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To:
From:
Submitted by:
Subject:
CITY OF CARMEL-BY-THE-SEA
Council Report
April 1, 2014
Honorable Mayor and Members of the City Council
Jason Stilwell, City Administrator
Rob Mullane, AICP, Community Planning and Building Director
Marc Wiener, Senior Planner
Consideration of an appeal of the Planning Commission's decision to
approve a Use Permit (UP 13-17) to establish a retail wine shop with wine
tasting as an ancillary use in an existing commercial space located on San
Carlos Street, three properties southeast of Fifth Avenue, in the Central
Commercial (CC) Zoning District. The appl icant is Firok Shield. The
decision is being appealed by the Carmel Wine Walk by-the-Sea.
Recommendation: Deny the appeal, and uphold the Planning Commission's decision to
approve UP 13-17.
Executive Summary: The project site is a commercial building located on San Carlos Street,
three properties southeast of Fifth Avenue. On February 11, 2014, the
Planning Commission approved a Use Permit (UP 13-17) to establish a
retail wine shop with an ancillary use of wine tasting at the subject
location.
The approval was conditioned with a requirement that the wine shop
only feature wines from Chateau Marie Antoinette Winery and from da
Giovanni Cellars. Chateau Marie Antoinette Winery is located in Morgan
Hill, California, but according to the applicant, the grapes are sourced
from Monterey County. Theda Giovanni wine label primarily sells wines
that are sourced from Sonoma, California. The Planning Commission
approval staff report, findings of approval, conditions of approval, and
associated attachments are included as Attachment B.
Representatives of the "Carmel Wine Walk by-the-Sea" submitted an
appeal of the Planning Commission's decision on February 21, 2014. The
appeal application is included as Attachment A to this staff report.
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Analysis/Discussion:
Planning Commission Review and Staff Analysis
This Use Permit (UP 13-17) was reviewed by the Planning Commission on
three separate occasions between December 11, 2013 and March 11,
2014. The following is a summary of the three Planning Commission
meetings.
Planning Commission Meeting (12/11/13)- The application was reviewed
and continued by the Planning Commission with a request that 1) the
appl icant reconfigure the floor plan and reduce the seating area to
emphasize the retail component of the business, and 2} that the wine
shop feature a Monterey County winery with a Duplicate Type 02 license.
The requirement for a Monterey County winery was based on the City's
Wine Tasting Policy which states that: "Wines originating from Monterey
County Vineyards and Wineries and locating their off-site tasting rooms in
Carmel are desired and strongly encouraged."
Planning Commission Meeting (2/11/14) - The applicant reconfigured
and reduced the size of the seating area to comply with the
recommendations made by the Planning Commission at the previous
meeting. The applicant also proposed a winery that had an affiliation
with Monterey County.
As identified in the February 2014 Planning Commission staff report, the
applicant had originally proposed to feature wine from Bernardus Lodge,
which is located in Monterey County. However, Bernardus Lodge did not
intend to transfer its Duplicate Type 02 license to the wine shop.
After the staff report was distributed to the Planning Commission, the
applicant proposed a different winery: Chateau Marie Antoinette.
Chateau Marie Antoinette is located in Morgan Hill, California, but
sources its grapes from Monterey County.
The Planning Commission deliberated on the proposed winery and
determined that Chateau Marie Antoinette would meet the
recommendations of the Wine Tasting Policy, as it sources its grapes from
Monterey County. The Planning Commission also did not require the
winery to have a Duplicate Type 02 license, as the current policy does not
require it.
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Staff notes that Finding #8 was amended by the Planning Commission to
state that: "The proposed use is consistent with the City's adopted Wine
Tasting Policy, in as much as both labels use wine produced in Monterey
County. Chateau Marie Antoinette Winery primarily sources grapes from
Monterey County, and da Giovanni includes some wines sourced in
Monterey County."
Special Condition #1 was also amended to state that: "Wine sales and
tasting shall be limited to wines from Chateau Marie Antoinette Winery
and da Giovanni Cellars."
Planning Commission Meeting (3/11/14)- Staff received a request from a
Planning Commissioner on February 14, 2014, to schedule the project for
a Reconsideration Determination. Pursuant to the Planning Commission
Rules of Procedure, any Commission member who voted on the
prevailing side of a decision may request within five (5) working days of
the decision that the matter be reconsidered. One reason for the request
is that the Planning Commissioner wanted a better description of the
association between Chateau Marie Antoinette and Monterey County.
On March 11, 2014, the Use Permit (UP 13-17) was scheduled for a
Reconsideration Determination. Upon hearing testimony from the
applicant and from the public, the Planning Commission voted not to
reconsider the item. Staff notes that the fact that the City received an
appeal, such that the application would be considered by the City
Council, was factored into the Planning Commission's decision not to
reconsider the application.
Basis far Appeal
The appellant, Carmel Wine Walk by-the-Sea, is comprised of several
local wine tasting establishments. Below is a summary of the concerns
raised by the appellant, along with staff responses.
1. We do not want to undermine the experience of tasting
Monterey County wines.
Response: The appellant has expressed concern that Chateau Marie
Antoinette Winery is not based in Monterey County, and is instead
located in Santa Clara County. The appellant has indicated that their
organization has worked to establish Carmel as a destination for
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Monterey County wines, and permitting non-local wineries would
undermine these efforts.
The City's Wine Tasting Room Policy strongly encourages "wines
originating from Monterey County Vineyards and Wineries." The policy
does not specifically state that the winery must be located in Monterey
County. The Planning Commission determined that Chateau Marie
Antoinette is consistent with the language of the policy, in that it sources
its grapes from Monterey County.
2. The State Alcohol Beverage Control (ABC) licensing needs
clarification.
Response: The appellant has stated the opinion that all off-site tasting
rooms should be required to have a Duplicate Type 02 license, and that
those pouring under a Type 42 license (such as Southern Latitudes and
Nielson's} should not be classified as tasting rooms.
Staff notes that a Duplicate Type 02 ABC license allows a winery to have a
tasting room away from the location where the wine is made. A Type 42
ABC license permits the on-site consumption of beer and wine. Wine
tasting shops within the City that operate with a Type 42 license could be
further restricted by the Use Permit, and could be limited to the sale of
wine for tasting only.
In staff' s opinion, a tasting room is defined by the allowances that are
permitted through its Use Permit, and it would not be defined solely by
the type of ABC license that it holds.
The Planning Commission considered requiring the wine tasting shop to
obtain a Duplicate Type 02 license, but decided not to require it as it is
not required under the current policy. Staff notes that the Planning
Commission is currently in the process of amending the City's Wine
Tasting Policy, and the amended policy may further support requiring a
Duplicate Type 02 license. However, such a restriction may have legal
enforceability issues.
Staff Analysis of Appeal
After analyzing the issues presented by the appellant, staff concludes
that the proposed wine tasting shop, approved through UP 13-17, is
consistent with the City's Wine Tasting Policy. Staff recommends that the
City Council deny the appeal and uphold the Planning Commission's
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Alternatives
decision to approve UP 13-17 subject to the findings and conditions
included in attachment B.
This hearing is a de novo hearing. The City Council is responsible for
reviewing the entire project and is not bound by the decision of the
Planning Commission. The February 11, 2014 Planning Commission staff
report, findings, and conditions of approval for UP 13-37 are included in
Attachment C for the City Council's consideration. Attachment D includes
that meeting' s minutes.
If the City Council determines that the approval of UP 13-17 is not
consistent with the City's Wine Tasting Policy or cannot be supported by
the other findings included in Attachment B, then the Council should
direct staff to prepare findings for denial, which would be adopted at a
future meeting.
Alternatively, the Counci l could also approve the application with
amendments to the findings, conditions, or could direct the applicant to
revise specific aspects of the proposal.
Previous Council
Action/Decision History:
Attachments:
The Planning Commission approved UP 13-17 by a vote of 4-1 on
February 11, 2014. On March 11, 2014, UP 13-17 was scheduled for a
Reconsideration Determination. The Planning Commission voted 5-0 not
to reconsider the item.
• Attachment A- Appeal Application
• Attachment B- Findings for Approval and Conditions of Approval
• Attachment C- PC Staff Report, Findings for Approval, Conditions of Approval,
Attachments.
• Attachment D- Minutes of the February 11, 2014 PC meeting (pertinent excerpts)
• Attachment E- Wine Tasting Policy
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Reviewed by:
City   City Attorney
Asst. City Admin.
Public Safety Dir
0
0
Dir of CPB
Library Dir
Administrative Services 0
Dir of Public Svcs 0
Other 0
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· Attachment A- Appeal Application R
CITY OF CARMEL-BY-THE-SEA .. ......
i 1t ' •l
APPEAL OF PLANNING COMMISSION f  

••<r.t , ij}-: '/-
(FILING FEE: $295.00*)
17
tE-s£.1
Appellant: ___ Carmel Wine Walk by-the-SeaTM _____ _
Property Owner: Scott Caraciolli, Caraciolli Cellars, Jack Galante, Galante Vineyards
Richard Pepe. Vino Napoli, Peter Figge, Figge Vineyards, Dawn Galante, Dawn's Dream
Winery, Scott Scheid, Scheid Vineyards, Mark Manzoni, Manzoni Cellars, Jeffery Blair,
Blair Estate, Anna Russell, De Tierra Vineyards
Mailing Address: PO Box 4444, Cannel, CA 93921
Phones: Day:C831 ) 624-2522
Evening: ..__( -= 83=--=1'---'-) --=6=82=--=09'--'-7=-3 _
Fax: ( ). ______ _
Email: scott.caraccioli@caracciolicellars.com
Date Board heard the matter: February 11, 2014
Appeals to the City Council must be made in writing in the office of the City Clerk within
10 working days following the daJe of action by the Plonning Commission and paying
the requiredfilingfee as established by City Council resolution.
Physical location of property that is the subject of appeal:
San Carlos E/S Between 5th and 6th A venue Tract 0118.01
Lot(s): ____ _ Block: ____ _
APN: __________ __
COMMISSION ACTION BEING APPEALED: UP 13-17
If you were NOT the original applicant or the applicant's representative, please state the
evidence that you are an aggrieved party: ---------------
(CONTINUED ON REVERSE SIDE)
GROUNDS FOR APPEAL: (State the specific basis for your appeal, such as errors or
omissions you believe were committed by the Commission in reaching its decision, etc.)
Please see attached addendum
122
I CERTIFY UNDER PENALTY OF PERJURY THAT THE FOREGOING TS TRUE
AND CORRECT:
TillS   DAY OF
2014.
$295.00 fee* received: (Staff Initial) Receipt#:
ATTEST:
p , -
• Article 9, Section 7, of the Constitution of the a city Tc,
impose fees. Also see California government Code, Section 54344.
IMPORT ANT: If the appellant wishes to submit materials for duplication and
inclusion in the City of Carmel-by-the-Sea's Council agenda packet, the materials must
be submitted to the City Clerk by working days after the decision of the
Commission. This matter is tentatively scheduled to be heard on
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CARMEL
BY-THE-SEATM
February 21, 2014
Robert A. Mullane, AICP
Commissioners and Council Members
Community Planning and Building Director
City of Cannel-by-the-Sea
Department of Community Planning and Building
P.O. Drawer G
Carmel-by-the-Sea, CA 93921
AE: Appeal of Case Number: UP - 13-17 da Giovanni Cellar
Mr. Mullane, Commissioners and Council Members;
It is the belief of the Cannel Wine Walk by-the-SeaTM that the noted case number UP 13-17
approval should be appealed and conditions should be reviewed. tt is also the belief of the Carmel
Wine Walk by-the-Sea™ that UP 13-7 preliminary approval should be appealed and denied.
In the case of UP 13-17 the re-writing of the existing conditions and guidelines to the wine
tasting room policies were done at the table, not by the applicant but by staff and the
commissioners in order to push through the approval of a tasting room in Carmel-by-the-Sea.
As Commissioner Paterson, Barbara Uvingston of the CRA and Jack Galante of Galante
Vineyards stated in various and different ways: "the concept, licensing and representation is too
muddled and sketchy. " We believe that it is imperative that the type of license be identified and
approved prior to the approval of any project to see if it is consistent with the conditions and
guidelines that are in force.
The concern of the Cannel Wine Walk by-the-Sea tasting rooms is that when we have new
tasting rooms coming to our city,
a) We do not want to undermine the experience of tasting Monterey County wines
a. the City Council, the Planning Commission, the Carmel Chamber of Commerce, the
Carmel Resident's Association, the Innkeepers Association, the Monterey County
Vintners and Growers Association and the Carmel Wine Walk by-the-Sea as well as
many others have worked diligently in creating a destination marketing program to
bring in quality visitors and appeal to the Cannel locals in order to regulate and
responsibly represent Monterey County and our local growers vintners.
b. it is important to note that there is no condition that would prevent a large Napa,
Sonoma or other winery coming to Carmel-by-the-Sea and pouring their wines
b) Ucensing issues for clarification:
a. All off-site tasting rooms require a Duplicate 02 License. This is the law.
b. Those who do pouring's to the public under a Type 42 Ucense Oike Southern
Latitudes and Neilson's) are NOT tasting rooms. They buy other people's wines and
sell them along with limited tastings allowed under their license. In addition, they
usually hold other licenses, such as a Type 20 or a Type 21 so they can sell the
wine.
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..
c. A Duplicate 02 Ucensee (Tasting Room) can only pour the wine that was made at
their 02 License (Winery).
d. A Type 17 Ucense (Wholesaler) and Type 20 License (Sales to consume off
premise} don't have anything to do with pouring wine.
e. Current case: As far as anyone can tell, da Giovanni wines are made at a winery in
Sonoma (with an 02 License in
Sonoma). http://www. threecarmelrestaurants.com/carmel-restaurant-wine-
club.html Obviously, da Giovanni wines cannot be poured under a Duplicate 02
License from a Morgan Hill winery that doesn't produce da Giovanni wines.
f. Bringing in the new wines (Chateau Marie Antoinette) on this application has just
complicated the matter.
g. On this issue alone, the application should never have been approved.
h. As a side note; every other wine produced by that Morgan Hill winery CAN be
poured under a Duplicate 02 Ucense if they get one.
c) The Alcoholic Beverage Control (ABC) may grant duplicate Type 02 business licenses (off-
site Wine tasting), however, it is the Planning Commissions responsibility to determine
how the licenses are utilized
a. It was very clear that the duplicate 02 license proposed for use is from a Morgan
Hill winery, not from the applicant's winery. This would not be allowed.
b. It was also clear that the applicant did not have a Type 02 license but seemed to
have a 17-20, which does not allow for a wine tasting room.
c. It is also clear that the grapes grown and sourced by da Giovanni are from Sonoma.
d. What was not clear was where the grapes from Chateau Marie Antoinette were
from, Santa Clara, or according to Bill Temple "maybe they're Monterey County
wines."
i. When Chateau Marie Antoinette was questioned if they belonged to any of
our local wine growing organizations i.e. MCVGA, the ultimate answer was
"no"
e. The size and scope of the project was not clear nor was the wine shop element
f. The conditions of appeal were not clear
g. The Carmel Wine Walk contends that it was not appropriate to re-write the special
conditions regarding the implementation and use and with the ABC licensing
h. The Carmel Wine Walk also contends that the revised conditions of approval were
made under special circumstances and should be stricken and revisited at the next
meeting.
i. Ucensing is not clear, conditioning of approval could allow the ABC to grant any
type of license and the City would grant any use permit without public comment or
approval
j . In this case, the applicant may only apply for a Type 42 Onsale Beer and Wine
license but be granted all the tasting privileges of a Winery with a Type 02.
As the Carmel Wine Walk by-the-Sea™ attended the wine tasting room sub-committee
meeting and supplied our by-laws to the Planning Commission, we also would suggest and
immediacy and urgency that is needed by the Commission to update and implement the guidelines
to maintain a consistent adopted wine tasting policy by the City of Carmel-by-the-Sea. Including 1)
the 02 Ucense (Winery) is located in Monterey County, 2) the wine to be poured is made from 90%
Monterey County grapes, and 3) the location is stand-alone (i.e., no mixed use with furniture stores,
jewelry stores, art galleries, etc.) It is the suggestion of the Carmel Wine Walk that the City of Carmel
places a moratorium on all tasting room applications until the guidelines are created and adopted.
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The special conditions, authorizations and terms as well as findings should be re-visited and
reviewed after the wine tasting room sub-committee and staff to create and maintain a consistent
wine tasting policy guideline that the Crty should adopt and use for all future proposals including UP
13-1.
Sincerely,
Scott Caraciolli, Caraciolli Cellars, Chairman Carmel Wine Walk
Jack Galante, Galante Vineyards
Richard Pepe, Vino Napoli
Chris Whaley, Wrath Wine
Peter Figge, Rgge Vineyards
Dawn Galante, Dawn's Dream Winery
Scott Scheid, Scheid Vineyards
Mark Manzoni, Manzoni Cellars
Jeffery Blair, Blair Estate
Tim Prader, Shale Canyon
Anna Russell, De Tierra Vineyards
Dorothea Probasco, Silvestri Vineyards
Celeste White, white page communications
The Committee of the Carmel Wine WaJk by-the-Sea
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Attachment B -Findings for Approval (For Council Approval)
CITY OF CARMEL-BY-THE-SEA
DEPARTMENT OF COMMUNITY PLANNING AND BUILDING
UP 13-17
Firok Shield
da Giovanni Cellar Wines
FINDINGS FOR APPROVAL
San Carlos Street, 3 properties southeast of 5th Ave
Block 57, Lots 8 & 10
APN: 010-132-011
CONSIDERATION:
Consideration of a Use Permit (UP 13-17) to establish a retail wine shop with wine tasting as an
ancillary use in an existing commercial space located in the Central Commercial (CC) Zoning District
FINDINGS OF FACT:
1. The commercial space is located on San Carlos Street, three properties southeast of Fifth
Avenue. The commercial space is approximately 820 square feet in size.
2. The applicant applied for a Use Permit on September 25,2013, to allow for retail wine sales
with wine tasting as an ancillary use, and provided revised application materials on
December 11, 2013, and January 24, 2014.
3. CMC Section 17.14.040 requires Planning Commission review for all Use Permits involving
ancillary uses of 10% or more.
4. The proposed uses are classified as follows according to the North American Industrial
Classification System (NAICS):
Primary Use
Retail Sales- 76% (wine, wine related merchandise)
Ancillary Use
Wine Tasting- 24%
5. The application qualifies for a Class 3 Categorical Exemption from the provisions of the
California Environmental Quality Act (CEQA} pursuant to Section 15303 of the State CEQA
Guidelines. Class 3 exemptions include projects involving limited new construction projects
and conversion of small structures.
127
UP 13-17 (da Giovanni Cellar Wines)
April 1, 2014
Findings for Approval
Page 2
FINDINGS FOR DECISION:
1. The proposed use is not in conflict with the General Plan.
2. The proposed use, as conditioned, will comply with all zoning standards applicable to the
use and zoning district.
3. The granting of the Use Permit will not set a precedent for the approval of similar uses
whose incremental effect will be detrimental to the City, or will be in conflict with the
General Plan.
4. The proposed use will not make excessive demands on the provision of public services,
including water supply, sewer capacity, energy supply, communication facilities, police
protection, street capacity and fire protection.
5. The proposed use will not be injurious to public health, safety or welfare and provides
adequate ingress and egress.
6. The proposed use will be compatible with surrounding land uses and will not conflict with
the purpose established for the district within which it will be located.
7. The proposed use will not generate adverse impacts affecting health, safety, or welfare of
neighboring properties or uses.
8. The proposed use is consistent with the City's adopted Wine Tasting Policy, in as much as
both labels use wine produced in Monterey County. Chateau Marie Antoinette Winery
primarily sources grapes from Monterey County, and da Giovanni includes some wines
sourced in Monterey County.
REQUIRED FINDINGS (CMC 17.64.060- Ancillary Uses):
1. The ancillary use of wine tasting is compatible with the pri mary use of retail wine sales.
2. The proposed uses will not exhibit a character of multiple, unrelated activities combined
into one business.
3. The store will continue to contribute to the character and diversity of the commercial
district.
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Attachment B -Conditions of Approval (For Council Approval)
CITY OF CARMEL-BY-THE-SEA
DEPARTMENT OF COMMUNITY PLANNING AND BUILDING
UP 13-17
Firok Shield
da Giovanni Cellar Wines
CONDITIONS OF APPROVAL
San Carlos Street, 3 properties southeast of 5th Avenue
Block 57, Lots 8 & 10
APN: 010-132-011
CONSIDERATION:
Consideration of a Use Permit (UP 13-17) to establish a retail wine shop with wine tasting as an
ancillary use in an existing commercial space located in the Central Commercial (CC) Zoning District
AUTHORIZATION:
1. This Use Permit authorizes the retail sale of wine with an ancillary use of wine tasting
based on the percentages identified in the Findings for Approval. Of the 1,050 square feet
devoted to retail sales and wine tasting, 76% of this area (approximately 798 sq ft) will be
used for retail sales, and 24% of the area (approximately 252 sq ft) may be used for wine
tasting. Wine sales and tasting shall be limited to wines from Chateau Marie Antoinette
Winery and da Giovanni Cellars.
2. The busi ness is permitted to operate between the hours of 12:30 pm and 9:00pm daily.
3. Wine tasting club events are permitted on a monthly basis, and shall adhere to the normal
operating hours.
4. Up to four (4) special events are allowed per year, subject to written authorization from
the Community Planning and Building Director, after review ofthe specifics of the request.
Such specific requests shall be provided in writing to the Community Planning and Building
Department no less than 30 days prior to the event.
SPECIAL CONDITIONS:
5. Tasting shall involve traditional wine based products such as sti ll wines, sparkling wines or
Port. No other alcoholic beverages are permitted to be tasted or sold.
6. The maximum serving size shall be 2 ounces per serving. Customers are not permitted to
drink bottles of purchased wine in the store, and no wine tasting shall take place on public
129
UP 13-17 (da Giovanni Cellar Wines)
April 1, 2014
Conditions of Approval
Page 2
property or in the courtyard.
7. The applicant shall obtain, and provide the City with documentation for, any applicable
licenses with the ABC prior to certification of occupancy.
8. All exterior alterations and/or sign changes, and interior renovations that may require a
building permit, shall require approval from the Department of Community Planning and
Building prior to performing the work.
9. The use shall be conducted in a manner consistent with the presentations and statements
submitted in the application and at the public hearing, and any change in the use which
would alter the findings or conditions adopted as part of this permit shall require approval
of a new Use Permit by the Planning Commission.
10. This Use Permit shall become void and of no further force or effect if the use is not
initiated within six months and/or upon termination or discontinuance of the use for any
period of time exceeding six months.
11. Violations of the terms of this Use Permit or other ordinances of the City may constitute
grounds for revocation of this Use Permit and the associated business license by the
Planning Commission.
12. Upon termination or revocation of this Use Permit and/or business license for any reason,
the use shall immediately cease and shall not be re-established without issuance of a new
Use Permit.
13. Approval of this application does not permit an increase in water use on the project site.
Should the Monterey Peninsula Water Management District determine that the use would
result in an increase in water use as compared to the previous use, this Use Permit will be
scheduled for reconsideration.
14. The applicant agrees, at its sole expense, to defend, indemnify, and hold harmless the City,
its public officials, officers, employees, and assigns, from any liability; and shall reimburse
the City for any expense incurred, resulting from, or in connection with any project
approvals. This includes any appeal, claim, suit, or other legal proceeding, to attack, set
aside, void, or annul any project approval. The City shall promptly notify the applicant of
any legal proceeding, and shall cooperate fully in the defense. The City may, at its sole
discretion, participate in any such legal action, but participation shall not relieve the
applicant of any obligation under this condition. Should any party bring any legal action in
connection with this project, the Superior Court of the County of Monterey, California,
shall be the situs and have jurisdiction for the resolution of all such actions by the parties
hereto.
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UP 13-17 (da Giovanni Cellar Wines)
April 1, 2014
Conditions of Approval
Page 3
*Acknowledgement and acceptance of conditions of approval.
Applicant Signature Printed Name
Property Owner Signature Printed Name
Date
Date
Once signed, please return to the Community Planning and Building Department.
131
Attachment C- PC Staff Report, Findings, Conditions, and Attachments
To:
From:
Submitted by:
Subject:
CITY OF CARMEL-BY-THE-SEA
Planning Commission Report
February 11, 2014
Chair Dallas and Planning Commissioners
Rob Mullane, AICP, Community Planning and Building Director
Marc Wiener, Senior Planner
Consideration of a Use Permit (UP 13-17} to establish a retail wine shop
with wine tasting as an ancillary use in an existing commercial space
located in the Central Commercial (CC} Zoning District
Recommendation:
Consider Use Permit (UP 13-17} and provide direction to the applicant
Application: UP 13-17 APN: 010-132-011
Location: San Carlos Street 3 properties southeast of sth Avenue
Block: 57 Lots: 8 & 10
Applicant: Firok Shield Property Owner: Mike Ricketts
Background and Project Description:
The project site is a commercial building located on San Carlos Street, three properties
southeast of Fifth Avenue. The applicant, Firok Shield, is the owner of da Giovanni Restaurant,
located between Fifth and Sixth Avenues on Lincoln Street, and is also the owner of the da
Giovanni Cellars wine label. The da Giovanni wine label primarily sells wines that are sourced
from Sonoma, California. The applicant has indicated that the wine shop would feature wines
from da Giovanni Cellars, as well as wines from Monterey County.
The proposed hours of operation are from 12:30 p.m. to 9:00 p.m., seven days a week.
Additionally, the winery's wine club would meet in the facility once a month, and special events
would occur three to four times per year. Staff notes that businesses are permitted up to four
special events per year with approval from the Department of Community Planning and
Building.
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UP 13-17 (da Giovanni Cellar Winery)
February 11, 2014
Staff Report
Page 2
The Planning Commission reviewed this project on December 11, 2013, and continued it with a
request for changes. The applicant has revised the proposal to address the recommendations
made by the Planning Commission.
Previous Hearing: The following is a list of recommendations made by the Planning
Commission and a staff analysis on how the appl icant has or has not complied:
1. The applicant shall reduce the number of seats and seating area within the wine shop.
Analysis: The applicant had originally proposed 7 tables with 4 seats each, and 8 additional
barstools, for a total of 36 seats. The proposed area used for wine tasting occupied
approximately 350 square feet (or 33%) of the 1,050 square feet devoted to retail sales and
wine tasting.
The Planning Commission was concerned that the proposed seating layout and number of seats
were characteristic of a bar as opposed to the primary use of a retail wine shop. The Planning
Commission directed the applicant to reduce the seating, including the elimination of the
proposed seating at the front of the wine shop.
The applicant has revised the seating plan and reduced the seating from 36 to 20 seats. The
applicant eliminated 2 tables and 8 seats at the front of the shop, and eliminated 2 tables and 8
seats from the center portion of the shop. The applicant is now proposing 8 seats at a bar and
12 seats located at 3 tables. As proposed, retail display would be located at the front and rear
portions of the wine shop, while the seating area would be located at the center of the shop
and would occupy approximately 24% of the retail space.
The revi sed seating plan appears to comply with the direction given by the Planning
Commission. However, staff notes that other tasting room bars are standing bars that lack
seating and that such an arrangement may be preferable both aesthetically and operationally.
There have been suggestions at the Wine Tasting Room Sub-committee meetings that standing
bars may be more in keeping with the intent of the City's Wine Tasting Room Policy.
At the December 2013 Commission meeting, staff had expressed concern that the retail display
area contained circular tables that could be converted to tasting areas. The applicant has
provided sample photographs of the type of retail displays envisioned for these display areas.
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UP 13-17 (da Giovanni Cel lar Winery)
February 11, 2014
Staff Report
Page 3
2. The business shall include a Monterey County Winery with a Duplicate Type 02 license.
Analysis: The above recommendation is based on the City's Wine Tasting Policy which states
that: "Wines originating from Monterey County vineyards and wineries and locating their off-
site tasting rooms in Carmel are desired and strongly encouraged."
A Duplicate Type 02 license allows a winery to have a tasting room away from the location that
the wine is made. At the December 11, 2013 Commission meeting, the appl icant indicated that
the wine shop would feature wines from the da Giovanni Cellars label, which includes wines
that are primarily produced in Sonoma, California. The applicant also indicated that shop would
feature wines from Bernardus Winery, which is located in Carmel Valley. However, it was noted
that Bernardus Winery holds a Duplicate Type 02 license elsewhere and would likely not be
interested in transferring its Duplicate Type 02 license to the site.
The applicant has not met the requirement of including a Monterey County Winery that would
be transferring or obtaining a Duplicate Type 02 license for the site. With regard to the
wineries that are represented in the wine shop, the Planning Commission should discuss the
following questions:
1. Is the winery represented in wine shop required to have a Duplicate Type 02 license, or
can it simply be a Monterey County winery?
2. If the Planning Commission determines that a Duplicate Type 02 license is required, can
the shop also include ancillary wines from da Giovani Cellars and Bernardus Winery for
sale and tasting?
Alternatives: Staff has prepared draft findings and conditions of approval for Commission
consideration based on the revised floor/seating plan. A condition has been drafted that
requires the applicant to provide documentation to the Planning Commission regarding the
selected winery and verification that it is a Monterey County winery with a Duplicate Type 02
license, prior to implementation of the Use Permit. As an alternative to approving the Use
Permit application, the Planning Commission could also continue it until a Monterey County
Winery with a Duplicate Type 02 license is identified and committed for the space.
If the Commission determines that a Duplicate Type 02 license is not required, than the special
condition could be amended to only require that the winery be from Monterey County. Having
Bernardus Winery represented in the wine shop would meet this requirement.
134
UP 13-17 (da Giovanni Cellar Winery)
February 11, 2014
Staff Report
Page4
Environmental Review: The application qualifies for a Class 3 Categorical Exemption from the
provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15303 of the
State CEQA Guidelines. Class 3 exemptions include projects involving limited new construction
projects and conversion of small structures.
ATTACHMENTS:
• Attachment A- Findings for Approval
• Attachment B -Conditions of Approval
• Attachment C- Applicant Cover Letter
• Attachment D- Wine Tasting Policy
• Attachment E- Original Floor Plan (12/11/13)
• Attachment F- Revised Floor Plan (2/11/14)
135
CITY OF CARMEL-BY-THE-SEA
DEPARTMENT OF COMMUNITY PLANNING AND BUILDING
UP 13-17
Firok Shield
da Giovanni Cellar Wines
FINDINGS FOR APPROVAL
San Carlos Street, 3 properties southeast of sth Ave
Block 57, Lots 8 & 10
APN: 010-132-011
CONSIDERATION:
Consideration of a Use Permit (UP 13-17) to establish a retail wine shop with wine tasting as an
ancillary use in an existing commercial space located in the Central Commercial (CC) Zoning District
FINDINGS OF FACT:
1. The commercial space is located on San Carlos Street, three properties southeast of Fifth
Avenue. The commercial space is approximately 820 square feet in size.
2. The applicant applied for a Use Permit on September 25, 2013, to allow for retail wine sales
with wine tasting as an ancillary use, and provided revised application materials on
December 11, 2013, and January 24, 2014.
3. CMC Section 17.14.040 requires Planning Commission review for all Use Permits involving
ancillary uses of 10% or more.
4. The proposed uses are classified as follows according to the North American Industrial
Classification System (NAICS):
Primary Use
Retail Sales- 76% (wine, wine related merchandise)
Ancillary Use
Wine Tasting- 24%
5. The application qualifies for a Class 3 Categorical Exemption from the provisions of the
California Environmental Quality Act (CEQA) pursuant to Section 15303 of the State CEQA
Guidelines. Class 3 exemptions include projects involving limited new construction projects
and conversion of small structures.
136
UP 13-17 (da Giovanni Cellar Wines)
February 11, 2014
Findings for Approval
Page 2
FINDINGS FOR DECISION:
1. The proposed use is not in conflict with the General Plan.
2. The proposed use, as conditioned, will comply with all zoning standards applicable to the
use and zoning district.
3. The granting of the Use Permit will not set a precedent for the approval of similar uses
whose incremental effect will be detrimental to the City, or will be in conflict with the
General Plan.
4. The proposed use will not make excessive demands on the provision of public services,
including water supply, sewer capacity, energy supply, communication facilities, police
protection, street capacity and fire protection.
5. The proposed use will not be injurious to public health, safety or welfare and provides
adequate ingress and egress.
6. The proposed use will be compatible with surrounding land uses and will not conflict with
the purpose established for the district within which it will be located.
7. The proposed use will not generate adverse impacts affecting health, safety, or welfare of
neighboring properties or uses.
8. The proposed use is consistent with the City's adopted Wine Tasting Policy.,., in as much as
both labels use wine produced in Monterey County. Chateau Marie Antoinette Winery
primarily sources grapes from Monterey County, and da Giovanni includes some wines
sourced in Monterey County.
REQUIRED FINDINGS (CMC 17.64.060- Ancillary Uses):
1. The ancillary use of wine tasting is compatible with the primary use of retail wine sales.
2. The proposed uses will not exhibit a character of multiple, unrelated activities combined
into one business.
3. The store will continue to contribute to the character and diversity of the commercial
district.
137
CITY OF CARMEL-BY-THE-SEA
DEPARTMENT OF COMMUNITY PLANNING AND BUILDING
UP 13-17
Firok Shield
da Giovanni Cellar Wines
CONDITIONS OF APPROVAL
San Carlos Street, 3 properties southeast of sth Avenue
Block 57, Lots 8 & 10
APN: 010-132-011
CONSIDERATION:
Consideration of a Use Permit (UP 13-17) to establish a retail wine shop with wine tasting as an
ancillary use in an existing commercial space located in the Central Commercial (CC) Zoning District
AUTHORIZATION:
1. This Use Permit authorizes the retail sale of wine with an ancillary use of wine tasting
based on the percentages identified in the Findings for Approval. Of the 1,050 square feet
devoted to retail sales and wine tasting, 76% of this area (approximately 798 sq ft) wil l be
used for retail sales, and 24% of the area (approximately 252 sq ft) may be used for wine
tasting. Wine sales and tasting shall be limited to wines from Chateau Marie Antoinette
Winery and da Giovanni Cellars.
2. The business is permitted to operate between the hours of 12:30 pm and 9:00pm daily.
3. Wine tasting club events are permitted on a monthly basis, and shall adhere to the normal
operating hours.
4. Up to four (4) special events are allowed per year, subject to written authorization from
the Community Planning and Building Director, after review of the specifics of the request.
Such specific requests shall be provided in writing to the Community Planning and Building
Department no less than 30 days prior to the event.
SPECIAL CONDITIONS:
1. Prior to iA'lplernentation of the Use PerA'lit, the applieant shall pro•,ciele eloel::lA'lentation to
the Planning CoA'lA'lission regareling the seleeteel winery anel ·1erifieation that it is a
Monterey Col::lnty winery with a Dl::lplieate Type 02 lieense.
  Tasting shall involve traditional wine based products such as still wines, sparkling wines or
138
UP 13-17 (da Giovanni Cellar Wines)
February 11, 2014
Conditions of Approval
Page 2
Port. No other alcoholic beverages are permitted to be tasted or sold.
  The maximum serving size shall be 2 ounces per serving. Customers are not permitted to
drink bottles of purchased wine in the store, and no wine tasting shall take place on public
property or in the courtyard.
7. The applicant shall obtain, and provide the City with documentation for, any applicable
licenses with the ABC prior to certification of occupancy.
8. All exterior alterations and/or sign changes, and interior renovations that may require a
building permit, shall require approval from the Department of Community Planning and
Building prior to performing the work.
9. The use shall be conducted in a manner consistent with the presentations and statements
submitted in the application and at the public hearing, and any change in the use which
would alter the findings or conditions adopted as part of this permit shall require approval
of a new Use Permit by the Planning Commission.
10. This Use Permit shall become void and of no further force or effect if the use is not
initiated within six months and/or upon termination or discontinuance of the use for any
period of time exceeding six months.
11. Violations of the terms of this Use Permit or other ordinances of the City may constitute
grounds for revocation of this Use Permit and the associated business license by the
Planning Commission.
12. Upon termination or revocation of this Use Permit and/or business license for any reason,
the use shall immediately cease and shall not be re-established without issuance of a new
Use Permit.
13. Approval of this application does not permit an increase in water use on the project site.
Should the Monterey Peninsula Water Management District determine that the use would
result in an increase in water use as compared to the previous use, this Use Permit will be
scheduled for reconsideration.
14. The applicant agrees, at its sole expense, to defend, indemnify, and hold harmless the City,
its public officials, officers, employees, and assigns, from any liability; and shall reimburse
the City for any expense incurred, resulting from, or in connection with any project
approvals. This includes any appeal, claim, suit, or other legal proceeding, to attack, set
aside, void, or annul any project approval. The City shall promptly notify the applicant of
any legal proceeding, and shall cooperate fully in the defense. The City may, at its sole
discretion, participate in any such legal action, but participation shall not relieve the
applicant of any obligation under this condition. Should any party bring any legal action in
139
UP 13-17 (da Giovanni Cellar Wines)
February 11, 2014
Conditions of Approval
Page 3
*Acknowledgement and acceptance of conditions of approval.
Applicant Signature Printed Name
Property Owner Signature Printed Name
Date
Date
Once s i g n e   ~ please return to the Community Planning and Building Department.
1
4
0
Attachment F- Revised Floor Plan (2/11/14)

RECEIVED
JAN 2 4 2014
City of Corm<tl·by· fhe·Soo
Plonnlng t Bultdlng Dept.
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142
Attachment D - Feb 11, 2014, PC Minutes (peritent excerpt)
CITY OF CARMEL-BY-THE-SEA
PLANNING COMMISSION- MINUTES
FEBRUARY 11, 2014
I. CALL TO ORDER AND ROLL CALL FOR TOUR OF INSPECTION
PRESENT: Commission Members: LePage, Paterson, Reimers, Goodhue, and Dallas
ABSENT: Commissioners Members: None
STAFF PRESENT: Rob Mullane, AICP, Community Planning & Building Director
Marc Wiener, Senior Planner
Bryce Temet, Contract Planner
T. J. Wiseman, Contract Planner
Daryl Betancur, Acting Commission Secretary
II. TOUR OF INSPECTION
The Commission convened at 2:30 p.m. and then toured the following sites:
1. (DS 13-136) Cal & Carol Dales: SW Comer ofLincoln & 3rd, Block 32; Lot 1
2. (DS-12-77 RV-01) David Graham: SE Comer of Carmelo & 4th, Block GG; lots 26 &
28
3. (DS 13-1 12) Adoi, LLC: Carmelo 3 SE of 4th, Block GG; Lots 20 & 22
4. (UP 13-17) Firok Shield: San Carlos 3 SE of 5th; Block 57; Lot(s) 10
5. (UP 13-7) Esme Lazarre: San Carlos 2 SE of Ocean, Block 77; Lot(s) 5, 6, 7,8
6. (SI 14-02/SJ 14-03) Dawn Galante: NW San Carlos & 7th; Block 76, Lot(s) 19 & 21
7. (DS 13-143) Joseph and Annette Goodwine: Monte Verde 2 NE of 8th; Block 93; Lot
16
8. (DS 13-105) Vance Coffman: 2742 Santa Lucia Avenue; Block 3M; Lot 7
III. ROLL CALL
Chairman Dallas called the meeting to order at 4:05p.m.
IV. PLEDGE OF ALLEGIANCE
Members of the audience joined Commission Members in the pledge of allegiance.
V. ANNOUNCEMENTS/EXTRAORDINARY BUSINESS
There were no announcements.
Planning Commission Minutes
FebnJary I 1, 2014
I
143
NOES:
ABSENT:
ABSTAIN:
COMMISSIONERS:
COMMISSIONERS:
COMMISSIONERS:
NONE
NONE
NONE
7. DS 12-77 RV-01 Applicant: David Graham
Location: SE Cor. of Carmelo & 4th; Block GG; Lots 26 & 28
Consideration of a Design Study (DS 12-77 RV-01) for
revisions to an approved new residence on a property located
in the Single-Family Residential (R -1) and Archaeological
Zoning Districts.
Mr. Weiner presented the staff report describing the proposed project.
Rob Nicely of Carmel Building and Design, general contractor, addressed the Commission
on behalf of the owners. He noted that the dormer in question has already been framed out,
and clarified other components of the proposed revisions.
Chair Dallas opened the public hearing at 7:06p.m. Seeing no speakers, Chair Dallas closed
the public hearing at 7:06p.m. Commissioner Reimers noted for the record that Mr. Nicely
was the contractor for a project at her residence.
Chair DALLAS moved to accept the Design Study as presented with the special
conditions as noted in the staff report. Motion failed due to a lack of a second.
New Motion: Commissioner LEPAGE moved to accept the application subject to the
conditions of approval with the deletion of Special Condition #2. Motion seconded by
Commissioner PATERSON, and carried by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
8. UP 13-17
COMMISSIONERS:
COMMISSIONERS:
COMMISSIONERS:
COMMISSIONERS:
LEPAGE,PATERSON, REIMERS, AND
GOODHUE
DALLAS
NONE
NONE
Applicant: Firok Shield
Location: San Carlos 3 SE of 5th; Block 57, Lot 10
Consideration of a Use Permit (UP 13-17) to establish a retail
wine shop with wine tasting as an ancillary use in an existing
commercial space located in the Central Commercial (CC)
Zoning District.
Mr. Weiner presented the staff report describing the proposed project and the revisions
made to the floor plan since the last time this application was considered. No questions
from the Commission.
Firok Shield of da Giovanni Wines, Bill Temple of Chateau Marie Antoinette addressed the
Commission and provided information on their respective labels, winery locations, and
Planning Commission Minutes
February 1 1, 2014
10
144
vineyard locations. Mr. Shield estimated that 90% of the wines offered would be from
Monterey County, and the majority of wine would be sourced from Monterey County. Mr.
Temple noted that Marie Antoinette Cellars primarily sources grapes from Monterey
County, including from Arroyo Seco/Santa Lucia Highland areas. Their winery is in
Morgan Hill; the winemaker is Phil Franscioni. Mr. Temple noted that 97% of the wine is
sourced from Monterey County, with a small amount in the San Miguel/Paso Robles area.
Mr. Temple noted that Chateau Marie Antoinette would be operating under a Type 17/20
State ABC license.
Chair Dallas opened the public hearing at 7:23p.m.
Speaker# 1 : Barbara Livingston, noted her preference for getting an operation with a Type
02 ABC license. She recommends continuing the item due to unclear information presented.
Speaker #2: Mike Ricketts, property owner, requested action on the application this evening.
Speaker #3: Jack Galante, questioned how the ABC licensing for the proposal would work.
Supports Monterey County wineries.
Speaker #4: Marie Antoinette, co-applicant, provided additional information on Chateau
Marie Antoinette and their operations. She stated a desire to become a member of the
Monterey County Vintners Association. She also stated that a Type 02 license could be
granted for Chateau Marie Antoinette and that a Type 20 license would not be used. She
noted that Morgan Hill Cellars has an on-site wine tasting operation but does not currently
have an offsite location operating under a Type 02 license.
Chair Dallas asked Mr. Shield about what license would he operating under for his wines.
Mr. Shield responded that he would operate under Chateau Marie Antoinette and that this
approach had been okayed by State ABC.
Seeing no other speakers, Chair Dallas closed the public hearing at 7:32p.m.
The Commission had extensive discussion about the Type 02 license and other license
requirements, location of where that license is going to be held, where the grapes are
sourced, where the wine is being bottled, etc. The Commission also discussed potential
clarifications to the special conditions.
Chair Dallas reopened the public hearing at 8:13 p.m. to hear more from the applicant. Mr.
Shield noted that 90% of the wines would be Chateau Marie Antoinette and that I 0% would
be da Giovanni. Chair Dallas closed the public hearing at 8:15p.m.
The Chair called for a brief recess to allow staff to draft language for revisions to the
conditions of approvaL The Commission reconvened, and Mr. Mullane read the wording of
the new wording for Condition #1, which would include
1) the addition of the following sentence to the end of this condition:
Planning Commission Minutes
February II , 20 14
II
145
Wine sales and tasting shall be limited to wines from Marie Antoinette Cellars and
da Giovanni.
2) Special Condition #1 would be deleted in its entirety.
3) Special Conditions #2 and beyond would be renumbered to #5., #6., #7., etc.
Mr. Mullane also noted that Finding of Approval #8 would be revised to note that both
labels use wince produced in Monterey County, with additional information about the
source of the grapes.
Commissioner REIMERS moved to approve the application subject to the revised
conditions of approval and findings noted by staff. Motion seconded by Commissioner
LEPAGE, and carried by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
9. UP13-7
COMMISSIONERS:
COMMISSIONERS:
COMMISSIONERS:
COMMISSIONERS:
LEPAGE, GOODHUE, REIMERS, AND
DALLAS
PATERSON
NONE
NONE
Applicant: Esme Lazarre
Location: San Carlos 2 SE of Ocean; Block 77, Lots 5-8
Conceptual Review of a Use Permit (UP 13-7) application to
establish a retail wine shop with wine tasting as an ancillary
use in an existing commercial space located in the Central
Commercial (CC) Zoning District.
Commissioner Reimers recused herself due to owning property within 500 feet of the site
and left the dais.
Mr. Weiner presented the staff report with an overview the project and noted that the
applicant was awaiting conceptual review prior to identifying which wineries would be
proposed for this location. Mr. Wiener requested that the Commission discuss the specifics
of the existing wine tasting operations on this block of San Carlos in the context of whether
this application could be found consistent with the City's Wine Tasting Room Policy which
calls for generally no more than 5 such facilities on a given City block.
Esrne Lazarre, applicant, addressed the Commission and presented the proposal.
Mr. MulJane reminded the Commission that this item is scheduled for conceptual review,
which provides an opportunity for the Commission to comment on the proposal and note
any concerns.
Chair Dallas opened the public hearing at 8:34 p.m.
Speaker #1: Barbara Livingston, spoke about the number of wine tasting rooms in the City.
Planning Commission 1\ lioutes
February I 1, 2014
12
146
Attachment E - Wi ne Tasting Policy
Purpose
Wine Tasting Policy
(Adopted 6/23/2011)
To establish guidelines for the review and approval of wine tasting facilities in the Central
Commercial and Service Commercials Districts in the downtown.
Policy
The General Plan encourages a balanced mix of uses that serve the needs of both local and non-
local populations. The Planning Commission recognizes the demand for establishing wine
tasting facilities but also recognizes that their proliferation could impact the balanced mix of uses
that the General Plan encomages. The following standards are recommended and should be
considered by the Planning Commission in its review of wine tasting permits:
When Associated with Retail Wine Shops and off-site Wine Tasting Rooms:
• The primary purpose of wine tasting should be to encourage patrons to purchase wine for
consumption off-site. Establishments should not operate as a wine bar where the primary
purpose would be for patrons to drink wine.
• In order to avoid the appearance of a bar, the wine tasting service and seating area should
generally be limited to no more than 30% of the floor area of the retail space.
• Tasting should only involve traditional wine based products such as still wines, sparkling
wines or Port, no other alcoholic beverages should be permitted to be tasted or purchased.
• The maximum serving size should be 2 ounces per serving. Customers should not be
permitted to drink bottles of purchased wine in the store and no wine tasting should take
place on public property.
• Light snacks may be allowed, however, appetizers and/or meals should not be permitted.
• In order to encourage diversity and maintain a balanced mix of uses, one retail location
offering wine tasting should not be located directly adjacent to another retail location
offering wine tasting (not including restaurants). Generally, not more than five
establishments offering tasting should be permitted along any one block*.
• Night time hours should be limited to no later than 10:00 p.m.
• Wines originating from Monterey County Vineyards and Wineries and locating their off-
site tasting rooms in Carmel are desired and strongly encouraged.
When Associated with other Uses (Alt Gallery, Clothing Store, etc.)
• All the standards listed above.
• Limited to retail spaces of2,000 square feet or larger.
*For the purposes of this policy a block would include all commercial spaces on both sides of a street located
between the next two cross streets. For example, no more than fi ve wine tasting establishments should be permitted
along San Carlos Street between Ocean and Seventh avenues.

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