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Concerns include the inconsistency between what the appellant originally submitted and the information that the appellant later submitted (multiple revisions of the scope of operations), the fact that the appellant did not cease operations as directed by staff pending the Planning Commission's hearing of the matter, and that, to avoid child care licensing requirements, children would be allowed to come and go freely in an industrial area. A related concern involves the appellant's statement that the facility is "not responsible for the supervision and care" of children which likewise avoids the need for the appellant to obtain State licensing for a child care facility; however, the appellant maintains that he is providing care and supervision. That lack of responsibility, however, conflicts with the Planning Commission's practice of requiring children to be supervised and signed in and out of these types of recreational facilities. Based on the above concerns, the Planning Commission concluded that not all of the use permit findings could not be made and denied the use permit. The appellant has appealed. PLANNING COMMISSION ACTION On February 13, 2008, the Planning Commission denied "without prejudice" the conditional use permit (5-0) due to its inability to make the second finding regarding public health, safety, and welfare. RECOMMENDATION Staff recommends that the City Council adopt the attached resolution denying the appeal, thus upholding the decision of the Planning Commission to deny the use permit. FINANCIAL STATEMENT The use is not a part of a development plan; therefore no fiscal impact is anticipated. BACKGROUND On June 27, 2007, staff approved an "over the counter" zoning certificate for the Tri-Valley Martial Arts Academy to operate a martial arts facility at 1262 Quarry Lane, Suite A. Staff did so in error. Although the City had recently amended the zoning code to allow certain recreational facilities to operate without a conditional use permit if they had no more than 20 students, this code amendment only applied to "straight-zoned" properties zoned Commercial, Office, or Industrial, and was not applicable to those areas zoned Planned Unit Development PUD. Here, the Tri-Valley Martial Arts Academy ("Academy") would be located in a PUD district and not in a Commercial, Office, or Industrial zone. The PUD regulations for the Valley Business Park require recreational sports facilities (and day cares) to obtain a conditional use permit since the code amendment did not apply to this PUD. On August 17, 2007, after the error was discovered, the City's Code Enforcement Officer sent a letter to the appellant stating that the business needed to secure a conditional use permit (CUP) but would be allowed to continue to operate based on the information provided on the Zoning Certificate (that information had indicated that not more than 20 students would be involved), so long as a completed conditional use permit application was received by September 1, 2007. The Planning Department did Page 2 of 8