October 13, 2026
Agenda Item No. 16
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Jaime Murillo, Community Development Director - 949-644-3209, [email protected] PREPARED BY:
Liz Westmoreland, AICP, Deputy Community Development Director - 949-644-3234, [email protected] TITLE:
Resolution No. 2026-91: Appeal of Action Confirming Surrender of Five Crowns Restaurant Limited Term Permit (PA2023-0202) ABSTRACT:
Ryan Wilson of Lawry’s Restaurants Inc. (Applicant) surrendered the Five Crowns Restaurant Limited Term Permit and Coastal Development Permit (PA2023-0202) on December 2, 2025. The Planning Commission took action on September 17, 2026, to confirm that: PA2023-0202 has not been in force or effect since it was voluntarily surrendered on December 2, 2025; cannot be invoked in connection with any further discretionary approvals or entitlements that the Applicant may request; and Resolution 2025-18 presents no live controversy.
For the City Council’s consideration is an appeal of this action by Kenneth J. Catanzarite and Kim E. Catanzarite.
RECOMMENDATIONS:
Conduct a de novo public hearing;
Find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Additionally, this action is categorically exempt from the California Environmental Quality Act pursuant to Section 15321 under Class 21 (Enforcement Actions by Regulatory Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 which exempts actions by regulatory agencies to revoke or terminate a permit or land use entitlements; and Adopt Resolution No. 2026-91: A Resolution of the City Council of the City of Newport Beach, California, Denying an Appeal and Upholding the Planning Commission’s Decision Confirming Voluntary Surrender of a Limited Term Permit to Allow a Temporary Outdoor Dining Area with Live Entertainment Located at 3801 East Coast Highway (PA2023-0202) and Confirming Resolution No. 2025-18 Presents No Live Controversy.
DISCUSSION:
An application was filed by the Applicant, concerning property located at 3801 East Coast Highway and legally described as Parcel 1 of Resubdivision 523 (Property). The Applicant requested 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 (Project). The expanded 1,350-square-foot dining area, including an 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 area during COVID-19.
A Zoning Administrator public hearing was held on July 25, 2024. The Zoning Administrator continued the item to August 15, 2024, to give the Applicant additional time to address public concerns related to noise. The continued public hearing was held on August 15, 2024. At the conclusion of the hearing, the Zoning Administrator adopted Resolution No. ZA2024-045, approving the limited term permit and coastal development permit (PA2023-0202).
On August 28, 2024, Ken and Kim Catanzarite (Catanzarite) filed an appeal of the Zoning Administrator’s decision, objecting to the approval of the limited term permit due to concerns regarding related noise impacts to the surrounding residential neighborhood and neighbors; the processing of the use as a temporary use when it should have been processed as an amendment to the original use permit (UP1822), including a parking waiver and addressing hours, live entertainment, and noise; and the continuous unpermitted use of the outdoor area for events with live entertainment.
A public hearing was held by the Planning Commission on December 5, 2024. At the conclusion of the hearing, the Planning Commission upheld the Zoning Administrator’s decision and denied the appeal, as set forth in Planning Commission Resolution No. PC2024-27.
On December 18, 2024, Catanzarite filed an appeal of the Planning Commission’s decision to the City Council due to noise concerns and impacts to the neighborhood. A public hearing was held by the City Council on April 29, 2025. At the conclusion of the hearing, the City Council upheld the Planning Commission’s decision and denied the appeal, as set forth in Resolution No. 2025-18.
Since then, the Applicant has voluntarily surrendered PA2023-0202, and the City of Newport Beach (City) accepted the surrender effective December 2, 2025.
Planning Commission
On September 17, 2026, the Planning Commission took action to affirm that PA2023-0202 has not been in force and effect since it was surrendered on December 2, 2025, and cannot be invoked in connection with any further discretionary approvals or entitlements that the Applicant may request. The Planning Commission staff report is included as Attachment B, and the draft minutes are included as Attachment C.
Appeal
Kenneth J. Catanzarite and Kim E. Catanzarite (Appellants) filed an appeal of the action on September 22, 2026 (Attachment D). The appeal letter did not cite specific concerns; however, the Appellants submitted public comments in opposition of the action in advance of the Planning Commission meeting on September 17, 2026 (Attachment D). Kenneth J. Catanzarite also provided oral comments during the meeting.
The Appellants stated in the public comment letter that they “do not object to the Planning Commission confirming that PA2023-0202 is no longer in effect, has not been in effect since surrender, and cannot be invoked by Five Crowns, Lawry’s, FVP II, the City, or any other person in connection with any future discretionary approval or entitlement.” The Appellants acknowledge and conditionally agree to the purpose of the resolution. However, the Appellants believe that the resolution confirming surrender of the permits should expand its scope to include other determinations.
The Appellants’ comments generally express concerns regarding the limits of the existing Conditional Use Permit, the pending Conditional Use Permit application, and the potential baseline for future analysis. The Appellants request additional information be included in the draft resolution and request that several documents be included in the record for the pending Conditional Use Permit.
Response to Appeal
The Appellant’s comments primarily relate to the pending Conditional Use Permit application (PA2025-0208) that is still under review by the City and the surrendered Limited Term Permit and Coastal Development Permit (PA2023-0202). The pending Conditional Use Permit is currently under review by staff and the item will be evaluated independently at a future public hearing with the Planning Commission. The City Council is not being asked to evaluate the merits of the pending Conditional Use Permit. Additionally, the prior Limited Term Permit and Coastal Development Permit are no longer valid and do not govern operations at the Five Crowns Restaurant since the permits were surrendered in December 2025.
The City Council is being asked to confirm an action that has already taken place.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Additionally, this action is categorically exempt from the California Environmental Quality Act pursuant to Section 15321 under Class 21 (Enforcement Actions by Regulatory Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 which exempts actions by regulatory agencies to revoke or terminate a permit or land use entitlements.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Notice of this hearing was also 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 Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the city website.
ATTACHMENTS:
Attachment A – Draft Resolution
Attachment B – Planning Commission Staff Report, September 17, 2026 Attachment C – Planning Commission Meeting Minutes, September 17, 2026 Attachment D – Appeal
Attachment E – Materials Submitted by Appellant
Resolution No. 2026-91: Appeal of Action Confirming Surrender of Five Crowns Restaurant Limited Term Permit (PA2023-0202) October 13, 2026
CITY OF CITY OF
CITY OF
CITY OF
City Council Staff Report COUNCIL STAFF REPORT City Council Staff Report COUNCIL STAFF REPORT NEWPORT BEACH NEWPORT BEACH City Council Staff Report COUNCIL STAFF REPORT
City Council Staff Report COUNCIL STAFF REPORT
NEWPORT BEACH
NEWPORT BEACH