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HomeMy WebLinkAboutBackground ReportBACKGROUND REPORT The project site is located at the northeast corner of Highland Avenue and East 21st Street in the Major Mixed -Use Corridor (MXC-2) zone. The property is developed with a two-story, mixed use development consisting of a market (Red Bird) on the ground level and one residential unit on the upper level. The building is 3,364 square feet located on a 9,853 square -foot lot. There are seven on -site parking spaces. The business has a lawful non -conforming Type 20 (beer and wine) license issued by the California Department of Alcoholic Beverage Control (ABC). The applicant is requesting to add distilled spirits retail sales to the market for off -site consumption. The store operates Monday through Friday from 8:00 a.m. to 10:00 p.m. and until 11:00 p.m. on Saturday. No change in hours is proposed. Per the attached floor plan (Exhibit A), distilled spirits would be stored in a secure cabinet located behind the cashier area. Beer and wine is currently displayed in and next to a cooler located on the north side of the store. No change in location of beer and wine is proposed. Section 18.30.050 of the National City Land Use Code allows for off -site alcohol sales with an approved Conditional Use Permit (CUP). The addition of distilled spirits triggers the need for a CUP and would also include analysis of the previous nonconforming alcohol sales products. ABC records indicate that there are currently six businesses approved for off -sale alcohol permits in the subject census tract (116.01). Of the six businesses, two are off - sale general outlets (beer, wine, and distilled spirits) and four are off -sale beer and wine outlets: Business Name Site Address License Type* CUP Keg N Bottle 2335 Highland Ave 21 N High Bev Liquor 2111 Highland Ave 21 N National City Market 220-240 E. 18th St 20 N Highland Service Station 1803 Highland Ave 20 Y Red Bird Market 2035 Highland Ave 20 N Highland Arco 2336 Highland Ave 20 Y * Type 20 - Off -Sale Beer and Wine Type 21 - Off -Sale General (beer, wine, and distilled spirits) The two off sale general outlets located in this census tract are both located on Highland Avenue. Hi Bev Liquor is located directly across East 21st Street approximately 80 feet away from Red Bird Market. Keg N Bottle is located three blocks north on the corner East 24th Street and Highland Avenue. Census tract 116.01 includes the area of the City between East 18th and 24th Streets, and between National City Blvd. and "L" 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 six exist. Chapter 18.30.050 (C) requires that the applicant conduct a community meeting to inform residents of the proposal. Department policy requires that the meeting be held at a reasonable time when community members will most likely be able to attend (e.g. evenings during the work week or weekends). The applicant's community meeting was held on a Friday at 9:00 a.m., inconsistent with this requirement. The applicant states that four people attended the meeting and that no questions were posited by the attendees. Chapter 18.30.050 (D) requires a 660-foot distance from sensitive uses such as schools. The nearest school is Otis Elementary, which is located approximately 950 feet away to the northwest across Highland Avenue. The applicant also submitted a petition that was signed by 384 people in support of the application. Crime statistics provided by PD indicate that the reporting area (Beat 23) had a 2012 crime rate of 112%. This beat has the highest crime rate in the City; however, it is below the 120% considered to be a high crime area. Consistent with recent policy, PD provided a Risk Assessment report on the property. The assessment assigns points based on the type of business, license concentration, and calls for service (among others) and ranks the business according to potential risk (low, medium, or high). In this case, Red Bird Market received 14 points, which would indicate a medium risk. The Risk Assessment is attached. An assessment of the proposal was also received from the Institute for Public Strategies (IPS). Issues mentioned included proximity of the subject property to land uses that include: schools and churches, Operation Samahan Youth Center, and a nearby Alcoholics Anonymous location. Also, graffiti problems were noted on the property and "homemade" two packs of beer were observed for sale. Standard Conditions of Approval have been included with this permit, as well as conditions specific to off -sale alcohol sales per Council policy (no single sales, cup and ice prices, signage, etc.). There are also conditions requiring that coolers and/or cabinets containing alcohol products be locked after sales hours, and for video surveillance equipment to be installed. In addition to the conditions listed above, there are also two conditions related to property use and appearance. The first is related to the abatement of graffiti, which has been observed on site. The second is related to parking in the public right-of-way, which occurs on a regular basis on the wide sidewalk to the south of the market. The building is located approximately seven feet from the south property line, adjacent to a wide section of sidewalk (approximately 15 feet). There are four parking spaces marked out on the sidewalk that were not permitted by the City. As a result, vehicles are often parked adjacent to the building, which partially block the right-of-way. Furthermore, parking spaces are not permitted within an exterior side yard setback, as is the case here. Condition number 25 has been added to require the removal of these parking spaces. The condition also requires that permits submitted for construction show the correct location of the property line. Planning Commission conducted a public hearing on November 4, 2013. Commissioners asked questions regarding market conditions and business operations. Two community members spoke against the project, citing overconcentration of off -sale licenses. Based on the risk factors indicated by the Police Department and the proximity of the business to sensitive uses — as specified by the Institute for Public Strategies — the Planning Department recommended denial of the Conditional Use Permit request. The Commission voted to approve the Conditional Use Permit based on required findings and subject to Conditions of Approval. At the November 18, 2013 meeting, when the resolution was adopted, two community members spoke against the project. A statement of opposition with 240 signatures (attached) was submitted opposing approval of the Conditional Use Permit. Council reviewed the Notice of Decision of the Planning Commission's approval at their meeting of December 3, 2013. The Council set the item for hearing in order to discuss Conditions of Approval. The recommended Conditions of Approval (attached) include all pertinent conditions for alcohol CUP's based on Council Policy 707. The Policy is also attached for your review. The business has an existing nonconforming ABC license that predates the City's CUP requirement for off sale alcohol sales. The census tract in which the market resides is over -concentrated with regard to alcohol licenses; therefore, the addition of distilled spirits to the existing license would exacerbate the over -concentration situation. Although there would technically be no increase in the number of ABC licenses in census tract 116.01, there is an existing liquor store across the street that already sells distilled spirits. As such, there is no public convenience or necessity served by adding distilled spirits sales at Redbird Market. RECOMMENDATION 1. Deny 2013-18 CUP based on attached findings/findings to be determined by the Planning Commission; or 2. Continue the public hearing to a specific date; or 3. Approve 2013-18 CUP subject to the conditions listed below, based on attached findings. ATTACHMENTS 1. Recommended Findings for Denial/Approval 2. Recommended Conditions 3. Location Map 4. Census Tract Map and Police Beat Map 5. Community Meeting Info 6. Police Department Comments 7. Institute for Public Strategies comments 8. Public Hearing Notice (Sent to 390 property owners and occupants) 9. Site photos 10. Applicant's Plans (Exhibit A, case file no. 2013-18 CUP, dated 9/24/2013) MICHAEL FELLOWS BRAD RAULSTON Planning Technician Executive Director RECOMMENDED FINDINGS FOR DENIAL 2013-18 CUP, 2035 Highland Ave. 1 That the proposed use is not deemed essential and desirable to the public convenience and welfare, since there is an over -concentration of off -sale alcohol licenses in census tract 116.01 in which the subject property is located. 2. The proposed use is not deemed essential and desirable to the public convenience and welfare since alcohol is currently offered at six other outlets, including two that sell distilled spirits, within the same census tract. 3. That public convenience and necessity may not be served by a proposed use of the property for the retail sales of distilled spirits pursuant to law. RECOMMENDED FINDINGS FOR APPROVAL 2013-18 CUP, 2035 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 grocery market in an existing commercial area, and since the sale of liquor 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 is classified as an arterial street in the Circulation Element, and the addition of alcohol sales is expected to result in minimal increased 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 grocery store, an established and allowed use in the applicable mixed -use zone. 5. That public convenience and necessity may be served by a proposed use of the property for the retail sales of distilled spirits pursuant to law. RECOMMENDED CONDITIONS OF APPROVAL 2013-18 CUP, 2035 Highland Ave. General 1. This Conditional Use Permit authorizes the sale of beer, wine and distilled spirits at Redbird Market located at 2035 Highland Ave. Plans submitted for permits associated with this project shall conform with Exhibits A, Case File No. 2013-18 CUP, dated 9/24/2013. 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 Executive 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 Executive Director prior to recordation. Planning 7. The sale of beer or malt beverages in quantities of quarts, 22 ounce, 32 ounce, 40 ounce, or similar size containers is prohibited. 8. No beer products shall be sold of less than manufacturer's pre -packaged three -pack quantities of 24 ounce cans per sale. There shall be no sale of single cans or bottles. 9. No sale of wine shall be sold in containers of less than 750 milliliters. The sale of wine with an alcoholic content greater than 15% by volume is prohibited. 10. Flavored malt beverages, also known as premium malt beverages and flavored malt coolers, and sometimes commonly referred to as wine coolers, may be sold only by four -pack or other manufacturer's pre -packaged multi -unit quantities. 11. 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. 12. 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. 13. Ice may be sold only at or about prevailing prices in the area and in quantities of not less than three pounds per sale. Ice shall not be provided free of charge. 14. The display of alcoholic beverages shall be limited to an area in substantial conformance with Exhibit A, Case File No. 2013-18 CUP, dated 9/24/2013. In addition, no alcohol shall be displayed on end caps or featured in the main aisles of the store. The current exhibit does not show the location of wine; therefore, it will need to be modified to show a location subject to approval by the Planning Department. 15. Permittee shall post signs on the exterior building walls 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 17 by 22 inches in size, with lettering not less 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." 16. Containers of alcohol may not be stored on the premises, after being sold to patrons, for the purpose of later consumption. 17. 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. 18. 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 less 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. 19.AII sellers of alcohol shall receive Responsible Beverage Service and Sales (RBSS) training, including all owners, and managers. The RBSS training must be certified by the Department of Alcoholic Beverage Control (ABC). Proof of completion of an approved RBSS program must be provided prior to issuance of a city business license. As part of the RBSS training, the permittee shall make available a domestic violence training session as provided by the Institute of Public Strategies. 20. The sale of alcoholic beverages shall be limited to the hours of 8:00 a.m. to 10:00 p.m. Monday through Friday, and 8:00 a.m. to 11:00 p.m. on Saturdays. 21. Coolers and/or cabinets containing alcohol products shall be locked and made inaccessible to the public outside of the hours listed in condition number 20. or as modified through permit modification. 22. No coin operated amusement devices shall be operated on the licensed premises. This restriction is intended to discourage loitering by those interested in or involved in purchasing alcoholic beverages and do not apply to coin operated rides intended to cater to children. 23.As part of this permit, security cameras shall be installed on the premises. 24. Exterior walls of buildings/ freestanding signs/ trash enclosures to a height of not less than 6 feet shall be treated with a graffiti resistant coating subject to approval from the Planning Department. Graffiti shall be removed within 72 hours of its observance as required by Chapter 10.54 — Graffiti Control — of the National City Municipal Code. 25.No parking is permitted between the building and East 21st Street. The parking spaces marked on the concrete on the south side of the building shall be removed. "No Parking" signs shall be posted on the south side of the building. The City Manager or designee may require additional measures to discourage parking in this area should the aforementioned remedy not be effective (e.g., landscaping, bollards, etc.). Police 26. 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.