Master Land Use Application Attachment A

Plan Approval for the Continued Operation of the One Up Restaurant

September 2, 2015

13625 Ventura Boulevard

Los Angeles CA 91423

Applicant and Property Description

13625 Ventura Boulevard, LLC (the “Owner”) is the owner of that certain parcel of real property located at 13625 Ventura Boulevard (the “Property”) between Woodman Avenue and Ventura Canyon Avenue in the Sherman Oaks Community. The Property is improved as an approximately 4,552 square foot building (the “Improvements”), of which 3,708 square feet are used for a restaurant and bar (the “Restaurant Space”). The Restaurant Space also includes a 357 square foot front patio, giving the Restaurant Sapce a total of 4,065 square feet. Hyperlounge, LLC, (the “Applicant”)is currently leasing and operatingthe Improvements as a restaurant and lounge called The One Up (the “Existing Operation”). The Existing Operation is discussed in more detail below.

The Property is a rectangular parcel containing approximately 4,744 square feet of lot area. The Property is bounded on the south by Ventura Boulevard, on the west and east by existing commercial buildings, and on the north by an alley way. The Property’s general vicinity is developed primarily with commercial uses, such as restaurants, retail stores, and office uses. The Property is zoned C2-1VL, and the Property’s Sherman Oaks – Studio City – Toluca Lake – Cahuenga Pass Community Plan (the “Community Plan”) designation is General Commercial. The C2 zone is generally a commercial zone that allows a myriad of commercial uses like retail and restaurant uses. The Property is also located within the Ventura/Cahuenga Boulevard Corridor Specific Plan (the “Specific Plan”).

City Planning Case No ZA 2013-2289(CUB)(CU) (the “Existing CUB”) approved the on-site sale and consumption of a full line of alcohoic beverages in connection to the Existing Operation. The Existing CUB also permits the operation of 12 arcade games pursuant to Los Angeles Municipal Code (“LAMC”) Section 12.24.W.34. The Existing CUB’s Condition 9 requires the Applicant to file for an Approval of Plans within one year of the date when the Existing Operation began utilizing the Existing CUB (approximately late 2014). Though no LAMC Section or any State Law permits arbitrary time limitations on an existing conditional use permit, such as the Existing CUB, the Applicant is cooperatively requesting a Plan Approval pursuant to LAMC Section 12.24.M without waiving its contention that the Existing CUB does not expire and continues to run with the land.

Project Description

The Applicant is requesting the continued sale and service of a full line of alcoholic beverages in connection with the Existing Operation, which will feature fine dining and arcade games. The Existing Operation includes a total of 4,065 square feet, including the 3,708 square foot Restaurant Space and a 357 square foot front patio. The Existing Operation’s interior melds vintage and modern, rustic and refined in a fun palette of wood, metal and glossy color with proper attention paid to lighting and acoustics. The One Up’s menu features New American cuisine and the bar includes an eclectic mix of beverage types, including hand-crafted cocktails. The restaurant contains a total of approximately 135seats (107 interior and 28 exterior) and will continue to operate from 11 am to 2 am seven days per week.

The Existing CUB allows the Existing Operation to contain up to 12 free-to-play arcade-style games in line with the One-Up’s unique design aesthetic. These games are available to customers free of charge, and will not require any coin or slug to operate. The games are an ancillary element of the Proposed Operation; intended solely for the use of restaurant patrons. The game room is located at the rear of the Existing Operation, separated from the street by the restaurant’s central seating area.

During the period between the Existing CUB’s approval and effectuation, the Los Angeles Department of Building And Safety (“LADBS”) and the Owner noticed inconsistencies between the Improvements existing and permitted floor area. These inconsistencies required the Owner to request a Project Permit Compliance (Case No. DIR-2014-1676, or the “PPC”) to determine that 194 square feet of new floor area and a change of use of 525 square feet of floor area (from office use to restaurant use) were consistent with the Ventura/Cahuenga Boulevard Corridor Specific Plan (the “Specific Plan”). This change of use also required the Property to provide six parking spaces. The Property accounts for the six spaces in three ways:

1)Owner entered into a covenant with the City’s Department of Transportation to pay $100 a month for four parking spaces (for a total of $400 per month), pursuant to Specific Plan Section 7.F.2.

2)The Improvements provide eight bicycle parking spaces, reducing the Property’s automotive parking space requirement by two spaces pursuant to Ordinance 182,386 (effective March 13, 2013)

The Owner satisfied the PPC’s six space parking requirement with a covenant for four spaces and by utilizing Ordinance 182,386’s two space reduction, LADBS Permit No 14016-20000-03951 verifies that the Property’s parking needs have been satisfied. The Applicant also provides valet parking to its patrons.

The Improvements have been operated as a restaurant and bar with the on-site sale and consumption of alcoholic beverages for at least the past 54 years pursuant to Case No. ZAI 84-026B (the “Prior Approval). The Prior Approval states that, based on records from the California Department of Alcoholic Beverage Control (“ABC”), the Property has been licensed for the on-site sale and consumption of alcoholic beverages since November 21, 1961, which predates the effective date of the applicable zoning (conditional use) regulations. The Prior Approval verifies the Property’s long-standing alcohol and restaurant uses.

Requested Actions

Pursuant to LAMC Section 12.24.M., the Applicant requests a Plan Approval for the continued on-site sale and service of a full line of alcoholic beverages and to permit 12 arcade style video games in connection with the Existing Operation. The Applicant agrees to comply with all of the Existing CUB’s conditions, yet requests the removal of Condition 8, which requires the Applicant to file for an additional Plan Approval four years from now. This Condition unnecessarily burdens the Applicant with significant fees while providing no additional value to the community. The City of Los Angeles’s Planning Department has instituted a new program (known as the “MViP Program”) that includes monitoring verification, and inspection of existing conditional use permits. Up until recently, the City’s only method for CUB oversight (short of nuisance abatement) was to require periodic plan approvals. With the MViP Program in place, periodic plan approvals are a duplicative, and therefore, unnecessary process.

Zoning

The Property is zoned C2-1VL, which is a commercial zone in the Number 1VL Height District. Normally, properties located within the C2 Zone and the 1VL Height District have a permitted FAR of 1.5:1 and a maximum of height of 45 feet (no more than 3 stories). Granting the requested Plan Approval will not result in any new construction. FAR and height restrictions are, therefore, not implicated. The C2 zone is a high intensity commercial zone that allows many commercial uses, including the proposed restaurant, as well as retail, office and public parking building. As such the Proposed Operation will fit well within the area.

The Property is located within the Specific Plan, which implements the City's General Plan Land Use Element. The Property is designated Neighborhood and General Commercial, as well as a Pedestrian Development District by the Specific Plan. The Neighborhood and General Commercial designation is defined as a “focal point for surrounding residential neighborhoods and containing a diversity of land uses such as restaurants, retail outlets, grocery stores, child care facilities, small professional offices, community meeting rooms, pharmacies, religious facilities and other similar services.”[1]

The requested Plan Approval will not result in any new construction and will only allow the continued on-site sale, service, and consumption of a full line of alcoholic beverages with the same use and intensity as the preceding decades. The Specific Plan does not prohibit or otherwise regulate alcohol uses.Therefore, this request is consistent with the Specific Plan.

Surrounding Zoning and Uses

North: C2-1VL and R3-1: Commercial uses, inducing medical offices, as well as multi-family housing.

South: C2-1VL: Commercial uses, including eateries and retail establishments.

West: C2-1VL: Commercial uses, including retail/shopping establishments.

East: C2-1VL: Commercial uses, including bars and restaurants.

Case Files and Permits

Previous City of Los Angeles Planning Department Cases:

-Case No ZA 2013-2289(CUB)(CU) (the Existing CUB) – City Planning case permitting the sale and consumption of a full line of alcoholic beverages, as well as the use of 12 video arcade games, in connection with the Existing Operation.

-Case No. ZAI 84-026B (the Prior Approval) – City Planning case deeming the Property to have been previously approve for the on-site sale and consumption of alcoholic beverages.

-LADBS Permit No 14016-20000-03951 – Building permit and Certificate of Occupancy verifying that the Property satisfies its parking requirement by providing bicycle parking pursuant to Ordinance 182386 and by entering into a parking covenant with LADOT for four parking spaces, pursuant to Specific Plan Section 7.F.2.

-Case No. DIR-2014-1676 (the PPC) – City Planning case determining that the Improvements’ new floor area and change of use are consistent with the Specific Plan

Conditional Use Permit Findings

LAMC 12.24.E requires the following findings for all conditional use permits:

  1. 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

The Operator is only requesting a plan approval to allow the continued on-site sale and consumption of a full line of alcoholic beverages. Alcohol has been legally sold at the Property since 1961. The Existing Operation has operated for just under one year without incident. The requested Plan Approval will not involve any new construction because it is simply allows the continuation of the Existing Operation. Therefore the requested action will have little to no effect on the built environment surrounding the neighborhood because no new structures are proposed.

The Existing Operation provides a service that is beneficial to the community because the Existing Operation continues to provide a dining option for residents, employees and tourists that frequent the Sherman Oaks Community. A thriving urban environment must have a vast diversity of dining options that also offer a full line of alcoholic beverages to its patrons. The Existing Operation will accomplish precisely this goal. Approving the requested action will allow the Existing Operations’ continued operation and will not authorize a new use within the subject tenant space or on the Property.

By approving the requested action, the Existing Operation will continue to provide tax revenue to the city resulting from the sale of any and all taxable goods. The Proposed Operation will employ a variety of workers, thereby strengthening the local job market and contributing more revenue to the local economy via the indirect multiplier effect. This effect (described as the economic impact in excess of an employee’s wages to the local economy as a result of paying for local rent, groceries, etc.) will stimulate economic growth throughout the Sherman Oaks area.

  1. 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

The Project is an Existing Operation. There is no need for any construction that would negatively affect neighboring properties. The Existing Operation and the location as a whole will look exactly as it does now. The Existing Operation is located on Ventura Boulevard, a highly active, urban, and transit-oriented street. The Existing Operation’s location and the area’s mix of residential and commercial uses mean that there are many people, both from the area and from other parts of the city, who come to the location for one reason or another. The requested approval will also allow the Existing Operation to continue offering this much needed service, at the highest quality possible, to the residents, employees, and other area residents enjoying Sherman Oaks.

  1. 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 Specific Plan for the location is the Ventura/Cahuenga Boulevard Corridor Specific Plan. The Specific Plan implements the City’s General Plan Land Use Element. The Property’s Specific Plan designation is Neighborhood and General Commercial, as well as a Pedestrian Development District. The Neighborhood and General Commercial designation is defined as a “focal point for surrounding residential neighborhoods and containing a diversity of land uses such as restaurants, retail outlets, grocery stores, child care facilities, small professional offices, community meeting rooms, pharmacies, religious facilities and other similar services.”[2] The Existing Operation conforms very well with this vision. Restaurant and bar uses are good focal points for surrounding residential neighborhoods.

When residents and employees move to Sherman Oaks they expect a certain level of service and variety from restaurants and bars. As such, restaurants, like the Existing Operation, are necessary in order to satisfy the needs of the businesses and residential neighborhoods surrounding the Property.

Additional Alcohol Related Findings

LAMC Section 12.24.W.1, requires the following findings for any conditional use permit requesting approval of alcohol related uses:

  1. That the proposed use will not adversely affect the welfare of the pertinent community

The Existing Operation has served alcohol at this establishment for the almost one year and the requested approval does nothing but allow this practice to continue. Allowing the Existing Operation’s continuance will not adversely affect the community’s welfare because the permitted use has been and continues to occur at the property. Additionally the community and the surrounding areas are very urban and area residents expect uses like the Existing Operation. Restaurants serving alcohol in areas such as these are not only the norm, but expected by residents. Restaurants who do not serve alcohol are at a disadvantage because residents will not patronize an establishment which lacks something considered a standard.

  1. That the granting of the application will not result in an undue concentration of premises for the sale or dispensing for consideration of alcoholic beverages, including beer and wine, in the area of the City involved, giving consideration to applicable State laws and to the California Department of Alcoholic Beverage Control’s guidelines for undue concentration; and also giving consideration to the number and proximity of these establishments within a one thousand foot radius of the site, the crime rate in the area (especially those crimes involving public drunkenness, the illegal sale or use of narcotics, drugs or alcohol, disturbing the peace and disorderly conduct), and whether revocation or nuisance proceedings have been initiated for any use in the area

Granting this application will not result in the undue concentration of premises for the sale and dispensing for consideration of alcoholic beverages in this area of this city. The Property is located in the Sherman Oaks Community, large portions of which are designated as Neighborhood and General Commercial, as well as Pedestrian Development District by the Specific Plan. The Property’s land use designation encourages the development meant to act as a focal point for the surrounding residential neighborhoods containing a diversity of land uses such as restaurants, retail outlets, grocery stores, child care facilities, small professional offices, community meeting rooms, pharmacies, religious facilities and other similar services.[3] Accordingly, it is not atypical to find a concentration of restaurants selling alcoholic beverages for on-site consumption. A proliferation of restaurants is expected in residential areas. Most of these venues must have the ability to serve alcohol to ensure their success. Therefore, given the Property’s location in the Sherman Oaks Community, granting this application will not create an undue concentration.

Moreover, while granting this application will introduce a new license, it will not be granting the Property’s first license. Previous restaurants sold alcohol pursuant to ABC License No. 396447 and ABC License No. 256183. The Existing Opeation currently operates under ABC License No 536279. Moreover, according to the Prior Approval, the Property has been an ABC licensed location for approximately 54 years. Therefore, granting this application will not result in an undue concentration of ABC licenses in the surrounding community because the area is not receiving a net new license at this location.