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HomeMy WebLinkAbout03 CUP 09-033ITEM #3 Report to the Planning Commission DATE: JANUARY 26, 2010 SUBJECT: CONDITIONAL USE PERMIT (CUP) 09-033 APPLICANT: PAUL THINH AND ALEX THINH; GAME STARS 14001 NEWPORT AVENUE, SUITE B TUSTIN, CA 92780 TUSTI f~°~~ PROPERTY THE MAKENA GREAT AMERICAN NEWPORT COMPANY OWNER: C!O NPS MANAGEMENT 9595 WILSHIRE BLVD #810 BEVERLY HILLS CA 90212-2508 LOCATION: 14001 NEWPORT AVENUE, SUITE B GENERAL PLAN: OLD TOWN COMMERCIAL ZONING: CENTRAL COMMERCIAL WITH COMBINING PARKING (C-2 P) ENVIRONMENTAL THIS PROJECT IS CATEGORICALLY EXEMPT (CLASS 1) STATUS: PURSUANT TO SECTION 15301 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. REQUEST: TO OPERATE A VIDEO ARCADE IN AN EXISTING COMMERCIAL CENTER, MAKENA SQUARE _ `- _- a ~ ' ~ ~ 1 ~ ~._ / ~ ~ _. ~~ - _ -~~.~ !r Planning Commission Report January 26, 2010 CUP 09-033 Page 2 That the Planning Commission adopt Resolution No. 4139, approving Conditional Use Permit (CUP) 09-033. BACKGROUNDIDISCUSSION The site is located in the Central Commercial with Combining Parking (C-2 P) zoning district and Old Town Commercial General Plan Land Use Designation. Tustin City Code Section 9233c(a.1) lists video arcades as a conditionally permitted use in the C-2 district. The proposed project is a request to authorize the operation of a video arcade within an existing commercial center. Site and Surrounding Properties The site is located in an existing shopping center on the western side of Newport Avenue, south of EI Camino Real and north of Interstate 5 (Attachment A -Location Map), in the Makena Square Center. The subject tenant suite is currently vacant and located between Le Yogourt and Smile Dental Care and is approximately 1,200 square feet in size. Other businesses in the shopping center include Family Hair and Nails, MediSpa, and another vacant suite. Proposed Game Stars (Project Site) Makena Square is neighbored by an office building to the north, the Tustin Motor Lodge to the west, Jack in the Box and Newport Camino Plaza (Arby's and Petco) to the east, and Interstate 5 to the south (see Zoning Map). Planning Commission Report January 26, 2010 CUP 09-033 Page 3 DISCUSSION Projecf Description The applicant is proposing to establish a video arcade in a 1,200 square foot vacant suite at an existing commercial center. The establishment would operate as a video arcade with some retail sales of video games. The submitted floor plans show the praposed arcade as one large room with one (1) restroom and one (1) office/storage room at the back of the tenant suite. As proposed, there are nineteen (19) game stations. Most of the game stations are for one player games while five (5) are for multi-player games (marked by an "M" on Figure 2: Floor plan). The submitted floor plans also include a reception desk and shelving for retail video sales at the front of the suite. -, - -, -; - - '~~ ' ~ , , Dy ~ - --- C~} , Q 4 l ~ 1 I ~ ~ - •Y ~, ~' 1 • ~~ of i._ ~~ , .r" ! '. WILL v r ° ~~' ~ i ~ I 1 I 1 I I ~ ' 1 i ~~ ~ i Y ~ i Mll~c P 710N O ~ ~ ~ i _ - ~. f100R PlN1 KCY N01E4 ~-o' ~. . Ot )1117111AfM M. I O %MO~NAW N. I 1 1 1 1 2O 4W. CPMM ~ W[0 WC dNi 0 6v[4 OV1AY 14'/W C.Vnlt O Y' N!. WA W1~1[M O U) f.C WI[ lMR O (1rilO1 YAM LV01M O t' 0. iltlt 14[ /RY1 M.- QiW ~0 N Mfll 11w4N N. Figure 2: Floor plan The business plan submitted by the applicant (Attachment D) indicates that the business will be marketed to youth and young adults, with the target ages of 8 to 18. The business is proposing to offer customers the ability to play online computer games using Wii, Xbox360, PlayStation 3, and computer stations. The applicants anticipate that the morning business hours would consist of maintenance activities and older customers while the afternoon and evening hours would attract a younger crowd after school is out. The business is planning to charge customers by the hour for use of the game stations. The submitted business plan identifies Howie's Game Shack in both Mission Viejo and Westminster as similar uses. Since approved in 2005, Howie's Game Shack in Mission Viejo Kaleidoscope Center has operated successfully without concern. The Howie's Game Shack in Westminster has encountered some problems, mainly regarding loitering and increased calls for police service. However, most of these calls were at times when the other businesses in the area were closed and the arcade was the only business open. Planning Commission Report January 26, 2010 CUP 09-033 Page 4 Arcade businesses in other cities tend to operate without concern when they are operated in commercial areas with hours of operation similar to other uses in the area. The Tustin Police Department has reviewed this application and has expressed some concern about the proposed business. These concerns include: • Proximity to schools, including Tustin High School • Proximity to the freeway (Interstate 5 and State Route 55) • The potential to operate as a cyber cafe • Providing an adequate surveillance system and security • The potential for gambling and cash prizes The concerns expressed by the Police Department have been taken into consideration and incorporated into the proposed conditions of approval. Though video arcades are conditionally permitted uses in commercial zones, there are no similar businesses in operation at this time in the City. The conditions of approval recommended by staff (Attachment D -Planning Commission Resolution No. 4139) are similar to conditions placed on cyber cafes in other Orange County cities and as recommended by the Tustin Police Department. In addition, proposed Planning Commission Resolution No. 4139 allows the Community Development Department and/or the Tustin Police Department to require additional conditions or modification to the operation of the business should the proposed use become a problem in the future. Hours of Operation The proposed hours of operation are 11:00 a.m. to 10:00 p.m., seven days a week, which is consistent with other commercial uses in the vicinity. If it is determined that a problem exists at the site or in the vicinity as a result of the proposed project and hours of operation, the Community Development Director or Chief of Police may require a reduction in the hours of operation. Parking When Makena Square was developed, thirty-seven (37) parking spaces were provided on- site at a ratio of one (1) space per two hundred (200) square feet. Under current City parking standards, arcades require a parking ratio of one (1) space per two hundred (200) square feet. Therefore, there is sufficient parking for the proposed use under current City standards. Proposed Condition 2.24 allows the Community Development Director to require additional parking if it is determined that on-site parking is a problem due to the proposed use. ANALYSIS In determining whether to approve the Conditional Use Permit, the Planning Commission must determine whether or not the proposed use will be detrimental to the health, safety, morals, comfort, and general welfare of the persons residing in or working in the Planning Commission Report January 26, 2010 CUP 09-033 Page 5 neighborhood or whether it will be injurious or detrimental to property or improvements in the vicinity or to the welfare of the City. A decision to approve this request may be supported by the following findings: 1) Tustin City Code Section 9233c(a.1) allows the operation of a video arcade within the Central Commercial with Combining Parking (C-2 P) zoning district with the approval of a Conditional Use Permit. 2) Appropriate conditions are included to ensure the business is operated in compliance with Tustin City Code and representations by the applicant and to ensure compatibility with the surrounding commercial and residential uses. 3) The center was parked at a ratio of one (1) space per two hundred (200) square feet and current City parking standards require one (1) space per two hundred (200) square feet for arcade uses. Therefore, no additional parking spaces will be required. 4) The hours of operation are 11:00 AM to 10:00 PM, seven (7) days per week, which is consistent with the hours of operation for other commercial uses in the area. 5) The Tustin Police Department has reviewed the application and has provided recommended conditions that have been incorporated into the resolution. Cari Meyer Assistant Planner ~~~~o~ ~~ Elizabeth A. Binsack Community Development Director Attachments: A. Location Map B. Land Use Application Fact Sheet C. Submitted Plans D. Submitted Business Plan E. Planning Commission Resolution No. 4139 S:1Cdd1PCREPORll20101CUP 09-033 (Video Arcade).doc ATTACHMENT A Location Map t a.-~ ' ~ ri i"~~~FT ~~ ~~ ~~ ~ r" s9 ., ~ (l s;9W c ~ L -fl ~). es u:x r o e~ ~~ ~ a v ~ .•~ k I' .~ y1 ,rti w J ~ •r F fi ~~~~' S ~.SJ s'kl rr, ~ Gs r' F>G?i ~~.,, ~i .,~,~ L:L rl iE~ 1 ... ~'x +~ ,. ''4y ,fie w., r,Ya~ ~ [ „~.~~ ~ ~ ~ ion 8Ci7 s m. ., ., ?Ji, m ~ .r~.~A f fit U ., n r. w *r n!f~~ ~'~trY " ei a ~~ i = ... ~ L, a'.,fid ,~.`f2 ~~ S.u~ ~~ , .~ ~• ~y`` r~,. ~. -ra„ _._, ~f t.}F~.i;~ `^.,, r f r ~. ,~ ~ r, -- ' / ~4 ~ I / ~{J~ .,.. ._ ~ ~ ,,. ~ ; f~ :i r~rs~ `13 ~ b ~~ .. ~ @ ,,~ ~ ~ V ~~ , ,...,, r anus t ~ ,..r ~a~ s~° y~,. '\ r ... .. _,. t=19~fi~ ~ ~ ~``-~ ' ~ 7d0!Y l ~~ f ~ ,^- -•~ %~ l ,ar rg ^~'~1 .. ~f: rI ~Y~,.,~ $~-EJCGit ' ; !~7 ,CiX ATTACHMENT B Land Use Application Fact Sheet LAND USE APPLICATION FACT SHEET 1. LAND USE APPLICATION NUMBER(S): Conditional Use Permit (CUP) 09-033 2. LOCATION: 14001 Newport Ave. 3. APN(S):401-641-11 4. PREVIOUS OR CONCURRENT APPLICATIONS RELATING TO THIS PROPERTY: CUP 04-028 (Outdoor Seating); DR 04-023 (New Retail Center); CUP 05-043 (Soil Remediation); CUP 06-003 (Dental Office) 5. SURROUNDING LAND USES: NORTH: Office Building SOUTH: Interstate 5 Freewav EAST: Jack in the Box and Newport Camino Plaza (Arby's and Petco) WEST: Tustin Motor Lodge 6. SURROUNDING ZONING DESIGNATION: NORTH: Planned Community (PC) SOUTH: Freewav EAST: Central Commercial fC-2) and Commercial General (CG) WEST: Central Commercial (C-2) 7. SURROUNDING GENERAL PLAN DESIGNATION: NORTH: Old Town Commercial SOUTH: Freeway EAST: Community Commercial WEST: Old Town Commercial 8. SITE LAND USE: EXISTING Use: Vacant, previously Master Cellular store Zoning: Central Commercial, Combining Parking General Plan: Old Tawn Commercial 9. DEVELOPMENT STANDARDS: REQUIRED Parking 1 space1200 square feet PROPOSED Video Arcade No Change No Change PROPOSED 1 space/200 square feet 10. This application does not propose any changes to any other development standard, including: building height, setbacks, lot coverage, and landscaping. 11. OTHER UNIQUE CONDITIONS ASSOCIATED TO THE PROPERTY (I.E. SPECIAL STUDY ZONES, EASEMENTS, ETC.): Town Center Redevelopment Agency Project Area S:1CddlCarilCUP109-033 (Video Arcade)1Land Use Application Fact Sheet.Doc ATTACHMENT C Submifified Plans ~~~a ot~~wt~~ `~~ ~. ~. ~~Jy \rr ..-A ~~ !t"'1 `~ f n ~/ (~! 1~.~i 7^, f y L~ ,0-,B! o Q Cy71 llf j i~ / ~O ' a - _ ~ ~ ~ / ~ \ o i / / / ~ \~ , 1 ! r ~ ~ ~~ F i i ,z-,~ i t '~ t ~sd i ~\ ~ ~~ ~ ~ m i ~ \ ~ s ~\ ~ ~ - i ~ ~ i ~r ~ i ~B_,y q I ^ ~ g`_ W M1 e0 O ~ w 0 ~ ~ W r r I "~ p 1 ;,' W W n 4 F ~ ,i-,F ,o ~ ,1~,F J L N ,~-~ •Q-,~ ,Q", Ferry ,0-,F ~ ~ .~ M ~ +\ • % ' _~ ~ Q ~ \ ~ b h ~ ~ ~ -- +O: w .~-.F sd o z w Y i~~ ~~ Ry I Z ~ \ d ~ ! ~ i~ i ,0-,4 ~ ~ g ~ N ~pp ? j m F t Z U U t u ~ ~ S ~~_~~. ~~p 4~Qy7~ ~ ~ ~ ,fl J M ~ ~f O O O O O z m s '~ ~ ~~~ s y S ~o~~ N U N a c OQQI:JI=I ATTACHMENT D Submitted Business Plan REC~11/EC~ NOV 2 5 2009 COMMUNITY DEVELOPMENT GAME STARS, INC '~, .-~ ~L_ N BUSINESS PLAN 2010-2012 Paul Thinh, Ph:714-350-8092, Email: gt4613@sbcglobal.net Thy Tran, 714-251-8877, Email: tido7144@yahoo.com 1~Pa~e Executive Summary Recent survey studies show that video games can enhance a child' s reflexes and skills to think much quicker. We as a new vendor within the Tustin community will provide the youth to experience something new. Our motto is Games Stars "JUST PLAY!" We will be providing paying customers with live High definition experience through simulated gaining consoles such as Playstation 3, Xbox 360, and Nintendo Wii. Our products will be the latest games that have been released to consumers. Our goal is to create an enviromment where consumers (mauily youth) will be comfortable by our ambience atmosphere for beginner and hardcore garners. We as Game Stars want the consumers to be excited with all the new releases from olu• library of games that we have to offer. Company Objective Our objective is to establish our company, "Game Stars, Inc" to be the first arcade business that would provide high intensity virtual like games within a unique environment where everyone can interact with each other either through the simulated gaming network or live in person. We would also provide and demo all the latest games for everyone, and to be recogiuzed as an arcade business. Our company would thus provide a safe atmosphere that would attract youth and young adults between the ages of 8 to 18 plus. Mission Statement Game Stars, "Just Play" Company Summary Game Stars, Inc is an arcade like set-up that provides an online gaming experience while playing on the 3 major consoles such as Wii, Xbox360 and PS3. We charge by bolo with uiilimited choice of game plays. We carry a huge inventory of the latest released games in the market for demos and retail. We also offer trade-ins for credit towards the purchase of ay new games. Our business will open 7 days a week from the hours of 1 lam-10pm. The morning shifts will mainly consist of repairing consoles, selling new and old games, and primarily attract young adults while the younger kids are in school. We don't expect the younger kids to come play until 3pm when they're out of school. Consider this as an afterschool program where kids can exercise their minds and enhance their senses. 2~Page Ownership Paul Thinh, President and Thy Tran, Vice President have been best friends since they met while working at Fry's )Jlectronics in the electronics department back in 2004. Paul was a computer manager for the last 1 U years and oversees the department daily operations, which consists of 72 employees with a $1 Million weekly sales objective. Thy was the only Information Systems Technician that was in charge of the all departments, which required maintaining asset equipments, network security, shipping/receiving, all the front check out computer registers, and repairing a11300 plus network computers in the store. Start Up Summary Games Stars will be filed as an S Corporation. We will move into our desired location once we have the appropriate business licenses, permits, and our lease approved. Our architecture plan has been drawn up and designed. Inventory has already been purchased. Currently, we have $50,000 cash start up the business and a $30,000 business loan option. Once we move in, start up costs will go towards designing the interior and marketing our business. We are about to sign a 5 year lease that will provide us the first 5 months of rent for free and a sign in bonus of $12,000 once we open. Game Stars -Start Up Costs Start Up Money $50,000 Inventory -Monitors, Games, Speakers, etc -$15,000 Designing/Building -$20,000 Tenant Improvement $12,000 Balance $27,000 Locations and Facilities Game Stars, Inc will be established in early 2010. We provide our customers a place to be them- selves and experience the gaming world. Our desired location would be in a small shopping next door to Le Yogurt, (Paul's brother's yogurt store) in Tustin. There are 6 local elementary aild high schools within a 5 mile radius. It's close to the 5 interstate highway and Old Towne Tustui. Products & Services Provide a friendly and fun gaming enviromnent for the local youth community. We'll specialize in family events such as birthdays, tournaments, and competitions. We provide the latest gaming demo experience before release date and also retail most vendors' products. Daily operations will consist of renting out our gaming consoles to our customers. They can enjoy the thrill per hour on high definition TV's with 7.1 audio sound effects system and lounging experience. Retail, trade and play games. 3~Page Market Analysis Summary Game Stars, Inc will provide the most current and up to date products, games, and teclulology in gaming industry. Our business will fall under the category of an arcade business such as Dave and Busters, Game Works, and Nickel Nickel. The huge difference between us and them is that we offer games that kids currently play at home using the latest technology that Wii, Xbox360 and P53 has to offer which allows them to play online with their friends that are at home. Parents would approve for their kids to exercise their mind in a local and friendly environment with big screens TVs and comfortable gaming chairs. Recent surveys determined that kids who play video games tend to create an er~ltance sense of reflexes and thinking skills. This would enable a child to think clearly and quicker iu school for education purposes. However, some studies show that certain video games that are played excessively would cause aggression, but fact is that video games would actually create a few positive outcomes. Games can help develop social skills for children with attention. disorders including autism. Another analysis shows that the gaming console Wii would also create a closer relationship between friends and family. The games we also provide also require multi-player action, thus this would teach a child about team work or team play. Children who play games when they are still young would also learn to become much more creative such as music, animation, art, basic computer simulation, and also story plotting. Our other analysis is that from pass experience from Fry's Electronics is that when big name companies that come out with new game releases, this is usually a huge event for consumers. Consumers will literally line up and wait for the new game just to play, demo, and to make purchases. Games such as Call of Duty 4, Modern Warfare II, Crisis, Halo 2, Halo 3, etc. Tuesday, November 11`i', 2009 Modern Warfare II was apparently sold out within the first 5 hours after being release to the public which made 161 million dollars. The Competition Howie's Game Shack in both Mission Viejo and Westminster, CA is what we consider the closest to our company's competition. The difference between us and them, they offer Xbox360 console only with. the same identical set up. Game Stars, Inc will have 3 different consoles such as: Wii, Xbox360, and PS3. In addition to different consoles, we offer individual high definition sound effect to each player with online server access for customers to compete against each other. 4~Page Strategy and Implementation Game Stars, Inc will introduce itself as a separate entity in the gaming business within the city of Tustin. Our competitors are not even within 15 mile radius to our business. We will mainly focus on attracting the younger generation that are local between grade school up to high school and college. Our busuiess will also promote individuals to play in local tournaments. Sales Strategy and Promotion We also will offer tournament plays, sponsorships, and weekly competitions. For the first G months we will offer a few promotions, customers can purchase 3 hours of play for the price of 2 and pay for an all day pass. We will give away an hour of free play for our customer's birthday. We will sponsor local school events to brand our name. advertise in the Penny Saver, local and community newspaper with coupons. Pass out fliers to local business for promotional support and best of all; Paul's brother's yogurt store is next door which already attract kids and young adults of all ages. Management Summary Paul Thinh will open and Thy Tran will close. During the first year, they both plan to work 8 plus hours per day every day until business starts to pick up. We plan to hire 2 employees to work 6 months after opening. However, Paul and Thy have played video games at home, and online ever since they can remember. Their hobbies lead them to work in an electronic store where they gain experience in the technology and gaming industries. Thus it became their passion; for which they figured they should make a business out of it due to the high demand within the gaming industry. S~Page Financial Statement & Analysis Each gaming console is approximately going rate per hour is $7A0. We plan to have fifteen gaming consoles open to paying customers. We have calculated on an average weekday to make three hundred to four hundred dollars on a regular day. As far as the weekend goes we have calculated one thousand dollar on one week day if all gaining consoles are occupied. Worst case scenario is that on one slow weekday our project goal is to make two hundred per day. On a slow weekend all together with the worst case scenario can be eight hundred dollars the entire weekend. The worst case scenario will only let us either break even and not profit or make a little less than expected to owe at the end of the month. We also have calculated in the factor that if we have birthday parties or private party rental for 3 hours which have been fixed at $300 for 2 hours. YEAR 1 Expense s Rent Electricit y Phone/Interne t Payroll Advertisemen t Insuranc e Misc. Total Expense Month 1 $0 $800 $400 $4,000 $1,500 $150 $1,050 $7,900 Month 2 $0 $800 $400 $4,000 $1,500 $150 $1,050 $7,900 Month 3 $0 $800 $400 $4,000 $1,500 $150 $1,05D $7,900 Month 4 $0 $8D0 $400 $4,000 $1,500 $550 $1,050 $8,300 Month 5 $0 $800 $400 $4,000 $1,500 $550 $1,050 $8,300 Month 6 $3,200 $800 $400 $5,000 $1,500 $550 $1,050 $12,500 Month 7 $3,200 $800 $400 $5,000 $800 $550 $1,050 $11,800 Month 8 $3,20D $800 $400 $5,000 $800 $550 $1,050 $11,80D Month 9 $3,200 $800 $400 $5,000 $800 $550 $1,050 $11,800 Month 10 $3,200 $800 $400 $5,000 $800 $550 $1,050 $11,800 Month 11 $3,200 $800 $400 $5,000 $800 $550 $1,050 $11,80D Month 12 $3,200 $800 $400 $5,000 $800 $550 $1,050 $11,800 Annual Expense without income: $123,600. 6~Page Sales Forecast Game Stars will be open for 11 hours per day for an average of 30 days per month. There will be 15 consoles that can be occupied at once. We charge an average of $7 per hour. Below are assumptions based on an hour basis, per day basis, and a monthly basis. We have projected 15 consoles as being the best case scenario and 3 as the worst case scenarios. These projections are based on our primary business which is play per hours. It does not include promotional rates or special events such as parties and totunaments and it does not include retail of video games or repairing of consoles. In order to break even, we need to bring in $8,400 per month, which comes out to $280 per day. Income Per Hour - Consistent per Console for the Hour Rate per Hour $7.00 $7.00 $7.00 $7.00 $7.00 Consoles 15 12 10 5 3 Total Per Hour $105.00 $84.00 $70.00 $35.00 $21.00 Income Per Day -Consistent per Hour for the Day Hours Consistent from worst to best Rate per Hour $7.00 $7.00 $7.00 $7.00 $7.00 Consoles 15 12 10 5 3 Total Per Hour $105.00 $84.00 $70.00 $35.00 $21.00 2 hours $210.00 $168.00 $140.00 $70.00 $42.00 5 hours $525.00 $420.00 $350.00 $175.00 $105.00 7 hours $735.00 $588.00 $490.00 $245.00 $147.00 10 hours $840.00 $672.00 $560.00 $280.00 $168.00 Income Per Month -Consistent per Day for the Month Rate per Hour $7.00 $7.00 $7.00 $7.00 $7.00 Consoles 15 12 10 5 3 Total Per Hour $3,150.00 $2,520.00 $2,100.00 $1,050.00 $630.00 2 hours $6,300.00 $5,040.00 $4,200.00 $2,100.00 $1,260.00 5 hours $15,750.00 $12,600.00 $10,500.00 $5,250.00 $3,150.00 7 hours $22,050.00 $17,640.00 $14,700.00 $7,350.00 $4,410.00 1.Cy l~aurs $25,200.00 $20,160.00 $16,800.00 $8,400.00 $5,040.00 Ideally, we would try to fill up at least 10 consoles for at least 5 hours per day. 7~Page ATTACHMENT E Planning Commission Resolution No. 4139 RESOLUTION NO. 4139 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TUSTIN, APPROVING CONDITIONAL USE PERMIT 09-033 AUTHORIZING THE ESTABLISHMENT OF A VIDEO ARCADE WITHIN A 1,200 SQUARE FOOT SUITE AT AN EXISTING COMMERCIAL CENTER (MAKENA SQUARE) LOCATED AT 14001 NEWPORT AVENUE, SUITE B. The Planning Commission does hereby resolve as follows: The Planning Commission finds and determines as follows: A. A proper application was filed by Paul Thinh and Alex Thinh of Game Stars requesting authorization to operate a video arcade within a 1,200 square foot suite at an existing commercial center (Makena Square) located at 14001 Newport Avenue, Suite B. B. The site is designated as Old Town Commercial by the City General Plan, which provides for a variety of commercial uses and is zoned Central Commercial with Combining Parking (C-2 P), which allows video arcades with the approval of a Conditional Use Permit. The project is consistent with the Air Quality Sub-element of the City of Tustin General Plan. C. The existing tenant suite is located in a commercial center with a variety of retail and commercial uses. The characteristics of the use and hours of operation would be similar to other businesses in the vicinity. D. That a public hearing was duly called, noticed, and held for Conditional Use Permit 09-033 on January 26, 2010, by the Planning Commission. E. That the establishment, maintenance, and operation of the proposed use will not, under the circumstances of this case, be detrimental to the health, safety, morals, comfort, or general welfare of the persons residing or working in the neighborhood of such proposed use, nor be injurious or detrimental to the property and improvements in the neighborhood of the subject property, or to the general welfare of the City of Tustin in that: 1) Tustin City Code Section 9233c(a.1) allows the operation of a video arcade within the Central Commercial with Combining Parking (C-2 P) zoning district with the approval of a Conditional Use Permit. 2) Appropriate conditions are included to ensure the business is operated in compliance with Tustin City Code and representations by the applicant and to ensure compatibility with the surrounding commercial and residential uses. 3) The center was parked at a ratio of one (1) space per two hundred (200) square feet and current City parking standards require one (1) space per Resolution No. 4140 Page 2 two hundred (200) square feet for arcade uses. Therefore, no additional parking spaces will be required. 4) The hours of operation are 11:00 AM to 10:00 PM, seven (7) days per week, which is consistent with the hours of operation for other commercial uses in the area. 5) The Tustin Police Department has reviewed the application and has provided recommended conditions that have been incorporated into the resolution. F. This project is Categorically Exempt pursuant to Section 15301, Class 1 of the California Code of Regulations (Guidelines for the California Environmental Quality Act). II. The Planning Commission hereby approves Conditional Use Permit 09-033 authorizing the establishment of a video arcade within a 1,200 square foot suite at an existing commercial center (Makena Square) located at 14001 Newport Avenue, Suite B. PASSED AND ADOPTED by the Planning Commission of the City of Tustin at a regular meeting on the 26th day of January, 2010. STEVE KOZAK Chairperson ELIZABETH A. BINSACK Planning Commission Secretary STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) I, Elizabeth A. Binsack, the undersigned, hereby certify that I am the Planning Commission Secretary of the City of Tustin, California; that Resolution No. 4139 was duly passed and adopted at a regular meeting of the Tustin Planning Commission, held on the 26th day of January, 2010. ELIZABETH A. BINSACK Planning Commission Secretary EXHIBIT A RESOLUTION NO.4139 CONDITIONAL USE PERMIT 09-033 CONDITIONS OF APPROVAL GENERAL (1) 1.1 The proposed project shall substantially conform with the submitted plans for the project date stamped January 26, 2010, on file with the Community Development Department, as herein modified, or as modified by the Director of Community Development in accordance with this Exhibit. The Director of Community Development may also approve subsequent minor modifications to plans during plan check if such modifications are consistent with provisions of the Tustin City Code. (1) 1.2 Unless otherwise specified, the conditions contained in this Exhibit shall be complied with as specified, subject to review and approval by the Community Development Department. (1) 1.3 This approval shall become null and void unless the use is established within twelve (12) months of the date of this Exhibit. Time extensions may be granted if a written request is received by the Community Development Department within thirty (30) days prior to expiration. (1) 1.4 Approval of Conditional Use Permit 09-033 is contingent upon the applicant and property owner signing and returning to the Community Development Department a notarized "Agreement to Conditions Imposed" form and the property owner signing and recording with the County Clerk-Recorder a notarized "Notice of Discretionary Permit Approval and Conditions of Approval" form. The forms shall be established by the Director of Community Development, and evidence of recordation shall be provided to the Community Development Department. (1) 1.5 Any violation of any of the conditions imposed is subject to the issuance of an Administrative Citation pursuant to Tustin City Code Section 1162(a). (1) 1.6 Conditional Use Permit 09-033 may be reviewed on an annual basis, or more often if necessary, by the Community Development Director. The Community Development Director shall review the use to ascertain compliance with conditions of approval. If the use is not operated in accordance with Conditional Use Permit 09-033, or is found to be a nuisance or negative impacts are affecting the surrounding tenants or neighborhood, the Community Development Director shall impose additional conditions to eliminate the nuisance or negative impacts, or may initiate proceedings to revoke the Conditional Use Permit. SOURCE CODES (1) STANDARD CONDITION (5) RESPONSIBLE AGENCY REQUIREMENT (2) CEQA MITIGATION (6) LANDSCAPING GUIDELINES (3) UNIFORM BUILDING CODE/S (7) PC/CC POLICY (4) DESIGN REVIEW *** EXCEPTION Exhibit A Resolution No. 4139 Page 2 (1) 1.7 As a condition of approval of Conditional Use Permit 09-033, the applicant shall agree, at its sole cost and expense, to defend, indemnify, and hold harmless the City, its officers, employees, agents, and consultants, from any claim, action, or proceeding brought by a third party against the City, its officers, agents, and employees, which seeks to attack, set aside, challenge, void, or annul an approval of the City Council, the Planning Commission, or any other decision- making body, including staff, concerning this project. The City agrees to promptly notify the applicant of any such claim or action filed against the City and to fully cooperate in the defense of any such action. The City may, at its sole cost and expense, elect to participate in the defense of any such action under this condition. (1) 1.8 The applicant shall be responsible for costs associated with any necessary code enforcement action, including attorney's fees, subject to the applicable notice, hearing, and appeal process as established by the City Council by ordinance. USE RESTRICTIONS (1) 2.1 The hours of operation shall be limited to the 11:00 am to 10:00 pm, seven (7) days per week. Modifications to the hours of operation may be approved by the Community Development Director if it is determined that no impact to the surrounding tenants or properties will occur. *** 2.2 If in the future the City determines that a problem exists on the site or in the vicinity as a result of the proposed project and hours of operation, the Community Development Director or Chief of Police may require the applicant to provide immediate interim and permanent mitigation measures, including reducing the hours of operation, to be reviewed and approved by the Community Development Department and the Police Department. *** 2.3 This facility shall operate as a video arcade only. Operation as a cyber cafe is prohibited. (1) 2.4 "No Loitering" signs shall be placed near the entrance on the outside of the premises or in other specified locations. (1) 2.5 No person shall be permitted to consume alcoholic beverages on the premises. The sale of cigarettes and alcohol on the premises is prohibited. No intoxicated or disorderly person shall be allowed to remain on the premises. Exhibit A Resolution No. 4139 Page 3 *** 2.6 There shall be a minimum of one (1) employee managing the arcade during all business hours. The ratio of employees to customers shall be 1:30. During each employee's working hours, the employee shall wear a badge identifying the business and the employee's full name. (3) 2.7 Occupancy shall not exceed that required under the California Building Code and California Fire Code. The maximum occupancy load shall be posted at the main entrance. *** 2.8 The arcade shall maintain and operate acamera/video surveillance system during all business hours. The system shall cover the entire interior of the premises, all entrances to and exits from the arcade, and the parking lot adjacent to the business. Tapes/disks shall be kept a minimum of seventy-two (72) hours. The owners shall license the City to inspect the tapes/disks during business hours. A sign shall be posted inside and at the entrances to the establishment indicating that the premises are under camera/video surveillance. (3) 2.9 The owner shall submit and receive approval of a fire exit plan from the Orange County Fire Authority. The plan shall address all existing requirements of the California Building Code and California Fire Code. This includes, but is not limited to, providing an exit plan showing equipment location, aisle locations and dimensioned widths, and having approved exit doors and panic hardware. In addition, the owner shall install an emergency disconnect switch that is capable of disconnecting all power from all computers, televisions, game stations, and sound systems to be used in case of emergency. *** 2.10 Window areas shall not be covered or made opaque in any way, excepting during daylight hours when blinds or other equivalent window coverings may be used. *** 2.11 The Chief of Police may require security guard(s) be provided on the premises, at the expense of the arcade owner and/or operator, in the event there are repeated calls for police services relating to the premises and including, but not limited to, assaults, gang activity, weapons offenses, disturbances of the peace, and juvenile crimes including truancy. *** 2.12 Adequate lighting levels shall be utilized to discourage criminal activity both inside of the arcade and in the parking lot adjacent to the business. The Chief of Police may require additional lighting to be provided, at the expense of the arcade owner and/ar operator, in the event there are repeated calls for police services relating to the premises and including, but not limited to, assaults, gang activity, weapons offenses, disturbances of the peace, and juvenile crimes including truancy. Exhibit A Resolution No. 4139 Page 4 *** 2.13 No gang members, as identified by the Tustin Police Department, shall be allowed to congregate inside the business or the adjacent parking lot. *** 2.14 Any access to adult-oriented material, including, but not limited to, web sites and software, is prohibited. (1) 2.15 No sexually oriented businesses shall be conducted on the premises without approval by the City in accordance with the Tustin City Code. *** 2.16 No gaming tournaments for cash prizes shall be permitted. *** 2.17 No electronic game machine, computer, or other type of station shall be located in any private area, room, or booth. *** 2.18 User rates and other fees shall be posted in a conspicuous place on the premises. (1) 2.19 No electronic games machine, computer, or other type of station, shall be used for illegal gaming or gambling. The applicant shall be responsible for ensuring customers do not use any electronic game machine, computer, or other type of station, for illegal gaming or gambling. (1) 2.20 The applicant shall provide adequate trash receptacles both inside and outside the building. All litter shall be removed from the exterior areas around the premises including public sidewalk areas and parking areas, no less frequently than once each day that the business is open. (1) 2.21 Business operations shall be conducted in a manner that does not create a public or private nuisance. Any such nuisance must be abated immediately upon notice by the City of Tustin. (1) 2.22 Ambient noise of the facility shall not exceed the standards of the City of Tustin Noise Ordinance. *** 2.23 Conditional Use Permit 09-033 shall become null and void if the use is discontinued or abandoned for a period of twelve (12) months. (1) 2.24 If in the future the City determines that a parking problem exists on the site or in the vicinity as a result of the proposed project, the Community Development Director may require the applicant to prepare a parking demand analysis and bear all associated costs. If the study indicates that there is inadequate parking, the applicant shall be required to provide immediate interim and permanent mitigation measures to be reviewed and approved by the Community Development Department and the Public Works Department. Exhibit A Resolution No. 4139 Page 5 FEES (1) 3.1 Within forty-eight (48) hours of approval of the subject project, the applicant shall deliver to the Community Development Department, a cashier's check payable to the COUNTY CLERK in the amount of fifty dollars ($50.00) to enable the City to file the appropriate environmental documentation for the project. If within such forty-eight (48} hour period the applicant has not delivered to the Community Development Department the above-noted check, the statute of limitations for any interested party to challenge the environmental determination under the provisions of the California Environmental Quality Act could be significantly lengthened. (1) 3.2 Prior to issuance of any permits, payment shall be made for all applicable fees, including but not limited to, the following: • Building and Planning Plan Check and Permit Fees • Orange County Fire Authority Review and Inspection Fees