HomeMy WebLinkAboutBackground ReportBACKGROUND REPORT
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. The former 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.
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).
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
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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.
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.
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).
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). Minor
changes were made to the condition of approval prohibiting sales of beer in less than
six-pack quantities (No. 10) based on Council's recent evaluation of allowing such
sales in the future. The applicant has stated that they would like to take advantage of
this condition should Council approve the new language. The condition would allow for
the applicant to sell three -packs of 24-oz cans of beer IF Council adopts a formal policy
allowing these sales. Until that time or if no change is made, the applicant would be
held to the current standard of no less than six-pack quantities.
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Planning Commission conducted a public hearing on April 18, 2011. No concerns were
noted from area residents. Commissioners asked questions regarding conditions of
approval and Police Department concerns. PD indicated that 7-Eleven was a
responsible business partner and that there were minimal concerns. The applicant
requested amended language to condition no. 8, related to required employee training,
to allow for 7-Eleven corporate training, with the approval of PD and/or state Alcoholic
Beverage Control. There was also discussion of recent Council direction regarding 3-
pack sales of beer. The Commission voted to approve the CUP based on required
findings and subject to conditions of approval, with changes to conditions to reflect
required employee training (no. 8) and to allow for 3-pack sales in the future if Council
permits such sales (no. 10).
City Council set this item for hearing at the May 3, 2011 meeting after discussing the
proposal, particularly with regard to the alcohol sales hours of 6:00 a.m. to 2:00 a.m. In
an effort to determine hours of operation for other outlets in the area, staff contacted
the six off -sale establishments within a half mile of the subject property. Their hours of
alcohol sales are as follows:
OUTLET NAME ADDRESS
La Casa Liquor 228 Highland Avenue
Foodland IGA 303 Highland Avenue
Rodeos Meat Market 422 Highland Avenue
Don John Market 431 Highland Avenue
Northgate Market 1410 South 43`d Street (San Diego)
Diamond Dot Market 1740 South 43rd Street (San Diego)
ALCOHOL SALES HOURS
10:00 am - 2:00 am
7:30 am - 11:00 pm
8:00 am - 9:00 pm
8:00 am — 11:00 pm
6:00 am - 11:00 pm
6:00 am — 10:00 pm
Based on these nearby businesses alcohol is already available during the times which 7-
Eleven wishes is proposing. Both businesses in San Diego start selling alcohol at 6:00 a.m.
and La Casa Liquor in National City is open until 2:00 a.m. on weekends. Of the four
locations in the City, only two (Don John Market and Foodland IGA) have Conditional Use
Permits; the other two are lawful non -conforming. For reference, there are five other 7-
Eleven markets in National City, all of which are lawful non -conforming and have no CUP.
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