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HomeMy WebLinkAboutBackground ReportBACKGROUND REPORT The subject property is located on the northeast corner of East 8th Street and Palm Avenue in the Major Mixed -Use Corridor (MXC-2) zone. The 23,087 square -foot parcel has 150 feet of frontage on 8th Street and 160 feet on Palm Avenue. There are four entrances to the property, two each from both 8th and Palm. The lot is developed with a Shell gas station, which includes a small cashier kiosk, a car wash and an office. The station currently operates 24 hours a day. The current owner has been operating the Shell station at this location since February 1987 and desires to modernize the facility by adding a convenience store, offering a wider array of products to their customers, including beer and wine. This project was approved by Planning Commission in 2008, but the approval has since expired. The current application is identical to the previous project (2008-11 CUP). The applicant is proposing to renovate the gas station property, including the addition of a 1,030 square -foot food mart/convenience store, which would replace the existing kiosk. The alcohol would be stored in coolers located along the back wall of the convenience store. The coolers make up about 8% of the overall sales area. The applicant originally asked for alcohol sales hours of 6 a.m. and 1 a.m. seven days a week, but changed the hours to 8 a.m. and 12 a.m. at the request of the Institute of Public Strategies. Improvements are also proposed for the other structures on site, including an upgrade of the carwash fagade and canopy columns to match the color scheme of new convenience store. Other improvements include upgraded landscaping, a new trash enclosure and perimeter fencing. At the suggestion of staff, the applicant is also proposing to remove one of the driveways on 8th Street (the one closest to Palm Avenue) and add four parking spaces. As mentioned above, the applicant proposes to continue operating 24 hours a day, seven days a week. Alcohol sales would be restricted to between 8 a.m. and 12 a.m. seven days a week. This will necessitate a control system to ensure no alcohol is sold after the prescribed sales hours. The applicant has stated that the doors would be locked at midnight and that no more alcohol would be sold. This is addressed on Condition number 14. Both the addition of the convenience store and the sale of beer and wine require a Conditional Use Permit (CUP). A gas station may have a sales display area with up to 216 cubic feet of non -automotive product; however, Chapter 18.30.190 of the Land Use Code allows for a greater sales area of such products with an approved CUP. Likewise, Chapter 18.30.050 allows for off -sale beer and wine sales with an approved CUP. The new convenience store would be connected to the existing car wash located on the east side of the property. Facade improvements to the car wash will be continuous with the new convenience store facade, giving the two buildings the appearance of one. The architectural design utilizes multiple building materials, including different colored plaster finishes, block, and pop -out trim, providing architectural variation. The front elevation would have large glass windows providing for ample natural light in the new store. A central entry facade is provided that would include an identification sign for the store The gas pump canopy columns are proposed to have the same color scheme as the convenience store, as is the car wash. The canopy itself will remain yellow, per the branding requirements of Shell Oil. No information has been provided regarding rooftop mechanical equipment, which is required to be screened by the Land Use Code. A Condition of Approval has been added to ensure compliance with mechanical equipment screening requirements at the building permit stage. As previously mentioned, the project also includes upgraded landscaping and perimeter fencing. Landscape plans show street trees, shrubs and ground cover. The proposed landscaping would improve the appearance of the property resulting in improved water conservation, since the existing landscaping is primarily turf. New vinyl fencing is proposed along the north and east property lines, replacing deteriorating fencing along the rear of the property. A Condition of Approval has been added to show fencing details on building plans. Conditions also require a new trash enclosure door and cover, removal of a payphone enclosure (with no payphone), and screening of the vapor recovery system located on the embankment on the east side of the property. There is no specific parking requirement for a gas station; however, retail use requires one space for each 250 square feet. In this case, that would be approximately four spaces, which would be provided. In order to accommodate these spaces, one of the four driveways would be removed. The westernmost driveway on 8th Street, closest to the intersection, would be closed to provide three of the four parking spaces, including one handicapped -accessible space. The accessible space would be the nearest space to the convenience store and would also have an accessible path of travel between the space and the store. A Conditional of Approval has been included requiring compliance with all handicapped accessibility standards (Condition No. 7). Trip generation rates provided by the San Diego Association of Governments (SANDAG) for this type of facility (gas station with convenience store and carwash), are based on the number of fuel spaces (155 Average Daily Trips per pump). Since no new gas pumps are being added, no significant increase in the number of daily trips is expected. Combined with the fact that the most store customers would also be purchasing fuel, the addition of the convenience store is not anticipated to have a significant effect on traffic in the area. Pursuant to Section 18.30.050 (C) of the land Use Code, a community meeting was held Monday September 12, 2011 at 5:00 p.m. at the Pizza Hut on Sweetwater Road. The applicant certified that all property owners and tenants within 660 feet of the property were notified by mail of the meeting. A sign -in sheet and meeting minutes have been provided (attached). According to the applicant, no interested parties attended. Per State Alcoholic Beverage Control (ABC) there are currently no off -sale licenses in this census tract (119.01) where a maximum of two (2) are recommended, although there is one on -sale location in the same census tract - Alotta's Cocktail Lounge at 419 Palm Avenue. The nearest off -sale licensed facilities are 7-11, at 8th and Highland, and Big Lots at 1420 Plaza Blvd., both of which are approximately a half mile away. Census tract 119.01 encompasses the area from 491 to 8th Streets, from Palm Avenue to Euclid Avenue, and the small area between Palm Avenue, 1-805, Division and 4th Streets (36 square blocks). ABC does not consider this census tract to be over -saturated with regard to alcohol sales outlets. There are some single-family residences in the nearby area — across Palm Avenue and on East 7th Street, behind the gas station — however, all these residences are uphill and away form the gas station. Combined with the existing commercial nature of the subject and surrounding properties, and of it's proximity to an arterial street (East 8th Street), it is unlikely that the addition of the convenience store would have a significant effect on the neighboring residential properties. As previously mentioned, the applicant is proposing to utilize approximately 8% of their sales area for the display of alcoholic beverages. With 650 square feet of sales area, this would be a maximum of approximately 53 square feet. This number is based on the size of the coolers shown on plans; no other sales area is proposed. A Condition of Approval has been included limiting the sales area accordingly. 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 close proximity of the project location. There are four such businesses, including both on and off -sale licenses. Crime statistics indicate that the reporting area (Beat 21) had a 2009 crime rate of 109.7%, below the 120% considered to be a high crime area. Comments were received from the Institute for Public Strategies (IPS). Recommendations were provided addressing the following: • 8 a.m. to 12 a.m. alcohol sales hours (condition no. 16) • Alcohol sales training (condition no. 17) • No sales of beer or malt beverages in 22, 32, 40-oz or similar size containers (condition no. 18) • No alcohol products sold in less than six pack quantities • No excessive alcohol advertising targeting youth or holidays (condition no. 15) Four of these items have been included as conditions, as noted above. No change has been made regarding 3-packs. City Council recently adopted a policy that establishes standards for alcohol CUPs. As part of this policy, specific Conditions of Approval are required of all new CUPs. These conditions are included with this staff report as numbers 16 through 29. The policy is written such that only the City Council may waive or modify these conditions. Condition no. 19 allows no less than three -pack quantities of beer, something IPS is requesting to have removed or modified to allow no less than six packs of beer. Although only Council can waive or modify this condition, Planning Commission can, if they see fit, make a recommendation that Council modify the condition. The overhaul of this property will have a positive impact on the business climate in the area. The upgrade of the business is consistent with General Plan policies emphasizing the rehabilitation and improvement of older buildings and businesses. The addition of alcohol sales would add to the viability of the business and, more importantly, be conditioned in such a way as to ensure responsible sales practices. In contrast to other non -conforming businesses in the area, this project will be subject to the most recent Conditions of Approval. Planning Commission conducted a public hearing on October 17, 2011. No concerns were noted from area residents. Commissioners asked questions regarding the business, noticing of the community meeting, other alcohol outlets in the area, and department comments. The Commission voted to approve the CUP based on required findings and subject to conditions of approval. City Council considered the Notice of Decision of the Planning Commission approval at their meeting of November 1, 2011, at which time they set the item for hearing in order to further analyze the request.