AGENDA ITEM NO. 9.2
CITY OF ELK GROVE
CITY COUNCIL STAFF REPORT
AGENDA TITLE:
A public hearing to consider a Determination
of Public Convenience or Necessity for offsale of beer, wine, and liquor for Smart &
Final (EG-15-002) (CEQA Exemption)
MEETING DATE:
March 25, 2015
PREPARED BY:
Nate Anderson, Project Planner
DEPARTMENT HEAD:
Darren Wilson, P.E. Planning Director
PROJECT DESCRIPTION:
Location:
Planner:
Applicant:
Property Owner:
8787 Elk Grove Blvd; APN: 125-0070-040
Nate Anderson, Associate Planner
Smart & Final Stores, LLC
Dee Ann Catlin (Representative)
Wong Family Investors, L.P.
Gary Wong (Representative)
RECOMMENDED ACTION:
Staff recommends the City Council adopt a resolution:
1. Finding the Smart & Final PCN Project (EG-15-002) exempt from the
California Environmental Quality Act (CEQA) pursuant to Section
15301 (Existing Facilities) of the State CEQA Guidelines; and
2. Approving a Determination of Public Convenience or Necessity for a
Type 21 alcohol license for the Smart & Final PCN Project.
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Elk Grove City Council
March 25, 2015
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BACKGROUND INFORMATION:
The Smart & Final PCN Project (Project) consists of a Determination of
Public Convenience or Necessity (PCN) to allow Smart & Final (Applicant)
to acquire a Type 21 (Off-Sale General) alcohol license from the State
Department of Alcoholic Beverage Control (ABC). The Type 21 license
allows for the sale and off-site consumption of beer, wine, and liquor.
ABC requires an Applicant to obtain a PCN from the affected jurisdiction
when the establishment is located within a “high crime” area and/or when
the census tract is deemed “over-concentrated” by ABC’s standards. Smart
& Final is not located a high crime area as based on Elk Grove Police
Department statistics. However, it is within an over-concentrated census
tract, as defined by ABC.
Smart & Final is in the process of opening within a developed shopping
center at the northwest corner of Elk Grove Boulevard and Williamson
Drive – see Figure 1. This tenant will occupy the former tenant space of the
Bel Air Supermarket that closed in 2013. The former Bel Air at this location
did have a Type 21 liquor license for the sale of alcohol beverage products.
This license was subsequently cancelled by ABC.
Figure 1 – Project Location Map
Project Site
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March 25, 2015
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ANALYSIS:
Smart & Final is a full service grocery store that offers an array of
departments. There are hundreds of Smart & Final stores in operation
throughout the western United States, most of which operate with a full
selection of alcoholic beverages being sold in conjunction with food and
other non-alcoholic beverages for sale.
According to the Applicant, the shelving space dedicated to alcoholic
display is proposed to cover approximately 325 square feet of the 21,526
square foot sales area of the tenant space (approximately 1.5 percent).
Since the area dedicated to alcohol sales is less than the City's standard
that would trigger a conditional use permit (less than 50% of the shelving or
gross floor area devoted to the public display and sale of alcoholic
beverages), the City Council cannot impose conditions on the sale of
alcohol other than the basic requirements of State law (which would be
enforced by the State of California) and of the Elk Grove Zoning Code (sign
area, lighting, and other standards common to all retail stores).
Chapter 4.54 of the Municipal Code
Chapter 4.54 of the Elk Grove Municipal Code establishes a protocol for
the issuance and review of Determination of Public Convenience or
Necessity. The protocol includes the review of the Police Department,
Planning Department, Code Enforcement Department, Business Licensing,
and Building Department. In addition, the City Council is required to
consider the following factors in making a Determination of Public
Convenience or Necessity:
1. Proximity and number of other retail outlets selling alcohol;
2. Proximity of the retail outlets to schools, playgrounds, and other
facilities serving young people;
3. Proximity of the retail outlet to residential neighborhoods; and
4. Whether the retail outlet provides: (a) a wide range of desirable
goods and services; or (b) a unique type of goods or services.
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March 25, 2015
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As mentioned, a variety of City departments and other agencies (including
the Police Department and Code Enforcement Department) are required to
review PCN applications in order to determine current and past problems at
the Applicant’s proposed store location. None of the reporting agencies
noted any issues with Smart & Final’s location.
There are currently four “active” alcohol licenses in the same census tract
(Census Tract 93.08) that have either a Type 20 (Off-Sale Beer and Wine)
or Type 21 (Off-Sale General) alcohol license for the sale of alcohol
beverage for off-site consumption – see Figure 2. The nearest retail sale
location to Smart & Final is Lucky Liquor, located approximately 1,000 feet
to the west. The other three active retail sites (Elk Grove Discount Wine &
Liquor, CVS Pharmacy Store, and Walgreens) are each located more than
one-half mile from the project site.
Figure 2 – Census Tract 93.08 Off-Sale License Locations
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The nearest school and playground facilities are at Joseph Kerr Middle
School (8865 Elk Grove Florin Rd.), which is located approximately 800
feet to the east of the project site, and Jessie Baker Elementary (8850
Southside Ave.), which is located approximately 800 feet south of the
project site. The nearest residential neighborhood is located to the rear of
the building approximately 100 feet to the north.
High Crime Area
ABC determines an area to be “high crime” when the number of crimes
committed in a census tract exceeds 120% of the average number of
crimes committed citywide. The Police Department has reviewed the
project, and noted that the project is in sub-sector 5101. Total crimes in
sub-sector 5101 were 171 in 2013 (the most recent statistical data which
has been compiled), while 120% of the average number of crimes in the
City was 205. Therefore, subsector 5101 did not exceed the 120% of
average and this area is not considered to be within a high crime tract. The
crime statistics provided by the Police Department are provided in
Attachment 2.
The Police Department indicated that the addition of a Type 21 license at
this location will most likely result in a re-distribution of existing sales in the
area rather than an influx of new customers who would normally shop
outside of the area. Customers who already intended to purchase alcohol
in association with other purchases are most likely to simply make that
purchase at the store carrying all or most of their desired goods within their
usual shopping area. By including the sale of alcohol beverages with the
existing inventory, Smart & Final will be providing a “one-stop” shop store
for customers.
Due to the nature of sales associated with a Type 21 license and the
likelihood of a redistribution (rather than an increase) associated with
alcohol related crimes, as well as a credible and cooperative applicant, the
Police Department does not have a public safety related objection to the
issuance of a PCN.
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Elk Grove City Council
March 25, 2015
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Alcohol Sales License Overconcentration
As mentioned, the project is located in Census Tract 93.08, which ABC
considers to have an overconcentration of off-sale liquor licenses. ABC
makes the “overconcentrated” determination when the number of liquor
licenses issued exceeds the number of licenses which should be permitted
in a census tract per ABC’s standards. According to ABC, only two licenses
are allowed in this census tract before it is considered to be
overconcentrated. However, a total of four off-sale licenses exist in the
census tract, and the proposed addition would increase the total number to
five off-sale licenses.
Applicant's PCN Determination Justification
As part of the request for a PCN, an Applicant must explain how the alcohol
license will serve the public’s convenience and necessity. In response, the
Applicant notes that the sale of alcoholic beverages would offer customers
the convenience of purchasing alcohol beverage products along with other
food products in a one-stop shop atmosphere without the need to travel
elsewhere to purchase alcohol beverage products (Attachment 3).
ENVIRONMENTAL ANALYSIS
The California Environmental Quality Act (Section 21000, et seq., of the
California Public Resources Code - hereafter CEQA) requires analysis of
agency approvals of discretionary “projects.” A “project,” under CEQA, is
defined as “the whole of an action, which has a potential for resulting in
either a direct physical change in the environment, or a reasonably
foreseeable indirect physical change in the environment.” The proposed
project is a project under CEQA.
Staff has reviewed the project to determine the required level of review
under CEQA. The proposed project is exempt from CEQA under State
CEQA Guidelines Section 15301 (Existing Facilities) of Division 6 of
Chapter 3, Title 14 of the California Code of Regulations. A Categorical
Exemption Section 15301 (Existing Facilities) exempts projects that involve
negligible or no expansion of an existing use. This Project consists of the
sale of alcoholic beverages within an existing grocery store within an
established commercial center. The Project does not propose to physically
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Elk Grove City Council
March 25, 2015
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expand the existing facility. Based on staff’s review of the Project, no
special circumstances exist that would create a reasonable possibility that
granting a PCN to sell alcohol from their existing store’s location will have a
significant effect on the environment. Therefore, the proposed Project
qualifies for the exemption under CEQA Guidelines Section 15301 and no
further environmental review is required.
FISCAL IMPACT:
No identifiable direct material or negative financial impact to the City’s
General Fund is expected.
ATTACHMENTS:
1. Resolution
2. Elk Grove Police Department Letter dated February 2, 2015
3. Smart & Final Justification Letter
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ATTACHMENT 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK GROVE
APPROVING A DETERMINATION OF PUBLIC CONVENIENCE OR NECESSITY
FOR A TYPE 21 OFF-SALE GENERAL LICENSE FOR SMART & FINAL
LOCATED AT 8787 ELK GROVE BOULEVARD
ASSESSOR PARCEL NUMBER 125-0070-040
PROJECT NO. EG-15-002 (CEQA EXEMPTION)
WHEREAS, the Planning Department of the City of Elk Grove received an
application on January 16, 2015, requesting a Determination of Public Convenience or
Necessity for Smart & Final to obtain a Type 21 (Off-Sale General) alcohol license from
the Department of Alcoholic Beverage Control in order to sell beer, wine, and liquor
from an existing store location; and
WHEREAS, the proposed project is located on real property in the incorporated
portions of the City of Elk Grove more particularly described as Assessor Parcel
Number 125-0070-040; and
WHEREAS, Chapter 4.54, Article 5 of the Elk Grove Municipal Code establishes
the City Council as the appropriate authority to hear and decide on all Determination of
Public Convenience or Necessity requests; and
WHEREAS, the City Council held a duly noticed public hearing on March 25,
2015 as required by law to consider all of the information presented by staff, information
presented by the project proponent, and public testimony presented in writing and at the
meeting.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk
Grove, hereby finds the proposed the Smart & Final PCN Project, EG-15-002, exempt
from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the
State CEQA Guidelines based upon the following finding:
California Environmental Quality Act (CEQA)
Finding: The project is exempt from CEQA review.
Evidence: A Categorical Exemption Section 15301 (Existing Facilities) exempts projects
that involve negligible or no expansion of an existing use. This Project consists of the
sale of alcoholic beverages within an existing grocery store within an established
commercial center. The Project does not propose to physically expand the existing
facility. Based on staff’s review of the Project, no special circumstances exist that would
create a reasonable possibility that granting a PCN to sell alcohol from their existing
store’s location will have a significant effect on the environment. Therefore, the
proposed Project qualifies for the exemption under CEQA Guidelines Section 15301
and no further environmental review is required.
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AND, BE IT RESOLVED that the City Council of the City of Elk Grove hereby
approves the Determination of Public Convenience or Necessity for Smart & Final
located at 8787 Elk Grove Boulevard based on the following findings:
Public Convenience or Necessity
Finding: The proposed use is compatible with neighborhood character.
Evidence: The application was routed to the Elk Grove Police Department, the Code
Enforcement Department, and the Building Department. No violations against the
property or Applicant were identified that would discourage the issuance of a Type 21
alcohol license for Smart & Final. The Smart & Final store is located in a Shopping
Center zone district and is surrounded by other commercially zoned properties and
uses. Therefore, the sale of alcohol for off-site consumption at this location is
compatible with the uses in the surrounding area. The nearest school and playground
facilities are at Joseph Kerr Middle School (8865 Elk Grove Florin Rd.), which is located
approximately 800 feet to the east of the project site, and Jessie Baker Elementary
(8850 Southside Ave.), which is located approximately 800 feet south of the project site.
However neither of these facilities is directly accessible from the Project site.
Finding: The proposed use will be of benefit to the neighborhood.
Evidence: As the sale of alcoholic beverages is ancillary to the sale of general grocery
products, the PCN determination will increase convenience to local shoppers. By
including the sale of alcoholic beverages with the existing inventory, Smart & Final will
be providing a “one-stop” shop store. “One-stop” shopping results in increased
efficiency for shoppers, and may result in fewer vehicle trips for local shoppers. The
amount of alcohol sales at the store will be ancillary to the general grocery sales. Less
than 1.5% of the store’s floor area will be dedicated to alcoholic sales display area.
PASSED AND ADOPTED by the City Council of the City of Elk Grove this 25th
day of March 2015.
GARY DAVIS, MAYOR of the
CITY OF ELK GROVE
ATTEST:
APPROVED AS TO FORM:
JASON LINDGREN, CITY CLERK
JONATHAN P. HOBBS,
CITY ATTORNEY
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ATTACHMENT 2
City of Elk Grove
Police Department
February 2, 2015
Nathan Anderson, Project Planner
City of Elk Grove Planning Department
8401 Laguna Springs Way
Elk Grove, CA 95758
Re: Response to PCN (Smart & Final Stores LLC, 8787 Elk Grove Boulevard)
Dear Mr. Anderson:
This letter is a response to the Statement of Justification for Public Convenience and Necessity
(PCN) submitted by Smart & Final Stores LLC at 8787 Elk Grove Boulevard. I have reviewed
the crime statistics for the area surrounding and including this location, per your request.
The most recent statistical data that we have compiled is from calendar year 2013. The data
reflects that the area encompassing the applicant’s site represented an average crime area within
the City. Elk Grove is separated into 26 subsectors for crime reporting purposes. The applicant
is located is subsector 5101. Annually, we compile the crime statistics in the following eight
areas:
Homicide
Forcible Rape
Robbery
Larceny
Burglary
Arson
Motor Vehicle Theft
Aggravated Assault
As you can see from the chart attached, the 5101 subsector had 171 crimes reported in 2013. Of
those, 98 were crimes related to larceny and 22 were related to burglary.
According to our information, the census tract where the applicant is located has four active OffSale licensed retail establishments (Type 21 and Type 20). The California Department of
Alcohol Beverage Control views more than four such licenses in this census tract as over
population.
In a letter dated October 27, 2014, the Elk Grove Police Department responded to the
Department of Alcoholic Beverage Control regarding an Application for Alcoholic Beverage
License by this applicant. The City protested the license transfer to this applicant unless a
condition was included that beer, malt beverages, and wine coolers in containers of 16 oz. or less
could not be sold by single containers, and must be sold in manufacturer pre-packaged multi-unit
quantities.
Assuming that the applicant accepts the above stated condition, the Elk Grove Police Department
has determined there is no public safety reason to oppose the application.
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REFER ALL CORRESPONDENCE TO: Elk Grove Police Department • 8400 Laguna Palms Way • Elk Grove, CA 95758
Page 2 of 2
You may contact me by email at [email protected] or via telephone at (916) 4788130 or should you have further questions regarding this matter.
Sincerely,
Erin Montgomery
Detective, POP Unit
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ATTACHMENT 3
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Incorporated July 1, 2000
CITY OF ELK GROVE
8401 Laguna Palms Way
Elk Grove, California 95758
Telephone: (916) 683-7111
Fax: (916) 627-4400
www.elkgrovecity.org
City of Elk Grove – City Council
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, March 25, 2015 at the hour of 6:00
p.m., or as soon thereafter as the matter may be heard, the Elk Grove City Council will
conduct a public hearing at City Hall in the Council Chambers, 8400 Laguna Palms
Way, Elk Grove, California, to consider the following matter:
SMART & FINAL (EG-15-002) – DETERMINATION OF PUBLIC CONVENIENCE OR
NECESSITY (PCN):
The Applicant is requesting a Letter of Public Convenience or Necessity from the City
Council for Smart & Final to obtain a Type 21 (Off-Sale General) alcohol license from
the Department of Alcohol Beverage Control (ABC). The Type 21 license allows for the
sale and off-site consumption of beer, wine, and liquor.
OWNER:
Wong Family Investors, L.P.
Gary Wong (Representative)
2200 Douglas Blvd., Ste. 125B
Roseville, CA 95661
APPLICANT:
Smart & Final Stores, LLC
Dee Ann Catlin (Representative)
600 Citadel Dr.
Commerce, CA 90040
LOCATION/APN: 8787 Elk Grove Blvd/APN: 125-0070-040
ZONING:
Shopping Center (SC)
ENVIRONMENTAL The Project is exempt from CEQA review pursuant to Section 15301
(Existing Facilities)
Information or questions regarding this item should be referred to Nate Anderson, (916)
478-2245; or to the Office of Development Services – Planning, 8401 Laguna Palms
Way, Elk Grove, CA, 95758. All interested persons are invited to present their views
and comments on this matter. Written statements may be filed with the City Clerk at
any time prior to the close of the hearing scheduled herein, and oral statements may be
made at said hearing.
If you challenge the subject matter in court, you may be limited to raising only those
issues you or someone else raised at the public hearing described in this notice or in
written correspondence delivered to the City Clerk, 8401 Laguna Palms Way, 1st Floor,
Elk Grove, CA, 95758, at or prior to the close of the public hearing.
Dated / Published: March 13, 2015
JASON LINDGREN
CITY CLERK, CITY OF ELK GROVE
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ADA COMPLIANCE STATEMENT
In compliance with the Americans with Disabilities Act,
if you need special assistance to participate in this
meeting, please contact the Office of the City Clerk at
(916) 478-3635. Notification 48 hours prior to the
meeting will enable the City to make reasonable
arrangements to ensure accessibility to this meeting.