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USE PERMIT FOR A MICRO-BREWERY TO BE LOCATED AT 110 N SAN JOAQUIN STREET (P16-0159)
recommended action
RECOMMENDATION
Staff recommends that the Planning Commission adopt a resolution approving a Use Permit for a micro-brewery at 110 N San Joaquin Street.
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Summary
Applicant, Channel Brewing Company, is proposing to operate a micro-brewery (Type 23) craft brewing operation and tasting room with off-sale to be located in a 1,451 square foot building at 110 N San Joaquin Street, between Channel Street and Weber Avenue (Attachment A - Location Map and Aerial Photograph).
DISCUSSION
Use Permit
The site is zoned CD (Commercial, Downtown), and is bounded to the:
• north and west by Commercial Downtown (CD)
• east by the downtown transit center zoned Commercial Downtown (CD)
• south by the county courthouse and a school zoned Commercial Downtown (CD)
The General Plan designates the project site for Commercial land use. This land use designation along with the Commercial, Downtown (CD) zoning allows for a micro-brewery and off-sale with approval of a Use Permit, which the Applicant has requested.
The small-scale craft brewery operation is expecting that production will not exceed 1,000 barrels of beer per year. The type 23 alcohol license required for this facility is described by the Department of Alcoholic Beverage Control (ABC) as:
“SMALL BEER MANUFACTURER - (Brew Pub or Micro-brewery): Authorizes the same privileges and restrictions as a Type 01. A brewpub is typically a very small brewery with a restaurant. A micro-brewery is a small-scale brewery operation that typically is dedicated solely to the production of specialty beers, although some do have a restaurant or pub in their manufacturing plant.”
Under the ABC rules, the proposed establishment would be a “micro-brewery,” because it would not include a restaurant.
The back of the house will contain the production equipment which will meet all standards given by involved agencies. The front of the facility will be a tasting room for the craft beer made on-site. Although there will not be a full kitchen and restaurant on site, there will be small food items available and restaurant service available from Cast-Iron Cheese, an adjacent restaurant set to open this spring. The applicant has indicated that the main focus of the business is craft beer brewing and the off-sale portion is anticipated to be ancillary to the business and likely to account for only about 10% of total sales, unlike most off-sale establishments where off-sale accounts for 100% of alcohol sales. The remaining portion of the business will comprise of 30% wholesale and 60% on-sale revenue sources. The proposed hours of operation for the micro-brewery would be Tuesday through Thursday 10:30 am to 10pm, Friday and Saturday 11am to 12am, Sunday 1pm to 7pm and closed Mondays.
The Stockton Municipal Code (SMC) amendment related to alcoholic beverage sales was approved by the City Council on January 26, 2016, and became effective on March 26, 2016. This application is being processed under the newly adopted code provisions.
SMC Section 16.80.040 outlines criteria that the project site needs to meet or provide evidence to support a waiver of those requirements. Additionally, specific findings are required for problem land uses as defined under SMC Section 16.240.020 and alcoholic beverage sales.
Location Restrictions
Proximity to Schools and Parks
The current 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. The nearest school (Stockton Collegiate Elementary & High School), located at 321 E. Weber Avenue, is approximately 100 feet east of the project site and their high school located at 343 E. Main Street. Additionally, there is a child care center (The Campus) located at 123 N Sutter that is approximately 150 feet east of the project site. According to the San Joaquin County Office of Education, there are no County One Schools located within 500 feet of the project site. There are no parks, playgrounds or recreational areas within 500 feet of the project site. The nearest park is De Carli plaza which is approximately 800 feet from the project site. Therefore, the proposed use does not comply with the noted minimum required separation from schools and parks, and the applicant has requested a waiver from the location restriction. (Attachment B- Schools and Parks Map) It is further noted that the downtown has a higher concentration of land use types and much of the downtown is located within 500 feet of sensitive uses with separation requirements (Attachment C- Downtown Separation Requirement Map).
High Crime Reporting District
SMC Section 16.80.040.D(2)(d)(i) and (ii) states that a business with on- or 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 downtown core area (crime reporting district 102) has a higher than average crime rate of 161, which is 76% above the City average. (Attachment D- Crime Reporting District Map) However, according to City Police crime reporting data, crime rates have consistently decreased over the last three years in the downtown district from 95 calls in 2013 to 60 calls in 2015. (Attachment E -Crime Reporting District Statistics) Therefore, the proposed use does not comply with this location restriction and the applicant has requested a waiver.
Proximity to Other Alcoholic Beverage Sales Establishments
SMC Section 16.80.040.D(2)(d)(i) and (ii) require new on- and off-sales establishments shall not be located in an area within 500 feet of an existing alcoholic beverage sales establishment or any location that would lead to the grouping of more than four (4) alcoholic beverage sales establishments within a 1,000-foot radius.
The project site does not have another off-sale location within 500 feet and there are three existing off-sales within a 1,000-foot radius of the proposed location, so the addition of the proposed use would not exceed either the 500 foot separation rule or the limit of four off-sales within the 1000-foot radius. The project site has four on-sales within 500 feet and nine additional on-sales within a 1,000-foot radius, therefore the proposed location would exceed the 500 foot separation and the grouping of four or more on-sales within 1,000 feet, and the applicant has requested a waiver. (Attachment F- Liquor License Map).
Census Tract
In accordance with regulations administered by ABC, the Type 23 license allows for onsite brewing with tasting and off sale of craft product produced. ABC does not classify the Type 23 as a retail license; therefore, this license would not be used in the calculation of concentration in the census tract (Tract 1). Approving the Use Permit to allow the issuance of an additional alcohol license by ABC would not constitute an overconcentration in this census tract.
Rationale for Waivers
The SMC states that the applicable Review Authority has the discretion to waive the location restrictions relating to proximity to sensitive uses such as schools, high crime reporting districts, and other alcoholic beverage sales establishments, to promote and support local economic business growth, throughout the City including areas like: the Downtown District, Miracle Mile, and Yosemite Shopping Center. The City of Stockton 2012 Urban Land Institute (ULI) assessment outlines a recommended focus area for revitalization in the downtown. The ULI panel recommended that revitalization efforts focus on the Miner Avenue corridor from Weber Point to Cabral Station with one to two blocks north and south that would include the micro-brewery project site. The ULI panel also outlined key characteristic of successful downtowns some of them include:
• The downtown having a broad mix of uses in the public, private, and civic realm, offering commercial, government, medical, educational, cultural, residential and recreation functions;
• Activity across the day (into evenings) and week (including weekends);
• Lively street frontages
Additionally, the City’s Economic Development Strategic Plan states that as part of an overall downtown revitalization plan, it is essential to have the following characteristics in place:
• An aggressive sustained effort aimed at attracting private reinvestment in the downtown area
• New investment in Downtown: number and mix of new businesses is needed
• Cultivate entrepreneurship/innovation program
The proposed micro-brewery represents new private investment in the Downtown that has the potential to be a key component of a new cultural and entertainment district in the City’s historic core, consistent with the Economic Development Strategic Plan. In this case, staff recommends these locational restrictions be waived because doing so would support local business growth; add a new small business to the Downtown; and, as a micro-brewery, be a unique alcoholic beverage sales establishment selling its own craft product which would add a desirable attraction to the Downtown area that would appeal to residents and visitors alike. Staff’s recommendation is further supported through the goals and policies of the current City General Plan including:
ED-3.4 The City shall continue to assist and encourage the establishment of community and regional entertainment venues within the Downtown.
ED-3.8 The City shall encourage investors to purchase downtown property and help property owners lease space.
ED-3.11 The City shall help to protect the viability of corridor commercial and community retail centers by promoting a business mix that responds to changing economic conditions and provides well-targeted services to surrounding neighborhoods.
General Findings
The proposed use is consistent with all required general findings relating to General Plan and zoning consistency, strengthening the integrity and character of the area, physical suitability of the site for the proposed use, health and safety, compatibility with surrounding uses, and environmental impacts. The use is allowed within the Commercial, Downtown (CD) zone with a use permit and meets Development Code requirements with the approval of waivers. It would strengthen the integrity and character of the neighborhood because the use is a component of a lively Downtown district that consists of a wide mix of land uses intended to provide goods and services that appeal to residents and visitors alike, and because it is in line with the Urban Land Institute (ULI) Advisory Report recommendations to incorporate a broad mix of uses in the downtown and additionally in the City of Stockton Economic Development Strategic Plan as one of the plan’s major themes stated under the quality of life initiatives that one of the components is downtown revitalization to promote/prioritize downtown as destination for events.
The proposed commercial land use would be consistent with the Commercial land use designation of the General Plan, and the site would be physically suitable for the proposed use including the provision of services (e.g., sanitation and water), public access, and the absence of physical constraints (e.g., earth movement, flooding, etc.); because it maintains like capacity uses and does not substantially increase capacity needs.
Conditions of approval address safety, security, and employee training to ensure that the establishment, maintenance, and operation of the proposed use would not constitute a hazard to the public. Also, the design, location, size, and operating characteristics of the proposed use would be compatible with the existing and future land uses on-site and in the vicinity of the subject property; because it contributes to the mix of land uses that makes the downtown a unique district.
Findings for Problem Uses
Staff believes that problem use findings can be affirmatively made for this project. The proposed use is not likely to interfere with the comfortable enjoyment of life or property in the area because the building is not located adjacent to residential uses; the applicant has indicated that the micro-brewery will only be open past 10 p.m. on two nights of the week and not be open to the public before 10:30 a.m. during operating days; and, unlike most off-sale problem uses where 100% of sales are off-sale, the applicant has indicated that his business model focuses on the manufacturing of craft beer with off-sale only being an ancillary portion of the business, thereby reducing concerns about customers purchasing alcohol and consuming it in the surrounding neighborhood.
The proposed use will not increase or encourage the deterioration or blight of the area because the proposed project is not within 500 feet of another off-sale and is going into a newly improved building with improved lighting, security cameras and façade improvements that will reverse blight or deterioration in the area.
The proposed alcohol establishment will support conservation, improvement, and redevelopment efforts in the area, because the proposed micro-brewery is in line with approved redevelopment initiatives in the downtown such as Open Window project that encourages a mix of land use types. Additionally, the City’s Economic Development Strategic Plan aims to promote/prioritize Downton as a destination and event center through a core economic development initiative including a business attraction program and entrepreneurship/innovation program.
Findings for Alcoholic Beverages
Staff believes that the alcoholic beverage findings can be affirmatively made for this project. The proposed use will not result in repeat nuisance activity because the applicant will be installing surveillance cameras on-site along with a zero tolerance policy on violence and service to minors. The applicant has indicated that they will work with law enforcement to combat any problems in the surrounding area and establish a complaint response community relations program as outlined in the conditions of approval within the attached resolution. All employees and the owners and of the establishment will be required to complete an approved course in Licensee Education on Alcohol and Drugs (LEAD), or other “Responsible Beverage Sales.” This project would not be required to make PCN findings.
In staff’s judgment, the downtown is envisioned as the public social entertainment center for the City and has unique characteristics that qualify it as its own subarea within the larger context of the City as called out in the development code. Therefore, proposed uses in the downtown area should be evaluated in a way that takes its unique situation and potential into account. As such, staff recommends that consideration be given to uses that would promote a positive image for Downtown, result in the Downtown’s revitalization, and attract residents and visitors to the Downtown area.
In summary, the proposal, if approved, would introduce an additional economic advantage to the downtown area and provide a venue for local entertainment. The required findings have been made to address impacts on the downtown area. Therefore, staff recommends approval of the Use Permit application.
Public Comments
Staff received a letter of support from Moses Zapien, Chairman of the San Joaquin County Board of Supervisors. Mr. Zapien supports the proposed use in the downtown as a “meaningful contribution to the revitalization and place-making efforts…and such an establishment will further the community’s vision of downtown Stockton as a destination for living, working and enjoyment.” (Attachment G -Letters of Support).
Staff also received one letter in opposition to the project that sited concerns about overconcentration of alcohol licenses of all types in the downtown area in conjunction with a higher than average crime rate in the downtown reporting district (Attachment H -Letter of Opposition).
The Planning and Engineering Division of the Community Development Department, the Police Department, Municipal Utilities Department, other City departments and the surrounding neighborhood have been notified of this request.
In support of this request, the applicant has stated the proposed business will
• Serve a growing live, work, play vision for the downtown
• Bring a local start up to the downtown furthering entrepreneurship in the City
• Continue the aim of the Economic Development Strategic Plan for the downtown area
• Be an active driving force in downtown revitalization
• Give back to the community through charitable events
Environmental Clearance
This request is categorically exempt under the California Environmental Quality Act (CEQA) Section 15301 Existing Facilities, Class 1, of the State CEQA Guidelines. The proposed project is located on a developed parcel that is surrounded by urban uses. Existing infrastructure is expected to be able to adequately serve the project.
VOTES
A vote of a majority, four (4), of the total authorized membership of the Planning Commission is required for the Commission to transact business or decide any matter.
Attachment A - Location Map and Aerial Photograph
Attachment B - Schools and Parks Map
Attachment C - Downtown Separation Requirement Map
Attachment D - Crime Reporting District Map
Attachment E -Crime Reporting District Statistics
Attachment F - Liquor License Map
Attachment G - Letter of Support
Attachment H -Letter of Opposition