1 TO: City Council
FROM: Ryan Smoot, City Manager
PREPARED BY: Brianna Rindge, AICP, Community & Economic Development Director
MEETING DATE: August 15, 2023
SUBJECT: Resolution of Public Convenience and Necessity Relative to Conditional Use Permit No. 326, for the Sale of Beer, Wine, and Distilled Spirits for Grocery Outlet Located at 2155 Pacific Coast Highway within the C-R (Commercial Retail) Zone and finding the action exempt from the California Environmental Quality Act
RECOMMENDATION
Adopt resolution and find the action exempt from the California Environmental Quality Act.
BACKGROUND
On August 14, 2023, the Planning Commission will review Conditional Use Permit (CUP) No. 326 for Grocery Outlet at 2155 Pacific Coast Highway for sales of beer, wine, and distilled spirits for offsite consumption as an ancillary use to a grocery store. The business will sell grocery foods, deli items, vitamins, toiletries, beauty products, housewares, and the like, offering name brand items at bargain prices. Upon Conditional Use Permit approval, the Department of Alcoholic Beverage Control (ABC) requires a finding of Public Convenience and Necessity.
The California Business and Professions Code, Section 23958.4 requires that the City Council submit a resolution of public convenience and necessity to the Department of Alcoholic Beverage Control relative to this proposal. The State law contains two tests for this requirement: 1) If the proposed establishment is located in a district which has a 20% greater number of reported crimes than the average number of reported crimes within the local law enforcement agency’s jurisdiction; and 2) If the proposed establishment is located within a census tract in which the ratio of off-sale licenses to population exceeds the ratio of the off-sale licenses to population of Los Angeles County. The ABC investigator reports that the proposed location meets both criteria.
Item No. 7m
CITY OF LOMITA
CITY COUNCIL REPORT
2 Per ABC, Lomita’s average number of reported crimes is 69.5 offenses, roughly half that of the district within which the site is located (District 1714). Reporting District 1711 experienced 119 offenses, which is over 20% greater than the average number of reported crimes. Grocery Outlet will install a minimum 16-camera system providing view of all parts of the store, including the alcoholic beverage display area and sales check stands. The video system will feature 30-day retrieval abilities. Monitors are accessible to law enforcement if necessary.
With regard to off-site license concentration, the ABC investigator reports that there exist 4 retail licenses for offsite consumption within Census Tract 6700.03, which is roughly bounded by Lomita Blvd to the north, Oak St to the east, PCH to the south, and Crenshaw to the west.
Name City Address
Type 20 (beer & wine only):
7 Eleven Lomita 2301 PCH
KB Food Marts Plus Lomita 2380 Lomita Blvd
Type 21 (beer, wine, & liquor – same type as applicant):
Rolling Hills Market Lomita 2413 PCH, Ste 105
Ace Hi Liquor Lomita 25511 Narbonne Ave
Based on Los Angeles County’s population and number of county-wide off-site licenses, the ratio of licenses to population is 1:1,605. For Census Tract 6700.03 the proportional amount of off-site licenses is three (see Attachment 2).
The General Plan and zoning designations for this area are Commercial and Commercial Retail, providing for commercial and retail uses along Pacific Coast Highway in proximity to residential and commercial zones, including the establishment of necessary public service facilities compatible with the requirements of this zone. Staff finds that the sale of beer, wine, and distilled spirits as an ancillary use to the sale of food at the proposed Grocery Outlet store serves the needs of residents and is a necessary public facility.
The subject site was formerly utilized as a Big Lots retail store, which did not sell beer, wine and distilled spirits, and the incidents of crime reported while that use was in operation exceed the 20% greater than the average threshold. It is not uncommon for an exclusively commercial district, such as this, to have higher incidents than a noncommercial area. Therefore, ancillary off-site alcohol sales at this site would not be a contributing factor to the census tract’s crime rate.
Though there is a high concentration of licenses relative to the population, the census tract includes 4 major commercial corridors: PCH, Crenshaw Blvd, Lomita Blvd, and Narbonne Ave. Approval of CUP No. 326 authorizes up to 499 square feet of alcohol sales (4% of the entire store). As proposed, alcohol sales will occupy a very small fraction of the store (see Attachment 4).
3 Big-box general merchandise retail stores typically sell alcoholic beverages as a way to both attract customers and operate a successful store. It is a convenience for residents to be able to shop for food and beer, wine, and distilled spirits at one location, especially along a through corridor. This will capture sales tax revenue from those passing through the city, especially on commutes. In addition, the city of Torrance benefits from alcohol sales at several chain grocery stores, such as Vons, Whole Foods, and Sam’s Club. The sales of alcohol at the proposed Grocery Outlet will shift benefit into Lomita.
In order for the Department of Alcoholic Beverage Control to process the license, State law requires the City to issue a statement about necessity and public convenience related to this proposed business. Staff has prepared a resolution for review and adoption.
FISCAL IMPACT
Due to the limited amount of floor area dedicated to alcohol sales, the sale of beer, wine, and distilled spirit products is not expected to have significant fiscal impact beyond increasing business and sales tax revenue for the city.
CEQA
The City Council finds, determines and declares that adoption of this resolution and determination of public convenience or necessity is statutorily exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to Section 15301 (Existing Facilities) because the actions identified in the resolution are limited to the permitting and minor alteration of existing facilities. The project consists of permitting a license to sell beer, wine, and spirits for offsite consumption, which is a negligible expansion of the proposed onsite activities. Alternatively, the adoption of this resolution and determination of public convenience or necessity is exempt from CEQA because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061(b)(3).) OPTIONS:
1. Adopt the resolution.
2. Do not adopt the resolution.
3. Provide staff alternative direction.
ATTACHMENTS
1. Draft Resolution
2. ABC Form 245
3. Applicant’s Statement
4. Floor Plan
4 Reviewed by: Approved by:
Gary Y. Sugano Ryan Smoot
Assistant City Manager City Manager
Prepared by:
_________________________
Brianna Rindge, AICP
Community & Economic Development Director
RESOLUTION NO. 2023-17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOMITA,
CALIFORNIA, RESOLVING THE PUBLIC CONVENIENCE AND
NECESSITY OF AN ABC LICENSE FOR THE SALE OF BEER, WINE,
AND DISTILLED SPIRITS FOR OFF-SITE CONSUMPTION AT
2155 PACIFIC COAST HIGHWAY AND FINDING THE ACTION EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Section 1. Recitals
A. On August 14, 2023, the Planning Commission of the City of Lomita conducted a duly noticed public hearing for a proposed Type 21 Department of Alcoholic Beverage and Control (ABC) license to sell beer, wine, and distilled spirits as an ancillary use to a grocery store located at 2155 Pacific Coast Highway.
B. The Planning Commission approved Conditional Use Permit No. 326, a request for the sale of alcohol at the above business at 2155 Pacific Coast Highway, and the entitlement has not expired or been revoked or modified.
C. State law established thresholds for additional review when a district’s reported crimes exceed the jurisdiction’s average by a certain percentage, and/or when a census tract contains a higher ratio of off-sale licenses than the ratio for the County of Los Angeles.
D. The reporting district containing 2155 Pacific Coast Highway has reported crimes 20 percent greater than the average number of reported crimes for all of the City’s districts.
E. The grocery store at 2155 Pacific Coast Highway is located in Census Tract 6700.03, which has a ratio of off-sale licenses to population that exceeds the ratio for the County of Los Angeles.
F. State law requires the City Council of the City of Lomita to state the effect of the proposed business relative to public convenience and necessity.
Section 2 Findings.
The City Council of the City of Lomita finds as follows.
A. The proposed license is within Lomita’s Commercial Retail area.
B. The General Plan designates the area for regional retail uses and a grocery retailer’s sale of alcoholic beverages for off-site consumption is compatible with the designation.
C. That a responsibly operated grocery retailer is a valuable part of the business diversity within Lomita’s commercial corridor.
Attachment 1
Resolution No. 2023-17
D. That beer, wine, and distilled spirits are typical and important products in the majority of successful grocery retail stores.
E. That residents will find it convenient to shop for food and beer, wine, and distilled spirits at one location.
Section 3. CEQA Findings.
The City Council finds, determines and declares that adoption of this resolution and determination of public convenience or necessity is statutorily exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to Section 15301 (Existing Facilities) because the actions identified in the resolution are limited to the permitting and minor alteration of existing facilities. The project consists of permitting a license to sell beer, wine, and spirits for offsite consumption, which is a negligible expansion of the proposed onsite activities. Alternatively, the adoption of this resolution and determination of public convenience or necessity is exempt from CEQA because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061(b)(3).) Section 4. That the City Council of the City of Lomita determines that the proposed sale of beer, wine, and distilled spirits for off-site consumption at 2155 Pacific Coast Highway meets the public convenience and necessity standards.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lomita hereby determines that the issuance of a Type 21 ABC license to sell beer, wine, and distilled spirits for off-site consumption at 2155 Pacific Coast Highway would serve the public convenience and necessity. The decision of the City Council is final and conclusive as to all things involved. The City Clerk’s office shall provide a copy of this resolution to the applicant so that the applicant can provide the resolution to ABC.
Section 5. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED, APPROVED, and ADOPTED, this 15th day of August 2023. _______________________
Barry Waite, Mayor
ATTEST:
_______________________
Kathleen Horn Gregory, MMC, City Clerk
APPROVED AS TO FORM:
_______________________
Trevor Rusin, City Attorney
Attachment 2
Attachment 3
Attachment 4