Staff Report
City Council
Item No. 3.I
Meeting Date: October 22, 2025
From: Andrew Firestine, Community and Economic Development Director Title: Adoption of a Resolution supporting the issuance of an ABC liquor license for Eagle Cathedral City Limited (The Eagle) based on Public Convenience and Necessity.
RECOMMENDATION:
Adopt a Resolution supporting the issuance of an ABC liquor license for Eagle Cathedral City Limited, proposed to be located at 67625 East Palm Canyon, based on Public Convenience and Necessity.
BACKGROUND:
Public Convenience or Necessity Review Authority Designation 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. As such, PCN determinations will be presented to the City Council until any alternative action is taken.
PCN determination for Eagle Cathedral City Limited
Eagle Cathedral City Limited (Eagle) is proposing to re-occupy the site of the former Barracks located at 67625 East Palm Canyon and operate a bar/nightclub. The Eagle proponents have been in contact with Community and Economic Development Department and Fire Department staff and are working through the plans and permits needed to re- establish the use.
Concurrently, the Eagle has submitted an application to the ABC for a Type 48 On-Sale General – Public Premises liquor license to authorize the sale of beer, wine, and distilled spirits for on consumption.
The Community and Economic Development Department was notified by the ABC that it is necessary for the City to make a PCN finding due to an undue concentration of liquor licenses for the census tract that the Eagle will be located within. The subject property is census tract 9410.01 which is authorized by ABC for one on-sale license and one off-sale license.
DISCUSSION:
The subject property is currently designated with a General Commercial (CG) land use designation pursuant to the 2040 General Plan and has a current zoning designation of Planned Community Commercial (PCC). The proposed bar/nightclub is permitted in the CG and PCC designations.
Census tract 9410.01 includes which is made up of several businesses holding liquor licenses for on-site consumption. There are currently ten establishments within Census Tract No. 9410.01 that have active licenses for on-site consumption as shown in Table 1 below. # License
Type
Business
Name
Address Status
1 41 Las Carretas
Taco Shop
67555 E Palm Canyon Dr.,
STE. A102
Active
2 41 Upper Crust
Pizza
67555 E Palm Canyon Dr.,
STE. F122 & F123
Active
3 41 Mrs. Claws 67555 E Palm Canyon Dr.,
STE. F120 & F121
Active
4 48 Bart Lounge 67555 E Palm Canyon Dr.,
STE. F124
Active
5 41 Beech Please 67555 E Palm Canyon Dr.,
STE. A105
Active
6 47 Oceans 67555 E Palm Canyon Dr.m
STE. C101
Active
7 48 One Eleven
Bar
67555 E Palm Canyon Dr.
STE. A103 & A104
Active
8 47 Sol y Sombra 67670 Carey Rd. Active
9 41 Boomers Palm
Springs
67700 E Palm Canyon Dr. Active
10 41 Super Taco
Taqueria
67778 E Palm Canyon Dr. Active
*Type 41 - On-Sale Beer & Wine- Eating Place
*Type 47 - On-Sale General- Eating Place
*Type 48 - On-Sale General- Public Premises
It is recommended that the City Council determine that public convenience and necessity would be served by the issuance of the license, based on the following:
1. The proposed bar/nightclub is consistent with the City’s General Plan, CG land use designation and PCC zoning designation.
2. Census Tract 9410.01 is an area of undue concentration; however, this is reasonable given the multiple restaurants, amusement center, and bars within the tract. The authorization of a Type 48 On-Sale General – Public Places Liquor License for Eagle Cathedral City Limited would support the establishment of a viable entertainment venue in the city.
3. There are currently only two (2) active Type 48 On-Sale General – Public Places Liquor Licenses within Tract 9410.01.
FISCAL IMPACT:
Other than the costs associated with staff time, there is no fiscal impact from this action.
FIVE-YEAR STRATEGIC PLAN:
GOAL F: EMBRACING, INCLUSIVE COMMUNITY Objective: Cathedral City is valued and respected as a community that welcomes and embraces diversity, has as abundance of high quality and affordable housing options and vibrant businesses. Our neighborhoods are attractive, well-maintained, and issues surrounding homelessness have been compassionately.
ATTACHMENTS:
Attachment 1 - Resolution 25-___ (The Eagle PCN Determination) Attachment 2 - Census Map
Attachment 3 - Copy of Pending Application to ABC
Attachment 4 - Letter to ABC