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PC - Item 3B - Extension of Zone Variance 10-03City of • - • AVY A:crvw Pamsi Memorandum To: Honorable Chair and Planning Commissioners From: Stan Wong, Community Development Director Prepared by: Lily Trinh, Assistant Planner T Date: June 20, 2011 RE: Extension of Zone Variance 10 -03 On December 20, 2010, the Planning Commission approved Zone Variance 10 -03 to provide parking in conformance with the City's shopping center standards (1 space per 250 square feet of floor area, instead of the City's restaurant parking standards (1 per 100 square feet of floor area) for a phased restaurant development, consisting of two restaurant buildings totaling approximately 15,000 square feet in the Montebello Town Center, located at 1716 Montebello Town Center Drive. On May 20, 2011, the City received a letter from the applicant (attached with this memo), requesting an extension for Zone Variance 10 -03. Per Condition of Approval Number 6 of Zone Variance 10 -03, "Zone Variance 10 -03 is approved for a period of six months. The applicant shall commence the proposed use or request an extension within 30- calendar days prior to expiration." The applicant is requesting an extension due to economic hardship. The applicant has indicated that escrow was closed and the fee title was acquired to the parcel on May 20, 2011. The applicant will now commence negotiations with the restaurant tenants for ground leases for the two restaurants, and anticipates that lease negotiations will take six months and approval of the proposed plans for the restaurants another three months. For these reasons, the applicant is requesting that the Planning Commission extend Zone Variance 10 -03 for a period of one year to allow sufficient time to secure viable tenants for the new restaurants. Recommended Action The Planning Division recommends that the Commission grant the one year extension and direct the Planning Division to take any actions necessary and execute any documents required to effectuate the extension. ARMBRUSTER GOLDSMITH & DELVAC LLP LAND USE ENTITLEMENTS o LITIGATION o MUNICIPAL ADVOCACY MATT DZUREC DIRECT DIAL: 310 - 254 -9052 11611 SAN VICENTE BOULEVARD, SUITE 900 LOS ANGELES, CA 90049 Tel: (310) 209 -8800 Fax: (310) 209 -8801 E -MAIL: Matt@AGD- LandUse.com May 20, 2011 VIA FedEx Paul Garry Senior Planner City of Rosemead 8838 East Valley Boulevard Rosemead, CA 91770 WEB: www.AGD- LandUse.com Re: Zone Variance 10 -03: Montebello Town Center Restaurant Expansion Project Dear Paul: As you know, we represent Montebello Town Center Investors LLC (the "Applicant") in the above - referenced case. On December 20, 2010, the Planning Commission approved a Zone Variance for the phased construction of two restaurant buildings totaling approximately 15,000 square feet on a parcel within the Montebello Town Center (the "Center "). That parcel is improved with a surface parking lot containing approximately 200 spaces (the "Parcel "). The Parcel is adjacent to and is operated as a part of the Center. Specifically, the Zone Variance permits parking for the restaurants in accordance with the City's shopping center standards of 1 space per 250 square feet of floor area in lieu of the City's restaurant parking standards of space per 100 square feet of floor area. Condition Number 6 in the approval of the Zone Variance states that the Zone Variance is approved for a period of six months, until June 20, 2011. The Applicant must either commence the use by starting the building permit process before June 20, 2011, or the Applicant may request an extension of time under Rosemead Municipal Code Section 17.108.060. The Applicant closed escrow and acquired fee title to the Parcel on May 20, 2011. The Applicant will now commence negotiations with the restaurant tenants for ground leases for the two restaurants to be constructed. The existing economic environment makes it imprudent and infeasible to construct new restaurant buildings on a speculative basis and then seek tenants for those buildings. Instead, the Applicant anticipates that it will require approximately six months to complete the lease negotiations and another three months to approve the proposed plans for the new restaurants. Accordingly, the Applicant anticipates commencing construction of the first restaurant no later than June 1, 2012. ARMBRUSTER GOLDSMITH & DELVAC LLP City of Rosemead May 20, 2011 Page 2 The Applicant hereby requests a one -year extension for the Zone Variance to allow sufficient time to secure viable tenants for the new restaurants. Sincerely, Matt Dzurec