April 29, 2025
Agenda Item No. 22
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, [email protected] PREPARED BY:
Melinda Whelan, Assistant Planner - 949-644-3221, [email protected] TITLE:
Resolution No. 2025-19: Appeal of a Limited Term Permit and Coastal Development Permit for the Five Crowns Temporary Patio (PA2023-0202) ABSTRACT:
For the City Council’s consideration is an appeal of the Planning Commission’s December 5, 2024, decision to deny the appeal, uphold and affirm the zoning administrator’s approval of a Limited Term Permit and Coastal Development Permit to allow an existing temporary outdoor dining patio to remain for a limited term at Five Crowns restaurant. The expanded 1,350-square-foot outdoor dining area, including a 850-square-foot canopy, was originally approved by an Emergency Temporary Use Permit (ETUP) in 2020 as a temporary addition to the restaurant’s existing outdoor dining during the pandemic. Although the ETUP expired, the temporary outdoor dining area remained in use.
Should the City Council adopt Resolution No. 2025-15 and uphold the Planning Commission’s decision, the outdoor dining area would include live entertainment and close by 9 p.m., Monday through Thursday; and 10 p.m., Friday through Sunday. A sound wall would be installed along the rear property lines along with other design features to reduce noise. The Limited Term Permit and Coastal Development Permit would allow the temporary use to remain for one year from the date of approval, with a possible one-year extension.
The appeal was filed by Kenneth and Kim Catanzarite, residents of 352 Hazel Drive, objecting to the approval of the Limited Term Permit and Coastal Development Permit for the temporary patio due to concerns regarding impacts to the surrounding residential neighborhood.
RECOMMENDATIONS:
a) Conduct a public hearing;
b) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment; and c) Adopt Resolution No. 2025- 19, A Resolution of the City Council of the City of Newport Beach, California, Denying an Appeal and Upholding the Decision of the Planning Commission and Zoning Administrator to Approve a Limited Term Permit for a Temporary Outdoor Dining Area with Live Entertainment Located at 3801 East Coast Highway (PA2023-0202).
DISCUSSION:
Five Crowns restaurant is located along East Coast Highway on the corner of Poppy Avenue and Hazel Avenue. South of the restaurant is an existing single-unit property under common ownership of the restaurant. Across Poppy Avenue is an existing private parking lot serving the restaurant with 87 parking spaces. The restaurant has operated with alcohol service and a piano bar since 1965. The use permit approved by the City Council in 1977 (Use Permit No. UP1822) did not include conditions related to hours of operation, live entertainment, or outdoor dining. Over the years, the permitted outdoor patio area grew from 348 square feet to 431 square feet. The interior of the restaurant and the existing outdoor patio have historically been used for private events on the weekends, comparable to typical operations of similar types of restaurants.
In 2020, during the pandemic, an Emergency Temporary Use Permit (ETUP) and Emergency Coastal Development Permit (ECDP) (PA2020-227) were approved to allow an expanded 1,350-square-foot outdoor dining patio within an existing covered patio and garden area on-site. Although the ETUP and ECDP expired in September 2021, the outdoor patio remained in operation.
A more detailed discussion of the background and use permit history is provided in the Planning Commission Staff Report included as Attachment C.
Project Description
The applicant proposes maintaining an additional outdoor dining area of 1,350 square feet including an 850-square-foot canopy for a one-year term from the date of approval. The expanded outdoor dining area would include live entertainment and close by 9 p.m., Monday through Thursday; and 10 p.m., Friday through Sunday. To adequately attenuate noise related to the expanded use of the patio consistent with the Newport Beach Municipal Code (NBMC), the project would require the construction of a soundwall and other design features.
The restaurant has historically hosted private events with live entertainment inside the restaurant. Over the years, the private events have expanded to include the use of the outdoor dining area and an open garden patio. However, the existing use permit for the restaurant does not specifically allow use of the outdoor dining area or open garden patio for private events, dining, or live entertainment. As shown in Figure 1, the proposed temporary outdoor dining area would occupy an existing open garden patio area adjacent to the permanent outdoor dining authorized under the original use permit. Both the existing and proposed temporary dining patios would close by 9 p.m., Monday through Thursday; and 10 p.m., Friday through Sunday and on federal holidays and New Year’s Eve.
Figure 1: Location of Outdoor Patios
Proposed Limited Term Permit Duration and Extensions
The Planning Commission recommended that the Limited Term Permit and Coastal Development Permit expire one year from the date of approval, with a possible extension for one additional year pursuant to Condition No. 3 in Attachment A. The potential extension would be at the discretion of the community development director. The proposed project includes the construction of improvements including a sound wall; therefore, it may take several months to obtain a building permit and complete construction of these improvements.
The proposed conditions of approval specifically prohibit additional extensions beyond the potential one-year extension. Therefore, the applicant would be required to apply for an amendment to their conditional use permit to maintain the patio with live entertainment on a permanent basis.
Prior Hearings and Decisions
Zoning Administrator Hearings and Decision
The project was heard by the zoning administrator on July 25, 2024, and at the close of the public hearing, the item was continued to August 15, 2025. A summary of the two hearings is provided below and the minutes, staff reports and all correspondence from the zoning administrator hearings can be found at the following links:
July 25, 2024, Zoning Administrator Staff Report
July 25, 2024 Minutes
August 15, 2024, Zoning Administrator Staff Report
August 15, 2024 Minutes
The applicant provided a noise analysis by RK Engineering Group, Inc. Mr. Catanzarite submitted correspondence and also spoke during the public hearing. He shared concerns primarily related to the adequacy of the noise report and requested a continuance of the item for 30 days. The written correspondence identified concerns with the methodology of the noise report and asserted that the noise levels would exceed City standards. Other public comments were provided related to noise, congestion on Hazel Drive, and fire marshal’s review of the patio. The zoning administrator continued the item to August 15, 2024, to allow the applicant time to sort through the various noise issues and provide concrete parameters for the number of events per month.
On August 15, 2024, the item was reviewed by the zoning administrator again. The applicant responded to concerns about noise and design by sharing an updated noise report and adding new features to reduce sound, such as limiting loud equipment and requiring staff to monitor noise levels. The Updated Noise Report and response to comments document are provided in Attachment B. Mr. Catanzarite expressed additional concerns about the noise study, sound impacts, use of limited term permits, and event rules. Another noise consultant, Mike Dickerson of MD Acoustics, questioned parts of the report and provided his own written response (MD Acoustics, dated August 14, 2024). At the close of the public hearing, the zoning administrator approved the project with additional conditions to help control lighting, event size, deliveries, and loitering to reduce potential neighborhood impacts.
Appeal of the Zoning Administrator Decision
On August 28, 2024, Kenneth and Kim Catanzarite, residents of 352 Hazel Drive, filed a timely appeal of the zoning administrator’s decision, citing concerns related to the events within the outdoor patio and associated noise impacts to the surrounding residential neighborhood. The appeal cited the following factors of concern (as summarized):
Processing the request as a temporary use versus an amendment to the original use permit (UP1822) and operating without a permit.
History of complaints.
Size of the patio, hours, and noise from the events and live entertainment.
Inconsistency with conditions of the 2020 ETUP.
Adequacy of noise study provided by RK Engineering, Inc.
Planning Commission Hearing
On December 5, 2024, the Planning Commission held a de-novo public hearing to consider the appeal (Attachment C).
At the hearing, the Planning Commission received a detailed presentation from staff and the applicant, outlining the history of the restaurant including private events. The applicant answered questions on noise, described the existing commercial corridor along East Coast Highway in Corona del Mar, and the restaurant’s longstanding presence in the community.
Brian Estrada from RK Engineering Group, who prepared the noise study for the subject property, confirmed the mitigation measures proposed would result in noise levels that are in compliance with the NBMC. Two members of the public spoke in support of the project. The appellant, Mr. Catanzarite, reiterated the concerns previously identified in the appeal.
The Planning Commission agreed with staff’s analysis that the limited term permit was an opportunity to improve existing conditions and to test whether the live entertainment and regular private events could be viable. After considering all public comments, the Planning Commission adopted Resolution PC2024-0027, denying the appeal and approving the Limited Term Permit and Coastal Development Permit (PA2023-0202). The minutes from this hearing are included as Attachment D.
Appeal of the Planning Commission’s Decision
On December 18, 2024, Kenneth and Kim Catanzarite, residents of 352 Hazel Drive, filed a timely appeal of the Planning Commission’s decision to the City Council, citing concerns related to the events within the outdoor patio and associated noise impacts to the surrounding residential neighborhood. The appeal packet is included as Attachment E.
The appeal cited the factors of concern previously identified in the appeal of the zoning administrator’s decision and added that additional parking and traffic analysis should be provided through the review of a use permit amendment.
Response to Appeal
The analysis below addresses the overarching concerns expressed by the appellant. A more detailed response to the appellant’s concerns is provided in the Planning Commission Staff Report (Attachment C). Additionally, the applicant included a separate response to the appeal, “Five Crowns Response to Appeal Letter dated October 10, 2024” prepared by Ryan Wilson CEO and Shareholder of Lawry’s Restaurants Inc., which was provided for the zoning administrator appeal, but is also relevant to the Planning Commission appeal as no new substantive information was provided by the appellant (Attachment D).
Use of Limited Term Permit and Operating Without a Permit The Limited Term Permit is the appropriate application to allow temporary use, consistent with other restaurants and businesses within the city. It is common for restaurants to request the use of additional dining areas on a temporary basis, and this has been a regular occurrence since the COVID-19 pandemic. The applicant has been operating without the benefit of a permit since September 6, 2021, and has not been subject to conditions of approval that specifically address the expanded outdoor patio. The Limited Term Permit would allow the applicant to operate for approximately one year with a possible extension by the community development director for another term of one year, maximum. Unlike other limited term permits that allow extensions of temporary uses for up to two years, the project is conditioned to prohibit any further extensions. Any further operation would require an amendment to the use permit.
Parking
Pursuant to Assembly Bill No. 1217, Gabriel (Business Pandemic Relief), as it relates to parking, a local jurisdiction that has not adopted an ordinance providing relief from parking restrictions for expanded outdoor dining areas is authorized to reduce the number of required parking spaces for existing uses by the number of spaces the local jurisdiction determines are needed to accommodate an expanded outdoor dining area.
Even without the Assembly Bill, the off-site parking lot with valet guarantees at least 87 parking spaces exclusively for Five Crowns. This off-site parking lot offers Five Crowns more parking spaces than any other restaurant in Corona del Mar. The valet service is in operation full-time during restaurant hours and private parties, guaranteeing the off-site lot is maximized to provide as many spaces for vehicles as possible. Additionally, commercial services in mixed-use areas such as Corona del Mar with residential uses directly abutting the commercial corridor generally have more walk-up traffic. Therefore, the size and location of the parking lot provides ample parking for the temporary expanded outdoor dining area.
Inconsistency with ETUP Conditions
The ETUP approved in 2020 was part of a city-wide program to allow additional flexibility to businesses during the COVID-19 pandemic when interior operations were limited or prohibited. These ETUPs were issued throughout the city for temporary outdoor dining areas and standard conditions of approval were applied consistently to all restaurants, regardless of the underlying use permit limitations or allowances.
The existing restaurant has since realized there is a market for the operation to provide the expanded outdoor dining area with regular private events commonly found at these types of restaurants. Therefore, to evaluate the proposal, staff requested a noise analysis to support the 10 p.m. closing time and live entertainment component of the use. The Limited Term Permit is an opportunity for the applicant to operate for a trial period and implement the project specific conditions of approval to demonstrate if the use is viable on a permanent basis from a neighborhood compatibility standpoint.
History of Complaints
The appellant expressed concerns regarding the history of noise complaints related to the property. Table 1 provides a summary of noise complaints that have been filed with the City’s Code Enforcement Division since 2020.
Table 1: Code Enforcement Activity Since 2020
Date
Case Number
Description
8/4/20
I20-2460
Related to ETUP (PA2020-227)
7/13/21
I21-2192
Verbal warning issued for compliance with ETUP
5/26/23
I23-1671
Notice of Violation issued for loud and unreasonable noise 6/17/23
I23-1914
Citation issued for loud and unreasonable noise
8/31/23
Hearing Officer Appeal of Citation
Hearing Officer found there was insufficient evidence to support the issued citation. The decision acknowledged that as a restaurant property in a commercial corridor, the video evidence did not demonstrate noise that rises to the level of a violation of the NBMC Section 10.28.007 (Loud and Unreasonable Noise is Prohibited), and the citation was dismissed. 8/3/24
I24-3132
Music turned off before sound test could be conducted
8/16/24
I24-3599
Loud event, decibel rating measurement not confirmed
8/31/24
I24-4047
Loud event, decibel rating measurement not confirmed
9/14/24
I24-4489
Loud noise, reporting party denied access to officer to measure noise on private property. 9/21/24
I24-4664
Loud people, noise measured and exceeded limits. Notice of Violation issued for exterior noise standards.
The Code Enforcement history provided in Table 1 does demonstrate a potential need to implement noise mitigation for the restaurant during private events. However, there were also long periods of time where no complaints were filed, including August 2021 through April 2023 and September 2023 through July 2024. The Limited Term Permit is temporary and will provide a trial period to allow the operator to implement the recommended design features from the Updated Noise Report to mitigate noise (discussed in more depth below). The limited term permit will also implement controls on the restaurant operations that are not currently in place.
Staff contacted the City’s Police Department regarding noise complaints about the property. In 2023, there were five calls for loud music. In 2024, there were no calls for loud music.
Use of Expanded Patio Area, Hours, and Noise from Events and Live Entertainment The restaurant has been in operation for over 60 years and the existing structure was built in the 1930s. Private events are a common ancillary use of a restaurant such as Five Crowns.
The Limited Term Permit and Coastal Development Permit approved by the Planning Commission have 41 conditions of approval including the requirement to construct a sound wall built to specific standards to mitigate sound impacts on the neighborhood. Hours of operation are limited to 9 p.m., Monday through Thursday; and 10 p.m., Friday through Sunday, within the patio and the number of large events (75 people or more) are limited to four times a month to further reduce potential noise issues.
The Updated Noise Report (Attachment B) was prepared to demonstrate that with the implementation of recommended design features, the noise levels from the project would not exceed the City’s standards. The Updated Noise Report describes the City’s interior and exterior noise standards and provides a complete list of design features that would adequately reduce noise levels emanating from the outdoor patio. For example, the project includes a condition requiring the applicant to apply for a building permit within 30 days of project approval to construct the sound attenuation wall. The wall would be designed pursuant to the specifications in the Updated Noise Report.
The Updated Noise Report included an evaluation of noise impacts at a receptor on the third-floor balcony at 352 Hazel Drive (the appellant’s residence), to demonstrate that the outdoor balcony noise levels will be attenuated below the City’s Exterior Noise Standards. The Updated Noise Report also includes an evaluation of noise levels at the interior of the residential receptors, demonstrating that the interior noise levels will be attenuated below the City’s Interior Noise Standards.
Adequacy of Noise Study
There are differences of opinion between RK Engineering and the appellant’s noise consultant, MD Acoustics. However, implementation of the proposed conditions of approval would verify the conclusions of the RK Engineering, Inc. Updated Noise Report. If the project does not comply with the City’s noise standards even after implementation of the recommended noise mitigation measures, then the permit could be revoked or modified by the City Council. Therefore, approval of the project does not relieve the applicant of their responsibility to comply with the City’s noise standards. Additionally, any confirmed noise violations could affect future authorizations, such as the allowance for a one-year extension or request to amend the conditional use permit to authorize permanent use of the expanded outdoor area.
Conclusion
Five Crowns has operated with interior live entertainment and operating hours until 10 p.m. since 1965. Historically, the indoor and outdoor area has been used for private events on the weekends and there is an existing outdoor dining patio that closes by 10 p.m. adjacent to the restaurant. Furthermore, the ancillary use of private events at restaurants is not uncommon. Historically, the neighborhoods adjacent to the commercial corridor are prone to certain impacts that are common in a mixed-use neighborhood, however, the commercial uses along East Coast Highway are a vital economic component of the Corona del Mar village.
Continuing operations of private events with exterior live entertainment within the expanded outdoor area will require a permanent solution through an amendment to the Use Permit.
A condition of approval requires an amendment to UP1822 to allow the expanded patio on a permanent basis. If the Use Permit is not amended, then the applicant would be required to cease operation of the expanded outdoor dining area with live entertainment and private events. The Limited Term Permit and Coastal Development Permit provide the applicant with an opportunity to implement conditions of approval to reduce noise and a trial run to determine if use of the expanded dining area is viable on a permanent basis.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities), of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment.
The Class 1 exemption includes the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. The Class 1 exemption includes interior or exterior alterations involving such things as interior partitions, plumbing, and electrical conveyances as well as additions to existing structures of up to 10,000 square feet. The proposed scope of work includes the temporary use of an outdoor dining area of approximately 1,350 square feet including an 850-square-foot tent canopy with exterior live entertainment at an existing restaurant. Therefore, the project qualifies under the parameters of the Class 1 exemption. There are no known exceptions listed in CEQA Guidelines Section 15300.2 that would invalidate the use of these exemptions.
NOTICING:
Notice of this hearing was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights-of-way and waterways), including the applicant, and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the NBMC. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website.
ATTACHMENTS:
Attachment A - Resolution No. 2025-18
Attachment B - Updated Noise Report and Response to Comment Letter dated August 5, 2024, by RK Engineering, Inc.
Attachment C - December 5, 2024, Planning Commission Staff Report Attachment D - December 5, 2024, Planning Commission Minutes Attachment E - Appeal to City Council
Attachment F - Five Crowns Response to Appeal Letter dated October 22, 2024 Attachment G - Plans
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Five Crowns Temporary Outdoor Dining (PA2023-0202)
April 29, 2025
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