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Attachment 3 - Applicant Project Description538-540 North Euclid Street CUP Application Findings and Project Description Introduction PK II Anaheim Plaza LP is the owner of the real property (“Anaheim Plaza”, or the “Shopping Center”) located along the east side of Euclid Street between Crescent Avenue and the westbound Euclid Street off-ramp from Interstate 5, within the City of Anaheim (the “City”). In-N-Out Burgers, a California Corporation (“INO” or the “Applicant”) intends to lease the a 50,058 square foot portion of the Shopping Center (the “Premises”), demolish the Premises’ existing improvements, and construct and operate a new 3,879 square foot restaurant, as well as an ancillary trash enclosure, patio, and drive- through lane (the “Project”). The Premises are positioned between Euclid Street (to the west) and private driveways to the south and east, approximately 300 feet south of Crescent Avenue. The Premises are referenced as a portion of Assessor’s Parcel No. 072-110-052 and is commonly referred to as 540 North Euclid Street. The Premises’ location within the Shopping Center is currently improved with an approximately 10,345 square foot structure previously used as a Marie Callenders® restaurant. The Project will require the a conditional use permit (CUP), pursuant to Anaheim Municipal Code (“AMC”) Section 18.66, to allow a drive-through use in the C-R zone; Property Description As mentioned above, the Premises are currently improved with a single-story commercial structure previously used as a restaurant. The Premises’ remaining lot area is improved with surface parking. The entire Shopping Center is zoned “C-R”, or Regional Commercial. While restaurants are permitted by-right in the C-R zone,1 the Project’s proposed drive-through use requires conditional approval pursuant to AMC Section 18.66. The C-R zone restricts height to 75 feet and restricts floor area ratio (“FAR”) to 0.50:1. The Project’s proposed structure is compliant with the C-R zone’s height and FAR restrictions. The Premises are one of many pads (stand-alone commercial structures) within the Anaheim Plaza Shopping Center. Accordingly, all of the Premises’ neighboring buildings are used for commercial purposes. For example, the Premises’ nearest neighbors are a Bank of America® to the south, a Schools First Credit Union® to the north, and various large retailers including (but not limited to) a Petco®, Old Navy® and Five Below® anchoring the Shopping Center. The Shopping Center contains a significant amount of parking between its various major retailers and its pad locations, as well as private drive- aisles to properly move cars within the Shopping Center and onto the public right of way. Properties across Euclid Street from the Premises are similarly improved with commercial structures and surface 1 AMC Section 18.08.030 ATTACHMENT NO. 3 parking, include a Chase Bank® and a six-story office structure. The nearest residential property is located on Fairhaven Street, approximately 250 feet west from the Premises. The Premises are generally flat and contains a landscaped sidewalk along Euclid Street and the private drive-aisle immediately to the Premises’ south. The Project will maintain the landscaping to the extent feasible. Project Description The Applicant proposes to demolish the Premises’ existing structure and construct a new 3,879 square foot restaurant (an In-N-Out Burger) with a 698 square foot covered patio, a 31-car dedicated drive-through lane, 61 parking spaces, and a 547 square foot ancillary trash enclosure. Project FAR is approximately 0.1:1. The Project’s 61 parking spaces easily satisfy AMC Section 18.42.040’s parking requirements. The Premises’ additional space also allows the Project to provide over-flow drive-through queuing on-site as well as plenty area to unload trucks without the need for a formal loading space. The proposed In-N-Out Burger will contain indoor seating for 84 guests and outdoor seating for approximately 28 guests. The detached covered patio is located just north of the proposed restaurant building. The Project will construct the restaurant in a similar location as the existing improvements; the building is positioned relatively close to Euclid Street with parking located further to the east. The proposed building has been elegantly designed to both enhance the community’s design aesthetic while maintaining In-N-Out Burger branding. The building is single-story and approximately 23 feet to the top of the parapet. The Project’s Bone China White stucco, red awnings, and wall signage are instantly recognizable features for In-N-Out Burger’s recent developments. The Project also provides a seven-foot tall monument sign visible within the Shopping Center (at the eastern part of the Premises). The proposed ancillary trash enclosure uses the same design motif as the rest of the Project. The proposed landscaping adds to the Project’s outdoor California experience. Construction for the restaurant will be done in a single phase and take approximately 6 months, with a typical progression of construction activities. These activities, some of which would run concurrently, include site preparation and limited grading of about 4 to 6 weeks, building construction of about 4 months, paving and striping of about 3 weeks, and landscaping of about 2 weeks. The restaurant will operate 7 days a week, from 10:00 AM to 1:00 AM Sunday through Thursday, and from 10:00 AM to 1:30 AM on Friday and Saturday. The restaurant, drive-thru, and parking lot, as with all In-N-Out Burgers restaurants, will be well-lit and meticulously maintained. The restaurant will be staffed by approximately 12-15 Associates per shift, with 3 shifts per day. In-N-Out Burger cooks all of its burgers and fries to order – nothing is pre-cooked and there are no cooked food holding bins. This restaurant will be equipped with three burger grills. Two grills will operate at all times, and activation of the third grill will be done in response to high dine-in or, more typically, high drive-through demand as activating the third grill significantly increases the speed at which drive-through orders are delivered to customer vehicles. Standard store operating procedure dictates that as soon as the drive-through queue reaches the 8th car, In-N-Out Associates are deployed outside to take orders using hand-held ordering tablets. The use of these tablets puts orders into the kitchen faster than ordering at the menu boards, and, when combined with increased production from the third grill, the result is extremely fast and efficient food production with the shortest possible food wait times, and therefore the shortest possible drive-through vehicle queues. Awareness of the queue reaching the 8th car is enhanced with outdoor cameras and indoor monitors. There will be between 4 and 6 outdoor cameras on this site, with 3 or 4 of them specifically viewing the drive-through lane. These cameras display on multiple monitors located inside the restaurant including at the manager’s office, above the grills, and at both the pay and pickup windows. There is no delivery dock or designated delivery parking bay required on the premises as deliveries are made only by In-N-Out owned and operated vehicles, after the restaurant is closed to the public, between the hours of 2 AM and 9 AM. No alcoholic beverages will be served. Findings AMC Section 18.66.060 requires the Planning Commission to make the following findings as part of a conditional use and final development plan approval: 1. That the proposed use is properly one for which a conditional use permit or a minor conditional use permit is authorized by the Zoning Code, or is an unlisted use as defined in subsection .030 (Unlisted Uses Permitted) of Section 18.66.040 (Approval Authority) of the Anaheim Municipal Code; The Project is located within the C-R zone, a commercial zone to serve a larger area than the C- NC Zone and to include some regional commercial uses. Allowable uses could include national retail chains, department stores, specialty stores, theatres, regional-serving restaurants, and big-box retail.2 As a whole, the Shopping Center and all of its associated tenants meet the C-R zone’s intended goals. The proposed Project’s primary use is for a restaurant, while the drive-through use is considered ancillary. Pursuant to AMC Section 18.08.030’s Table 8-A, restaurants are a permitted use in the C-R zone, while “Drive-Through Facilities” are conditionally permitted. 2. That the proposed use will not adversely affect the adjoining land uses or the growth and development of the area in which it is located; The Project’s location, size, height, operations and other significant features will be compatible with the surrounding neighborhood. As noted above, the Project will demolish an existing 10,345 square foot restaurant and replace it with a 3,879 square foot restaurant in the same general place within the Premises. The Project is located within an established commercial corridor and will complement existing commercial uses and services available along Euclid Street. The proposed restaurant is approximately 3,879 square feet in floor area, with 84 seats indoors and 28 seats outdoors in a one-story building 23 2 AMC Section 18.08.020.030 feet in height. The Proposed hours of operation are Sunday through Thursday, 10:30 AM to 1:00 AM, and Friday and Saturday, 10:30 AM to 1:30 AM. These hours provide a late-night dining service in area where few late night dining amenities currently exist. The Project is compatible in size and height with neighboring developments, including nearby large scale commercial businesses, banks, and other restaurants. The nearest residential uses are approximately 250 feet west of the proposed building’s location and are separated from the Project by Euclid Street, a bank, and surface parking. The Project will attract new people to Anaheim, including those traveling on Interstate 5 to and from Los Angeles, and should therefore help spur other business opportunities in the area. The Project gives people greater opportunity to dine and shop in the same trip. Furthermore, placing an In-N-Out Burger at this location keeps more jobs and more tax revenue in Anaheim. At any given time, a typical INO store employs roughly 50 people. Their wages contribute to the local economy via the indirect multiplier effect (for example: as employees spend their wages, their expenditures create the demand for additional new jobs in other market sectors). 3. That the size and shape of the site proposed for the use is adequate to allow the full development of the proposed use in a manner not detrimental to the particular area or to health and safety; The Premises contain approximately 50,058 square feet of lot area. This area allows the project to exceed its minimum parking requirement for a 3,879 square foot restaurant as well as a 31-car dedicated drive-through queue and an ancillary trash enclosure. The Premises are approximately 280 feet long by 180 feet wide, easily allowing for proper circulation. The Premises are located within a shopping center that contains private streets to move cars within the parking areas as efficiently as possible. The Premises were previously developed with a much larger restaurant located in a similar location to the proposed restaurant building. 4. That the traffic generated by the proposed use will not impose an undue burden upon the streets and highways designed and improved to carry the traffic in the area; and The proposed Project will not cause an undue burden on the area’s streets and highways. Information confirming this finding will be provided in the Project’s traffic study. 5. That the granting of the conditional use permit or the minor conditional use permit under the conditions imposed, if any, will not be detrimental to the health and safety of the citizens of Anaheim. The Project’s location, size, height, operations and other significant features will be compatible with the surrounding neighborhood and will not be detrimental to the health and safety of the citizens of Anaheim. As noted above, the Project is located within an established commercial corridor and will complement existing commercial uses and services available along Euclid Street. The nearest residential property is located 250 feet west from the Premises and is separated by a Euclid Street, a bank, and extensive surface parking. The proposed Project is for the demolition of a restaurant and the construction, use and maintenance of a drive-through fast food restaurant. The Project is compatible in size and height with neighboring developments, including other nearby fast food restaurants, such as Jolibee®, Wendy’s® and McDonald’s. Drive-through facilities including the Project are appropriate for this particular location because of the proximity to Interstate 5. Euclid Street is a commercial corridor that attracts auto-traffic to its existing commercial uses. The Project will add another business to the area, therefore strengthening the local job market and the local tax base.