On the hot seat again, Pacific Grove music venue gets nod from planning commission.

Confusion over how city code meshes with California liquor licenses was the reason given by members of the Pacific Grove Planning Commission on Thursday, Oct. 19, for why they wanted to review the previously approved administrative use permit of Pop and Hiss, a proposed downtown live music venue and record store on Forest Avenue.

Pop and Hiss owner Michaela Kuenster thought she had secured her permit, but a resident, Inge Lorentzen Daumer, made a last-minute appeal to the city on Aug. 11. The appeal was denied in a zoning administrator meeting on Aug. 21.

The permit became effective on Sept. 8, but on Sept. 14, Daumer complained to the Planning Commission that the permit still wasn't correct. Commissioner Claudia Sawyer successfully made a motion to call the matter up to a future Planning Commission meeting, and that took place on Oct. 19.

"I'm very confused and I'm hoping we can settle this," Sawyer said on Thursday.

Kuenster applied for a new type of California liquor license, known as a Type 90, with the Department of Alcoholic Beverage Control, for her business which will include the sales of beer, wine and distilled spirits in conjunction with live music performances. Under state rules, no sale of food is required to accompany the sale of alcohol. Alcohol sales are limited to two hours before performances up to one hour after.

Pacific Grove code requires that food be sold when alcohol is available, however, and Kuenster made plans to include food preparation and service to comply with the code. When Kuenster applied for her use permit in July it was approved by P.G. planning staff first listing it as a restaurant, later changing it to a pub. Her business didn't quite fit a category in P.G.'s current code.

On Thursday, a detailed staff report listed approved uses for the commercial downtown district, pointing out that each of Pop and Hiss' uses—including alcohol sales and live music—are compatible uses. An ABC license is required, but that is under purview of the state, not the city.

Nevertheless, Sawyer remained confused, thinking there would be a clash between a city code that needs to be updated and the new Type 90 license.

"I just feel that we're forcing her into a square box when she's a circle," Sawyer said.

Kuenster let her lawyer, Eric C. Fonferek, of Pacific Grove, do the talking during Thursday's meeting. Fonferek argued that Kuenster had adhered to every requirement set forth in the code, as well as conditions of approval from staff. The continued delays were preventing her from opening her business.

"Every day that this is delayed is stopping her from making money," Fonferek said. Since another resident had appealed Kuenster's application to ABC for the liquor license, that investigation could not move forward until she had her administrative use permit, he said.

As commissioners continued to grapple with understanding the license issue, Assistant City Attorney Erica L. Vega stepped in to clarify the city's code. There was nothing in the code that requires a business owner to apply for a liquor permit that includes a "bona fide" restaurant, Vega said. Regardless of which liquor permit the owner obtains, the city only has to verify that it is a bona fide restaurant. 

The commission subsequently voted 5-0 to uphold Kuenster's permit, with two commissioners absent.

There's still a 10-day window in which someone could appeal the Planning Commission ruling. Fonferek says the facts laid out in Thursday's meeting should make it clear that everything about Pop and Hiss is an allowed use. 

Once the permit is secured, the ABC investigation into that appeal can begin. Fonferek says Kuenster was told by ABC officials it could take from a few months to 18 months.

He adds that Kuenster plans to wait until the ABC matter is resolved as well to open the business.