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93-032 RESOLUTION NO. 93R-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM MODIFYING CONDITIONAL USE PERMIT NO. 259 AND AI~ENDING RESOLUTION NO. 62R-690 AS AMENDED BY RESOLUTION NO. 63R-57. WHEREAS, the Planning Commission of the city of Anaheim (the "Planning Commission") received a verified petition (the "Petition") from Dale D. and Sally A. Walker (the "Walkers"), owners of certain real property (the "Property") located within the City of Anaheim, County of Orange, State of California, legally described as: That portion of Lot 5, Stockwell Subdivision, as shown on a map thereof recorded in book 6, page 10, Miscellaneous Maps, records of said Orange County, described as follows: Beginning at the Southeast corner of said Lot 5, being considered in the center line of Raymond Avenue; thence North along the East line of said Lot 5, and the center line of Raymond Avenue, 119.01 feet; thence parallel to the South line of said Lot 5 North 88° 52' 20" West 195.04 feet to the point of beginning; thence continuing North 88° 52' 20" West 84.96 feet to the East line of Orange County Flood Control, right of way; as described in deed recorded June 9, 1960, in book 5279, page 368, official Records, in the office of the County Recorder of said Orange County; thence North along said East line of said right of way 181.16 feet; thence South 88° 33' 54" East 84.97 feet; thence South 180.68 feet to the true point of beginning; for a Conditional Use Permit to permit a "hofbrau and repair garage" on the Property; and WHEREAS, on June 25, 1962, the Planning Commission did hold a public hearing, notice of said public hearing having been duly given as required by law and in accordance with all applicable provisions of the Anaheim Municipal Code, to hear and consider evidence for and against said proposed Conditional Use Permit, and to investigate and make findings and recommendations in connection therewith; and WHEREAS, on June 25, 1962, said Planning Commission, after due inspection, investigation, and study made by itself and in its behalf, and after due consideration of all evidence, testimony and reports offered at said public hearing, did approve its Resolution No. 385, Series 1961-62, granting Conditional Use Permit No. 259 to permit an automotive repair garage on the Property, subject to certain conditions specified in said Resolution, but denying the "hofbrau" portion of said Petition on the grounds that the proposed "hofbrau" was not compatible with the land uses in the area; and WHEREAS, on June 29, 1962, the Walkers filed a written appeal to the City Council of the City of Anaheim (the "City Council") appealing the decision of the Planning Commission regarding Conditional Use Permit No. 259 due to the denial of the "hofbrau" portion of the use requested in the Petition; and WHEREAS, said appeal was set for public hearing by the City Council on July 24, 1962, and notice of such public hearing was duly given as required by law; and WHEREAS, at the time and place fixed for said public hearing, the City Council did duly hold and conduct such hearing and did give all persons interested therein an opportunity to be heard and did receive evidence, testimony and reports; and WHEREAS, following said public hearing, the City Council, on July 24, 1962, did approve its Resolution No. 62R-690 granting Conditional Use Permit No. 259 permitting the establishment of (i) a "Hofbrau Restaurant for the sale of food, and incidentally for the sale of beer" (the "Restaurant") on a portion of the Property (now generally described as 1007 E. Balsam Avenue, Anaheim, California) and (ii) an automotive repair garage on a portion of the Property (now generally described as 1009 E. Balsam Avenue, Anaheim, California); and WHEREAS, said Conditional Use Permit No. 259, and each of the uses permitted therein, was approved subject to certain express conditions of approval as set forth in Resolution No. 62R-690, including but not limited to the following requirements and reservations: (a) That the permit is granted for a hofbrau operation and the sale of food, and incidentally for the sale of beer as well as for the repair garage (Condition No. 4); (b) The subject property shall be developed substantially in accordance with the exhibit on file with the City of Anaheim, made a part of the Conditional Use Permit No. 259 file (Condition No. 5); and (c) That the City Council reserves the right to revoke such Conditional Use Permit for good cause or failure of said owners, heirs, successors or assigns to comply with the Anaheim Municipal Code and regulations and conditions herein. 2 AND WHEREAS, the exhibit on file with the City of Anaheim, made a part of Conditional Use Permit No. 259 file (as referred to in Condition No. 5 of said Conditional Use Permit No. 259) requires that 18 off-street parking spaces (10' X 20' in size) shall be maintained and available for the joint use of the Restaurant and the repair garage; and WHEREAS, on January 22, 1963, the City Council did adopt its Resolution No. 63R-57 amending Resolution No. 62R-690 granting Conditional Use Permit No. 259 by deleting Condition No. 3 and adding new conditions relating exclusively to the operation of the repair garage and, not germane for purposes of the present proceedings; and WHEREAS, the Property is currently owned by Joe and Marie Takacs (the "Takacs"); and WHEREAS, since approximately 1971, the portion of the Property located at 1007 E. Balsam Avenue, Anaheim, California, and authorized as a Restaurant by Conditional Use Permit No. 259 has been leased to, and operated by, Jette Birgette Holgersen ("Holgersen") as a business establishment which is currently known as, and operated under the name of, "Foxey's"; and WHEREAS, on September 10, 1991, Holgersen filed an application pursuant to Chapter 4.18 of the Anaheim Municipal Code for an entertainment permit to permit female dancers to perform at ("Foxey's") from 12 noon to 2:00 a.m. daily; and WHEREAS, said entertainment permit application was denied by written notice from the City of Anaheim License Collector to Holgersen dated June 12, 1992; and WHEREAS, an appeal from the denial of said entertainment permit was received by the city on behalf of Holgersen on July 1, 1992, which appeal remains pending; and WHEREAS, on November 16, 1992, the Planning Commission, pursuant to a staff report and recommendation from the Planning Department that date, did, by duly adopted motion, recommend that the City Council consider the possible termination or modification of Conditional Use Permit No. 259 pursuant to Section 18.03.092 of the Anaheim Municipal Code; and WHEREAS, on December 9, 1992, the City Council did consider the report and recommendation of the Planning Commission and the report and recommendation of the Planning Department and, based thereon, did schedule a public hearing to be held by the City Council on January 12, 1993, pursuant to Section 18.03.091 of the Anaheim Municipal Code to consider the possible termination or modification of Conditional Use Permit No. 259 for the reasons set forth in said reports; and 3 WHEREAS, on January 12, 1993, pursuant to appearance by, and a request received from, Holgersen at the time and place fixed for said public hearing, the City Council postponed and rescheduled such public hearing for February 9, 1993, and notice of such rescheduled public hearing was duly mailed to the interested parties by the City Clerk; and WHEREAS, on February 9, 1993, the City Council did conduct a duly noticed public hearing pursuant to Section 18.03.091 of the Anaheim Municipal Code to consider the possible termination or modification of Conditional Use Permit No. 259 and did give all persons interested therein an opportunity to be heard and did receive evidence, testimony and reports thereon; and WHEREAS, the City Council finds, after due consideration of the evidence, testimony and reports received at said public hearing that: 1. Conditional Use Permit No. 259 ("CUP 259") was approved by City Council Resolution No. 62R-690 on July 24, 1962, and was amended by City Council Resolution No. 63R-57 on January 22, 1963. 2. CUP 259 authorizes two distinct and separate conditional uses on the subject Property, to wit: (i) a "Hofbrau Restaurant for the sale of food, and incidentally for the sale of beer," and (ii) a repair garage. 3. Since 1971, the premises commonly known as 1007 East Balsam Avenue, Anaheim, california (the "Premises"), which Premises are in part the subject of CUP 259, have been leased by the owner thereof to Holgersen who currently operates the Premises as an establishment known, and hereinafter referred to, as "Foxey's." 4. Condition No. 4 of CUP 259 as approved by City Council Resolution No. 62R-690 and amended by city Council Resolution No. 63R-57 requires that CUP 259 is granted for a "hofbrau operation and the sale of food, and incidentally for the sale of beer" on the Premises. 5. Since at least August 20, 1991, and continuing to the present date, neither the Premises nor any other portion of the Property has been, nor is being, operated as a restaurant for the sale of food. 6. Since at least August 20, 1991, said hofbrau restaurant use of the Property as authorized by CUP 259 has ceased to exist. 4 7. The portion of the Property authorized as a "hofbrau restaurant" has been since at least August 20, 1991, and continues to this date to be, operated as a beer bar known as "Foxey's" which establishment is being operated primarily, if not exclusively, for the sale of beer and incidentally, if at all, for the sale of food. 8. For the period commencing not later than August 20, 1991, and continuing through at least October 23, 1992 (the "Investigation Period") such beer bar ("Foxey's") operated, and continues to operate, with live entertainment but did not regularly provide meals or food other than pre-packaged snacks available in a vending machine located on the premises. 9. Packaged sandwiches were apparently available on the Premises during a portion of the Investigation Period but such sandwiches were discontinued prior to October 23, 1992. 10. Throughout the Investigation Period, patrons of the beer bar were routinely advised by the waitresses either that no food is available or that the only food available was "frozen chicken parts" which no one would want to eat. 11. Throughout the Investigation Period not less than six (6) different female employees (waitresses) at Foxey's regularly, and routinely, engaged in the conduct of exposing their breasts and/or buttocks to patrons of the establishment for the purpose of entertaining patrons at Foxey's. 12. Any business characterized by activities involving the exposure of the female breasts or buttocks constitutes an "adult business" within the meaning of Section 18.89.020 of the Anaheim Municipal Code. 13. Such "adult business" uses are prohibited, and are violations of the Anaheim Municipal Code, unless a conditional use permit is expressly issued therefor pursuant to Section 18.89.030 of the Anaheim Municipal Code. 14. Neither "Foxey's" nor any other business on the Property has been issued a conditional use permit for an "adult business" use pursuant to Section 18.89.030 of the Anaheim Municipal Code. 15. Section 4.18.030 of the Anaheim Municipal Code prohibits dancing and other entertainment without an entertainment permit issued by the City of Anaheim. 5 16. On September 16, 1991, Holgersen applied to the City of Anaheim for an entertainment permit to allow dancing girls to perform on the Premises. 17. On June 12, 1992, the City of Anaheim denied the aforesaid application for an entertainment permit for Foxey's. 18. On June 30, 1992, Holgersen appealed the denial of the aforesaid entertainment permit application by the city of Anaheim. Said appeal is currently pending. 19. Throughout the Investigation Period no valid entertainment permit had been issued by the City of Anaheim for, or was in effect at, "Foxey's" to lawfully allow entertainment on the Premises. 20. Section 4.18.140 of the Anaheim Municipal Code prohibits, and makes it a misdemeanor for any waitress to expose her breasts or buttocks while acting as an employee of such establishment. 21. The Property, including the Premises, is now, and at all times since at least July 24, 1962 has been, located in the industrial zone of the City of Anaheim (formerly known as the "M-i" and now known as the "ML" Limited Industrial Zone). 22. Restaurants are conditionally permitted uses in the "ML" Limited Industrial Zone of the City of Anaheim pursuant to Anaheim Municipal Code Section 18.61.050.390. At all times since at least July 24, 1962, restaurants have been a conditional use in such zone pursuant to former "M-i" Zone regulations contained in former Chapter 18.52 of the Anaheim Municipal Code. 23. Beer bars are neither permitted nor conditionally permitted uses of property in the "ML" (Limited Industrial) Zone of the City of Anaheim under Anaheim Municipal Code Sections 18.61.020 and 18.61.050. Beer bars have been neither permitted nor conditionally permitted uses of the Premises since at least July 24, 1962 under former "M-i" Zone regulations contained in former Chapter 18.52 of the Anaheim Municipal Code. 24. On July 24, 1962, the Anaheim Municipal Code did not contain a definition of the term "restaurant;" however, CUP 259, by its own terms, expressly provided that the Premises be operated as a "restaurant for the sale of food, and incidentally for the sale of beer." 6 25. Condition No. 5 of CUP 259 as approved by City Council Resolution No. 62R-690, as amended, requires that the Property shall be developed substantially in accordance with the exhibit on file with the City of Anaheim, made a part of the Conditional Use Permit No. 259 file, which exhibit on file requires that eighteen (18) off- street parking spaces (10' x 20' in size) be maintained for the joint use of the hofbrau restaurant and the repair garage. 26. Since the approval of CUP 259, and without the consent or approval of the City of Anaheim, a six foot high chain link fence and gate has been installed and maintained across the parking area in a manner which segregates, or appears to the general public (including patrons of "Foxey's") to segregate, thirteen (13) of the required off-street parking spaces for the use of the repair garage and leaving only five (5) off-street parking spaces generally and reasonably available for patrons of "Foxey's." 27. The business hours of the repair garage are generally 7:30 a.m. to 5:30 p.m., Monday through Friday. During the Investigation Period, the gate was customarily locked after the repair garage closed, thereby rendering such parking spaces unavailable for patrons of "Foxey's." 28. During the most recent inspection of the Premises by Anaheim Code Enforcement Officer Yourstone on January 27, 1993, at approximately 7:00 p.m. during which time Foxey's was open for business, the gate was locked and the required off-street parking spaces were unavailable for patrons of Foxey's. 29. The aforesaid fence and gate are not shown on the exhibit on file with the City of Anaheim in the Conditional Use Permit No. 259 file, and such fence and gate have not been approved by the City Council as an amendment or modification to such exhibit. 30. Not later than September 6, 1991, Holgersen was advised by the City of Anaheim that the business must be run as a restaurant for the sale of food; an entertainment permit was required for live entertainment; exposure of private body parts by waitresses or entertainers was not permitted; and various other violations of law must be corrected or the business must cease operation. 7 31. Since September 6, 1991, the aforesaid live entertainment, including exposure of breasts and buttocks by waitresses and entertainers, continued to occur on a regular basis on the Premises at Foxey's through at least October 23, 1992. 32. Since September 6, 1991, and continuing to the present, the Premises at Foxey's have continued to be operated substantially, if not solely, as a beer bar with only incidental, if any sale of food prepared or served on the Premises. 33. The "surveys" submitted as evidence on behalf of Holgersen are not persuasive to refute the evidence that the Premises are not being operated as a "restaurant for the sale of food, and incidentally for the sale of beer," for the following reasons: (a) none of the "surveys" are sworn statements under oath and all are hearsay; (b) all of the "surveys" are dated as of January, 1993, which is over two months after the Investigation Period and after the initiation of these proceedings; (c) all of the "surveys" were expressly prepared for purposes of this hearing; (d) of the 76 "customer surveys," 46 (over 60% of the total number) indicated the patron surveyed had never purchased any food whatsoever at Foxey's; (e) of the 30 patrons surveyed who indicated they had purchased some type of food in Foxey's, only one indicated he had purchased any item as substantial as a sandwich; and (f) none of the other 29 patrons indicated what type of food had allegedly been purchased at Foxey's or whether it came from a vending machine or was prepared on the Premises. 34. The evidence introduced by Holgersen concerning Conditional Use Permit No. 1851 (Foxey's Exhibit 9) and Conditional Use Permit No. 3145 (Foxey's Exhibit 10) is not persuasive because both of said Permits were approved for the conversion of restaurants to cocktail lounges in the "CL" Commercial Limited Zone of the City of Anaheim. Such establishments are conditional uses in such "CL" Zone pursuant to Section 18.44.050.010 of the Anaheim Municipal Code. On the other hand, the Premises at Foxey's are located in the "ML" (formerly "M-I") Zone wherein cocktail lounges (and beer bars) are neither permitted nor conditionally permitted uses. 8 35. The original notices of public hearing for both the Planning Commission and City Council public hearings in 1962 described the proposed use of the Property as "Hofbrau and repair garage" without further description or elaboration. 36. The original conditional use permit application submitted by the Walkers in 1962 requested a "hofbrau" use but did not specifically use the term "restaurant" to describe or define "hofbrau." However, CUP 259 specifically limited the use of the Premises to a "restaurant for the sale of food, and incidentally for the sale of beer." 37. In conjunction with the adoption of City Council Resolution No. 92R-24 concerning Variance No. 1323, the Anaheim city Attorney stated at the City Council public hearing held concerning such Variance that certain food items such as packaged sandwiches and microwave heated pizza constituted "substantial food items" under the definition of "restaurant" specifically set forth in Condition No. 3 of said Variance (City's Exhibit 61). Such discussion and definition is immaterial and not persuasive in these proceedings because the definition of "restaurant" discussed in Variance No. 1323 is specifically limited to the conditions of that entitlement. On the other hand, the express language of CUP 259 and Condition No. 4 thereof provides that the sale of beer must be incidental to the sale of food--a requirement not expressly present in Variance No. 1323. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim that Conditional Use Permit No. 259 is hereby modified, and Resolution No. 62R-690, as amended by Resolution No. 63R-57, is hereby further amended, to terminate and revoke approval of the "hofbrau restaurant for the sale of food, and incidentally for the sale of beer" use of the Premises, for each of the following separate and wholly independent reasons: 1. That the use of the Premises as a "hofbrau restaurant" has ceased to exist based upon Findings Nos. 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 above. 2. That CUP 259 is being or recently has been exercised contrary to the terms of Condition No. 4 of said Permit based upon Findings Nos. 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 above. 3. That CUP 259 is being or recently has been exercised contrary to the terms of Condition No. 5 of said Permit based upon Findings Nos. 25, 26, 27, 28 and 29 above. 9 4. That CUP 259 is being or recently has been exercised in violation of Section 18.89.030 of the Anaheim Municipal Code based upon Findings Nos. 11, 12, 13, 14 and 31 above. 5. That CUP 259 is being or recently has been exercised in violation of Section 4.18.030 of the Anaheim Municipal Code based upon Findings Nos. 15, 16, 17, 18 and 19 above. 6. That CUP 259 is being or recently has been exercised in violation of Section 4.18.140 of the Anaheim Municipal Code based upon Findings Nos. 11, 20 and 31 above. 7. That CUP 259 is being or recently has been exercised in violation of Sections 18.61.020 and 18.61.050 of the Anaheim Municipal Code based upon Findings Nos. 7, 21, 22, 23 and 32 above. 8. That such modification of CUP 259 is reasonably necessary to protect the public peace, health, safety or general welfare since such Permit is being exercised contrary to the express conditions of approval thereof and in violation of Sections 18.61.020, 18.61.050, 18.89.030, 4.18.030, and 4.18.140 of the Anaheim Municipal Code based upon Findings Nos. 1 through 37 above. BE IT FURTHER RESOLVED that Resolution No. 62R-690 approving Conditional Use Permit No. 259 is hereby amended to delete therefrom all language and references "permitting the establishment of Hofbrau Restaurant for the sale of food, and incidentally for the sale of beer." BE IT FURTHER RESOLVED that the conditions of approval of Conditional Use Permit No. 259, as approved by Resolution No. 62R-690 and amended by Resolution No. 63R-57, are hereby amended in their entirety to read as follows: "1. That the owners of subject property and Orange County Flood Control District dedicate Balsam Avenue to the city of Anaheim, and that the deed be accepted and recorded by the City. 2. That the owners of subject property shall pay to the city of Anaheim the sum of $2.00 per front foot, along Balsam Avenue, for street lighting purposes. 3. That this permit is granted solely for an automotive repair garage. 4. That all operations in connection with the repair 10 garage and any activities in the garage shall be wholly contained within the building at all times. 5. That the owners of subject property shall deed to the City of Anaheim an easement for storm drain purposes upon, along, over and across subject property as required and determined necessary by the City Engineer. 6. That subject property shall be developed substantially in accordance with the exhibit on file with the City of Anaheim, made a part of the Conditional Use Permit No. 259 file (except that this Permit shall not authorize development and operation of the "hofbrau restaurant" shown on said exhibit). 7. That conditions Nos. i and 2 above-mentioned shall be complied with within a period of 180 days from July 24, 1962, of such further time as the City Council may grant." BE IT FURTHER RESOLVED that, except as herein expressly amended, Conditional Use Permit No. 259 shall remain in full force and effect with regard to the "repair garage" use only. BE IT FURTHER RESOLVED that the City Council finds and determines that the action taken by this resolution is based upon, and would have been taken for, each of the separate reasons hereinabove specified independent of any of the other reasons specified herein. BE IT FURTHER RESOLVED that the time within which reheatings must be sought is governed by the provisions of Section 1.12.100 of the Anaheim Municipal Code and the time within which judicial review of final decisions must be sought is governed by section 1094.6 of the Code of civil Procedure and Section 18.02.060 of the Anaheim Municipal Code. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 9th day of February, 1993. MAYO~OF THE CITY~~OANAHEIM ATTEST: CITY CLER~ OF THE CITY OF ANAHEIM JLW:lm RCUP259.12 11 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Resolution No. 93R-32 was Introduced and adopted at a regular meeting provided by law, of the Anaheim City Council held on the 9th day of February, 1993, by the following vote of the members thereof: AYES: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Resolution No. 93R-32 on the -~,~ loth day of February, 1993. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim this loth day of February, 1993. CITY CLERK OF THE CITY OF ANAHEIM (SEAL) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Is the original of Resolution No. 93R-32 was duly passed and adopted by the City Council of the City of Anaheim on February 9, 1993. CITY CLERK OF THE CITY OF ANAHEIM