Resolution Number 17-04-18-01RESOLUTION NO. 17-04-18-01
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA APPROVING ISSUANCE A LETTER OF
PUBLIC CONVENIENCE OR NECESSITY (PCN) TO THE CALIFORNIA
DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL (ABC) FOR THE
ISSUANCE OF A TYPE 21 LICENSE FOR THE PREMISES AT 32151
CAMINO CAPISTRANO (ASSESSOR PARCEL NUMBER 668-083-03)
(APPLICANT: ART RODRIGUEZ & ASSOCIATES ON BEHALF OF
TRADER JOE'S)
Whereas, pursuant to applicable provisions of the Business and
Professions Code, the Department of Alcoholic Beverage Control (hereinafter the
"Department") is charged with the responsibility of reviewing applications and issuance
of licenses ("licenses") for the sale and/or manufacture of alcoholic beverages in the
State of California; and
Whereas, Section 23958 of the Business and Professions Code provides
that the Department shall deny an application for a license if issuance of that license
would tend to create a law enforcement problem, or if issuance would result in or add
to an undue concentration of licenses, except as provided in Section 23958.4 of said
Business and Professions Code; and
Whereas, the subject business is located in Census Tract 423.12 with
population such that the Department may permit up to five (5) off-sale licenses before
an undue concentration would exist, and there are currently eleven (11) off-sale
licenses in Census Tract 423.12; and,
Whereas, Section 23958.4 of the Business and Professions Code
provides that, notwithstanding the limitations of Section 23958, the Department shall
issue a license if the applicant shows that "public convenience or necessity" would be
served by the issuance of such license; and
Whereas, said Section 23958.4 further provides that the determination of
"public convenience or necessity" shall tile made by the Department with regard to
certain applications, and shall be made by the local governing body of the area in
which the applicant premises are located with regard to certain other applications; and
Whereas, as a local governing body within the meaning of said Section
23958.4 of the Business and Professions Code, the City Council of the City of San
Juan Capistrano (hereinafter the "City Council") has the discretion to determine when
the public convenience or necessity would be served by allowing an alcohol license in
an area where there is an undue concentration of licenses; and
1 4/18/2017
Whereas, Under state law Section 23790 of the Business and
Professions
Code, the Department may not issue an alcohol license if it violates an existing local
zoning ordinance; and,
Whereas, The subject site has a Land Use designation and is zoned
General Commercial (GC) which encourages retail sales and allows the sales of
alcoholic beverages subject to a Conditional Use Permit (CUP); and ,
Whereas, Art Rodriguez & Associates, 709 E. Colorado Boulevard #200,
Pasadena, has applied for a Type 21 Off Sale General License from the California
Department of Alcoholic Beverage Control, and obtained Planning Commission
approval of CUP 17-002, to allow for the retail sale of a full-line of alcoholic beverages
(beer, wine, and distilled spirits) for off-site consumption in conjunction with the
operation of a new Trader Joe's Market within a ±14,783 sq. ft. commercial tenant
space located at 32151 Camino Capistrano (Assessor Parcel Number 668-083-03);
and,
Whereas , MV!The Village LLC is the owner of real property located at
32151 Camino Capistrano (APN 668-083-03); and,
Whereas, the proposed project has been processed pursuant to Section
9-2.301, Development Review of the Land Use Code; and,
Whereas, the City's Environmental Administrator has determined that the
issuance of a Letter of Public Convenience or Necessity is exempt from the California
Environmental Quality Act (CEQA) under CEAQ Guidelines Section 15061 (b)(3).
Section 15061 (b)(3) is a general rule exemption applying to projects that have no
possibility of having a significant impact on the environment. The determination that
the public convenience or necessity would be served by the issuance of a Type 21
ABC license would not cause environmental impacts as there is no direct physical
effect; and,
Whereas, the Planning Commission conducted a duly-noticed public
hearing on March 28, 2017 pursuant to Title 9, Land Use Code , Section 9-2 .302 to
consider public testimony on the proposed project and has considered all relevant
public comments . Following said public hearing, the Planning Commission adopted
Resolution No. 17-03-28-01 granting Conditional Use Permit 17-002 and Resolution
No. 17-03-28-02 recommending that the City Council issue a letter of public
convenience or necessity to the California Department of Alcoholic Beverage Control
for the issuance of the applicants Type 21 License; and,
Whereas, the City of San Juan Capistrano has prepared a Letter of
Public Convenience or Necessity provided as Exhibit A attached hereto .
2 4/18/2017
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council
of the City of San Juan Capistrano does hereby find that the public convenience or
necessity would be served by the proposed retail sale of beer, wine, and distilled
spirits in conjunction with a Trader Joe's Market for the following reasons:
1. The proposed use, as conditioned via Conditional Use Permit No. 17-002, will
not adversely affect the adjoining land uses in the area in which it is located
because the sale of beer, wine, and distilled spirits is ancillary to the primary
specialty items/grocery use product mix provided by the neighborhood-oriented
commercial retail store; and,
2. That although the proposed location is within a census tract with an undue
concentration of retail alcohol licenses, the project has been conditioned and
designed to minimize impacts to the surrounding community; and,
3. That although the proposed location is within a census tract with an undue
concentration of retail alcohol licenses, a geographic analysis of the existing off-
sale alcohol licenses show only four of the eleven existing off-sale licenses is
located within 1 ,000 feet of the subject site. As a result, the area in the
immediate vicinity does not have a large concentration of off-sale retailers; and,
4. That although there are other off-sale licenses in the area, each store (Rite Aid,
Vons, Ralphs, Churchill Liquor, etc.) is distinct in its size, targeted clientele, and
business model. Establishing this off-sale outlet will allow nearby residents the
convenience of one-stop shopping for food, retail, and alcohol.
PASSED, APPROVED AND ADOPTED this 181h day of April2017 .
3 4/18/2017
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss .
CITY OF SAN JUAN CAPISTRANO )
I, MARIA MORRIS, appointed City Clerk of the City of San Juan Capistrano, do hereby
certify that the foregoing Resolution No. 17-04-18-01 was duly adopted by the
Cit~ Council of the City of San Juan Capistrano at the Regular meeting thereof, held the
1st day of April 201 ~. by the following vote:
COUNCIL MEMBERS: Reeve, Patterson, Maryott, Farias and Mayor Ferguson
COUNCIL MEMBER . : None
COUNCIL MEMB None
4 4/18/2017
April19, 2017
State Department of Alcoholic Beverage Control
Attention : Roxana Zaharia
605 W . Santa Ana Boulevard
Building 28, Suite 369
Santa Ana, CA 92701
Subject: Conditional Use Permit No. 17-002, Letter of Public Convenience or
Necessity for Trader Joe's at 32151 Camino Capistrano, San Juan
Capistrano, CA 92675
Ms. Zaharia:
This letter is written in reference to Trader Joe's application for a Type 21 Off Sale
General beverage control license at 32151 Camino Capistrano in San Juan Capistrano.
The California Department of Alcoholic Beverage Control (ABC) is charged with the
responsibility under state statute to review and issue licenses for the sale and/or
manufacture of alcoholic beverages . State law provides that ABC shall deny an
application for a license if the issuance of that license would either create a law
enforcement problem, or result in or add to an undue concentration of licenses, unless a
determination is made that public convenience or necessity would be served by the
issuance of that license.
Pursuant to Section 23958.4 of the California Business and Professions Code, the C ity
must issue a letter of Public Convenience or Necessity (PCN) since the proposed
business is located within a census tract which has been deemed by ABC to have an
"undue concentration" of retail licenses. ABC designates a census tract in Orange
County as having an "undue concentration" when more than one Type 20 or 21 off-sale
license exists for every 1, 704 in habitants within that census tract. Where that threshold
is met, ABC requires the City to make a finding of public convenience or necessity
before new alcohol licenses may be issued in a census tract.
The proposed Trader Joe 's is located within census tract 423 .12, which has a
population of 9,085. Based on the population count, the threshold for requiring a PCN is
six type 20 or 21 licenses and eleven currently exist; if granted, Trader Joe's would be
EXHIBIT A
Trader Joe's PCN Letter
Page 2 of 2
April 19, 2017
the twelfth licensee. A geographic analysis of the existing off-sale licenses show only
four of the eleven establishments are located within 1,000 feet of the proposed Trader
Joe's. As a result, the area in the immediate vicinity of the proposed Trader Joe's does
not have a large concentration of off-sale alcohol retailers.
Furthermore, Trader Joe's is a retail chain that offers alcoholic beverages as an
ancillary use to the primary specialty items/grocery use as part of its normal business
model. Although the proposed location is within a census tract with an "undue
concentration" of retail alcohol licenses, the project has been conditioned, via
Conditional Use Permit 17-002, and designed to minimize impacts to the surrounding
community. Additionally, although there are other off-sale licenses in the area, each
store (Rite Aid, Vans, Ralphs, Churchill Liquor, etc.) is distinct in its size, targeted
clientele, and business model. Establishing this off-sale outlet will allow nearby
residents the convenience of one stop shopping for food, retail, and alcohol.
If you have any questions or concerns please contact Paul Garcia, Associate Planner at
(949) 443-6327 or pgarcia@sanjuancapistrano .org.
Sincerely,
Ben Siegel
City Manager