Post #211456 by Hanalei_Pirate on Mon, Jan 30, 2006 9:39 AM

There's no confirmation that the new owner intends to demolish it, right?

I work as a commercial and industrial appraiser and what I am about to say is just based on my personal experience and I have not researched laws in Laguna (So with that caveat out of the way.....)

Someone mentioned here that because there is new ownership that it cannot continue to operate as a restaurant. That would really create chaos in the world of buying/selling property, if that were true. In fact, if that were true, anyone who invested and operated a restaurant would have no business value to sell along with the real estate(the building). I have appraised several restaurants, and "the business" entity (the value of the clientele) is usually sold separate from the restaurant. That restaurant has a business value of some sort since it has been in continuous operation for some 20 years. I assume that strip along PCH is zoned to allow restaurants since, as we know, that seems to be the popular use along there, so knowing this, the zone likely allows restaurants. As a matter of fact, most cities, even if a use has become non-conforming (outlawed) due to a change in zoning, that the existing use is "grandfathered in" and allowed to continue. Most people buy/sell restaurants in order to operate them and the new owner is an experienced restaurant owner/operator. The most likely scenario is that the new owner plans to redecorate it or refurbish it.

Other scenario mentioned was that he might turn it into condos. The lot is too small to turn into condos and he's a restaurant guy who likely is not getting into residential housing as a new line of speculation, plus you really have to know what you are doing to be a residential developer.

However, if he buys the parcels adjacent to it on either side of RH, then most likely he is planning to demolish it to build a big restaurant. Of course all that would have to go through the planning and approval process. If he wants to build a new building there, this usually triggers a city's zoning compliance rules. In other words, he will have to meet current parking standards. From what I remember of the RH (and its been years since I been there) there is hardly any parking lot, correct? I would bet that RH does not meet the current parking requirements. As long as he continues to operate RH in its existing building (ie, no additions or demolishing), then he doesn't have to meet the current parking requirements as the building is grandfathered in "as is." meeting current parking requirements means you need alot of land. if not, you have to pay a butload of money to rent a nearby parking lot (the city will usually specify the parking lot has to be within say 750 ft of the property) and that would depend on IF there is any land nearby for him to rent.... so I would say chances are he plans to operate the restaurant in its existing building rather than demolish and build a new restaurant. However none of this has any impact if he just plans to remodel the existing restaurant. If he remodels it into anything other than just refurbishing it, well I guess we would consider it a total loss anyway:(

Anyone can go to the planning counter and ask to see the permits on that address. It is public records. However it is probably too early to see anything in the file as of yet. Most likely however, if he is planning to demolish it, he has had to approach the planning department and make some sort of application for approval. If he plans merely to remodel it, we will not see anything in the public file until after he buys it and it will only be permits for the work to be done. He does not need the formal city approval to remodel the property; just needs to pay for the permits.

As for going on the 18th, I will try to be there at opening time and join some of your early birds. But has anyone thought about maybe going to RH for Valentine's Day? My husband and I did that one year and it was great! I will look into booking us for the 15th (since my husband can't do the 14th this year).