CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
SR 2017-096
July 11, 2017
Consent Agenda

TO: Honorable Mayor and City Council Members

SUBMITTED BY: Marc Wiener, AICP, Community Planning and Building Director

APPROVED BY: Chip Rerig, City Administrator

SUBJECT: Amendment to a project condition authorizing a 9-month time extension of the planning
permits for the construction of a new hotel (Carmel Sands) located in the in the Service
Commercial (SC) and Multi-Family Residential (R-4) Zoning Districts (Planning
application case numbers: DR 14-36 and UP 14-20).

RECOMMENDATION

Amend the project condition authorizing a 9-month time extension of the planning permits for this project.

BACKGROUND / SUMMARY

BACKGROUND:

On October 4, 2016, the City Council granted an appeal filed by the applicant, Mark and Susan Stilwell, and
approved Design Review, Use Permit and Coastal Development Permits for the demolition of an existing 42-
unit hotel and construction of a new 46,676-square foot 42-unit new hotel with underground parking at the
same location. The project was approved with a condition (Project Condition #49) requiring the applicant to
apply for a building permit within 9 months and initiate construction within 18 months from the date of approval.
The 9-month period will expire in July and the applicant has yet to submit a building permit application. The
applicant is requesting that the permit life to be extended by an additional 9 months, to 18 months total, and
has provided a letter (Attachment 1) stating the reasons why additional time is needed. An extension of the
permit requires an amendment to Project Condition #49.

STAFF ANALYSIS:

The Citys Municipal Code (CMC 17.52.170) allows a time limit of 18 months for commercial design review
applications. The City Council restricted the permit life to 9 months due to the history of this project, which was
originally approved in 2010 and had already been granted one time extension. Staff supports the request for a
9-month time extension based on the reasoning given by the applicant and because it would be consistent with
the Citys Municipal Code allowance for an 18-month permit. Staff recommends that the City Council amend
Project Condition #49 to allow 18 months for the applicant to apply for a building permit and 24 months to
initiate construction from the original date of City Council approval on October 4, 2016. This recognizes the
challenge of developing large-scale projects in the City and is consistent with the Municipal Code requirement
for other projects.
ENVIRONMENTAL REVIEW:

The City Council adopted a Mitigated Negative Declaration (MND) for this project on November 2, 2010, which
is still valid. That MND concluded that with mitigations there would be no significant environmental impacts.
There are no new circumstances or project revisions that require supplemental CEQA analysis. Construction
related impacts have been mitigated to the extent feasible and would be temporary.

FISCAL IMPACT

None
CAL IMPACT
PRIOR CITY COUNCIL ACTION

On October 4, 2016, the City Council approved Design Review (DR 14-36), Use Permit (UP 14-20), and
Coastal Development permit applications for the demolition of an existing 42-unit hotel and construction of a
new 42-unit hotel at the subject project site.

ATTACHMENTS

1. Applicant Letter
2. Amended Project Conditions
 Mark Stilwell
P.O. Box 4235
Ca1mel-by-the-Sea. CA 93921

June 12. 2017 Via Email

Marc Wiener
Planning Director
City of Carmel-by-the-Sea
Crumel-by-the-Sea, California, 9392 1

Re: Request to Amend Condition ofPermit DR 14-36/UP14-20 (the "Permit") for Cannel
Sands Project (Block 50, Lots 13-20, NE Comer of San Carlos & 5111)

Dear Chip and Marc:

Following up on my letter of May I 0, and our subsequent meeting, I am writing to fmmally

request an immaterial amendment to a single condition of the Permit for the Cannel Sands
project Lmanimously approved by the City Council on October 4, 2016: Special Condition 49.
As you know, Condition 49 modified the standard eighteen (18) month year time period for
design review permits. Instead, Condition 49 included a unique time period on the Project: nine
(9) months to file for our building permit and eighteen (18) months to commence construction,
with both periods commencing on the Permit approval date of October 4, 2016.

For a variety of reasons, we would respectfully requesting that Permit Condition 49 be amended
to replace these dual time periods with the standard single time period of eighteen ( 18) months
for design review petmits, as typically approved by the City, and consistent with City
Ordinances. First of all, the project is complicated, and nine months is simply too short a period
of time to try to finalize all construction details and file for a permit. Second, the construction
market continues to be extremely hot, with the unfmtunate consequence that construction pricing
is much higher than we anticipated. Mru1y recent projects are coming in at 30-50% higher
pricing than originally budgeted. We don't want to waste anyone' s time and money filing a
petmit for a project that is simply too costly to build in tlus market and additional time will help
us sort through this difficult situation. Third, and related to the first two points, we need more
time to value engineer the project to try to get to a viable construction cost. Finally, while Susan
and I want to remain the primary owners, we may want to bring in another financial pattner in
order to ensure that we have sufficient resources to build the project as proposed, and that
requires more time.

If done properly, the project as designed will be a wonderful addition to the hotel inventory for
Crumel-by-the-Sea, perhaps setting a new standard here. But forcing us to adhere to the unusual
time frame in the existing permit would be counterproductive to that goal, for all of the reasons
noted above. We only want to be treated the same as other pennits traditionally issued by the
City.
Thank you for your consideration and for placing our request on an upcoming City Council
agenda for consideration. I am presuming you would do so during the July meeting. In the
meantime, I am happy to discuss our situation further with you and to answer any questions.
Please feel free to contact me at 831-277-7703.

Sincerely,

14/;_~
Mark Stilwell
Owner, Carmel Lodge

Cc: Chip Rerig

Susan Stilwell

2
 Attachment 2 Project Conditions
CITYOFCARMELBYTHESEA

DEPARTMENTOFCOMMUNITYPLANNINGANDBUILDING

CONDITIONSOFAPPROVAL

DR1436/UP1420
MarkandSusanStilwell
CarmelSandsLodge
NECor.SanCarlos&5th
Block50,Lotssouthof12&1320
APN:010131025and010131026

PROJECTDESCRIPTION:
ConsiderationfortheReissuanceofDesignReview(DR1436),UsePermit(UP1420),
and Coastal Development Permit applications for the redevelopment of the Carmel
SandshotellocatedintheServiceCommercial(SC)ZoningDistrict.

AUTHORIZATION:
1. Entitlements.ThisapprovalauthorizestheissuanceofDemolition,DesignReview,Use
andCoastalDevelopmentpermits.Theseestablishanentitlementto:

Demolitionallexistingsiteimprovements.
Constructa64spaceundergroundgarage.
Constructa42unithotelthatincludesarestaurant,twocommercialspacesanda
dayspafacility.

All approvals are based on the design plans approved on October 4, 2016 and all
findings,mitigations(seeMitigation&MonitoringPlan),amendmentsandconditions
presented at the meeting. If any part of this entitlement is implemented, all parts,
designsandconditionsalsoshallbeimplemented.

PROJECTCONDITIONS:

(Hotel)
2. All42hotelunitsshallbeofferedonatransientbasis(lessthan30days).Noneofthe
unitsshallcontainkitchenfacilities.

3. Theprojectshallincludeonemanagersunit,whichmaycontainkitchenfacilities.

4. No timeshare project, program, occupancy, use or ownership as defined in CMC

Section17.70shallbepermitted.
DR1436/UP1420(CarmelSands)
July11,2017
ConditionsofApproval
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(Parking)
5. The use of the underground garage shall be limited to the parking and storing of
vehiclesand/orothernoncommercialactivitiesassociatedwiththehotel.

6. The driveway slope shall be completely contained on private property and shall not
exceed10%inthefirstandlastfivefeet,or25%intheinterveningdistance.

7. Asthetotalrequiredparkingincludesemployeesandguests,employeesshallnotbe
prohibitedfromparkingintheparkinggarage.

(Restaurant)
8. The restaurant shall be considered a full line restaurant for zoning purposes and
shallbelimitedto26interiorseats.Additionalseatingisauthorizedintheadjacent
outdoor courtyard facing Fifth Avenue and the interior courtyard per the approved
siteplan.Restauranthoursshallbelimitedto7:00a.m.to11:00p.m.sevendaysa
week.Roomserviceshallbepermittedwithoutarestrictiononhours.

9. The restaurant shall not operate as a Drivein, Formula Food or Fast Food
establishmentasdefinedinCMCSection17.70.

10. ExceptasprovidedinCMCSections8.68.070and8.68.080norestaurantshallprovide
preparedfoodtoitscustomersinCFCprocessedfoodpackagingorpolystyrenefoam
food packaging, nor shall any restaurant purchase, obtain, keep, sell, distribute,
provide to customers or otherwise use in its business any CFCprocessed food
packagingorpolystyrenefoamfoodpackaging.Therestaurantshallcomplywithall
otherrequirementsinCMCSection8.68.

11. Substantiallyallfoodsfromthestandardmenushallbeavailableforpurchaseduring
thehoursthatalcoholicbeveragesarebeingservedexceptforthefirsthourandthe
lasthourofeachbusinessday.

12. Thebusinessshallprimarilybearestaurantwithnomorethan25percentofthetotal
numberofseatslocatedatabarorinaseparatebarroom.

13. Customersshallbeprovidedwithindividualmenuswhileseatedatatableorcounter.

14. Food sold for consumption off the premises shall be incidental to the primary use.
Such food shall be placed in covered containers or wrappings, and all housebrand
labeled food store goods such as vinegars, oils and salad dressings shall be
prepackagedandsealed.
DR1436/UP1420(CarmelSands)
July11,2017
ConditionsofApproval
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15. Adequate facilities shall be provided on the site for the closed storage of trash and
garbagegeneratedbytheuse.Theonsitestorageshallbedesignedsothatthearea
can be cleaned and the refuse removed without creating a public nuisance and
withoutbeingplacedonthesidewalksorotherpublicways.Ifthemethodofcooking
used will generate hot ashes, a storage facility and disposal method shall first be
approvedbytheFireDepartment.

16. Atleastonerestroomshallbeavailableforusebybothsexeswithin,orconveniently
adjacentto,thespecificbusinesspremisesandonthesamepropertyonwhichtheuse
islocated.ThisrestroomshallcomplywithallprovisionsoftheStateUniformBuilding
andPlumbingCodesastotherequiredsize,locationandaccessibilitystandards,and
shallbeavailableforusebyboththeemployeesandpatronsofthebusiness.

17. Maximum seating capacity shall not exceed the standards in the State Uniform
Building and Fire Codes, the number of seats approved by the Planning Commission
throughpublicreview,orthenumberofseatsinthepreviousbusiness,whicheveris
less.Theseatingcapacityshallbepostedonthepremises.

18. The restaurant shall include the installation of a grease trap to be reviewed and
approvedbytheCarmelAreaWasteWaterDistrict(CAWD).

(CommercialSpaces)
19. The conference facilities shall be used by guests of the hotel only so as to limit
additionaltrafficgeneratingusesonsite.

20. All commercial spaces shall be established with permitted uses in the Service
Commercial (SC) District as identified in CMC Section 17.14. Any proposed use that
requires a conditional use permit shall require separate review and approval by the
PlanningCommission.

(Design)
21. The applicant shall submit in writing any proposed changes to the project plans as
originally approved on October 4, 2016 and approved by the City Council, prior to
incorporating changes on the site. If the applicant changes the project without first
obtaining approval, the applicant will be required to either: a) Submit the change in
writing and cease all work on the project until either the City Council or staff has
approvedthechange;orb)Eliminatethechangeandsubmittheproposedchangein
writing for review. The project will be reviewed for its compliance to the approved
planspriortofinalinspectionapproval.

DR1436/UP1420(CarmelSands)
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ConditionsofApproval
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22. The Carmel stone facade shall be installed in a broken course/random or similar
masonrypattern.Settingthestonesverticallyontheirfaceinacobwebpatternshall
notbepermitted.

23. The floor of all recessed public entrances shall be differentiated from the adjoining
sidewalk through contrasting stone, brick, tile or other pavers that do not extend
beyondthepropertyline.

24 Allexteriorpaintshallbeappliedasasolidcolor,withouttextureormottling.Nofaux
finishesarepermitted.

25. Anexteriorlightingplanshallbesubmittedaspartofthebuildingpermitapplication
thatcomplieswiththeexteriorlightingrequirementsofCMCSection15.36.070.

(Construction)
26. Allfoundationswithin15feetofsignificanttreesshallbeexcavatedbyhand.Ifany
tree roots larger than two inches (2") are encountered during construction, the City
Forester shall be contacted before cutting the roots. The City Forester may require
therootstobebridgedormayauthorizetherootstobecut.Ifrootslargerthantwo
inches(2")indiameterarecutwithoutpriorCityForesterapprovaloranysignificant
tree is endangered as a result of construction activity, the building permit will be
suspendedandallworkstoppeduntilaninvestigationbytheCityForesterhasbeen
completed.Twelveinches(12")ofmulchshallbeevenlyspreadinsidethedriplineof
alltreespriortotheissuanceofabuildingpermit.

27. Theapplicantshallapplyforanencroachmentpermitforallencroachmentsintothe
publicrightofway.

28. The applicant shall install semipermeable or fully permeable pavers in the public
rightsofway along San Carlos Street, Fifth Avenue and Mission Street abutting the
property.TheapplicantshallcoordinatewiththeDepartmentofCommunityPlanning
andBuildingregardingtheproposedpavingmaterialspriortoinstallation.

29. Finalconstructiondocumentsshallincludeaplanforlocatingrequiredutilitymeters,
vaults and connections that do not use the public sidewalk. Location within the
garage or driveway is preferred. All utilities serving the property shall be installed
underground.

30. Finalconstructiondocumentsshallincludeaplanshowingallrooftopequipmentsuch
asheating,coolingandventilationsystems.Allequipmentshallbedesignedsoasnot
tobevisiblyprominentfromthepublicrightofwayandadjoiningstructures.
DR1436/UP1420(CarmelSands)
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31. Finalconstructiondocumentsshallincludeaplanforgarageventilationthatminimizes
theconveyanceofnoisetoadjacentpropertiesandtothepublicrightofway.

32. Final construction documents shall include a drainage plan that addresses runoff
during construction and post construction in compliance with regulations set for by
the California Regional Water Quality Control Board Central Coast Region
(ResolutionNo.R320130032).Allsiteandroofrunoffshallbemaintainedonprivate
property to the extent possible. The contractor(s) shall use Best Management
Practicesforprotectingtheenvironmentduringprojectconstruction.Nooils,paints,
solventsorotherforeignliquidsproducedbyorresultingfromtheuseofconstruction
vehicles,paintingequipment,adhesivesoranyothersourceshallbeallowedtoenter
thestreet,stormdrainsystem,orsoils.Norunoffcontainingcement,plaster,plastic
orotherconstructionmaterialsshallbeallowedtocontaminatesoilsortoenterthe
publicrightofways.

33. Prior to issuance of a building permit for demolition and excavation the owner or
contractor shall meet with the Building Official, Public Safety Director and the
Superintendent of Public Works to review the Truck Haul Route and all protocols
(stagingareas,vehiclesize,timelimits,cleanup,communication,etc.)fortheproject.
DamagetoanyportionoftheCityroadway/streetareaincludingbutnotlimitedtothe
flowline, curbs, sidewalls, gutters, storm drains, etc. shall be repaired by the
contractor/owneroftheprojectattheownersexpense.Repairsshallbecoordinated
with the Public Works Superintendent and subject to the specifications set forth for
streetrepairs.

(Landscaping)
34. Allnewlandscapingshallbeshownonalandscapeplanandshallbesubmittedtothe
DepartmentofCommunityPlanningandBuildingandtotheCityForesterpriortothe
issuance of a building permit. The landscape plan will be reviewed for compliance
withthelandscapingstandardscontainedintheZoningCode,includingthefollowing
requirements: 1) all new landscaping shall be 75% droughttolerant; 2) landscaped
areas shall be irrigated by a drip/sprinkler system set on a timer; and 3) the project
shallmeettheCitysrecommendedtreedensitystandards,unlessotherwiseapproved
bytheCitybasedonsiteconditions.Thelandscapingplanshallshowwherenewtrees
willbeplantedand/orrelocated.

35. Wherevercutsaremadeinthegroundneartherootsoftreesinthepublicrightof
way or on adjacent properties, appropriate measures shall be taken to prevent
exposedsoilfromdryingoutandcausingdamagetotreeroots.

DR1436/UP1420(CarmelSands)
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36. Trimmingcutsshallconformtoarboriculturalstandardsandshallbemadealongthe
branchbarkridgeundersupervisionoftheCityForesterorhisdesignee.

37. Damagetoanypublictreeduringtreeremoval,demolition,excavationorconstruction
shall be reported immediately by the person causing the damage, the responsible
contractor or the property owner to the Director of Forest, Parks and Beach. The
contractor and/or owner shall treat the tree for damage in the manner specified by
theDirectorofForest,ParksandBeach.

38. Wires,signsandothersimilaritemsshallnotbeattachedtotrees.

(Misc)
39. Theprojectshallnotexceedtheexistingdocumentedwatercreditsforthesite.No
debitfromtheCityswaterallocationisauthorized.

40. TheapplicantshallpaytheTAMC regionalimpactfeepriortoissuanceofabuilding

permit.

41. TheapplicantshallrecordaNoticeofDeterminationwithinfivedaysofthefinalCity
actionontheprojectwiththeMontereyCountyClerkandpayallapplicablefees.

42. Neighborhood courtesy. All construction activities shall be limited to construction

hours specified by the City. The contractor shall establish a person to contact to
receive neighborhood complains about noise or other construction activities. This
contact person shall be responsible for determining the cause of the complaint,
requiring reasonable measures to avoid recurrence and reporting all contacts and
followup actions to the Building Official. Construction of the building and other
improvements shall employ good neighbor practices including the provision of at
leastthreedaysnoticetopropertyownersandbuildingtenantswithin200feetfor:

a)Thedateconstructionwillstart.

b) Periods when unusually loud noises will needto be generated such as when
jackhammersandotherequipmentareused.

c) The dates when any sidewalk closures will be needed and the provision of
workabledetoursforpedestrians,asapprovedbytheBuildingOfficial.



DR1436/UP1420(CarmelSands)
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43. Theapplicantagrees,atitssoleexpense,todefend,indemnify,andholdharmlessthe
City, its public officials, officers, employees, and assigns, from any liability; and shall
reimbursetheCityforanyexpenseincurred,resultingfrom,orinconnectionwithany
project approvals subject to the indemnification agreement signed by the applicant.
This includes any appeal, claim, suit, or other legal proceeding, to attack, set aside,
void,orannulanyprojectapproval.TheCityshallpromptlynotifytheapplicantofany
legal proceeding, and shall cooperate fully in the defense. The City may, at its sole
discretion,participateinanysuchlegalaction,butparticipationshallnotrelievethe
applicant of any obligation under this condition. Should any party bring any legal
actioninconnectionwiththisproject,theSuperiorCourtoftheCountyofMonterey,
California,shallbethesitusandhavejurisdictionfortheresolutionofallsuchactions
bythepartieshereto.

44. Nolandscapeuplightingshallbepermitted.

45. Allbuildingsshallconsistofastuccoexteriorandthemainwallsoftheprojectshall
consist of a single color, or slight variations of a single color. The applicant shall
present color renderings and/or other modifications to the City Council for final
approvalpriortotheissuanceofabuildingpermit.

46. Afivefootfrontsetbackisrequiredforanystructurewithin40feetofthenorthwest
cornerofthesite.

47. PriortotheissuanceoftheBuildingPermittheapplicantshallobtainaTreeRemoval
Permittoremovethecypresstreelocatedonthesouthsideoftheproperty.Atleast
one new uppercanopy tree shall be planted on the project site at a location
determinedbytheCityForester.

48. Twooaktreesclassifiedassignificantwillberelocatedfromtheeasternportionof
thesite,inordertoaccommodatetheproject.Thetreeswillberemovedfromtheir
existinglocationswiththeirrootballsandbereplantedimmediatelyonsite,orstored
and maintained by an arborist until such time as conditions permit replanting. Once
replanted, the trees are required to be monitored by an arborist to ensure they
remain in healthy, thriving condition. The applicant shall submit a $30,000 bond,
whichshallberetainedfor3yearsafterconstruction,fortheremovalofthesetrees.
Should the relocated trees be damaged or fail, the $30,000 bond will be used to
replaceeachtreewitha60boxsizedoaktrees.

49. Theapplicantshallapplyforthebuildingpermitwithin918monthsfromtheoriginal
dateofCityCouncilapprovalandshallinitiateconstructionwithin1824monthsfrom
theoriginaldateofCityCouncilapproval.
DR1436/UP1420(CarmelSands)
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ConditionsofApproval
Page8

*Acknowledgementandacceptanceofconditionsofapproval.

______________________________ ___________________________ __________

PropertyOwnerSignature PrintedName Date

Oncesigned,pleasereturntotheCommunityPlanningandBuildingDepartment.