Resolution Number 17-07-18-02CITY COUNCIL RESOLUTION NO. 17-07-18-02
PUBLIC CONVENIENCE OR NECESSITY (PCN)
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 32001 CAMINO CAPISTRANO (ASSESSOR PARCEL
NUMBER 668-073-01) (APPLICANT: BEHRAD DASHTI, PRESIDENT
OF SJCC CORPORATION)
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 twelve (12) 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 be 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 7/18/2017
Whereas, Determination of Public Convenience or Necessity is proposed
in conjunction with Conditional Use Permit 16-008 to allow for the retail sale of beer and
wine for off-site consumption in conjunction with the operation of an existing Shell
service station; and
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, Behrad Dashti, President of SJCC Corporation, 32001 Camino
Capistrano, San Juan Capistrano, has applied for a Type 2 Off Sale Beer & Wine
License from the California Department of Alcoholic Beverage Control, and a CUP
application with the City of San Juan Capistrano, to allow for the retail sale of beer and
wine for off-site consumption in conjunction with the operation of an existing Shell
service station within a 2,094 sq. ft. commercial building located at 32001 Camino
Capistrano (Assessor Parcel Number 668-073-01); and,
Whereas, Oso, LLC is the owner of real property located at 32001 Camino
Capistrano (APN 668-073-01); and 7
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 May 9, 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, and subsequently recommended against the issuance of a Letter of
Public Convience and Necessity; and
Whereas, the City Council conducted a duly -noticed public hearing on July
18, 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 City Council adopted Resolution No. 17 -07 -18 -XX
granting Conditional Use Permit 16-008; and
7/17/2017
Whereas, the City of San Juan Capistrano has prepared a Letter of Public
Convenience or Necessity provided as Exhibit A attached hereto.
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 and wine in conjunction
with a Shell Service Station for the following reasons:
1. The proposed use, as conditioned, will not adversely affect the adjoining land
uses in the area in which it is located because the sale of beer and wine is
ancillary to the primary service station use product mix provided, including
gasoline and convenience food products; 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 five of the twelve existing off -sale licenses are
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 181" day of July 2017.
7/n/z0v
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. 17-07-18-02 was duly adopted by the
Cit Council of the City of San Juan Capistrano at the Regular meeting thereof, held the
18` day of July 2017, by the following vote:
AYES: COUNCIL MEMBERS: Reeve, Maryott, Farias and Mayor Ferguson
NOES: COUNCIL MEMBERS: Patterson
ABSENIT: COUNCIL MEMBERS: None
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RIA MOR I CI CLERK
7/17/2017
32400 PASEO ADELANTO
SAN JUAN CAPISTRANO. CA 92675 i
(949) 4931171
(949) 4931053 FAx • tuntnm
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July 19, 2017
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MEMBERS Of THE CITY COUNCIL
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SERGIO FARIAS
1961
KERRY K. FERGUSON
BRIAN L. MARYOTT
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PAM PATTERSON, ESO.
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DEREK REEVE
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. 16-008, Letter of Public Convenience or
Necessity for Capistrano Shell Service Station at 32001 Camino
Capistrano, San Juan Capistrano, CA 92675
Ms. Zaharia:
This letter is written in reference to the Capistrano Shell's application for a Type 20 Off
Sale General beverage control license at 32001 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 City
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 inhabitants 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 Capistrano Shell 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 twelve currently exist; if granted, Trader Joe's would be
San Jrran Capisti-allo: PI -e el -111W the I'asl to F,nhance lhc' I•'r nwe EXHIBIT A
0 pl'"41 l WI 100'x,
Capistrano Shell PCN Letter
Page 2 of 2
July 19, 2017
the thirteenth licensee. A geographic analysis of the existing off -sale licenses show only
five of the eleven establishments are located within 1,000 feet of the proposed
Capistrano Shell service station. As a result, the area in the immediate vicinity of the
proposed Capistrano Shell service station does not have a large concentration of off -
sale alcohol retailers.
Furthermore, service stations are a chain that offers alcoholic beverages as an ancillary
use to the primary gas and food store 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 16-
008, and designed to minimize impacts to the surrounding community. Additionally,
although there are other off -sale licenses in the area, each store (Rite Aid, Trader Joe's,
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, fuel, and alcohol.
If you have any questions .or concerns please contact Laura Stokes, Housing
Coordinator / Assistant Planner at (949) 443-6313 or Istokes@sanjuancapistrano.org.
Sincerely,
Be Sieg
City Mana er