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HomeMy WebLinkAboutPlanning Commission Staff ReportTitle: Item no. 7 April 18, 2011 1RCORpORATED I CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 PLANNING COMMISSION STAFF REPORT PUBLIC HEARING — CONDITIONAL USE PERMIT FOR THE SALE OF BEER AND WINE AT A PROPOSED CONVENIENCE STORE AT 151 NORTH HIGHLAND AVENUE. Case File No.: 2011-08 CUP Location: East side of Highland Ave. north of Division Street Assessor's Parcel No.: 551-570-20 Staff report by: Martin Reeder Applicant: 7-Eleven Property owner: ENS Management, LLC Combined General Plan/ CG (General Commercial) Zoning designation: Adjacent land use/zoning: North: Park Villas Apartment / RM-2-PD East: Multi -family and mobile home residential / CG & RMH South: Commercial use / CG West: Residential use / City of San Diego Environmental review: Categorically Exempt pursuant to Class 1 Section 15301 (Existing Facilities) BACKGROUND Site Characteristics The project site is a commercial suite located within the Highland View Towne Center at the northeast corner of Division Street and Highland Avenue. The suite is 2,940 square feet and was formerly occupied by the Siete Dias Market. The suite has recently been remodeled after a fire. History The former Siete Dias market had a Conditional Use Permit for the sale of beer and wine. The CUP was approved in 2003 and had a two-year sunset clause. The CUP has since expired and has not been extended or modified. According to the Police Department, there were no alcohol -related calls for service between 2003 and 2005. Proposed Use The applicant is proposing to offer beer and wine for sale for off -site consumption as part of a proposed convenience store (7-Eleven). The store would be open 24 hours a day and seven days a week but would be, at a minimum, restricted to alcohol sales hours of 6:00 a.m. to 2:00 a.m. by the state. The applicant is requesting sales hours consistent with state requirements. Alcohol sales are expected to be approximately 15% of total store sales. Per the attached floor plan (Exhibit B), beer and wine will be stored in the last four of eleven reach -in coolers along the southern wall of the store (farthest from the sales counter). Each cooler will have four shelves. A warm wine & beer display is proposed on shelves nearby the coolers in the rear of the store. According to the applicant, approximately 90% of all beer and wine products would be stored within the four rearmost coolers. Coolers containing alcohol products will be locked after sales hours. Based on information provided by the applicant, 7-Eleven has a rigorous training program for sales employees including the following: • "Come of Age" training — Includes online training modules for employees. It addresses verification of I.D. cards and identifying impaired customers. • Secret Shopper program — Approved third party contractors visit stores randomly to confirm that all company policies are being followed. • Security & video surveillance — The store will be equipped with a complete security & video surveillance system to monitor all activities and can be tied into the local police services. With respect to the prior CUP for this location, 7-Eleven is agreeable to the same conditions with the exception of the change in alcohol sales hours requested by the current proposal. The applicant has also offered to have a condition requiring cooler door locks, consistent with Police Department recommendations (see discussion below). Analysis Alcohol /Community Meeting Chapter 18.71 of the National City Land Use Code allows for on -site alcohol sales with an approved Conditional Use Permit (CUP). Pursuant to Section 18.71.030, a community meeting was held Monday, March 21, 2011 at 6:00 p.m. at the Martin Luther King Community Center. The applicant states that all property owners and occupants within 660 feet of the store were notified by mail of the meeting. A sign -in sheet and meeting minutes are attached. According to the sign -in sheet, one person attended the meeting. The attendee was a nearby market owner — Diamond Dot Market on South 43rd Street in San Diego — and had concerns over competition and customer loss due to the new market. Alcohol Sales Concentration/Location Per California State Alcoholic Beverage Control (ABC), there are currently two off -sale permits issued in this census tract (118.01). These permits are: • Rodeo's Meat Market — 422 Highland Ave. • La Casa Liquor — 228 Highland Ave. Census tract 118.01 includes the area of the City between Division and East 8th Streets and between National City Blvd. and Highland Avenue. The attached census tract map shows the location of the subject tract. ABC recommends a total of three off -sale alcohol permits be issued in this census tract, where two exist. Chapter 18.71.040 (A) applies with regard to distance from schools and other off -sale establishments. The Code requires that these establishments maintain a minimum distance of 660 feet from schools and 500 feet from each other. In this case, there is no school within 660 feet and the nearest off -sale outlet (La Casa Liquor) is more than 1,300 feet away. Police Department comments Crime statistics provided by PD indicate that the reporting area (Beat 20) had a 2009 crime rate of 99.7%, below the 120% considered to be a high crime area. The Police Department has objected to the issuance of a Conditional Use Permit for on -sale alcohol at this location. In their comments, PD states that there are currently 100 alcohol licenses issued in National City, or roughly 11.7 outlets per square mile. Furthermore, it was stated that until the Police Department had the budget to deploy a dedicated unit to regulate these alcohol establishments, a moratorium on new alcohol CUPs should be considered. PD also quoted the number of ABC permits issued to establishments within a half -mile of the project location as a factor for objection. There are six such businesses, all but two of which are in the City. This number includes both on and off -sale licenses. PD further stated that if the Planning Commission were to approve this CUP, that a Condition of Approval be added requiring that coolers containing alcohol products be locked after sales hours. A condition has been included in this regard (No. 18). Institute for Public Strategies comments As of the writing of this report, no comments were received from the Institute for Public Strategies (IPS). Conditions of Approval Standard Conditions of Approval have been included with this permit, as well as conditions specific to off -sale alcohol sales (no single cans of beer, no alcohol consumption on the premises, sales hours and server/cashier training, etc). In February of this year Planning Commission reviewed a report on the City Council's recent evaluation of allowing less than six pack quantities of beer to be sold. After review the Commission recommended that the Council strengthen the existing informal policy on less than six pack sales. At the subsequent Council discussion on the matter Council referred the matter back to staff to incorporate language permitting three packs of 24 oz beer cans as both an informal and formal policy, including an explanation of impacts for each. At this time, this report is still under preparation and has not been taken back to Council for review or approval. As no action has yet been taken, the current informal policy prohibiting sales of beer in less than six pack quantities is still presumed in effect. As such, Conditions of Approval still reflect the original language (condition no. 10). The Commission has the option of changing this condition to less than three pack, in line with the direction Council is moving in. If the Commission deems it appropriate, a recommendation to incorporate the three pack language could be forwarded to Council should the policy be changed, whether it is a formal or informal policy. The applicant has stated that they would like to take advantage of the same condition should Council approve the new language. The approval options would be as follows: 1. Approve the CUP with condition no. 10 as is (no sales in less than 6-pack) 2. Approve the CUP with a changed condition no. 10 (no sales in less than 3-pack) Summary The sale of alcohol for off -site consumption at a proposed 7-11 will contribute to the viability of a convenience store, a permitted use within the General Commercial zone. Conditions of Approval for the sale of alcohol are intended to reduce the potential for adverse effects on area uses. Furthermore, a market previously operating at this location sold alcohol without apparent incident for two years. However, limited Police resources would make it difficult to ensure compliance with the increasing number of alcohol licenses citywide. RECOMMENDATION Approve 2011-08 CUP subject to the conditions listed below, based on attached findings. ATTACHMENTS 1. Recommended Findings for Approval 2. Recommended Conditions 3. Location Map 4. Census Tract Map and Police Beat Map 5. Community Meeting Information (Notice, minutes and sign -in sheet) 6. Notice of Exemption 7. Public Hearing Notice (Sent to 144 property owners and occupants) 8. Site photos 9. Police Department Comments 10. Applicant's Plans (Exhibit A, case file no. 2011-08 CUP, dated 2/18/2011) MARTIN REEDER Assistant Planner MARYAM BABAKI Development Services Director RECOMMENDED FINDINGS FOR APPROVAL 2011-08 CUP, 151 North Highland Ave. 1. That the site for the proposed use is adequate in size and shape, since the proposed use is an accessory use to an existing convenience store use in an existing commercial area and the sale of beer and wine is not expected to increase the demand for parking on the property. 2. That the site has sufficient access to streets and highways that are adequate in width and pavement type to carry the volume and type of traffic generated by the proposed use, since Highland Avenue and Division Street are classified as arterial streets in the Circulation Element, and the addition of alcohol sales is not expected to result in an appreciable increase in traffic. 3. That the proposed use will not have an adverse effect upon adjacent or abutting properties, since the proposed use will be compatible with other nearby businesses; and since the proposed use will be subject to conditions that limit the sale of alcohol and restrict the hours that it will be available. 4. That the proposed use is deemed essential and desirable to the public convenience and welfare, since it will contribute to the viability of a convenience store, an established and allowed use in the applicable commercial zone. 5. That public convenience and necessity may be served by a proposed use of the property for the retail sales of alcoholic beverages pursuant to law. RECOMMENDED CONDITIONS OF APPROVAL 2011-08 CUP, 151 North Highland Ave. General 1. This Conditional Use Permit authorizes the off -sale of beer and wine from a convenience store located at 151 North Highland Ave. Plans submitted for permits associated with this project shall conform with Exhibits A and B, Case File No. 2011-08 CUP, dated 2/18/2011. 2. Within four (4) days of approval, pursuant to Fish and Game Code 711.4 and the California Code of Regulations, Title 14, Section 753.5, the applicant shall pay all necessary environmental filing fees for the San Diego County Clerk. Checks shall be made payable to the County Clerk and submitted to the National City Planning Department. 3. This permit shall become null and void if not exercised within one year after adoption of the Resolution of approval unless extended according to procedures specified in Section 18.116.190 of the Municipal Code. 4. This permit shall expire if the use authorized by this resolution is discontinued for a period of 12 months or longer. This permit may also be revoked, pursuant to provisions of the Land Use Code, if discontinued for any lesser period of time. 5. This Conditional Use Permit may be revoked if the operator is found to be in violation of Conditions of Approval. 6. Before this Conditional Use Permit shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Division, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Conditional Use Permit. The applicant shall also submit evidence to the satisfaction of the Development Services Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Conditional Use Permit are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Development Services Director prior to recordation. Planning 7. The sale of alcoholic beverages shall be limited to between the hours of 6:00 a.m. and 2:00 a.m. seven days a week. 8. All persons who will be selling alcoholic beverages shall receive L.E.A.D. (Licensee Education on Alcohol and Drugs) training in Responsible Beverage Service from the State Department of Alcoholic Beverage Control or Responsible Hospitality Coalition. Training shall include a component addressing domestic violence. 9. The sale of beer or malt beverages in quantities of quarts, 22 ounce, 32 ounce, 40 ounce, or similar size containers is prohibited. 10. No beer and malt beverage products shall be sold of less than six-pack quantities per sale. There shall be no sale of single cans or bottles. 11. No sale of wine or distilled spirits shall be sold in containers of less than 750 milliliters, except for wine coolers. Wine coolers may be sold only by four -pack or other manufacturer's pre -packaged multi -unit quantities. 12. The sale of wine with an alcoholic content greater than 15% by volume is prohibited. 13. Permittee shall post signs on the exterior building walls facing a parking lot in compliance with Chapter 10.30.070 of the National City Municipal Code. Additionally, the permittee shall post signs, to be approved by the Planning Division, at each entrance to the applicant's premises and parking lot, prohibiting loitering and consumption of alcohol on the premises and adjacent property under his control. Said signs shall not be less than 18 by 24 inches in size, with lettering not Tess than one inch in height. The signs shall read as follows: a. "No open alcoholic beverage containers are allowed on these premises." b. "No loitering is allowed." 14. The consumption of alcoholic beverages is prohibited on the subject premises, and on all parking lots and outbuildings and any property or adjacent property under the control of the applicant. 15. All cups and containers shall be sold at or above prevailing prices and in their original multi -container packages of no fewer than 12, and no cups and containers shall be given free of charge. 16. Ice may be sold only at or about prevailing prices in the area and in quantities of not Tess than three pounds per sale. Ice shall not be provided free of charge. 17. The display of alcoholic beverages shall be limited to an area in substantial conformance with Exhibit B, Case File No. 2011-08 CUP, dated 2/18/2011. 18. Coolers containing alcohol products shall be locked and made inaccessible to the public between the hours of 2:00 a.m. and 6:00 p.m. 19. Containers of beer and wine may not be stored on the premises, after being sold to patrons, for the purpose of later consumption. 20. Exterior advertising and signs of all types, promoting or indicating the availability of alcoholic beverages, including advertising/signs directed to the exterior from within, are prohibited. Interior displays of alcoholic beverages and signs, which are clearly visible to the exterior, shall constitute a violation of this condition. There shall be no excessive advertising and/or marketing that targets youth or holidays. 21. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of all other commodities during the same period. The applicant shall at all times keep records which reflect separately the gross sales of alcoholic beverages and the gross sales of all other items. Said records shall be kept no Tess frequently than on a quarterly basis and shall be made available to the City Finance Department and any Peace Officer of the California Department of Alcoholic Beverage Control upon demand. Police 22. Permittee shall comply with all regulatory provisions of the Business and Professions Code that pertain to the sale, display and marketing or merchandising of alcoholic beverages.