El Cajon planning panel revokes Palms restaurant’s banquet permit after repeated private events

The El Cajon Planning Commission voted 3-2 on June 17 to adopt a resolution revoking Conditional Use Permit 2115 for the Palms Restaurant and Banquet Hall, concluding the site had been operated more frequently as a private event facility than as the restaurant use the council approved.

Staff planner Noah Alvey told the commission that staff opened the CUP review after receiving a complaint and that inspections beginning December 2023 showed the business was not operating primarily as a restaurant. “Over the course of that, I prepared ... a synopsis of those events,” Alvey said, noting he made 20 site visits and observed private events on eight occasions — roughly 40% of visits — and that on multiple visits windows were screened so the interior was not visible. Staff recommended revocation at the hearing.

The finding before commissioners was narrow: whether the use on the ground matched the restaurant-with-occasional-banquet approval adopted by the City Council in 2010. Alvey told the commission, “So what you're being asked to do tonight is to look at whether or not the conditional use permit is being exercised as it was approved by the city council.”

Representatives for the prospective new owners said they have begun steps to operate more like a restaurant. Vince Katula, representing the prospective ownership group, said the Palms had opened for lunch starting May 8 and that May sales totaled roughly $90,000 across more than 2,000 items sold. “We got a new menu ... Beginning May 8, we also began opening up for lunch at 11 a.m., and business is slowly building up,” Katula said. Jeff Mansour, a buyer under escrow, said the purchase is contingent on the city’s decision and that the new owners plan to invest about $800,000 in renovation and a new layout.

Several public commenters urged the commission to allow the new ownership time to complete improvements. Marco Lemandri, executive director of Downtown El Cajon Business Partners, said downtown needs more restaurants and that the proposed investment could help revitalize the corridor. K. Turpin and other speakers vouched for the Mansours’ community ties.

Opposing commissioners and staff, however, said the record showed repeated, frequent private events and insufficient evidence the business has been primarily operating as a restaurant. Commissioner Edison said the commission must judge the operation as it is today: “If the question that's before us today is if they're in compliance, that's the question we're dealing with now, not what's gonna what's coming.” Director of Community Development Anthony Shute reminded the body the downtown master plan (Specific Plan No. 182) guided land use and that the 2010 approval required restaurant operation as the primary use.

After deliberation, Commissioner Sotile moved to revoke CUP 2115; Commissioner Edison seconded. The motion carried on a 3-2 vote. Staff noted the applicant may appeal the Planning Commission decision to the City Council; Alvey and the director reminded participants that if an appeal is filed the applicant may continue to operate during the appeal period. The commission and staff also told the prospective owners that the appropriate next step to change the permitted balance of uses would be to file an amendment to the CUP, which staff said they would expedite if submitted.

The commission’s action does not immediately bar day-to-day restaurant operation absent other enforcement steps; the resolution revokes the CUP that specifically authorized alcohol and banquet uses tied to the prior approval, and the applicant has 10 days to appeal. Staff said the appeal deadline is June 27 at 5 p.m.

Votes at a glance: the commission adopted the resolution revoking CUP 2115, motion made by Commissioner Sotile and seconded by Commissioner Edison; the resolution passed 3-2. The commission instructed staff to accept and expedite any application to amend the CUP brought by the applicant and scheduled no additional related planning action at tonight’s hearing.

Looking ahead, staff and some commissioners encouraged the prospective owners to submit a formal CUP amendment that would specify allowed private-event frequency, operational conditions and facility modifications. If the owners pursue that, staff said it would analyze the request under the city’s downtown standards and bring a formal recommendation back to the commission or city council as appropriate.