Restaurant Space in Dana Point

What to diligence before LOI

1. 01

   Use table: Section 9.11.020(b) permits 'Restaurant' and 'Restaurant, Take-Out' in NC, CC/P, CC/V and V/RC. 'Restaurant, Fast Food' and 'Restaurant, Drive-Through' need a conditional use permit in NC and CC/P and are permitted in CC/V and V/RC, and a walkup restaurant (outside service with up to 16 seats, per Section 9.75.270) needs one in NC. Ask Planning which district covers the suite before you pick a format, because the same 2,000 sq ft fast casual concept can be by right on one side of PCH and a hearing on the other.

2. 02

   Alcohol: 'Alcoholic Beverage Outlets' and 'Drinking Establishments' are P*/C* in all four districts, meaning Section 9.07.040 sets the path. A restaurant selling for on-site consumption needs a Minor Conditional Use Permit only if it is within 500 feet of a church, park or school used by minors, or within 100 feet of residential zoning or use. Taking over an existing license at a location already operating as an alcohol outlet is not a new establishment unless the license type changes, so a second-generation restaurant with the same license type may avoid the CUP. Section 9.07.040(f) also bars an on-site outlet from selling alcohol to go, even though ABC's Type 41 and 47 licenses allow off-sale beer and wine, so ask Planning before planning bottle sales.

3. 03

   ABC license type: California ABC issues Type 41 (On-Sale Beer and Wine, Eating Place) and Type 47 (On-Sale General, Eating Place) to restaurants. Both require a bona fide eating place with suitable kitchen facilities and actual and substantial meal sales, both allow minors on the premises, and both carry Responsible Beverage Service training for servers and their managers. Dana Point's code definition of an on-sale outlet names Types 41 and 47 directly.

4. 04

   Music and patios: under Section 9.07.060, live entertainment within 200 feet of a residential structure needs a Minor CUP with sound controls, no dancing or music between 2:00 a.m. and 10:00 a.m., and parking lot security set by the Chief of Police. Three or fewer performers, 150 watts or less of amplification, or a stereo, karaoke or jukebox can be exempted by the Director. Stella's heated ocean-view patio with music at Monarch Bay Plaza shows the format can work here, but check the distance to the nearest homes for any PCH suite.

5. 05

   Parking: Section 9.35.080(e)(47) parks dine-in restaurants under 4,000 sq ft at 1 stall per 100 sq ft, larger ones at 40 stalls plus 1 per 50 sq ft above 4,000, fast food at 10 stalls or 1 per 50 sq ft (whichever is greater) and take-out at 1 per 250 sq ft. Outdoor dining over 16 seats adds 1 stall per 150 sq ft of the whole patio. In a multi-tenant center, restaurant space above 20% of the center or above 2,000 sq ft for one restaurant is parked at the restaurant rate instead of 1 per 220 or 250. In the Lantern District, Section 9.26.010(d) enforces these rates for each use with no credit for public parking.

6. 06

   Coast, kitchen and sewer: in the Coastal Overlay District a coastal development permit is required for development (Section 9.69.020), which Section 9.75.040 defines to include a change in the intensity of use, so ask whether a retail-to-restaurant conversion triggers one. OC Health Care Agency's Plan Check unit must review plans for every new or remodeled food facility. South Coast Water District's grease control program requires a District discharge permit and, for establishments that are new, changing ownership or remodeling in a way that adds grease (for example more seating), a grease interceptor and removal of food grinders and grease traps. The District and the City fund an interceptor rebate.