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1. Staff Report

Commerce City Council
August 25, 2026

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1. Staff Report
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August 25, 2026
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Commerce City Council
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TO: Honorable City Council
FROM: City Manager
SUBJECT: PUBLIC HEARING TO CONSIDER AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA, ENACTING ZONING ORDINANCE TEXT AMENDMENT (“ZTA”) NO. 25-02 AMENDING TITLE 19 (ZONING), SECTION 19.31.100(2) OF THE COMMERCE MUNICIPAL CODE (“CMC”) RELATED TO DISTANCE SEPARATION REQUIREMENTS FOR USES PROVIDING ALCOHOL SALES FOR OFF-SITE CONSUMPTION ALONG DESIGNATED COMMERCIAL CORRIDORS AND APPROVING CONDITIONAL USE PERMIT (“CUP”) NO. 25-12 TO ALLOW THE OFF-SALE OF BEER AND WINE (ALCOHOLIC BEVERAGE CONTROL (“ABC”) TYPE 20 LICENSE) AT AN EXISTING ARCO GAS STATION AND AM/PM CONVENIENCE STORE LOCATED AT 6100 E. WASHINGTON BOULEVARD.

MEETING DATE: August 25, 2026
RECOMMENDATION:

It is recommended that the City Council consider:

Opening the public hearing and taking testimonial and documentary evidence; After closing the public hearing and considering the submitted evidence:

Introduce and waive full reading, read by title only Ordinance No. _____ enacting ZTA No. 25-02 amending CMC Title 19 (Zoning), Section 19.31.100(2) related to distance separation requirements for uses providing alcohol sales for off-site consumption along designated commercial corridors; Adopting Resolution No. 2026-XX approving CUP No. 25-12 to allow the sale of beer and wine for off-site consumption pursuant to ABC Type-20 license at an existing AM/PM convenience store located within an Arco gas station at 6100 E. Washington Boulevard (“Subject Property”), subject to Conditions of Approval, contingent upon approval of ZTA No.25-02 and finding the Project consistent with the CMC, General Plan, and compatible with surrounding uses; Adopting a Categorical Exemption under the provisions of the California Environmental Quality Act (Public Resources Code §§ 21000, et seq. “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regs. §§ 15000, et seq., the “CEQA Guidelines”) (CEQA Guidelines §15301 and § 15061(b)(3)); and Taking such additional, related, action that may be desirable.

PUBLIC NOTICE REQUIREMENTS:

The public hearing notice was published in the Los Cerritos Community News on July 31, 2026. In addition, the notice was mailed out to property owners within 1,000 feet of the CUP Subject Property.

EXECUTIVE SUMMARY:

On December 16, 2025, the Applicant, Jennifer Oden of Solomon, Saltsman & Jamieson, submitted a request to consider ZTA No. 25-02 and CUP No. 25-12 (collectively, the “Project”) for the Subject Property located within the C/M-1 (Commercial Manufacturing) zoning district. The subject site is an existing AM/PM convenience store operating within an ARCO service station.

The Applicant is requesting consideration of:

ZTA No. 25-02: To amend CMC Section 19.31.100(2), which currently imposes a 500-foot distance separation requirement for certain alcohol-related uses along designated commercial corridors, specifically Washington Boulevard and Atlantic Boulevard.

CUP No. 25-12: To allow the off-sale of beer and wine (ABC Type-20 License) at the existing convenience store. The Project is strictly limited to a change in use within the existing building footprint, with no exterior expansion proposed.

On July 15, the Planning Commission reviewed the Project and recommended that City Council approve ZTA No. 25-02 and approved CUP No. 25-12, subject to the City Council’s final adoption of ZTA No. 25-02. Planning Commission typically has discretion over CUP applications, unless it is appealed, but in this case the CUP approval by Planning Commission was referred to City Council for final determination similarly to the ZTA application.

Staff have evaluated the Project and determined that the text amendment and the associated alcohol sales are compatible with surrounding commercial and manufacturing uses, satisfy all necessary municipal code findings, aligns with the City’s strategic goals, and comply with the California Environmental Quality Act (CEQA).

BACKGROUND:

The property located at 6100 E. Washington Boulevard is a 42,110-square-foot site within the C/M-1 zoning district, developed with an existing ARCO service station and a 3,266 square-square-foot AM/PM convenience store constructed in 2003. (Attachment 1 – Architectural Plans) The Planning Commission considered ZTA No. 25-02 and CUP No. 25-12 at a Special Meeting on May 28, 2026. The public hearing was continued to allow for additional review and refinement of the proposed language for CMC Section 19.31.100(2).

Following the cancellation of the June 17, 2026, meeting, the continued public hearing was brought back before the Planning Commission on July 15, 2026.

Upon reviewing the revised text amendment, operational parameters, and statutory findings (including findings for Public Convenience or Necessity due to Census Tract 5323.03 and Crime Reporting District 0244 parameters), the Planning Commission took formal action to:

Adopt PC Resolution No. 26-03, recommending that the City Council approve ZTA No. 25-02; Adopt PC Resolution No. 26-04, approving CUP No. 25-12 subject to Conditions of Approval, contingent upon final City Council adoption of ZTA No. 25-02; and Direct staff to file a Notice of Exemption under the California Environmental Quality Act (CEQA).

Although the CUP application was approved by Planning Commission, this application was duly noticed in the public hearing notice and was referred to City Council for final determination similarly to the ZTA application. The City Council has final discretion over the ZTA and CUP applications.

ANALYSIS:

Conditional Use Permit
A CUP is required for uses that may have unique operational characteristics or potential impacts requiring discretionary review to evaluate compatibility with surrounding properties and uses. Pursuant to Section 19.11.030 of the CMC, certain uses involving alcohol sales require approval of a CUP.

The Project site is located within an established commercial corridor along Washington Boulevard and is surrounded by a mix of commercial, office, and industrial uses. The nearest residential use consists of an existing apartment complex located approximately 300 feet west of the Project site.

The proposed off sale of beer and wine in conjunction with the existing convenience store operation is consistent with similar convenience retail uses operating throughout the city. The alcohol sales component would be limited to off-sale beer and wine and would occur within an existing convenience store with no expansion of the building, site improvements, or operational footprint.

The Planning Commission is typically the final review authority for a CUP; however, in this specific case, the CUP is being brought before the City Council due to its direct legal contingency upon the approval of ZTA.

Pursuant to PC Resolution No. 26-04, the Planning Commission has reviewed and approved the CUP subject to Conditions of Approval intended to protect the public health, safety, and welfare. These conditions require strict compliance with all applicable State laws and regulations related to alcohol sales, including prohibitions on the sale of alcoholic beverages to people under 21 years of age. Alcohol sales shall only occur to individuals meeting the legal age requirement and presenting valid identification when required. Additionally, a condition of approval is included to require that CUP No. 25-12 undergo Planning Commission review at the one-year anniversary from opening. At that time, the Planning Commission can take action to initiate modifications of the CUP, if deemed necessary. These conditions are contained within Attachment 2 – Resolution.

Public Convenience or Necessity (“PCN”)
Alcoholic Beverage Control – No Net Increase or Undue Concentration The Applicant is seeking approval of Type-20 license from ABC to allow the off-sale of beer and wine for off-site consumption. Businesses seeking to sell alcoholic beverages must obtain approval from both the City through the CUP process and ABC through issuance of the applicable alcohol license. Although both agencies may consider similar information, each agency maintains independent authority regarding approval of the requested entitlement and license. Issuance of the requested ABC Type-20 License is contingent upon the City’s approval of CUP No. 25-12.

ABC determines what is the appropriate number of alcohol licenses within census tracts based on population and license type. The subject property is located within Census Tract 5323.03 (see Exhibit D – Census Map). According to ABC records, Census Tract 5323.03 has a population of 4,364 and is authorized for two (2) off-sale alcohol licenses based on ABC's population-based license concentration criteria. There are currently nine (9) active off-sale alcohol licenses within the census tract, which exceeds the ABC-authorized level and constitutes an undue concentration of off-sale licenses.

Exhibit D - Census Tract Map No. 5323.03 Exhibit E - Crime Reporting District No. 0244 Alcoholic Beverage Control – High-Crime
The Subject Property is located within Crime Reporting District 0244 (“RD 0244”) (see Exhibit E – Crime Reporting District). Based on information provided by ABC, the number of reported offenses within RD 0244 exceeds the average crime threshold established by ABC and meets or exceeds 120% of the average for the City's reporting districts. Therefore, the area is classified as a high-crime reporting district.

Because the Subject Property is located within both an area of undue concentration and a high-crime reporting district, ABC requires a finding of Public Convenience or Necessity (“PCN”) by the local governing body before processing the alcohol license application. In this case, the proposed resolution includes the required PCN finding (Attachment 2 - Resolution).

Furthermore, the Los Angeles County Sheriff’s Department has indicated that it has not received reports of disorderly conduct involving intoxicated individuals or robberies specifically associated with convenience store operations within RD 0244.

Zoning Ordinance Text Amendment
The core component of the Project is ZTA No. 25-02, which amends CMC Section 19.31.100(2). Currently, the CMC imposes a rigid 500-foot distance separation requirement between certain alcohol-related uses and sensitive receptors (such as residences, religious facilities, schools, parks, and playgrounds). While the existing code contains a narrow exemption for sit-down restaurants along Washington Boulevard and Atlantic Boulevard, it completely excludes off-sale retail uses (such as convenience stores, markets, or specialized alcohol retailers) from benefiting from this corridor-specific flexibility.

The proposed amendment expands this existing exemption to include any use requiring an off-sale alcoholic beverage license, provided it is located along either Washington Boulevard or Atlantic Boulevard.

A critical aspect of the analysis for the City Council is that this amendment does not grant blanket approval or "by-right" privileges for off-sale alcohol uses along these major commercial corridors. Every future and current application will still be strictly required to undergo the discretionary CUP process. The amended text explicitly preserves the City's broad police power to deny an application if it is determined that a proposed use would adversely affect nearby sensitive receptors. The Planning Commission retains the full ability to evaluate projects on their individual merits, tailoring robust conditions of approval (such as operating hours, security measures, and employee training) to mitigate any potential land use friction.

Adopting ZTA No. 25-02 will impact not only the Subject Property, but it will also impact other commercial properties along Washington Boulevard and Atlantic Boulevard. Below are additional considerations as it relates to future development along these corridors:

Washington Boulevard and Atlantic Boulevard are primary commercial corridors designated to serve the local community and traveling public. Applying a blanket 500-foot buffer along heavily built-out commercial corridors often creates an unrealistic barrier, as residential properties, apartments, or offices are frequently interspersed near commercial parcels. By shifting from a rigid geographic metric to a discretionary performance-based review, the city can better accommodate modern, ancillary retail demands (like the subject AM/PM convenience store and CCM Market) while still shielding neighborhoods from problematic operators.

Commercial properties along these corridors must remain competitive. Allowing modern convenience stores and upgraded retail formats to offer standard ancillary products (such as beer and wine) helps businesses remain viable and competitive. At the same time, the CUP requirement ensures that the city never compromises on public safety, community welfare, or code compliance.

The amendment establishes regulatory parity along Washington and Atlantic Boulevards. Currently, sit-down restaurants enjoy relief from the 500-foot rule to serve alcohol, while convenience retail is barred despite fulfilling a similar commercial service function under strict operational guidelines. This amendment harmonizes the code treatment for complementary commercial uses such as grocery stores along the City's primary commercial arteries.

As applied to the specific project at 6100 E. Washington Boulevard, the CUP allows the integration of an ABC Type-20 license (off-sale beer and wine) within an existing, fully operational AM/PM convenience store at an ARCO gas station. Because the project proposes zero building expansion, demolition, or site modification, it introduces no new physical impacts to parking, circulation, or surrounding infrastructure.

Although Census Tract 5323.03 and Crime Reporting District 0244 reflect over-concentration metrics and higher crime thresholds under State ABC guidelines, the operational history of this specific site demonstrates safe, compliant retail management. The required findings for PCN are fully supported by the fact that the use is strictly ancillary, monitored closely near the cash register, and operates with strong oversight and no historical association with alcohol-related disturbances or law enforcement calls.

Proposed Zoning Text Amendment
The proposed amendment revises Section 19.31.100(2) of the CMC as follows:

Current Code Language
"The proposed use shall not be located within five hundred feet nor adversely affect adjacent or nearby religious facilities; residences; public or private schools; public parks or recreation centers; or public or parochial playgrounds. However, the distance requirement shall not apply to restaurants, sit-down defined by the Commerce Municipal Code and which are located along either Washington Boulevard or Atlantic Boulevard. While the distance requirement of this section may not apply to restaurant, sit-down, the city may deny an application if it is determined that a use adversely affects any adjacent or nearby religious facilities; residences; public or private schools; public parks or recreation centers; or public or parochial playgrounds.” Proposed Code Language
“The proposed use shall not be located within five hundred (500) feet of, nor adversely affect adjacent or nearby religious facilities; residences; public or private schools; public parks or recreation centers; or public or parochial playgrounds. However, the distance requirement shall not apply to restaurants, sit-down as defined by the Commerce Municipal Code, and which are or to any use requiring an off-sale alcoholic beverages license, provided the use is located along either Washington Boulevard or Atlantic Boulevard. While the distance requirement of this section may not apply to restaurant, sit-down, notwithstanding these exemptions, the city may deny an application if it is determined that a proposed use adversely affects any adjacent or nearby religious facilities; residences; public or private schools; public parks or recreation centers; or public or parochial playgrounds.” CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The Project consists of a request for a CUP to allow the off-sale of beer and wine (ABC Type-20 License) within an existing convenience store and a ZTA related to alcohol-related use regulations. The Project will not result in any expansion of the existing building, intensification of the physical use of the site, or modifications to existing site improvements.

Based on the scope of the Project, it qualifies for exemption from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15301 (Existing Facilities), which applies to the operation, permitting, leasing, or licensing of existing public or private structures involving negligible or no expansion of existing or former use. The proposed use of the existing convenience store for limited alcohol sales is consistent with the existing retail operations and does not involve an increase in floor area or new construction.

Additionally, the ZTA is exempt from CEQA pursuant to Section 15061(b)(3), the “common sense exemption,” in that it can be seen with certainty that there is no possibility the amendment may have a significant effect on the environment. The ZTA relates solely to procedural and regulatory standards for alcohol-related uses and does not authorize physical development.

Therefore, the Project is not expected to result in any significant environmental impacts, and no further environmental review is required.

FISCAL IMPACT:

This activity can be carried out without additional impact on the current operating budget.

ALTERNATIVES:

Approve recommendation
Reject recommendation
Provide staff with further direction
RELATIONSHIP TO STRATEGIC GOALS:

This item relates to the 2016 Strategic Action Plan’s goal of: Economic growth – Guiding Principles 1 to “Create and strengthen our identity, as a community that promotes opportunity and success for business that meets the strategic focus for economic growth, will have a positive impact on the quality of life and the City’s financial sustainability,” 3 “Support a long-range planning vision through the City’s General Plan, zoning ordinance, and related land use planning documents that incorporate community and stakeholder input and provide a compass for strategic economic growth, infrastructure investments and city fiscal planning,” and 4 “Focus on strategic economic development pursuits that will increase local jobs, generate additional revenue, and create demand for supporting businesses.” Prepared by: Braulio Madrid, Contract Planner
Recommended by: Jessica Serrano, Director of Community Development Reviewed by: Alvaro Castellon, Director of Finance
Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager ATTACHMENTS:

Architectural Plans
Resolution No. 2026-XX – CUP No.25-12
Draft Ordinance No. _____ – ZTA No. 25-02

CITY OF COMMERCE

AGENDA REPORT
Item No.

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