Planning Staff Report

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Planning Staff Report

September 16, 2021

PROJECT TITLE: Dust Bowl Brewing Company FILE: PLNG21-047

REQUEST: Conditional Use Permit, Variance, Design Review Conditions of Approval Amendment, Minor Certificate of Appropriateness

LOCATION: 9676 Railroad Street

APN: 134-0050-043

STAFF: Antonio Ablog, AICP, Planning Manager

PROPERTY OWNER: Eco Green, LLC

Sara Lebastchi (Representative) 1725 Capitol Ave

Sacramento, CA 95811

PROJECT APPLICANT:

Dust Bowl Brewing Co. LLC Brett Honore (Representative) 3000 Fulkerth Road

Turlock, CA 95380 Staff Recommendation

Staff recommends that the Planning Commission adopt a Resolution (Attachment 1):

1. Finding the Project Exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15301 (Existing Facilities); and

2. Approving a Conditional Use Permit, Design Review Conditions of Approval Amendment, Variance, and Minor Certificate of Appropriateness for the Dust Bowl Brewing Company Project (PLNG21-047) based on the findings and subject to the conditions of approval included in the draft Resolution.

Project Description

The proposed Dust Bowl Brewing Company Project (the “Project”) consists of a Conditional Use Permit to operate a brewery taproom, a Design Review Conditions of Approval Amendment to modify previously-approved conditions of approval, a Variance to allow a roof-mounted lit sign, and a Minor Certificate of Appropriateness to install a roof-mounted sign for the Dust Bowl Brewing Company located at 9676 Railroad Street.

Project Setting

The Project site consists of an approximately ±1.1-acre parcel located on the west side of Railroad Street south of Elk Grove Boulevard (see Figures 1 and 2). Single-family residential development is to the east, railroad tracks are to the west, vacant land is to the south, and a City Parking Lot is to the south. Table1 identifies the existing uses, General Plan land use designations, and zoning districts for the Project and for the neighboring properties.

AGENDA ITEM NO. 5.3

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Elk Grove Planning Commission

Dust Bowl Brewing Company (PLNG21-047) September 16, 2021

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Figure 1. Vicinity Map

Figure 2. Location Map

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Table 1. Adjacent Land Designations and Uses

Background

There is an existing ±5,978 square foot warehouse on the subject site which is located within Elk Grove Old Town Special Planning Area (OTSPA). The building was constructed around 1900 and was part of Elk Grove’s agricultural and wine making operations of the early 20th Century and has been determined to be eligible for listing as a historic resource.

In December 2018, based on a recommendation by the Historic Preservation Committee, the Development Services Director approved a Major Certificate of Appropriateness for the rehabilitation of the building (PLNG18-077). The rehabilitation included the replacement of the deteriorated roof, replacement of the front entry door, a new awning over the entry door, and new doors on the north side of the building. In December 2019, a new outdoor patio with a free- standing patio cover was approved by the Planning Commission (PLNG19-026). The approved exterior building improvements largely have been completed (see Figure 3). This prior approval by the Planning Commission included two Conditions of Approval addressing outdoor sound, these conditions are requested for amendment with this Project and are discussed in the Conditional Use Permit/Conditions of Approval Amendment section below.

Also in 2018, the OTSPA was amended to allow bars, breweries, wineries, and brew pubs with the approval of a Conditional Use Permit (CUP). The amended OTSPA limits the number of CUPs in the SPA area for these types of uses to a maximum of three new CUPs. Bob’s Club, located at 9039 Elk Grove Boulevard is the only existing business in the OTSPA defined as a bar and was established prior to the OTSPA and operates under a legal nonconforming status. On February 21, 2019, a CUP for the Hungry Pecker Brewing Company was approved. At this time, there are two remaining CUPs available for bars, breweries, wineries or brew pubs within the OTSPA.

Existing Uses General Plan Zoning

Project

Site Existing Commercial

Building Village Center Mixed Use VCMU OTSPA - Commercial North City Parking Lot Parks/Open Space

P/OS OTSPA - Commercial

South Vacant Village Center Mixed Use VCMU OTSPA - Commercial West Railroad Tracks Public Services

PS Light Industrial

(LI) East Residential Low Density Residential

LDR Low Density

Residential (RD-5)

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Figure 3 – Building/Site Improvements

Analysis

City staff reviewed the proposed Project for its compliance with the City’s General Plan, the development standards of Title 22 (Land Development) and Title 23 (Zoning) of the Elk Grove Municipal Code (EGMC), the Elk Grove Design Guidelines, and Old Town Elk Grove Special Planning Area standards. Staff has determined that the Project is consistent with these standards as detailed in the analysis below.

General Plan/Zoning

The General Plan Village Commercial Mixed Use (VCMU) designation is generally characterized by pedestrian-oriented development, including integrated public plazas, with mixes of uses that focus on ground-floor commercial retail or office uses and allow residential or office uses above.

Single-use buildings may also be appropriate when integrated into the overall site through horizontal mixes of uses, including public plazas, emphasizing pedestrian-oriented design. The predominant use is intended to be office, professional, or retail use in any combination, and may be supported by residential uses. Pursuant to OTSPA Table 2, “Permitted and Conditionally Permitted Land Uses”, the proposed brewery taproom use is a conditionally permitted use in the OTSPA. The intensity of nonresidential land use is generally measured in terms of floor area ratio (FAR), which describes the number of square feet of building on a site relative to the site’s land area. FAR calculates the gross floor area of a building divided by the total net area of the site, expressed as a ratio. The Project will result in a Floor Area Ratio (FAR) of 0.12 which is below the maximum FAR allowed in the Community Commercial land use designation of 2.0.

The proposed Project is consistent with General Plan Goals and Policies related to historical resources. Specifically, the proposed Project supports the following Policies:

Policy HR-1-1: Encourage the appropriate adaptive reuse of historic resources and buildings

Policy HR-1-2: Strive to Protect historic buildings and resources through adaptive re-use Policy HR-1-3: Encourage efforts that prevent the misuse, disrepair, and demolition of

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The Project promotes the reuse of a historic structure with an active use. Establishment of this new use will discourage further deterioration of the brick structure due to lack of use. As the proposed use is a conditionally permitted use with a development intensity below the maximum FAR, the proposed Project will be consistent with the General Plan.

Staff has determined that the Project is consistent with all applicable Zoning Code and general OTSPA development standards (see Table 2 below).

Table 2 – Development Standards Development

Standard Required (OTSPA) Existing¹ Complies

Maximum FAR ^2.0 ^0.12 ^Yes

Building Setbacks

Front: 7.5 maximum’

Rear: 48’ (average of existing adjacent buildings) Side: 0’

Front: 3’

Rear: 48’

Side: 0’ Yes

Building Height

Limit ^45’ ^32’ ^Yes

Parking Restaurant :1/500sf = 12 stalls 12 stalls Yes

Landscaping Parking Lot Shading: 50%

Landscape Planter Width abutting perimeter property line: 6’

Parking Lot Shading: 50%

Landscape Perimeter: 6’ Yes

Signs Roof mounted signs are not allowed. No existing signage.

Proposed signage requires

a variance No²

1 The building and site have already been improved consistent with prior Planning Commission Approvals. Aside from Signage, no other exterior alterations are requested with this Project.

2 Roof mounted signage requested with this Project requires a Variance which may be granted by the Planning Commission based on the findings in EGMC 23.16.040

Conditional Use Permit/Design Review Conditions of Approval Amendment

The proposed brewery taproom is categorized as “Bars, Breweries, Wineries and Brew Pubs”

pursuant to the OTSPA which defines the use as follows:

“…a range of establishments engaged in the sale of alcoholic beverages, including bars, taverns, pubs, brew pubs, and similar establishments, including: Establishments with alcoholic beverage sales for on-site consumption where any food service (if provided, though not required) is subordinate to the sale of alcoholic beverages (typically includes State Alcohol License Types 40, 42, and 48). For uses where food sales are not subordinate to alcoholic beverage sales, see ‘Commercial-Convenience’. Establishments with alcoholic beverage sales for on- and/or off-site consumption or tasting, with or without food service, of products produced on-site or off site pursuant to State licensing (typically includes State Alcohol License Types 02 and 23).”

Pursuant to the OTSPA Table 2, the proposed brewery taproom use requires a CUP within the OTSPA-Commercial zoning designation. The purpose of a CUP is to allow for the individual review of uses that are authorized by the General Plan but might have project-specific site development features or operating characteristics that need to be evaluated to ensure compatibility with surrounding areas and uses. In evaluating the appropriateness of such conditionally allowed uses,

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the approving authority must find that the establishment, maintenance or operation of the use will not, under the circumstances of the particular case (location, size, design, and operating characteristics), be detrimental to the health, safety, peace, morals, comfort, or general welfare of persons residing or working in the neighborhood of such use, or the general welfare of the City.

The proposed taproom would operate at the historic warehouse building located at 9676 Railroad Street. Interior and exterior improvements to the building were approved through prior projects as mentioned in the Background section of this report. The floor plan, as approved and constructed, is depicted in Figure 4. The interior of the building will be the primary seating area with up to approximately 130 seats. There will also be an interior room available for private functions. A full kitchen is also located in the building and the Applicant will contract with another party to provide food service for the taproom. Dust Bowl will also utilize the approved outdoor patio area which will provide additional seating for up to approximately 110 customers.

Figure 4 – Floor Plan (As approved through PLNG19-026)

Dust Bowl Brewing plans to operate daily from 10:00 a.m. to 11:00 p.m. The Applicant also plans to periodically program non-ticketed, live music that will generally be non-amplified though amplification may be occur from time-to-time. The intent of the music will be to provide ambient music to enhance the taproom experience. The conditions of approval approved with the Railroad Street Rehabilitation Project (PLNG19-026) prohibit any outdoor amplified sound. The specific conditions are Conditions 15 and 17 as follows:

15. Outdoor seating is restricted to allowable occupancy for the patio area as determined by the Fire Department. Food vendors are permitted as long as the

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businesses. Outdoor amplified sound is prohibited for these occurrences. Special outdoor events associated with the businesses that exceed this allowance and patio location are subject to the approval of a Temporary Use Permit (TUP) or a Minor Use Permit (MUP) as determined by the City. This includes requests for outdoor amplified music and speech.

17. All operations and events must be in compliance with chapter 6.32 (Noise Control) of the Elk Grove Municipal Code (EGMC). All noise emitted from the operation and any indoor events must be contained within the facility.

These conditions were placed on the Project as the end-user at the time of the previous approvals was not known. Since the end-user was undetermined, the above conditions were adopted to preclude the possibility that the outdoor operations or special events, such as third-party food truck service, on the patio would affect operations of the adjacent parking lot, would block emergency access to the site, or would generate levels of noise that would be a nuisance to adjacent and nearby properties.

The Applicant is requesting to amend these two conditions. Amendment of these conditions requires a modification pursuant to EGMC 23.20.010 which states any person holding a permit granted under this title may request a modification or amendment to that permit and that a permit modification may be granted only when the approving authority makes all findings required for the original approval, and the additional finding that there are changed circumstances sufficient to justify the modification of the approval.

Staff believes that Condition 15 is no longer necessary as the end-user is now secured and detailed operations of the facility are known and will include on-site food service with a kitchen.

Additionally, the patio has gone through and has received building permits which included review by fire. The Applicant will comply will all occupancy limits from the issued permits. As described above, music may be utilized by Dust Bowl to enhance the taproom experience but is not intended to inhibit the ability of patrons to converse with each other either inside, or on the patio outside. Similarly, the Applicant does not intend to utilize the outdoor patio as a regular location for ticketed entertainment events or special events. Pursuant to EGMC 23.92 (Temporary Uses), the facility operator may, at any time in the future, apply for a temporary use permit for such one- time or occasional special events that are beyond the scope of this Project and its conditions.

Such uses/events would be held to the EGMC Temporary Use development and operation standards contained in EGMC 23.92.030.

The intent of the conditions was to prevent amplified concert type events that could potentially affect nearby residences. Based on their operations, the Applicant is requesting to modify the conditions of approval such that any outdoor music or sound would continue to be subject to compliance with the City’s noise ordinance. The proposal is to delete Condition 15 and modify Condition 17 as follows:

15. Outdoor seating is restricted to allowable occupancy for the patio area as determined by the Fire Department. Food vendors are permitted as long as the operations do not affect the required parking, access for safety, or adjacent businesses. Outdoor amplified sound is prohibited for these occurrences. Special outdoor events associated with the businesses that exceed this allowance and patio location are subject to the approval of a Temporary Use Permit (TUP) or a Minor Use Permit (MUP) as determined by the City. This includes requests for outdoor amplified music and speech.

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17. All operations and events must be in compliance with chapter 6.32 (Noise Control) of the Elk Grove Municipal Code (EGMC). All noise emitted from the operation and any indoor events must be contained within the facility.

As the Applicant has formulated a detailed plan for operation stating that music will only be used to enhance the ambience of the facility, the Applicant is requesting to delete the language from Condition 17 above requiring all noise to be contained within the facility. The requirement to comply with EGMC Chapter 6.32, the City’s Noise Ordinance would remain. The Noise Ordinance restricts noise levels to under 50 decibels between 7:00 a.m. and 10:00 p.m. and to under 40 decibels between 10:00 p.m. and 7:00 a.m. when measured at the nearest sensitive receptor, Based on the characteristics of the operation and its compliance with City standards, staff believes the proposed use would not be detrimental to public health and safety of the residences or commercial uses surrounding the subject site. Potential impacts resulting from the taproom operation will comply or are conditioned to comply with City standards and do not necessitate the need for further analysis.

Sign Variance/Minor Certificate of Appropriateness

To support the brewery taproom operation the Applicant originally proposed to install a new sign on the roof of the building (see Figures 5 and 6) with an overall size of 3’-6” tall and 75’-9” wide consisting of individual letters supported by metal framing. As explained in the following analysis, the sign is conditioned to be reduced in size to 3’ tall by 60’ wide. The proposed sign would be installed approximately at a height of approximately 24’ from grade level. The proposed sign is similar to the signage installed at other Dust Bowl locations, specifically, the Monterey location depicted in Figure 7.

Figure 5 – Sign Detail

Figure 6 – Photo Simulation

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Figure 7 - Dust Bowl Monterey Location

Outside the OTSPA, roof mounted signs are allowed as long as the sign does not extend higher than the roofline of the building. While the OTSPA allows various types of signage, roof mounted signs are not allowed in the Old Town Special Planning Area, the Applicant is requesting to install a roof-mounted sign for several reasons:

• The metal roof and the wooden trusses underneath are new; replacing an old, deteriorated roofing system. Placing the sign on the roof would not disturb any of the original building materials.

• The existing brick walls are brittle. Mounting the new sign on these walls risks damaging these historic materials.

• Placing the sign on the north side of the building orients the sign on a building elevation that does not directly face residential properties to the east or west

In addition to the above justification, the Applicant has provided images of similar roof-mounted lit signage in other locations (Attachment 2) including Dust Bowl Brewing Locations in Turlock and Monterey.

Variance

The proposed sign will require the Planning Commission to approve a Variance to allow a roof- mounted lit sign. Pursuant to EGMC 23.16.040, a variance request allows the City to grant exception to the development standards and provisions of this title in cases where, because of special circumstances applicable to the property, the strict application of this title deprives such property of privileges enjoyed by other property in the vicinity and under identical land use zoning districts.

In reviewing the building for potential locations for signage, the Applicant noted that the existing historic brick walls are brittle and mounting the new sign on these walls risks damaging these historic materials. Staff concurs with this assessment and does not recommend any wall-mounted signage for the subject building. The original Conditions of Approval for the Railroad Street Rehabilitation Project require all building modifications to comply with the Secretary of Interior standards for preservation of historic resources. These standards recommend against changes that could radically alter or damage historic masonry features.

Enforcement of the standards prohibiting roof-mounted signs would not allow placement of the signage on the roof of the structure which was recently rebuilt with new materials and can structurally support the new sign. Additionally, the location of the sign at a height of approximately 24’ is lower than the height that an allowed wall sign can be placed (up to 35’).

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Minor Certificate of Appropriateness - Secretary of the Interior’s Standard for Preservation

As the building is eligible to be listed as a historic resource, a Minor Certificate of Appropriateness pursuant to EGMC 7.00.070 (C)(1) is required for the installation of a new sign. As part of the review of the signage for the Minor Certificate of Compliance, it must be found that the signage complies with the Secretary of the Interior’s Standards for the Treatment of Historic Properties (1995) to ensure that the improvements do not negatively affect the preservation of the property’s historic significance through the preservation of its historic materials and features. The Secretary of the Interior’s Standards allows for rehabilitation, which is the act or process of making possible a compatible use of a property through repair, alterations and additions while preserving those portions or features which convey its historical, cultural or architectural values. The goal of rehabilitation is to encourage the continued use and repair of a historic building while allowing appropriate alterations to ensure their contemporary use. The rehabilitation standards acknowledge the need to alter or add to a historic resource to meet continuing or changing uses while retaining the property historic character. The Project involves the installation of a new roof mounted sign. The sign will be mounted on a new roof and will not require alteration to any of the existing, original brick walls. As the existing walls will be preserved, the proposed sign is consistent with the Secretary of Interior’s Standards for rehabilitation.

Historic Preservation Committee

The proposed signage was presented to the Elk Grove Historic Preservation Committee (HPC) on August 23, 2021. The HPC received information from Planning staff and public testimony from the Applicant. The HPC discussed several items as follows which staff responded to during the meeting.

1. The sign highlights one business only and should include reference to “Old Town” or its associated “Winemaker District.”

Staff responded that it is not within the purview of staff or the HPC to regulate the content of the sign. While the HPC’s intent to emphasize the district as a whole was recognized, the HPC ultimately decided that it would not request that the Applicant modify the text of the sign.

2. The sign should be relocated lower on the building.

Two potential new locations for the signage were discussed. First, the HPC asked if the sign could be relocated to the top of the patio cover. Staff responded that the patio cover was not engineered to carry the load of a new sign and that modifying the patio cover to accommodate a sign could significantly alter the patio cover supports impacting the seating area below. Second, the HPC asked if the sign could be affixed to the brick face of the building. Staff strongly recommended against this as notable defects in the existing brick structure were identified during construction. Mounting a sign to the brick could risk damaging the historic materials and could lead to structural instability of the brick walls.

The roof location was chosen as the roof is a new metal roof with an updated roof support system that can accommodate the weight of the new signage.

3. The size of the sign is out of scale with its overall surrounding.

The HPC was concerned that the size of the sign was too large and that it highlighted one single business and had no references to Old Town or the Historic District as a whole. Staff reminded the HPC that neither the HPC nor Staff can regulate the content of the sign. The HPC ultimately agreed to recommend a condition on the Project limiting the size of the

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sign to a height of three feet and width of 60 feet. This condition is included in the overall conditions of approval included in Attachment 1.

The HPC ultimately voted 5-0 to recommend approval of the Minor Certificate of Appropriateness for new signage with the condition to reduce the signage size. Based on the unique circumstances of the historic character and construction of the building, the Applicant is requesting to install roof- mounted lit signage. Though such signage would be allowed by-right in commercial districts outside of the OTSPA, the development standards for commercial signage within the OTSPA do not allow such signage features necessitating the approval of a Variance. Staff believes that unique circumstances exist such that this Variance request can be supported as the overall signage request promotes the Goals and Policies of the General Plan which promote the adaptive re-use of historic structures within the City.

Letters from Commenting Agencies

The Project was routed to various City Departments including the City of Elk Grove Police Department. The Project was also routed to the Elk Grove Old Town Foundation. Comments received were incorporated into the Project design and the Conditions of Approval including those requested for amendment.

Environmental Analysis

CEQA requires analysis of agency approvals of discretionary “projects.” A “project,” under CEQA, is defined as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment” (State CEQA Guidelines Section 15378). The proposed Project is a project under CEQA.

The Project is exempt from further environmental review pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines based on the finding in the draft Resolution (Attachment 1).

Recommended Motion

Should the Planning Commission agree with staff’s recommendation, the following motion is suggested:

“I move that the Planning Commission adopt a Resolution finding the Project exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Existing Facilities) and approve the Conditional Use Permit, Design Review Conditions of Approval Amendment, Variance, and Minor Certificate of Appropriateness for the Dust Bowl Brewing Company Project (PLNG21-047) based on the findings and subject to conditions of approval included in the draft Resolution.”

Attachments

1. Planning Commission Draft Resolution Exhibit A - Project Description

Exhibit B – Project Plans

Exhibit C- Recommended Conditions of Approval 2. Signage Examples

3. Dust Bowl Operation Statement

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ATTACHMENT 1

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RESOLUTION NO. 2021-XX SEPTEMBER 16,2021

A RESOLUTION OF THE CITY OF ELK GROVE PLANNING COMMISSION FINDING THE PROJECT EXEMPT FROM CEQA PURSUANT TO STATE CEQA

GUIDELINES SECTION 15301, AND APPROVING A CONDITIONAL USE PERMIT, DESIGN REVIEW CONDITIONS OF APPROVAL AMENDMENT,

VARIANCE, AND MINOR CERTIFICATE OF APPROPRIATENESS FOR THE

DUST BOWL BREWING COMPANY PROJECT NO. PLNG21-047

9676 RAILROAD STREET APN: 134-0050-043

WHEREAS, the Development Services Department of the City of Elk Grove (the

“City”) received an application on August 2, 2021, from Dust Bowl Brewing Co, LLC (the

“Applicant”) requesting a Conditional Use Permit, Variance, Design Review Conditions of Approval Amendment Minor Certificate of Appropriateness for the Dust Bowl Brewing Company Project PLNG21-047 (the “Project”); and

WHEREAS, the proposed Project is located on real property in the incorporated portions of the City more particularly described as APN: 134-0050-043; and

WHEREAS, the Development Services Department considered the Project request pursuant to the Elk Grove General Plan, the Elk Grove Old Town Special Planning Area (OTSPA), the Elk Grove Municipal Code Title 23 (Zoning) and Title 7 (Historic Preservation), and all other applicable Federal, State, and local regulations; and

WHEREAS, the Historic Preservation Committee of the City of Elk Grove (the “HPC”) held a duly-noticed public hearing on August 23, 2021, as required by law to consider all of the information presented by staff, information presented by the Applicant, and public testimony presented in writing and at the meeting and recommended the approval of the Minor Certificate of Appropriateness with conditions.

NOW, THEREFORE, BE IT RESOLVED, that the Planning Commission finds that the proposed Project does not require further environmental review under the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15301 (Existing Facilities) the following finding:

CEQA

Finding: The Project is exempt under the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15301 (New Construction or Conversion of Small Structures).

ATTACHMENT 1

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Evidence: CEQA requires analysis of agency approvals of discretionary “projects.”

A “project,” under CEQA, is defined as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment” (State CEQA Guidelines Section 15378). The proposed Project is a project under CEQA.

Staff has determined that the Project is exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Existing Facilities). State CEQA Guidelines Section 15301 applies to projects that consist of 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 beyond that existing at the time of the lead agency’s determination.

The Project proposes minor alterations to an existing building that has been deemed eligible for listing as a Historic Resource. The minor alterations involve the installation of new signage on an existing building. Design Review approvals were granted by the Planning Commission in 2019 [Railroad Street Rehabilitation Project (PLNG19-026)], and improvements to the building which would accommodate a restaurant are nearly complete. Though an end-user was not identified at the time of these prior approvals, the Design Review was conducted in anticipation of a restaurant or similar commercial use. Other than modifying conditions related to the usage of the outdoor patio, no physical changes to the site or expansions to the existing building are requested and the requested Conditional Use Permit (CUP) for a brewery taproom is not anticipated to create any new impacts beyond those previously analyzed. The CUP will still be required to comply with the City’s noise ordinance which limits the effects of Project related noise on residential properties. The Project will also result in the installation of new signage. The signage will be mounted to a new roof and will not increase the square footage of the existing building, nor will it affect any of the existing historic building materials. Should the sign provide lighting, such lighting will comply with the lighting types (backlighting, external lighting, etc) as allowed in the OTSPA. Additionally, the signage will be located on a building elevation not facing directly on any nearby residential properties. The proposed Brewery taproom, with the requested signage, will not create any new impacts beyond those identified and addressed with the original improvements to the building and the proposed alterations are consistent with those allowed State CEQA Guidelines Section 15301.

AND, BE IT FURTHER RESOLVED, that the Planning Commission of the City of Elk Grove hereby approves a Conditional Use Permit, Design Review Conditions of Approval Amendment, Variance, and Minor Certificate of Appropriateness as described in Exhibit A and illustrated in Exhibit B for the Dust Bowl Brewery 9676 Railroad Street Project (PLNG21-047), based upon the following findings:

Conditional Use Permit

Finding #1: The proposed use is consistent with the General Plan and all applicable provisions of this Title 23, Zoning.

Evidence #1: Pursuant to OTSPA Table 2, “Permitted and Conditionally Permitted Land Uses,” the proposed brewery taproom use is conditionally permitted in the OTSPA. The

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Planning Commission Resolution – Resolution 2021-XX | September 16, 2021

intensity of nonresidential land use is generally measured in terms of floor area ratio (FAR), which describes the number of square feet of building on a site relative to the site’s land area. FAR calculates the gross floor area of a building divided by the total net area of the site, expressed as a ratio. The Project will result in a Floor Area Ratio (FAR) of 0.12 which is below the maximum FAR allowed in the Community Commercial land use designation of 2.0.

The proposed project is consistent with General Plan Goals and Policies related to historical resources. Specifically, the proposed Project supports the following Policies:

Policy HR-1-1: Encourage the appropriate adaptive reuse of historic resources and buildings

Policy HR-1-2: Strive to protect historic buildings and resources through adaptive re-use

Policy HR-1-3: Encourage efforts that prevent the misuse, disrepair, and demolition of historic resources and buildings

The Project promotes the reuse of a historic structure with an active use. Establishment of this new use will discourage further deterioration of the brick structure due to lack of use. As the proposed use is a conditionally permitted use with a development intensity below the maximum FAR, the proposed Project will be consistent with the General Plan. Additionally, staff has determined that the Project is consistent with all applicable Zoning Code and general OTSPA development standards.

Finding #2: The establishment, maintenance or operation of the use applied for will not under the circumstances of the particular case (location, size, design, and operating characteristics), be detrimental to the health, safety, peace, morals, comfort, or general welfare of persons residing or working in the neighborhood of such use, or the general welfare of the City.

Evidence #2: The proposed taproom would operate at the historic warehouse building located at 9676 Railroad Street. Interior and exterior improvements to the building were approved through prior projects and the approved improvements are nearly complete.

The interior of the building will be the primary seating area with up to approximately 130 seats. There will also be an interior room available for private functions. A full kitchen is also located in the building and the Applicant will contract with another party to provide food service for the taproom. Dust Bowl will also utilize the approved outdoor patio area which will provide additional seating for up to approximately 110 customers.

The Dust Bowl Brewing Company intends to operate 7-days-a-week with daily operations ceasing by 10:00 p.m. each day. While the Applicant intends to provide live and pre-recorded music to create ambience for the taproom, such music will still be subject to the limitations of the City’s Noise Ordinance. Based on the characteristics of the operation and its compliance to City standards, staff believes

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the proposed use would not be detrimental to public health and safety of the residences or commercial uses surrounding the subject site. Potential impacts resulting from the taproom operation will comply or are conditioned to comply with City standards.

Design Review Conditions of Approval Amendment

Finding #1: The proposed project is compatible with the historical character of the community.

Evidence #2: The amendment request does not modify the physical improvements approved and with the original Railroad Street Rehabilitation Project (PLNG19-026).

The Conditions of Approval adopted with these approvals restrict the ability for any user to provide outdoor music. These conditions were adopted at a time when the end user of the building was not known. The Applicant has formulated a detailed plan for operation stating that music will only be used to enhance the ambience of the facility, the Applicant is requesting to delete the original Condition 15 prohibiting outdoor amplified sound and also language from Condition 17 above requiring all noise to be contained within the facility. The requirement to comply with EGMC Chapter 6.32, the City’s Noise Ordinance would remain. The Noise Ordinance restricts noise levels to under 50 decibels between 7:00 a.m. and 10:00 p.m. and to under 40 decibels between 10:00 p.m. and 7:00 a.m. when measured at the nearest sensitive receptor, therefore, compliance with the noise ordinance will ensure compatibility between the Project site and adjacent uses.

Finding #2: The proposed project is consistent with the objectives of the General Plan, the Zoning Code, and the Old Town Elk Grove Special Planning Area Design Standards and Guidelines;

Evidence #2: The proposed Project is consistent with the objectives of the General Plan, Zoning Code, and OTSPA. General Plan Policy HR-1-1 encourages the appropriate adaptive reuse of historic resources and buildings. The proposed Conditions of Approval Amendment will allow the Dust Bowl Brewing Company to provide ambient music to enhance the experience for its patrons.

Finding #3: The proposed architecture, site design, and landscaping are suitable for the purposes of the building and the site and will enhance the character of the neighborhood and community;

Evidence #3: The proposed architecture, site design, and landscaping for the Railroad Street Rehabilitation Project were reviewed and approved and found to be consistent with OTSPA design guidelines and development standards, the Secretary of Interior standards for historic preservation, and the City of Elk Grove Zoning Code.

The proposed amendments do not physically alter any of the approved and constructed improvements.

Finding #4: The architecture, the character, scale and quality of the design, the relationship with the site and other buildings, building materials, colors, the screening of exterior appurtenances, exterior lighting and signing, and similar elements establish a

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clear design concept and are compatible with the character of buildings on adjoining and nearby properties;

Finding #5: The proposed project will not create conflicts with vehicular, bicycle, or pedestrian transportation modes of circulation.

Finding #6: There are changed circumstances sufficient to justify the modification of the approval.

Evidence #6: The conditions of approval originally approved with the Railroad Street Rehabilitation Project (PLNG19-026) prohibit any outdoor amplified sound. The specific conditions are Conditions 15 and 17 as follows:

17. All operations and evens must be in compliance with chapter 6.32 (Noise Control) of the Elk Grove Municipal Code (EGMC). All noise emitted from the operation and any indoor events must be contained within the facility.

These conditions were placed on the project as the end-user at the time of the previous approvals was not known. Since the end-user was undetermined, the above conditions were adopted to preclude the possibility that the outdoor operations or special events, such as third-party food truck service, on the patio would affect operations of the adjacent parking lot, would block emergency access to the site, or would generate levels of noise that would be a nuisance to adjacent and nearby properties.

Staff finds that Condition 15 is no longer necessary as the end-user is now secured and detailed operations of the facility are known and will include on-site food service with

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a kitchen. Additionally, the patio has gone through and has received building permits which included review by Fire. The Applicant shall comply with all occupancy limits from the issued permits. As described above, music may be utilized by Dust Bowl to enhance the taproom experience but is not intended to inhibit the ability of patrons to converse with each other either inside, or on the patio outside. Similarly, the Applicant does not intend to utilize the outdoor patio as a location for ticketed entertainment events.

The intent of the conditions was to prevent amplified concert type events that could potentially affect nearby residences. Based on their other operations, the Applicant is requesting to modify the conditions of approval such that any outdoor music or sound would continue to be subject to compliance with the City’s noise ordinance.

The proposal is to delete Condition 15 and modify Condition 17 as follows:

17. All operations and events must be in compliance with chapter 6.32 (Noise Control) of the Elk Grove Municipal Code (EGMC). All noise emitted from the operation and any indoor events must be contained within the facility.

As the Applicant has formulated a detailed plan for operation stating that music will only be used to enhance the ambience of the facility, the Applicant is requesting to delete the language from Condition 17 above requiring all noise to be contained within the facility. The requirement to comply with EGMC Chapter 6.32, the City’s Noise Ordinance, would remain. The Noise Ordinance restricts noise levels to under 50 decibels between 7:00 a.m. and 10:00 p.m. and to under 40 decibels between 10:00 p.m. and 7:00 a.m. when measured at the nearest sensitive receptor,

The end user operating criteria is now known whereas there was no end-user identified when the conditions were adopted. Based on the characteristics of the operation and its compliance to City standards, staff finds the proposed use would not be detrimental to public health and safety of the residences or commercial uses surrounding the subject site. Potential impacts resulting from the taproom operation will comply or are conditioned to comply with City standards and do not necessitate the need for further analysis.

Major Certificate of Appropriateness

As required per EMC Section 7.00.070, a Minor Certificate of Appropriateness application shall be approved if all the following findings are met:

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Finding #1: The proposed project complies with “The Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring and Reconstructing Historic Buildings” or “The Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for the Treatment of Cultural Landscapes”.

Evidence #1: The SOI maintains The Guidelines for the Treatment of Historic Properties which includes specific standards for the rehabilitation of historic properties. For Rehabilitation projects, the SOI outlines the following items that must be accomplished as part of the building’s treatment.

1. A property will be used as it was historically or be given a new use that requires minimal change to its distinctive materials, features, spaces and spatial relationships.

The signage on the building supports the reuse of a historic resource with no modifications to any materials or structures original to the building.

2. The historic character of a property will be retained and preserved. The removal of distinctive materials or alteration of features, spaces and spatial relationships that characterize a property will be avoided.

Installation of the sign will not alter the historic character of the property and no original materials will be removed.

3. Each property will be recognized as a physical record of its time, place and use. Changes that create a false sense of historical development, such as adding conjectural features or elements from other historic properties, will not be undertaken.

There will be no significant modifications to the existing warehouse building.

Installation of the sign will not alter the historic character of the property and no original materials will be removed. The sign will support the re-use of the building as a brewery and its design is not conjectural or based on any design features of the building that are not existing or for which there is no historical record.

4. Changes to a property that have acquired historic significance will be retained and preserved.

Installation of the sign will not alter the historic character of the property and no original materials will be removed.

5. Distinctive materials, features, finishes and construction techniques or examples of craftsmanship that characterize a property will be preserved.

Installation of the sign will not alter or remove any of the original materials of the building.

6. Deteriorated historic features will be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature will match the old in design, color, texture and, where possible,

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materials. Replacement of missing features will be substantiated by documentary and physical evidence.

7. Chemical or physical treatments, if appropriate, will be undertaken using the gentlest means possible. Treatments that cause damage to historic materials will not be used.

8. Archeological resources will be protected and preserved in place. If such resources must be disturbed, mitigation measures will be undertaken.

No excavation will be required for installation of the sign, therefore no archaeological resources will be disturbed.

9. New additions, exterior alterations or related new construction will not destroy historic materials, features and spatial relationships that characterize the property. The new work will be differentiated from the old and will be compatible with the historic materials, features, size, scale and proportion, and massing to protect the integrity of the property and its environment.

The Applicant is proposing to install a new sign on the roof of the building.

Care has been given in the design of the sign such that the sign’s scale will be in proportion to the building and will not be visually intrusive to neighboring residential uses. The sign will be 3’-6” tall and 75’-9” wide and will consist of individual letters supported by metal framing. The sign will not exceed the height of the tallest portion of the building. The installation of sign will not be detrimental to the historic character or the structural integrity of the existing warehouse.

10. New additions and adjacent or related new construction will be undertaken in such a manner that, if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired.

The proposed sign will be mounted to a metal roof that is not original to the building and no original building materials will be affected. If the sign is removed the existing historic integrity of the building will be retained.

Finding #2: The proposed work does not result in substantial adverse change to the historic resource.

Evidence #2: Section 7.00.030 of the City of Elk Grove’s Historic Preservation Code states, “Substantial adverse change means any demolition, relocation, or alteration that the significance of a historic resource would be impaired.”

The proposed sign will be mounted to a new roof that was recently installed.

Installation of the sign will not affect any original historic materials. Should the sign be

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removed in the future, its removal would not affect the historic character of the building.

Finding #3: The proposed project is consistent with and supportive of the goals and policies of the adopted historic district plan (if the resource is located within a historic district).

Evidence #3: The property lies within the Old Town Elk Grove Special Planning Area (SPA-OT). The proposed signage is consistent with the Architectural Design Standards and Guidelines of the SPA-OT, which is the adopted Historic District Plan for the Elk Grove Historic District. Additionally, the signage promotes the reuse of an existing historic structure.

Sign Variance to allow a Roof-Mounted Lit Sign

Finding #1: That there are special circumstances applicable to the property, including size, shape, topography, location or surroundings, such that the strict application of this title deprives such property of privileges enjoyed by other property in the vicinity and under identical land use zoning district classifications.

Evidence #1: Roof mounted lit signage is not allowed inside the SPA. In reviewing the building for potential locations for signage, the Applicant noted that the existing historic brick walls are brittle and mounting the new sign on these walls risks damaging these historic materials. Staff concurs with this assessment and does not recommend any wall-mounted signage for the subject building. The original Conditions of Approval for the Railroad Street Rehabilitation Project require all building modifications to comply with the Secretary of Interior standards for preservation of historic resources. These standards recommend against changes that could radically alter or damage historic masonry features. Enforcement of the standards would not allow placement of the signage on the roof of the structure which was recently rebuilt with new materials and can structurally support the new sign. Additionally, the location of the sign at a height of approximately 24’ is lower than the height that an allowed wall sign can be placed (up to 35’).

Finding 2: That granting the variance does not constitute a special privilege inconsistent with the limitations upon other properties in the vicinity and land use zoning district in which such property is located.

Evidence #2: Granting the variance does not constitute a special privilege. As described above, the unique circumstances arising from the existing historic brick walls of the building would make traditional wall-mounted signage infeasible at this location, and strict application of the roof-mounted sign prohibition would thus deprive the property of the opportunity for highly visible signage which is enjoyed by other commercial properties within the Old Town SPA which front on Elk Grove Boulevard. Granting the variance provides visible signage for the property, while still preserving the existing historic brick walls. Additionally, the location of the sign at a height of approximately 24’ is lower than the height that an allowed wall sign can be placed on other properties in the Old Town SPA (up to 35’). Sign Variances for other structures within the SPA would also be considered for sign location variances if historic building materials precluded the installation of a wall sign. Additionally, if prior original

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Conditions of Approval for any particular site require compliance with the Secretary of Interior standards for preservation of historic resources in such a manner that significantly impacts the ability of a Project to adhere the Old Town SPA standards a similar Variance would be considered.

Finding 3: That granting the variance will not adversely affect the interests of the public or the interests of residents and property owners in the vicinity of the premises in question.

Evidence #3: Granting the variance will not adversely affect the interests of the public or the interests of residents and property owners in the vicinity of the premises in question as placing the sign on the roof of the building places the sign on a structurally secure portion of the building instead of the historic brick walls where mounting a sign could negatively affect the structure. Additionally, mounting the sign to the roof does not make it larger or higher than wall mounted signage placed on a structure built to the 35’ maximum height allowed in the SPA.

Finding 4. That granting the variance is consistent with the objectives of the General Plan and this title.

Evidence #4: Granting the variance would support the active re-use of a historic building which is supportive of the following General Plan Policies:

Policy HR-1-1: Encourage the appropriate adaptive reuse of historic resources and buildings

Policy HR-1-2: Strive to Protect historic buildings and resources through adaptive re- use

Policy HR-1-3: Encourage efforts that prevent the misuse, disrepair, and demolition of historic resources and buildings

The foregoing Resolution of the City was passed and adopted by the Planning Commission on the 16^th day of September 2021, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Sandy Kyles, PLANNING SECRETARY George Murphey, CHAIR of the PLANNING COMMISSION

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Exhibit A

Dust Bowl Brewing Company (PLNG21-047) Project Description

PROJECT DESCRIPTION

The proposed Project consists of a Conditional Use Permit to operate a brewery taproom;

a Design Review Conditions of Approval Amendment to modify previously approved conditions of approval; a Variance to allow a roof-mounted lit sign; and a Minor Certificate of Appropriateness to install a roof mounted sign for the Dust Bowl Brewing Company Project located at 9676 Railroad Street.

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EXHIBIT A

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Exhibit B

Dust Bowl Brewing Company (PLNG21-047) Project Plans

PROJECT PLANS

EXHIBIT B

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Exhibit C

Dust Bowl Brewing Company (PLNG21-047)

Conditions amendment and Recommended Conditions of Approval

Amended Conditions – Railroad Street Rehabilitation Project (PLNG21-026)

Recommended Conditions of Approval Timing/

Implementation Enforcement/

Monitoring

Verification (date and Signature) ON-GOING

15. Outdoor seating is restricted to allowable occupancy for the patio area as determined by the Fire Department. Food vendors are permitted as long as the operations do not affect the required parking, access for safety, or adjacent businesses.

Outdoor amplified sound is prohibited for these occurrences.

Special outdoor events associated with the businesses that exceed this allowance and patio location are subject to the approval of a Temporary Use Permit (TUP) or a Minor Use Permit (MUP) as determined by the City. This includes requests for outdoor amplified music and speech.

On-Going Planning

17. All operations and events must be in compliance with chapter 6.32 (Noise Control) of the Elk Grove Municipal Code (EGMC).

All noise emitted from the operation and any indoor events must be contained within the facility.

On-Going Planning

EXHIBIT C

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Exhibit C

Recommended Conditions of Approval Timing/

Implementation Enforcement/

Monitoring

Verification (date and Signature) ON-GOING

1. Development and operation of the proposed Project shall be consistent with the Project Description and Project Plans as provided in Exhibits A and B, incorporated herein by this reference. Deviations from the approved plans shall be reviewed by the City for substantial compliance and may require amendment by the appropriate hearing body.

On-Going Planning

2. This action does not relieve the Applicant of the obligation to comply with all applicable federal, state and local ordinances, statutes, regulations, and procedures.

On-Going Planning

3. The construction and on-going maintenance of the facility shall comply with the U.S. Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings. The building plans shall indicate compliance with these standards including identification of historic features for preservation, treatment of original materials, preservation of character defining features, and replacement or repair of existing features using similar materials

On-Going Planning

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Exhibit C

4. The Applicant/Owner or Successors in Interest (hereinafter referred to as the “Applicant”) shall indemnify, protect, defend, and hold harmless the City, its officers, officials, agents, employees, and volunteers from and against any and all claims, damages, demands, liability, costs, losses or expenses including without limitation court costs, reasonable attorney’s fees and expert witness fees arising out of this Project including challenging the validity of this application/permit or any environmental or other documentation related to approval of this Application.

On-Going Planning

5. As to any fee, dedication, reservation or exaction established by these conditions of approval that are subject to the Mitigation Fee Act, notice is hereby given pursuant to California Government Code Section 66020(d) that the 90-day period in which you may protest the fees set forth herein has begun to run as of the date of approval of this Project. Other limitations periods may apply. The City reserves all rights.

On-Going Planning

6. Except as otherwise specified or provided for in the Project plans or in these conditions, the Project shall conform to the development standards and design requirements adopted by the City, specifically including but not limited to the following:

• Old Town Elk Grove Special Planning Area (OTSPA)

• The Elk Grove Zoning Code (Title 23 of the EGMC)

• EGMC Chapter 14.10 (Water Efficient Landscape Requirements)

• EGMC Title 16 (Building and Construction)

• EGMC Title 22 (Land Development)

On-Going Planning

7. The Applicant shall pay all plan check fees, impact fees, or other costs as required by the City, the Cosumnes Community Services District (CCSD), Sacramento Area Sewer District

On-Going Planning Engineering

CCSD

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Exhibit C

(SASD), Elk Grove Water District (EGWD), or other agencies or

services providers as established by law. EGWD

SASD 8. Approval of this Project does not relieve the Applicant from the

requirements of subsequent permits and approvals, including but not limited to the following as may be applicable:

• Building Permit and Certificate of Occupancy

• Requirements of the Sacramento Metropolitan Air Quality Management District

• Fire Department Review for permits and/or occupancy

• Sign Permits

On-Going Planning Engineering

Building CCSD EGWD SASD

9. Pursuant to EGMC Chapter 23.18 and the Old Town Elk Grove Special Planning Area Table 2 requirements for Commercial Breweries, this Conditional Use Permit shall expire if not exercised within three years from the date of approval, unless an extension is otherwise approved as provided in EGMC Section 23.18.060 (permit extension). Notwithstanding the provisions of EGMC Section 23.20.020 or any other law, should an approved bar, brewery, winery, or brewpub holding a valid Conditional Use Permit cease or discontinue operations for a period of one year or more, the designated approving authority may, upon completion of a noticed public hearing, revoke the Conditional Use Permit due to discontinuation of use. In lieu of a formal revocation, a property owner with a valid Conditional Use Permit for a bar, brewery, winery, or brewpub, may voluntarily surrender the Conditional Use Permit upon written notice to the City.

On-Going Planning

10. The trash enclosures shall be locked or behind locked areas when not in use and well maintained at all times.

On-Going Code

Enforcement Planning

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Exhibit C

11. The size roof-mounted sign shall be reduced in size such that it is no greater than 3’ in height and 60’ in width.

Prior to the Issuance of a

Sign Permit

Planning Building

12. The business shall obtain all necessary licenses from the California Department of Alcoholic Beverage Control (ABC) prior to opening for business.

Prior to Final Certificate of

Occupancy

Planning Police

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ATTACHMENT 2

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ATTACHMENT 3

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Statement of proposed use of the Premises

Dust Bowl Brewing Co. plans to use the location as a satellite taproom. Our goal is to create an environment where patrons can socialize and enjoy craft beer. We envision a craft beer destination for locals and visitors alike. Dust Bowl was drawn to the location because of its historical charm and relevance to its Dust Bowl‐era brand roots. Estimated to be over 100 years old, the building showcases exposed brick both inside and out, and was historically used as a warehouse for storing wine grapes being transported by rail in the early 1900s. Our founder’s grandfather was one of the many who rode the rails and moved west during the Great Depression. The building is a perfect backdrop for our brand story. We believe the site lends itself to our signature Dust Bowl Brewing Co. aesthetic established at our other

taprooms in Turlock and Monterey.

We will offer 60 taps (30 inside and 30 outside) of our own expertly crafted beer and seltzers, which are made at our state‐of‐the‐art brewery located in Turlock, CA. While beer is certainly our primary focus, the facility also includes a full kitchen and food service will be provided by Wedo’s Tacos. Wedo’s Tacos, also is the resident food truck at Dust Bowl’s Monterey Tap Depot. In keeping with our other taproom locations, the Elk Grove satellite taproom will offer a family‐friendly environment, complemented by a hip yet vintage style.

The interior area will offer 30 taps featuring Dust Bowl beers and seltzers, banquette and lounge seating, bar rails and some traditional bar seating. Additionally, there is an enclosed private event space that will be available for rent. It will be well appointed for special occasion bookings. There will also be several outdoor options for patrons. The covered patio will offer comfortable couch vignettes, fans and heaters. Communal picnic table seating and fire pit areas will extend out to the open‐air section that is enclosed by railroad tie fencing. A separate 30 tap tower will service outdoor guests. Televisions will be located inside and out. The décor and furnishings will resemble the brand personality established at Dust Bowl’s other taprooms. Beer fans can expect oversized images from the Dust Bowl era, mixed finishes of wood and metal, and ample seating options all working together to create a cool experience.

To‐go beer and retail items, such as tees, hats and glassware, will be available.

Live music will periodically be available. Single or multiple instrumentalists will provide ambient music to enhance the taproom experience. The entertainment will be family‐friendly, non‐ticketed, and in most cases, non‐amplified.

Planning Staff Report