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APPEAL OF THE PLANNING COMMISSION’S DENIAL OF A USE PERMIT TO ALLOW THE OFF-SALE OF BEER AND WINE AT 2122 S. AIRPORT WAY (P16-0656)
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RECOMMENDATION
Staff recommends that the City Council uphold the Planning Commission’s denial of a Use Permit to allow the off-sale of beer and wine at 2122 S. Airport Way, in accordance with the findings of fact detailed herein.
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Summary
The applicant, Mohammed Alnaggar, wants to add the off-sale of beer and wine (Type 20) to an existing mini-market located at 2122 S. Airport Way, between E. Seventh and E. Eighth Streets (Attachment A - Location Map and Aerial Photograph). The location has a Use Permit for a convenience store; however, the applicant’s proposed use requires a new Use Permit for a retail store with off-sale of alcoholic beverages. Although this location was previously approved for off-sale of alcoholic beverages, the removal of a gas station changed the use and triggered the need for a new Use Permit.
In addition to the new Use Permit, the applicant does not have a valid license from the Department of Alcoholic Beverage Control (ABC). The applicant is applying for a new ABC license that would require a finding of public convenience because of an overconcentration of licenses in census tract. A finding of public convenience cannot be made due to high crime in the area, the proximity to a public park with playgrounds serving young people, and proximity to residential neighborhoods.
The City’s alcohol ordinance, as updated in 2016, contains provisions intended to reduce the negative effects of alcoholic beverage sales activity. Staff reviewed the proposed project using the Development Code standards for alcoholic beverage sales uses and determined that the proposed use does not comply with the location restrictions for sensitive sites and over-concentration of off-sale alcohol licenses within the census tract.
Therefore, staff recommends that the City Council uphold the Planning Commission’s denial of the Use Permit, based on inconsistency with the Development Code’s location restrictions, public safety concerns, blight, and proximity to other problem uses.
DISCUSSION
Background
The site is zoned CG (Commercial General), and is bounded to the:
• north by Williams Brotherhood Park
• east by medium density residential zoned RM
• south and west by vacant land and some commercial zoned CG
The General Plan designates the project site for Commercial land use. This land use designation along with the CG zoning allows for off-sale beer and wine with the approval of a Use Permit.
The permit history on the property indicates that a Use Permit for a Convenience Store with off-sale beer and wine in conjunction with a gas station was issued in 1979 (UP108-79). The gas station was later removed from the site in the 1980’s, and in 2011 the new operators received a business license for a retail store called Rancho Market and continued operating with off-sale of beer and wine without approval from the Planning Division (Attachment B - Rancho Market Business License Application). The removal of the gas station changed the land use from a Convenience Store designation to a Retail Store designation (includes mini-marts without gas/or alcohol sales), and triggered the requirement for a new Use Permit application. This is a nuanced, but significant, land use change and a new Use Permit is appropriate. Operating the business with off-sale of beer and wine since the removal of the gas station did not provide an automatic entitlement or other allowance to continue the business. The requirement to obtain a new Use Permit remains and it must be reviewed using the City’s alcohol ordinance.
The Development Code defines the two land uses as follows:
Convenience Stores (Land Use). Easy access retail stores selling a combination of alcohol, gasoline, and a range of merchandise to provide a variety of items primarily for the motoring public. Convenience stores shall comply with the standards for alcoholic beverage sales (off-sale) (Section 16.80.040) and for problem uses (Section 16.80.270).
Retail Stores (General) (Land Use). Stores and shops selling goods or merchandise, not specifically listed under another land use, to the general public for personal or household consumption and rendering services incidental to the sale of goods. These stores and lines of merchandise include: mini-marts without gas and/or alcohol sales
Development Code Section 16.104.040.C establishes the procedure for approving changes to a previously approved project. That section allows the Director or the Commission (depending on whether the change is minor or major) to allow the requested change when the six required findings are made in a positive manner.
The City has no record of any requests to change the use from a convenience store to a retail store with off-sale of alcoholic beverages, and there are no such approvals on file. Because the land use changed, the applicant is now required to obtain a new Use Permit for the proposed use subject to the provisions of the City’s Alcohol Ordinance, which contains provisions intended to reduce the negative effects of alcoholic beverage sales activity.
Present Situation
The applicant is proposing a 95 square-foot storage and display area for alcoholic beverages that will account for approximately four (4) percent of the existing 2,190 square foot market. The proposed hours of operation for the market are 7 a.m. to 11 p.m., seven days a week. The applicant indicated that security lighting and video surveillance cameras inside and outside the building would be added.
Location Restrictions
Stockton Municipal Code (SMC) Section 16.80.040 outlines location criteria for alcoholic beverage sales establishments. Additionally, specific findings are required for problem land uses as defined under SMC Section 16.168.050 and for alcoholic beverage sales.
Proximity to Schools and Parks
SMC Section 16.80.040.D(2) requires a minimum separation of 500 feet between an establishment with the off-sale of alcoholic beverages and public or private academic schools for students in kindergarten through 12th grade, public parks, playgrounds, recreational areas, or youth facilities. Per the San Joaquin County Office of Education, there are no County One Schools located within 500 feet of the project site. However, Williams Brotherhood Park is within 500 feet of the project site. The minimum separation requirement of 500 feet from park areas is established to minimize the impacts of loitering and consumption of alcoholic beverages in areas that are public community spaces and often provide play areas for children. Therefore, the proposed use does not comply with the minimum required separation from schools and parks.
High Crime Reporting District
SMC Section 16.80.040.D(2)(d)(i) and (ii) state that a business with off-sale shall not be located in a high crime reporting district, where the average number of crimes in that district exceeds the average number of crimes for all reporting districts citywide by more than 20 percent. The applicant’s location is in crime reporting district 0213 with a lower than average crime rate of 76, which is 10.59% below the City average. Therefore, the proposed use complies with the location restriction within crime reporting district 0213.
However, Business and Professional Code 23817.7 takes into account adjacent police reporting districts when making a finding for Public Convenience and Necessity. The subject property directly borders (within 100 feet) crime reporting districts 0215 and 0216 which are 21.18% and 117.65% above the City average respectively. The average of all three districts is 42.78% above the City average. The increased concentration of off-sale alcohol would only serve to exacerbate crime and illegal activities and result in additional demand for police services in this area.
Proximity to Other Alcoholic Beverage Sales Establishments
SMC Sections 16.80.040.D(2)(d)(i) and (ii) require that new off-sales establishments not be located in an area within 500 feet of an existing off-sale alcoholic beverage establishment or any location that would lead to the grouping of more than four (4) off-sale alcoholic beverage establishments within a 1,000-foot radius.
The project site does have another off-sale location within 500 feet of the proposed location. The off-sale nearby has an ABC license that was surrendered but can be reactivated at any time and is still included in ABC’s over-concentration calculation. The proposed property does not have a clustering of four or more off-sale within the 1,000-foot radius of the proposed location. Therefore, the addition of the proposed use would not comply with the 500-foot separation requirement but complies with the limit of four off-sales within the 1000-foot radius (Attachment C- Liquor License Map).
Census Tract Concentration
The project site is located in Census Tract 22.01. Business and Professional Code Division 9 section 23817 limits the issuance of alcohol licenses to one per 2,500 residents. Based upon the population in the census tract, ABC determined that two (2) off-sale alcoholic beverage establishments are allowed within the Census Tract. At the time of application, there were three (3) off-sale licenses within the census tract making this census tract over-concentrated. Over-concentration of the off-sale of alcohol in a census tract is an indication that the area is more than adequately served and that no genuine public benefit would be gained by further over-concentration. Because the addition of an off-sale license would create an over-concentration in the census tract, the proposal would require a finding of Public Convenience or Necessity as it does not comply with the concentration restriction outlined in the California Business and Professional Code.
The applicant has not obtained a valid ABC license. The applicant is applying for a new ABC license which would result in an overconcentration of licenses in census tract 22.01. A Finding of Public Convenience or Necessity is required to issue a license in an over-concentrated census tract. Staff finds that such a finding cannot be made due to high crime in the area, the proximity to a public park with playgrounds serving young people, and proximity to residential neighborhoods. The applicant has not provided sufficient evidence that a public convenience or necessity would be served by permitting a new ABC license at the proposed site.
Findings
The Development Code lists a number of findings that must be made to support the approval of a use permit. All the required findings must be made to approve the requested use permit. If one or more findings cannot be made, then the use permit must not be approved.
There are seven required general findings in SMC Section 16.168.050. The general findings require compliance with all applicable provisions in the SMC; maintaining the integrity and character of the applicable zoning district; consistency with General Plan; physical suitability of the site for the proposed use; not endangering or jeopardizing the public health, safety, peace or general welfare; compatibility with surrounding uses; and consistency with the California Environmental Quality Act.
With respect to the general findings, staff recommends that the City Council find that the proposal is not consistent with two of the location restrictions and does not, therefore, comply with the applicable provisions of the Development Code, and for the same reason does not strengthen the integrity of the neighborhood, would jeopardize the public peace and welfare, and would be incompatible with surrounding land uses.
Additional findings are required for Problem Uses and Alcoholic Beverage Sales activity. “Problem Uses” are defined as “Uses that have a blighting and/or deteriorating effect upon their surroundings, and which may be dispersed to minimize their adverse impacts.” The following is a discussion of the Problem Use findings:
1. The proposed use is likely to interfere with the comfortable enjoyment of life or property in the area because the project site is near a community park that is identified in the City Alcohol ordinance as a sensitive site with the potential to be impacted negatively. Adding another Problem Use in the area has the potential to increase vagrancy and illegal activities and can also be expected to result in additional calls for police service.
2. The proposed use will increase or encourage the deterioration or blight of the area because there are three existing off-sale alcohol outlets in the census tract, which exceeds the allowable number of two licenses for the tract. The area surrounding the proposed use is adequately served by the existing alcohol sales outlets. Adding another alcoholic beverage sales establishment in the neighborhood surrounding the subject site has the potential to create an unsafe neighborhood, due to increased crimes, illegal activities, and drunkenness, as well as by increasing or encouraging deterioration or blight in the area.
3. The establishment of an additional off-sale alcohol use in the area will not be contrary to any program of neighborhood conservation, improvement, or redevelopment because such programs do not exist in the area. However, the City has taken legal action on a neighboring off-sale location that was placed in receivership by the courts because of ongoing problems related to crime and blight. The receivership of this neighboring site is seen as a step forward in improving and potentially redeveloping this area. Although the site’s crime reporting district is below the City crime average, the two crime reporting districts that abut the location are both above the average City crime rate. Approval of the proposed use will be contrary to the improvement and redevelopment of the area because such an establishment has the potential to increase alcohol-related illegal activities, which would adversely affect the quality of life for area residents and the viability of future retail/commercial development in the surrounding area.
Public Comments
The applicant did submit a petition and letter in support of the off-sale location (Attachment D - Community Outreach). Staff has not received any additional public communication on the proposed project.
External Communication
Staff has not received any external communications for this application.
Planning Commission Action
At the March 23rd public hearing, a motion was carried 6-1 to deny a use permit to allow the off-sale beer and wine at 2122 S. Airport Way. At the public hearing, the property owner Ralph White spoke in favor of the project stating he was never informed that the removal of his gas tanks, required by the state, would change the use of his convenience store and a new use permit would be required. Mr. White stated, that if the City failed to notice and inform the property owner of the need for a new use permit due to a change in use, that he should be allowed to operate a mini-mart with off-sale alcohol. He also argued the New Grand Save Mart was shut down and should not be counted in the concentration of off-sale alcohol licenses.
The Planning Commission determined that operating inconsistently with the requirements of the Development Code for a period of time does not entitle continued operation of the use. Staff confirmed that although the New Grand Save Mart was closed, there is an active ABC license on the property, the Census Tract is over-concentrated, and they could potentially resume the sale of alcohol.
Alcohol Ordinance Update
The facts related to this application have changed since the Planning Commission meeting on March 23rd. The ABC off-sale license for the New Grand Save Mart located at 2318 S. Airport Way has been transferred to Lodi, and therefore should not be included in the current license concentration calculation. Because of this, the proposed use now complies with the 500-foot separation requirement from other off-sale alcohol establishments. However, there are two active licenses and two allowed in the subject census tract. If the applicant’s ABC application were to be approved, it would still result in an overconcentration of off-sale alcohol licenses in the census tract. Furthermore, the site still does not meet the separation requirement from parks and is located in a high crime area.
Applicant Appeal
On March 27, 2017, the applicant filed an appeal of the Planning Commission’s decision to deny the Use Permit request. The appeal stated that the Commission was unfair and the Use Permit has always been on this property and only recently was it decided that the Use Permit was invalid, but beer and wine have been sold at this location since it opened in the 1970’s.
Environmental Clearance
Denial of the application does not constitute a project under the California Environmental Quality Act (CEQA) and, therefore, no environmental analysis is needed for the proposed use.
FINANCIAL SUMMARY
There is no anticipated financial impact to the City as a result of the project.
Attachment A - Location Map and Aerial Photograph
Attachment B - Rancho Market Business License Application
Attachment C - Liquor License Map
Attachment D - Community Outreach