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Staff Report200 S. Anaheim Blvd Suite 162 Anaheim, CA 92805 Tel: (714) 765-5139 Fax: (714) 765-5280 www.anaheim.net ITEM NO. 1 PLANNING COMMISSION REPORT City of Anaheim PLANNING AND BUILDING DEPARTMENT DATE: NOVEMBER 6, 2023 SUBJECT: DEVELOPMENT APPLICATION NO.2023-00038 LOCATION: 203-205 and 295 West Center Street Promenade APPLICANT/PROPERTY OWNER: The applicant is Joshua O'Neill, of Lost Temple Traders. The property owner is Linda Sadeghi, of The LAB. REQUEST: The applicant requests approval of a conditional use permit to allow the operation of a 1,117-square foot recreation -commercial indoor use, specifically an "escape room." AUTHORITY: Section 18.08.030 (Uses) of Chapter 18.08 (Commercial Zones) of the Anaheim Municipal Code (the "Code"). RECOMMENDATION: Staff recommends that the Planning Commission determine that a Class 1 — Existing Facilities Categorical Exemption under the California Environmental Quality Act (CEQA) (Public Resources Code, Sections 21000-21189.57) as set forth in Sections 15301 and 15300.2 of the State CEQA Guidelines (California Code of Regulations, Title 14, Chapter 3, Sections 15000-15387) is the appropriate environmental documentation for this request; and approve the attached resolution for Development Permit No. 2023-00038. BACKGROUND: The subject property is approximately 1.09-acres, is located at the northeast corner of Clementine Street and Center Street Promenade and developed with a six -level parking structure with ground floor retail space. The property is in the "C-G" General Commercial zone and is designated for Mixed -Use Urban Core land uses in the General Plan. The surrounding uses include retail, entertainment, restaurant, and office uses. PROPOSAL: The applicant requests approval to operate a 1,117-square foot recreation - commercial indoor use, known as the Lost Temple Escape. The hours of operation for the business would be from 11:00 a.m. to 11:00 p.m. Wednesday through Friday, and 10:00 a.m. to 11:00 p.m. on Saturday and Sunday. The facility would include a total of six employees with no more than two employees on -site at any given time. The proposed facility is located in two existing connected ground floor retail suites and would include one escape room, a lobby area, office, storage area, and an employee break room. Minor tenant improvements are proposed and there would be no changes to the exterior of the building. Development Application No. 2023-00038 November 6, 2023 Page 2 of 5 The Lost Temple Escape would be an interactive gaming facility where participants use communication, team building, and problem solving to decipher puzzles and clues to "escape" a room before time runs out. There would be one escape room that would accommodate two to six players per session. Each session would be scheduled for 90 minutes which includes a rules and safety orientation followed by a 60-minute game. The escape room would be equipped with security cameras, lighted exit signs, and two-way communication between customers and employees. STORAGE 1A 93 SF fTJ EMPLOYEE BREAK ROOT OFFICE 11 10 .� ='' 3F 156 SF r. r¢OFIS li E057 &C#J I'. v ESCAPE ROOM 1 r 137 SF T r, LOBBY 2W SF BOOR 9' .. j )I yj ESCAPE ROOM 2 $ 237 SF ESCAPE CLOSET 1 12 15 SF l ESCAPE CLOSET 11 2 PROPOSED FLOOR PLAN Development Application No. 2023-00038 November 6, 2023 Page 3 of 5 FINDINGS AND ANALYSIS: Conditional Use Permit: Before the Planning Commission may approve a conditional use permit, it must make specific findings of fact. Each required finding and the corresponding analysis is presented below: 1) That the proposed use is properly one for which a conditional use permit is authorized by this code; The Code permits Recreation -Commercial Indoor facilities in the "C-G" (General Commercial) Zone subject to a conditional use permit to ensure compatibility with surrounding uses, and to ensure that the use would not be detrimental to the general health and safety of the community. 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 proposed to be located; The proposed use would be an added amenity and compatible with the mix of office, retail, restaurant, residential, and entertainment uses in the area. The escape room activities would occur entirely within the subject retail tenant spaces. The operating hours are consistent with other uses within the downtown area, including retail and restaurant evening hours. 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 either the particular area or health and safety; The facility is proposed within an existing building designed for commercial and retail uses within a mixed -use district. Adequate parking for the use would be provided as described in the parking analysis below. 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 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 as it is located in an existing commercial building which meets Code requirements. 5) That the granting of the conditional use permit under the conditions imposed, if any, will not be detrimental to the health and safety of the citizens of the City of Anaheim. The proposed use will be integrated with the surrounding mix of uses within the area and conditions of approval have been included in the resolution including restricting the operation to those activities outlined in the attached Letter of Request and Operations (Attachment No. 2) and as required to ensure that the proposed use will not be detrimental to the site or its surroundings. Development Application No. 2023-00038 November 6, 2023 Page 4 of 5 Parkin: The Code requires a parking demand study or parking analysis letter to determine the parking demand for the indoor recreation facilities. The applicant submitted a letter of operation, which details the escape room procedures, the number of participants and employees, and the hours of operation. There would be between two and six guests participating in each 90-minute session, with a maximum of six guests at any time and a maximum of two employees. Three other escape rooms have been permitted in the city and a parking demand study was conducted for each of these businesses. The previous demand studies determined that on average the vehicle occupancy is two guests per vehicle and one vehicle per employee. Based on these studies and the applicant's letter, the peak parking demand for this use would be five parking spaces (three spaces for guests at peak demand and two spaces for employees). To account for a maximum overlap of guests who may arrive prior to the previous session ending, an additional three guest parking spaces would be required to bring the total peak demand to eight parking spaces. There are several parking structures and surface lots with over 3,500 parking spaces that are used as pool parking for various uses in the downtown area. The parking structure adjacent to the proposed use contains 777 spaces which include both leased spaces for various downtown uses as well as public parking. The peak parking demand for the recreation -commercial indoor use would be in the evening and on weekends, which is during the off-peak hours for office and retail uses within the downtown area. Based on the applicant's letter of operation and staff s analysis of previously approved escape room locations, staff believes that eight parking spaces for the escape room (at peak demand with guest overlap) is appropriate and with the available parking in the downtown area there is adequate parking to accommodate the proposed use. Further, it is not anticipated that the proposed use would generate a significant amount of traffic and would not have any negative effects on traffic flow in the general vicinity. Environmental Impact Analysis: The Project qualifies for a Class 1 — Existing Facilities Categorical Exemption under the California Environmental Quality Act (CEQA) (Public Resources Code, Sections 21000-21189.57) as set forth in Sections 15301 and 15300.2 of the State CEQA Guidelines (California Code of Regulations, Title 14, Chapter 3, Sections 15000-15387). Class 1 consists of the repair, maintenance, and/or minor alteration of existing public or private structures or facilities, involving negligible or no expansion of use beyond that existing at the time of this determination. The proposed project would be within an existing retail tenant space and is part of the larger downtown mixed -use developed area. Pursuant to Section 15300.2 (c) and Section 15301 of Title 14 of the California Code of Regulations, there are no unusual circumstances in respect to the project for which staff would anticipate a significant effect on the environment and, therefore, the proposed project would be categorically exempt from the provisions of CEQA. CONCLUSION: The proposed recreation -commercial indoor use, as conditioned, is compatible with the residential, retail, office, and restaurant uses in the downtown area. There is adequate parking to accommodate the proposed and the existing uses. Based on the analysis included in this report and the findings contained in the draft resolution, staff supports the request and recommends approval of the application. Development Application No. 2023-00038 November 6, 2023 Page 5 of 5 Prepared by, Thomas Gorham Contract Planner Attachments: 1. Draft Conditional Use Permit Resolution 2. Letter of Request and Operations 3. Project Plans 4. Aerial and Vicinity Maps Submitted by, Scott Koehm, AICP Principal Planner