Staff Report
City Council
Item No. 3.L
Meeting Date: October 22, 2025
From: Andrew Firestine, AICP, Director of Community and Economic Development
Title: Adoption of a Resolution designating the City Manager as the review authority for determinations of Public Convenience and Necessity relating to the issuance of ABC liquor licenses
RECOMMENDATION:
Adopt a Resolution designating the City Manager or appointed Interim City Manager as the review authority for determinations of Public Convenience and Necessity relating to the issuance of ABC liquor licenses.
BACKGROUND:
In 1994, the State of California Legislature passed Assembly Bill (AB) 2897 (the Caldera Bill) and amended the State Business and Professions Code Section 23958 which requires the Department of Alcoholic Beverage Control (ABC) to deny an application for a liquor license "if issuance of that license would tend to create a law enforcement problem, or if the issuance would result in or add to an undue concentration of [liquor] licenses. California Business and Professions Code Section 23958.4 further states that if the ABC has determined that there is an undue concentration of liquor licenses, the license may be issued if the local governing body or designated subordinate officer determines that public convenience and necessity (PCN) would be served by the issuance of the license.
While the city manager has historically issued PCN determinations for Cathedral City, through correspondence and communication with ABC earlier this year, ABC advised the City that it recognized the City Council as having the authority to make a PCN determination unless the City Council were to designate the city manager to make these determinations.
The City has no formal record, such as a Council adopted resolution or other documentation supporting a delegation of authority to issue a PCN determination.
The City has historically receives several PCN determination requests each year, primarily in support of liquor licenses in the census tracts along Palm Canyon Drive, areas that are zoned commercially and are supportive of restaurants, bars, and nightclubs that form the City’s downtown commercial core.
DISCUSSION:
The City’s 2040 General Plan and zoning establish locations in the City where restaurants, bars, and nightclubs can locate. There are areas within the City with denser concentrations of commercial uses, including the Palm Canyon Drive corridor and the downtown environment.
While the City’s 2040 General Plan and zoning are supportive of this mix of uses and the creation of a vibrant commercial core, the ABC defines an “undue concentration” of licenses to include those census tracts where the ratio of on- or off-sale retail licenses to population in the census tract exceeds the ratio of on- or off-sale retail licenses to population in the county, among other criteria. This has the effect of limiting the number of liquor licenses in lower population census tracts with a higher concentration of commercial uses unless a PCN determination is made by the local governing body.
For reference, census tracts 450 and 9410.01 are those that encompass the Palm Canyon Drive corridor.
Census tract 9410.01 includes portions of the City of Palm Springs and has a western boundary of the Palm Canyon Wash and covers the western areas of the City of Cathedral City along Palm Canyon Drive effectively to the intersection with Perez Road. ABC has determined that this census tract is allowed one on-sale and one-off sale license without a PCN determination whereas there are 10 existing on-sale and five off-sale licenses in this census tract. ABC reports multiple Palm Springs businesses in census tract 9410.01 among the existing licenses. The Cathedral City businesses include:
License Type Business Name
41 Las Carretas Taco Shop
41 Upper Crust Pizza
41 Mrs Claws
48 Bart Lounge
41 Beech Please
47 Oceans
48 One Eleven Bar
47 Sol Y Sombra
41 Boomers Palm Springs
41 Super Taco Taqueria
21 Target
20 Cathedral City Gas & Mart
20 Arco Ampm
20 7-Eleven Store
Any future on-sale or off-sale liquor license within census tract 9410.01 requires a PCN determination by the local governing body within 90-days of notification by ABC.
Census tract 450 covers Palm Canyon Drive from census tract 9410.01 to Date Palm Drive on its eastern boundary. ABC has determined that this census tract is allowed three on-sale and one off-sale license without a PCN determination whereas there are 27 existing on-sale and eight off-sale licenses in this census tract. ABC reports multiple Palm Desert and Rancho Mirage businesses in the same census tract among the existing licenses. The Cathedral City businesses include:
License Type Business Name
47, 58 La Tablita Mexican Restaurant
47 Salsas Restaurant
47, 58 Runway
77 Luchador Brewing Company
41 Sunshine Cafe
41 Brunch 101
42, 58, 77 Rodeo Night Club
47 Desert Thai Authentic Thai Cuisine
41 Chipotle Mexican Grill Store #3961
21 Cat City Liquor & Food Mart
20 Cathedral City Local Mart 2 Inc
Any future on-sale or off-sale liquor license within census tract 450 requires a PCN determination by the local governing body within 90-days of notification by ABC.
Historically, staff has reviewed the 2040 General Plan land use designation and zoning in its review of a PCN determination. As well, given that census tracts 9410.01 and 450 included businesses from Palm Springs, Rancho Mirage, and Palm Desert, as reported by ABC, staff has assessed how a license request serves the Cathedral City community.
Based on the current number of licenses in census tracts 9410.01 and 450, it is probable that the City will continue to receive PCN determination requests for new liquor licenses in these areas. ABC permits a local governing body to designate a subordinate officer to complete the PCN determination. To effectively administrate the review of future PCN determinations, staff recommends the City Council delegate such authority to the city manager. A resolution has been prepared designating the city manager as the review authority for PCN determinations.
FISCAL IMPACT:
Other than staff time, there is no fiscal impact.
FIVE-YEAR STRATEGIC PLAN:
N/A
ATTACHMENTS:
1. Resolution