Planning Commission Agenda Item April 3, 2017 TO: Chair Glasgow and Members of the Planning Commission THRU: Anna Pehoushek Assistant Community Development Director FROM: Vidal F. Márquez Assistant Planner SUBJECT PUBLIC HEARING: Conditional Use Permit (CUP) 3029-16 – 7-Eleven, Inc., 125 N. Tustin Street, Suites F&G SUMMARY The applicant is requesting an Alcoholic Beverage Control Type 20 License (Off-Sale Beer and Wine) for the sale of beer and wine for off-site consumption within a proposed convenience store. RECOMMENDED ACTION Adopt Planning Commission Resolution No. PC 08-17 entitled: A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ORANGE APPROVING CONDITIONAL USE PERMIT NO. 3029-16 AUTHORIZING THE SALE OF ALCOHOLIC BEVERAGES (TYPE 20 LICENSE – OFF-SALE BEER AND WINE) FOR OFF-SITE CONSUMPTION AND TO MAKE A FINDING OF PUBLIC CONVENIENCE AND NECESSITY WITHIN A PROPOSED CONVENIENCE STORE LOCATED AT 125 N. TUSTIN STREET, SUITES F&G AUTHORIZATION/GUIDELINES Orange Municipal Code (OMC) Table 17.08.020, Section 17.30.030.C. and 17.30.030.D. authorize the Planning Commission to review and take action on Conditional Use Permits for the retail sale of alcoholic beverages. Planning Commission Staff Report CUP No. 3029-16 7-Eleven April 3, 2017 Page 2 PUBLIC NOTICE On March 23, 2017, the City sent a Public Hearing Notice to a total of 55 property owners and occupants within a 300-foot radius of the project site. The project site was also posted in two locations with notification on that same date. ENVIRONMENTAL REVIEW Categorical Exemption: The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15301 (Class 1 – Existing Facilities) because the project consists of licensing the retail sale of alcoholic beverages at a proposed convenience store. PROJECT BACKGROUND Applicant: Lorena Muniz for 7-Eleven, Inc. Property Owner: SL Beach, LLC Property Location: 125 N. Tustin Street, Suite F&G Existing General Plan General Commercial (GC) Land Use Element designation: Existing Zoning Commercial-Limited Business (C-1) Classification: Old Towne: Not Applicable Specific Plan/PC: Not Applicable Site Size: 26,300 SF lot (.60 AC); 8,898 SF building Circulation: The site is on the northeast corner of Tustin Street and Chapman Avenue with access to the property provided by two curb cuts, one on each of those streets. Tustin Street and Chapman Avenue are designated as major arterials and based on the General Plan this intersection is considered a ‘Critical Intersection’. Existing conditions: The site is developed with a single story multi-tenant commercial building with a surface parking lot. Surrounding land uses North: Orange Square Shopping Center (C1) and Zoning: South: Chevrolet Auto Dealership (C1) and (C2) East: Orange Square Shopping Center (C1) West: Arco Service Station with ‘AMPM Convenience Store (C1) Previous None Applications/Entitlements: Planning Commission Staff Report CUP No. 3029-16 7-Eleven April 3, 2017 Page 3 PROJECT DESCRIPTION Alcoholic Beverage Control Type 20 License The applicant requests to sell beer and wine for off-site consumption under a State Alcohol and Beverage Control (ABC) Type 20 License within a proposed convenience store. The 2,743-square foot tenant space will be remodeled to accommodate retail display shelves of prepackaged food, medicine and dry goods, a cashier counter, office and storage area, cold and hot beverage stations, restrooms and walk-in refrigeration coolers for various beverages including alcoholic beverages. Beer would only be kept in four refrigerated coolers approximately 28 sq. ft. in size and wine 5 sq. ft. The doors of these coolers are accessible to customers and will have locks on them to prevent customers from purchasing during prohibited hours. The proposed tenant improvements will modify the entrance to the store with one new double door and a new single door exit to the rear. The proposed hours of operation will be 24 hours with limited hours for alcohol sales between 6:00 AM-2:00AM, 7 days a week. The applicant’s letter of explanation is included in Attachment 3 of this report. The subject site is located at the northeast corner of Tustin Street and Chapman Avenue. The 26,300 sq. ft. commercial property is developed with a single story multi-tenant building and surface parking area with a total of 40 parking stalls. The property is an independent lot and is not integrated with the abutting commercial center to the north and no reciprocal access between them exists. Retail convenience stores are permitted by right in the C-1 zoning district, but the retail sale of alcoholic beverages is permitted by issuance of a conditional use permit. Development Standards A tenant improvement is proposed to accommodate the new convenience store. No changes are proposed to the lot size, building square footage, building height, or parking as part of this application. Therefore, a comparison of the building to existing development standards has not been conducted. APPLICATION(S) REQUESTED/REQUIRED FINDINGS Conditional Use Permit: The applicant is requesting a Conditional Use Permit to sale beer and wine beverages for off-site consumption within a proposed convenience store under an ABC Type 20 License. Required Findings: 1. A Conditional Use Permit shall be granted upon sound principles of land use and in response to services required by the community. 2. A Conditional Use Permit shall not be granted if it will cause deterioration of bordering land uses or create special problems for the area in which it is located. 3. A Conditional Use Permit must be considered in relationship to its effect on the community or neighborhood plan for the area in which it is located. Planning Commission Staff Report CUP No. 3029-16 7-Eleven April 3, 2017 Page 4 4. A Conditional Use Permit, if granted, shall be made subject to those conditions necessary to preserve the general welfare, not the individual welfare of any particular applicant. ANALYSIS/STATEMENT OF THE ISSUES Alcoholic beverage sales are a customary accessory use for many convenience stores, complementary to the primary use. The subject property does not currently have an ABC licensed establishment and it will be the first Type 20 ABC to sale beer and wine beverages for off-site consumption. Based on its experiences and analysis with the proposed 7-Eleven business in this location the Orange Police Department does not oppose the application. Given the location of the convenience store at a major commercial intersection within a commercial zone, Planning staff also recommends approval of the application. However, four issue items were identified for this project, and analysis is provided below. Issue 1: Existing Licenses within 600 feet of the Site For information purposes, staff identified the following facilities selling alcoholic beverages that are located within a 600-foot proximity to the proposed convenience store’s entrance (See Attachment 4 - Planning Commission ABC Evaluation Map). Existing Licenses Establishment Name License Type Address Rite Aid 21 1825 E. Chapman Avenue Grocery Outlet 21 1803 E. Chapman Avenue Lamppost Pizza 41 1829 E. Chapman Avenue Jimmy Bones Bar 48 1815 E. Chapman Avenue Arco/AMPM Service Station 20 100 N. Tustin Street Ostioneria Bahia Restaurant 41 144 S. Tustin Street Issue 2: Sensitive Receptors The OMC requires a Conditional Use Permit for the sale of alcoholic beverages to ensure there will be no adverse impact on surrounding land uses or allow the availability of alcoholic beverages to minors. When reviewing alcohol permits, OMC 17.30.030 details specific land uses that are sensitive to alcohol activities, but does not establish any specific distances for these uses. The State ABC Board investigation requires applicants to identify the sensitive land uses within 600 feet of the site. The following sensitive receptors are in the vicinity of the subject property: Planning Commission Staff Report CUP No. 3029-16 7-Eleven April 3, 2017 Page 5 Sensitive Receptors Establishment Name Address Distance To Project Site Single Family Residences Shattuck Place, north of Chapman 330 feet Avenue Multiple Family Apartments 210-225 N. Oak Street 470 feet Multiple Family Apartments 201 N. Wayfield Street 700 feet The selling of alcoholic beverages from the proposed location is not anticipated to have an adverse impact on these sensitive land uses because they are more than 300 feet of the business location and do not have direct access to the business. Issue 3: Census Tract Alcohol and Crime Statistics Information The Orange Police Department (OPD)’s Vice Unit reports that the proposed business within Census Tract 758.05 is over concentrated with on-sale and off-sale ABC licenses: Alcohol Licenses Existing Allowed On-Sale Licenses 10 5 Off-Sale Licenses 7 2 Census tracts are defined as small geographical areas established by local committees and approved by the Census Bureau, which contain a population segment with relatively uniform economic and social characteristics and clearly identifiable boundaries averaging approximately 1,200 households. The ABC establishes an over concentration of alcohol licenses based on the average number of alcohol licenses per capita in a given census tract. However, the ABC and the City recognize that licenses should be reviewed on a case-by-case basis to ensure that such sales will not adversely affect surrounding residents, businesses, and institutions and to ensure that any such use operates in a manner compatible with existing and future adjacent uses. This site is located at a significant commercial intersection in the City that is expected to have an over concentration of alcohol licenses due to a concentration of retail and gas/convenience stores that are commonly associated with major intersections. The existing off-sale licenses within the vicinity of the proposed location are Rite Aid Pharmacy, Grocery Outlet and Arco/AMPM service station.