Planning & Zoning Commission Meeting

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3.2.9.

Meeting Date:	01/06/2022
Submitted By:	Brian Salvesen, Development Services

Agenda Item

PUBLIC HEARING/ Daiquiri Wave (SUP-21-06613). A request for a Specific Use Permit (SUP) for a Liquor Store and Bar, generally located on Lobo Lane, approximately 400 feet south of W. Eldorado Parkway, currently zoned Light Commercial (LC), in order to allow for a new establishment with both on-premises and off-premises alcohol sales and consumption.

Staff Report/Applicant Presentation
Open Public Hearing
Receive Public Comment
Close Public Hearing
Discussion and Recommendation

Location

Generally located at 800 West Eldorado Parkway, on the west side of Lobo Lane, approximately 400 feet south of W. Eldorado Parkway.

Planning Analysis

Background. Subject property is currently zoned Light Commercial (LC) with a Specific Use Permit (SUP) for a child care center, as approved through Ordinance No. 943, and an SUP for minor auto repair use, as approved through Ordinance No. 1269. The property is operating as an existing multi-tenant shopping center with a mix of retail and restaurant tenants, as well as a child care center. The proposed establishment would occupy the currently vacant 2,030 square-foot Suite 128.

The applicant, Daiquiri Wave, is proposing an establishment offering the sale of to-go alcoholic beverages for off-premises consumption, which Staff has classified to be more closely aligned to a liquor store type use. Additionally, the applicant is proposing the sale of alcoholic beverages for on-promises consumption, which would be classified by the Town as a bar. This would be the first location and the applicant has provided Staff with a business plan outlining operations similar to a restaurant and bar use.

A bar is defined as “an establishment principally for the sale and consumption of alcoholic beverages on the premises that derives 75 percent or more of its gross revenue on a quarterly (three-month) basis from the sale or service of alcoholic beverages, as defined in the Texas Alcoholic Beverage Code (TABC), for on-premises consumption.” While the applicant anticipates a much smaller percentage of their revenue to be derived from the sale of alcoholic beverages, this is their first business of this kind, so the percentages cannot be guaranteed at this time. Given the applicant's proposal has limited inside seating for dining and the floor plan predominantly showing a large bar area, Staff believes the proposed use will more closely align with a bar then a restaurant with alcohol service.

A liquor store is defined as a retail establishment that offers for sale beer, wine and liquor, and related accessory items, subject to the review and approval by TABC.Staff believes that an establishment primarily focused on selling to-go alcoholic beverages for off-premises consumption would more closely align with a liquor store use.

Chapter 106 of the Little Elm Code of Ordinances requires a Specific Use Permit (SUP) be issued for a liquor store as well as a bar use.

Additionally, the existing SUP Ordinance No. 1269 provides a challenge by specifically prohibiting "liquor stores" on this site. It should be noted that after the approval of Ordinance No. 1269, the property was subdivided into two separate lots. While the auto repair use is currently located on a different lot, because the SUP was approved for the property in its entirety at that time, the Ordinance regulations are still applicable to the subject property. Therefore, in order to accommodate the applicant's request, Ordinance No. 1269 would also need to be amended to remove "liquor store" from the list of restricted uses. No other changes are being proposed to the existing ordinances on this property and all other existing conditions will remain in place. These requests are being proposed concurrently.

Proposal.
The applicant is requesting approval of an SUP for a liquor store and bar, in order to operate an establishment for the sale of off- and on-premises consumption of alcoholic beverages, with a drive-thru component. The applicant has provided a letter of intent describing a unique atmosphere that will attract social media users on the hunt for instagram-worthy destinations.

The proposal includes a total SUP area of 2,030 square feet. The submitted floor plan depicts half the space as storage, coolers, and food prep area, and the other half housing a large bar area and three tables for inside dining. The applicant's letter of intent indicates the primary purpose of this establishment is to provide food and alcoholic beverages for off-premises consumption.

Parking.
The proposed use is required to be parked at a ratio of one parking space per 100 square feet of floor area. The existing site was developed with a 31,356 square-foot retail building, which, inclusive of the child care center, requires a total of 115 parking spaces at full tenant occupancy. The site provides a total of 140 parking spaces and meets parking requirements.

Development Standards.
This site was developed through an approved Concept Plan and the existing suite already has a drive-thru window and lane. Since the applicant is not making any exterior changes or site improvements in order to accommodate the proposed use, no additional site requirements were reviewed at this time.

Comprehensive Plan.
The Future Land Use Plan (FLUP) designates the subject property with a retail/commercial land use category, which is appropriate for the proposed establishment. Therefore, the requested SUP, if approved, would not be in conflict with the Town’s vision for this area.

Recommended Action

The purpose of an SUP is to add or modify specific land use rights to those already granted within a zoning district. Section 106.02.17 provides that each request considers the intensity of the proposed use within the context of the proposed location based on compatibility and suitability, and in evaluating the compatibility of the proposed use within the existing area context, "the town council may impose such additional development standards and safeguards as the conditions and locations indicate important to the welfare and protection of adjacent property from noise, vibration, dust, dirt, smoke, fumes, odor, gas, explosion, glare, offensive view, or other undesirable or hazardous conditions."

Section 106.05.02, in reference to special permanent land uses, identifies certain regulations and criteria that must be followed when the location of such uses is considered by the Town. One such regulation is placed on liquor store uses:

The lot containing a liquor store shall be located at least 1,000 feet from any lot containing another like use, as measured in a straight line between the nearest points of one lot to the other.

Since the liquor store component of this request is Staff interpretation of a proposed use and the applicant is not explicitly proposing a liquor store, the Planning and Zoning Commission may choose to consider and classify the proposed use differently. However, it is important the Commission make that distinction as the adjacent property, directly to the north, contains an existing liquor store, and if the proposed use is deemed to really be classified as a liquor store, it would be prohibited on this site.

Given the regulations and conditions for the proposed special uses under Section 106.05.02, the following conditions should be placed on this SUP if the Commission considers approval:

Prior to issuance of a certificate of occupancy, the business owner shall provide the town with a copy of its state permit to operate as a bar, brewpub, or similar use.
Prior to issuance of a certificate of occupancy, the business owner shall provide the town with a copy of its state permit to operate a liquor store.
All alcohol-related activities must meet all standards found in chapter 10, alcoholic beverages, of the Little Elm Code of Ordinances.

Staff recommends the Planning and Zoning Commission evaluate the proposed Specific Use Permit based on the proposed special uses and how they fit into the existing context of the area.

Attachments
Location Map
PD Exhibits
Letter of Intent