Item 10.2
Conditional Use Permit Amendment for the Project Located at 58 South 1st Street.
File Nos. CPA16-005-01 & ER25-125
October 21, 2025
Presenter: Manira Sandhir
Project Components
www.sanjoseca.gov/planning
• Applicant is requesting a Conditional Use Permit Amendment (File No. CPA16-005-01) to amend the conditions of the
previously approved project, File No. CP16-005, for the Fuze Bar and Grill.
• The original Conditional Use Permit (CUP), approved by the City Council on appeal on February 14, 2017 (Resolution No. 78090), approved the late-night use of the public drinking establishment (bar) until 2:00 a.m., limiting a maximum capacity of 250 persons on each floor and requiring service during lunch hours. • Applicant is now requesting to remove the limit of 250 people per floor and increase the occupancy as allowed by the Fire and Building Departments, extend the daily hours of operation for all uses up to 2:00 a.m. except for outdoor amplified noise, and removal of the requirement of service during lunch hours. 2 Project Review
www.sanjoseca.gov/planning
Project Reviewed for Conformance with:
• Envision San José 2040 General Plan
designation of Downtown.
• DC Downtown Primary Commercial
Zoning District.
• City Council Policy 6-23: Nightclubs
and Bars, and Policy 6-30: Public
Outreach
• California Environmental Quality Act
(CEQA)
3 City Council Policy 6-23
For Night Clubs and Bars
www.sanjoseca.gov/planning
• 30-Percent Frontage Limit for Non-Daytime Uses
• Staff took an inventory of all the drinking establishments open in the late-night hours without daytime use.
• There are three late-night drinking establishments on the block (approximately 698 feet), with street frontage at 19% (approximately 130 feet). • The three businesses are: Paper Plane (72 S. 1st Street), Still O.G. (66 S. 1st Street), and Temple (52 S. 1st Street).
• The proposed late-night use would bring the total to four or 23% (approximately 150 feet).
• Therefore, the subject site is exempt from daytime use. 4 Public Outreach
www.sanjoseca.gov/planning
• On-site sign posted on June 29, 2025
• Notices mailed at a 500-foot radius
• 15 E-mails received after the Notice for the City Council public hearing were received.
4 Public Outreach
www.sanjoseca.gov/planning
• Major Issue:
• Amplified music at the outdoor patio until 2:00 a.m.
• Conditions for Outdoor Patio Amplified Music:
• Monday through Thursday until 10:00 p.m.
• Fridays and Saturdays until 2:00 a.m.
• Sundays until 12:00 a.m. midnight.
5 Staff Recommendation
www.sanjoseca.gov/planning
Recommendation that the City Council:
1) Adopt a resolution approving CEQA Exemption Section 15301 for the Fuze Bar and Grill, in accordance with the California Environmental Quality Act; and 2) Adopt a resolution approving, subject to conditions, a Conditional Use Permit Amendment to allow the following actions:
a. Remove the condition that mandates the business to be open during lunch hours. b. Remove the condition that requires the banquet facility to close at midnight and extend hours to 2:00 a.m. for the restaurant, bar and banquet facility. c. Remove the condition that limits occupancy to 250 people on each floor, and instead allow the maximum building occupancy, subject to review and approval by the City’s Fire Department and the Building Division. Depending on the type of assembly space, this may require an Occupant Load Analysis compliant with California Fire Code Section 1004.5. d. Limit hours for the outdoor patio amplified music.
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