Barton Brierley, AICP, Director of Community Development

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1 Agenda Item No. 8A January 27, 2015 TO: FROM: SUBJECT: Honorable Mayor and City Council Attention: Laura C. Kuhn, City Manager Barton Brierley, AICP, Director of Community Development RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VACAVILLE DENYING THE PUBLIC CONVENIENCE OR NECESSITY (PCN) REQUEST TO SELL ALCOHOLIC BEVERAGES (BEER AND WINE) FROM THE QUICK WAY GAS STATION AND CONVENIENCE STORE AT 401 MERCHANT STREET DISCUSSION: On July 14, 2014, the Planning Division received an application for a City Determination of Public Convenience and Necessity (PCN) to allow the sales of alcoholic beverages from the Quick Way Gas Station and Convenience Store located at 401 Merchant Street. The applicant is proposing to sell beer and wine for off-site consumption only, under a Type 20 State license. The alcoholic beverages would be sold and stored within the convenience store. Existing uses adjoining the subject site include retail stores and offices, residential homes a few blocks away, and Heritage Peak Charter School across the street (Attachment 1). An application for a Type 20 license is pending with the Department of Alcoholic Beverage Control (ABC). Pursuant to State Law ( of the California Business and Professions Code), all alcoholic beverage sales resulting in or adding to an undue concentration of liquor licenses shall be subject to a determination by the local jurisdiction that the public convenience or necessity will be served by the issuance of a liquor license. In addition, the City s Land Use and Development Code requires certain findings to be made, including the determination that the license will be consistent with the goals, objectives and policies of the General Plan and the Land Use and Development Code, and that the license will not be detrimental to the public health, safety or welfare of the community. According to the ABC, the proposed convenience store is located in a census tract that allows a maximum of 3 licenses without local jurisdiction approval. Currently, the census tract contains 14 existing licenses resulting in an undue concentration of liquor licenses. Also, the project site is located in a crime-reporting district that exceeds more than 120% of the City s average number of annual offenses. In 2014, the average number of crimes for all reporting districts was 171 offenses. In that same year, the crime-reporting district recorded 811 offenses, which is more than four and a half times the City s average. As a result, the applicant must obtain PCN approval from the City. The applicant has submitted a PCN application in accordance with State law and the Land Use and Development Code. The required noticing was sent to property owners and occupants within 600 feet of the project site. The City received 2 letters opposing the proposed project (Attachment 4). Notice was also sent to the Planning Commission, the City Council and the Chief of Police. Councilmember Mashburn has requested that the Council review the project application. When reviewing PCN applications, the decision-maker must consider several criteria, such as impacts to sensitive surrounding land uses, the number of existing licenses in the vicinity, and crime-related problems in the area. These criteria are used to determine if the proposed liquor

2 license would meet the additional findings required by the Land Use and Development Code and whether issuance of the license will serve the public convenience or necessity. The Planning Division and the Police Chief do not support the proposed PCN application because the project site is located across the street from an existing sensitive land use, Heritage Peak Charter School, which provides independent education for students in grades Kindergarten through 12 th grade. The addition of this liquor license could potentially make illegal sales to minors more convenient. In addition, the public convenience or necessity is currently served by 14 existing licenses in the census tract, including 5 licenses that are in close proximity to the project site: 901 Mason Street (Chevron), 541 Davis Street (Chevron), 800 Merchant Street (Valero), 801 Merchant Street (U-Save Liquors), and 300 Parker Street (Vacaville Food and Liquor). The applicant has stated that the ABC license he is seeking would be transferred from the 901 Mason Street location. If this occurs, the number of licenses for the census tract would not increase for the time being, although any commercial business in the census tract could seek an additional license at a later time. Furthermore, the census tract reports a high crime rate and the additional license could potentially increase criminal activity. Studies have shown that a high density of liquor stores is linked to higher levels of crime and violence 1, and that neighborhoods with a higher density of liquor stores had higher numbers of childhood accidents, assaults, and child abuse injuries. 2 Therefore, the Police Chief and Planning Division staff recommends denial of the Public Convenience or Necessity request. The resolution of denial is attached to this report. Initially, the PCN request was scheduled for consideration on October 28, At the request of the applicant, the City Council continued the item from the October 28 and November 18 Council meetings, so that the applicant could meet with City staff to discuss mitigation measures to address the potential issues. The applicant met with the City s Community Development Director, City Planner and Police Chief on November 5, The applicant expressed his concern that without alcohol sales his business may not succeed in the long term. Staff reiterated its position that the proximity of the project site to a school, existing ABC licenses close to the project site, inconsistency with General Plan policies, and its location within a high crime reporting district provides sufficient justification for staff to recommend denial of the PCN request. If, after hearing the matter, the City Council determines that approval of the request serves a public convenience or necessity, the Council should direct staff to prepare findings and a resolution approving the request. Such resolution would include modified conditions of approval for the convenience store in order to enhance safety features on the project site. Due to the Permit Streamlining Act, the Council will need to make a final decision on the application at the January 27, 2015 meeting. If the Council wishes to the approve the request, the Council would need to continue the item to the end of the agenda and allow staff time to draft a revised resolution. 1 K.Stewart. (2005) How Alcohol Outlets Affect Neighborhood Violence. Pacific Institute for Research and Evaluation. 2 Freisthler, B., P. Gruenewald, L. Ring, and E. LaScala. (2008). An Ecological Assessment of the Population and Environmental Correlates of Childhood Accident, Assault, and Child Abuse Injuries. Alcoholism: Clinical and Experimental Research, Volume 32, pp

3 FISCAL IMPACT: The Community Development Department s review and processing of the project application was funded by planning application fees. RECOMMENDATION: By simple motion, adopt the subject resolution. ATTACHMENTS: Resolution Action Item Attachment 1: Location Map Attachment 2: List of Existing Liquor Licenses Attachment 3: Project Description, ABC Form-245, Site Plan, Floor Plan Attachment 4: Letters of Opposition

4 RESOLUTION NO RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VACAVILLE DENYING THE PUBLIC CONVENIENCE OR NECESSITY (PCN) REQUEST TO SELL ALCOHOLIC BEVERAGES (BEER AND WINE) FROM THE QUICK WAY GAS STATION AND CONVENIENCE STORE AT 401 MERCHANT STREET WHEREAS, the City Council of the City of Vacaville conducted a duly noticed public hearing on January 27, 2015, regarding the Public Convenience or Necessity (PCN) application to sell alcoholic beverages (beer and wine) from the Quick Way Gas Station and Convenience Store, related to the following described property: 401 Merchant Street APN (File No ) WHEREAS, the public hearing before the City Council was duly noticed in accordance with applicable state law and the Vacaville Land Use and Development Code requirements; and WHEREAS, the City Council received testimony from City staff, the Police Chief, the applicant and interested persons regarding the application; and WHEREAS, the City Council has determined that the application is statutorily exempt under Section 15270(a) (Projects Which Are Disapproved) of the California Environmental Quality Act (CEQA) guidelines; and WHEREAS, the City Council has reviewed the Public Convenience or Necessity (PCN) application to sell alcoholic beverages (beer and wine) at the Quick Way Gas Station and Convenience Store at 401 Merchant Street and, based on the evidence contained in the written record and the testimony given at the public hearing, determines the following with respect to the findings required to approve the application: 1 1. That the approval of the application is consistent with the goals, objectives, and policies of the General Plan and of the Land Use and Development Code. This required finding cannot be made. The project site is located in close proximity to sensitive land uses, including residential homes located within 250 feet from the project site, and a K-12 th grade charter school located across the street from the project site. A 2008 study found that neighborhoods with a higher density of liquor stores had higher numbers of childhood accidents, assaults, and child abuse injuries. 1 For this reason, approval of the application would conflict with General Plan Policy 2.6-G7, which require new development to be compatible with the character and scale of existing land uses. The sale of beer and wine at this location would not be compatible with such surrounding sensitive uses. Therefore, approval of the application would not be consistent with General Plan Policy 2.6-G7 as required by Section A of the Land Use and Development Code. Freisthler, B., P. Gruenewald, L. Ring, and E. LaScala. (2008). An Ecological Assessment of the Population and Environmental Correlates of Childhood Accident, Assault, and Child Abuse Injuries. Alcoholism: Clinical and Experimental Research, Volume 32, pp

5 2. That the approval of the application will not be detrimental to the public health, safety, or welfare of the community. This required finding cannot be made. The project site is located within a census tract that contains a higher than average crime rate. In 2014, the average number of criminal offenses for all reporting districts in the City was 171. During that same time, there were 811 criminal offenses within the census tract where the project site is located, which is more than four and a half times the City s average. Additionally, the project site is located in close proximity to residential uses and is across the street from a K-12 th grade charter school. Studies have shown that a high density of liquor stores is linked to higher levels of crime and violence. 2 Additional wine and beer sales in this area, then, could unreasonably impact these surrounding sensitive land uses. For this reason, the City Council cannot find that approval of the application would not be detrimental to the public health, welfare and safety of the community. 3. That the public convenience or necessity is served by the approval of the application. This required finding cannot be made. The PCN request has been considered in accordance with Section (Criteria to be Considered in Determining Public Convenience or Necessity) of the City s Land Use and Development Code and Section (a)(3) of the Business and Professions Code. The State Legislature has found and declared that the public welfare and morals require that there be a limitation on the number of premises licensed for the off sale of beer and wine (Business and Professions Code Section ). Where the numerical limitation has been met, the State may nonetheless issue a license if the premises are located in a crime reporting district that is below that provided in Section (a)(1) of the Business and Professions Code; the premises are located in an area that falls below the concentration level provided in Section (a)(3) of the Business and Professions Code; and the local governing body or its designated subordinate officer or body determines that the public convenience or necessity would be served by issuance of the license. The State Department of Alcoholic Beverage Control has determined that the applicant s premises are situated in a census tract that allows a maximum of 3 licenses without local jurisdiction approval. The census tract currently includes 14 licenses, resulting in an undue concentration of licenses within the tract. The City Council finds that the proposed license would potentially impact sensitive surrounding land uses and would not enhance the economic viability or recreational opportunities in the area. The City Council further finds that an additional license would add to an excessive concentration of licenses within the area and potentially increase crime-related offenses in the area and that the public convenience or necessity is currently being served by 5 existing licensees that are in close proximity to the applicant s premises: 901 Mason Street (Chevron), 541 Davis Street (Chevron), 800 Merchant Street (Valero), 801 Merchant Street (U-Save Liquors), and 300 Parker Street (Vacaville 2 K.Stewart. (2005) How Alcohol Outlets Affect Neighborhood Violence. Pacific Institute for Research and Evaluation. 2

6 Food and Liquor). For these reasons, the City Council finds and determines that the public convenience or necessity would not be served by approval of the PCN request or the off-sale beer and wine license application currently pending before the State Department of Alcoholic Beverage Control. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Vacaville, based on the above findings, does hereby determine that, the issuance of an off-sale beer and wine license for the Quick Way Gas Station and Convenience Store located at 401 Merchant Street would not serve the public convenience and necessity and, therefore, denies the PCN request to sell beer and wine at the aforementioned location. I HEREBY CERTIFY that the foregoing resolution was introduced and passed at a regular meeting of the City Council of the City of Vacaville, held on the 27th day of January, 2015 by the following vote: AYES: NOES: ABSENT: ATTEST: Michelle A. Thornbrugh, City Clerk 3

7 VACAVILLE FOOD AND LIQUOR MAIN STREET DEPOT STREET 7-ELEVEN HERITAGE PEAK CHARTER SCHOOL MASON STREET CITY HALL MERCHANT STREET QUICK WAY GAS DAVIS STREET CHEVRON VALERO U SAVE LIQUORS %&'( 80 CITY OF VACAVILLE COMMUNITY DEVELOPMENT DEPARTMENT ATTACHMENT 1 - LOCATION MAP QUICK WAY GAS STATION AND CONVENIENCE STORE 401 MERCHANT STREET FILE NO PROJECT SITE EXISTING ALCOHOL OUTLETS SENSATIVE USE

8 ATTACHMENT 2 California Department of Alcoholic Beverage Control SOLANO COUNTY - (Off-Sale Licenses) Census Tract = Report as of 10/12/2014 License License Status Number Type Orig. Iss. Date Expir Date Primary Owner and Premises Addr. Business Name 1) ACTIVE 21 3/31/1994 2/28/2015 HANS, JASWANT S 1040 E MONTE VISTA AVE VACAVILLE, CA JOHNS LIQUORS 2) ACTIVE 20 9/12/2005 8/31/2015 BCPK PETROLEUM INC MERCHANT GAS & MART 800 MERCHANT ST VACAVILLE, CA ) ACTIVE 20 11/21/2005 6/30/2015 PNS STORES INC BIG LOTS ALAMO DR VACAVILLE, CA ) ACTIVE 20 1/25/ /31/2014 BARAJASPALAFOX, LEONEL MEXICO MEAT MARKET E MONTE VISTA AVE, STE A VACAVILLE, CA ) ACTIVE 20 5/26/2009 4/30/2015 GILPIN, JOHN PHILIP 411 DAVIS ST, STE. 201 VACAVILLE, CA VITUS WINES 6) ACTIVE 20 8/17/2009 7/31/2015 RETAIL ALLIANCE LLC CHEVRON 541 DAVIS ST VACAVILLE, CA ) ACTIVE 21 7/14/2009 5/31/2015 A & B LIQUOR AND FOOD INC 808 ALAMO DR VACAVILLE, CA A & B LIQUOR AND FOOD INC 8) ACTIVE 20 9/7/2010 8/31/2015 GILPIN, JOHN PHILIP QUERCUS WINES 406 MAIN ST VACAVILLE, CA ) SUREND 20 2/18/2011 1/31/2015 ATS MARKET & GAS INC 900 MASON ST VACAVILLE, CA ) ACTIVE 20 6/21/2012 5/31/2015 IJK OIL, INC. 970 MERCHANT ST VACAVILLE, CA ATS VALERO CHEVRON 11) ACTIVE 20 2/12/2013 6/30/ ELEVEN INC 7 ELEVEN 901 MASON ST VACAVILLE, CA ) ACTIVE 20 8/9/2013 7/31/2015 AU ENERGY LLC MERCHANT SHELL 950 MERCHANT ST VACAVILLE, CA ) ACTIVE 21 5/13/2014 4/30/2015 BASSI, JARNAIL SINGH 300 PARKER ST VACAVILLE, CA VACAVILLE FOOD & LIQUOR 14) ACTIVE 21 1/1/1994 7/31/2015 BRAENDLEIN, SANDRA LEE VACAVILLE U SAVE LIQUORS MERCHANT ST VACAVILLE, CA

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