egress to and from the proposed location.

3. That the capacity of surrounding streets is adequate to serve the automobile and delivery truck traffic generated by the proposed use.

Staff Analysis: The proposed use meets the findings outlined in CMC 17.64.010. The proposed use is a conditionally permitted use in the Central Commercial (CC) zoning district and the additional zoning requirements for the use have been made in the affirmative. The use will be located within an existing business space and shall be required to comply with all applicable building and fire codes related to building occupancy. The surrounding streets has adequate capacity for automobile and delivery truck traffic generated by the proposed use.

Staff recommends the project be found categorically exempt from the California Environmental Quality Act (CEQA), State CEQA guidelines, and local environmental regulations, pursuant to Section 15301 (Class 1) – Existing Facilities. Class 1 exemptions include the operation, maintenance, permitting, and minor alterations to existing private structures involving negligible or no expansion of an existing or former use. The project consists of the conversion of an existing retail establishment to a specialty restaurant (primarily selling juices and smoothies). The proposed project does not present any unusual circumstances that would result in a potentially significant environmental impact, and no exceptions to the exemption exist pursuant to section 15300.2 of the CEQA Guidelines.