TO: Chair and Members of the Planning Commission
THRU: Anna Pehoushek, Assistant Community Development Director
FROM: Arlen Beck, Associate Planner
1. Subject
title
A request to allow the establishment of a new convenience store with alcohol sales at 125 N. Tustin Street, Unit F and finding of CEQA Exemption (Conditional Use Permit No. 3226-24).
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2. Summary
The applicant proposes to establish a new convenience store with the sale of beer, wine, and distilled spirits for off-site consumption (ABC Type 21 License) at an existing tenant space located at 125 N. Tustin Street, Unit F.
3. Recommended Action
recommendation
1) Adopt Planning Commission Resolution No. 25-24 entitled:
A Resolution of the Planning Commission of the City of Orange approving Conditional Use Permit No. 3226-24, a request to allow a full range of alcoholic beverage sales for off-site consumption at a proposed convenience store in conjunction with a new State of California Department of Alcoholic Beverage Control (ABC) Type 21 license (Off-Sale General) at an existing tenant space located at 125 N. Tustin Street, Unit F.
2) Find the proposal exempt from the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15301.
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4. AUTHORIZING GUIDELINES
Orange Municipal Code (OMC) Table 17.08.020 and Sections 17.10.030.C. and 17.30.030 authorize the Planning Commission to review and take action on a request for a Conditional Use Permit (CUP) to allow a full range of alcoholic beverage sales for off-site consumption at a proposed convenience store.
5. project background
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Applicant: |
Michael Zaky dba “Liquor King” |
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Property Owner |
S.L. Beach, LLC |
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Property Location |
125 N. Tustin Street, Unit F |
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Existing General Plan Land Use Element Designation |
General Commercial |
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Existing Zoning Classification |
Limited Business (C-1) |
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Site Size |
26,300 sq ft lot (.60 ac); 8,898 sq ft building |
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Circulation |
The site is on the northeast corner of Tustin Street and Chapman Avenue with access to the property provided by two curb cuts, one on each of those streets. Tustin Street and Chapman Avenue are designated as major arterials and based on the General Plan this intersection is considered a ‘Critical Intersection’. |
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Existing Conditions |
The site is developed with a single story multi-tenant commercial building with a surface parking lot. |
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Surrounding Land Uses and Zoning |
North: Orange Square Shopping Center (C1) South: Chevrolet Auto Dealership (C1) and (C2) East: Orange Square Shopping Center (C1) West: Arco Service Station with ‘ampm’ Convenience Store (C1) |
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Previous Applications/Entitlements |
CUP 3029-16 was approved in 2017, to allow the sale of beer and wine for off-site consumption at a proposed convenience store (7-Eleven). |
6. PROJECT DESCRIPTION
The applicant requests to establish a new convenience store with the sale of beer, wine, and distilled spirits for off-site consumption under a State Alcohol and Beverage Control (ABC) Type 21 License. The 2,743-sq ft tenant space is intended to accommodate retail display shelves of prepackaged food and drinks, a cashier counter, office and storage area, restrooms and walk-in refrigeration coolers for various beverages including beer and wine. The floor space percentage proposed for non-alcoholic items is 11.71%, and percentage of floor area dedicated to alcoholic items is 8.72% (see Attachment 4). The remaining area will be used for operations and storage. Conditions of approval are included in the attached Resolution (Attachment 1) specifying that if the amount of floor space or total sales of alcoholic items were to exceed that of non-alcoholic items, classification of the use would change to a liquor store and a new C UP would be needed. Cooler doors will be accessible to customers and will have locks on them to prevent purchases during prohibited hours. The existing tenant space entrance to the store has double doors and a single door exit to the rear. The proposed hours of operation will be from 7:00 a.m. to 2:00 a.m., seven days a week. The applicant’s letter of explanation is included in Attachment 3 of this report.
The subject site is located at the northeast corner of Tustin Street and Chapman Avenue. The 26,300 sq ft commercial property is developed with a single story multi-tenant building and surface parking area with a total of 40 parking stalls. The property is an independent lot and is not integrated with the abutting commercial center to the north and no reciprocal access between them exists. No changes are proposed to the site as part of this application. Convenience stores with the sale of beer, wine, and distilled spirits are permitted subject to a CUP in the C-1 zoning district.
7. analysis and statement of the issues
Alcoholic beverage sales are a customary accessory use for many convenience stores, complementary to the sale of snacks, food, tobacco, lottery, and non-alcoholic beverages on an extended hour basis, which makes up the primary use of a convience store. The previous tenant (7-Eleven) had a Type 20 ABC license (off-sale beer and wine), however that license has expired and the subject property is not currently an ABC licensed establishment. There is one other active Type 21 ABC license (Grocery Outlet) in the immediate vicinity that allows the sale of beer, wine and distilled spirits for off-site consumption. Three issue items were identified for this project, and analysis is provided below.
Issue 1: Existing Licenses within 600 feet of the Site
For information purposes, the following facilities sell alcoholic beverages within a 600-foot proximity to the proposed convenience store’s entrance (See Attachment 7).
Existing Licenses
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Establishment Name |
License Type |
Address |
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Grocery Outlet |
21 |
1803 E. Chapman Avenue |
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Lamppost Pizza |
41 |
1829 E. Chapman Avenue |
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Jimmy Bones Bar |
48 |
1815 E. Chapman Avenue |
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Arco/AMPM Service Station |
20 |
100 N. Tustin Street |
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Ostioneria Bahia Restaurant |
41 |
144 S. Tustin Street |
Issue 2: Sensitive Receptors
The OMC requires a CUP for the sale of alcoholic beveragesto ensure there will be no adverse impact on surrounding land uses or allow the availability of alcoholic beverages to minors. When reviewing alcohol permits, OMC 17.30.030 details specific land uses that are sensitive to alcohol activities, but does not establish any specific distances for these uses. The ABC investigation requires applicants to identify the sensitive land uses within 600 feet of the site. The following sensitive receptors are in the vicinity of the subject property:
Sensitive Receptors
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Establishment Name |
Address |
Distance To Project Site |
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Single Family Residences |
Shattuck Place, north of Chapman Avenue |
330 feet |
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Multiple Family Apartments |
210-225 N. Oak Street |
470 feet |
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Multiple Family Apartments |
201 N. Wayfield Street |
700 feet |
The selling of alcoholic beverages from the proposed location is not anticipated to have an adverse impact on these sensitive land uses because they are more than 300 feet from the business location and do not have direct access to the business.
Issue 3: Census Tract Alcohol and Crime Statistics Information
The Orange Police Department (OPD)’s Vice Unit reports that the proposed business within Census Tract 758.05 is only over concentrated with off-sale ABC licenses:
Alcohol Licenses
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Existing |
Allowed |
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On-Sale Licenses |
2 |
5 |
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Off-Sale Licenses |
4 |
2 |
Census tracts are defined as small geographical areas established by local committees and approved by the Census Bureau, which contain a population segment with relatively uniform economic and social characteristics and clearly identifiable boundaries averaging approximately 1,200 households.
ABC establishes an over concentration of alcohol licenses based on the average number of alcohol licenses per capita in a given census tract. However, ABC and the city recognize that licenses should be reviewed on a case-by-case basis to ensure that such sales will not adversely affect surrounding residents, businesses, and institutions and to ensure that any such use operates in a manner compatible with existing and future adjacent uses. This site is located at a significant commercial intersection in the city that is expected to have an over concentration of alcohol licenses due to a concentration of retail and gas/convenience stores that are commonly associated with major intersections. The existing off-sale licenses within the vicinity of the proposed location are Grocery Outlet, and Arco/AMPM service station. The census tract is considered “over concentrated” with off-sale licenses (Attachment 5).
Crime Statistics
The applicant is applying for an ABC license in a reporting district that is considered a low crime area as follows:
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Census Tract Reported Crimes |
Citywide Average Reported Crimes |
Percent Difference |
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63 |
85 |
26% below average |
The subject property is located in Reporting District (RD) 26S. RD 26S is located within a gang injunction area as identified by the Orange County District Attorney’s office, notwithstanding, RD 26S is considered a low crime area. High crime areas are defined as any Reporting District with more than 20% above average reported crime for all Reporting Districts in the City. OPD’s analysis states that 63 crimes/arrests are reported for RD 26S. The average reported number of crimes per district citywide was 85 from crime statistics in 2023; RD 26S had 26% less reported crimes than the average RD in the City.
8. public notice
On September 5, 2024, the City sent a Public Hearing Notice to a total of 20 property owners and 49 occupants within a 400-foot radius of the project site. The project site was also posted in two locations with notification on that same date.
9. environmental review
Categorical Exemption: The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15301 (Class 1 - Existing Facilities) because the project consists of licensing the sale of beer, wine, and distilled spirits for off-site consumption at an existing tenant space within a commercial center.
10. ADVISORY BOARD ACTION
None required.
11. ATTACHMENTS
• Attachment 1 - Planning Commission Resolution No. PC 25-24
• Attachment 2 - Vicinity Map
• Attachment 3 - Applicant Business Narrative Letter
• Attachment 4 - Project Plans
• Attachment 5 - Orange Police Department Memorandum
• Attachment 6 - Site Photos
• Attachment 7 - Planning Commission Evaluation Map