CITY COUNCIL STAFF REPORT
DATE: November 12, 2025 CONSENT CALENDAR
SUBJECT: A REQUEST BY ACAI OASIS, LLC, FOR A RESOLUTION OF PUBLIC
CONVENIENCE OR NECESSITY (PCN) TO SELL BEER AND WINE FOR OFF-SITE CONSUMPTION (TYPE 20 – OFF-SALE BEER & WINE) AT AN EXISTING BUSINESS, ACAI OASIS, WHICH IS LOCATED AT 144
SOUTH PALM CANYON DRIVE (APN: 513-144-009), ZONE CBD,
SECTION 15 (CASE PCN-2025-0003)
FROM: Scott C. Stiles, City Manager
BY: Department of Planning Services
SUMMARY:
The applicant has initiated the application process for a California Department of Alcoholic Beverage Control (ABC) Type 20 (Off-Sale Beer & Wine) liquor license for Acai Oasis, an existing food establishment which focuses on food items such as acai cups, smoothies, and tapioca. The project site is located within a Census tract which is identified by the ABC as an area of undue concentration of liquor licenses. The applicant is therefore requesting that the City Council make a determination of public convenience or necessity for the sale of beer and wine for off-site consumption purposes at the site.
RECOMMENDATION:
Adopt Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, DETERMINING THAT PUBLIC CONVENIENCE AND NECESSITY WOULD BE SERVED BY THE ISSUANCE OF A TYPE 20 (OFF-SALE
BEER & WINE) ALCOHOLIC BEVERAGE CONTROL LICENSE FOR ACAI OASIS, WHICH IS LOCATED AT 144 SOUTH PALM CANYON DRIVE WITHIN CENSUS TRACT NO. 446.06”
BUSINESS PRINCIPAL DISCLOSURE:
Public Integrity Disclosure Forms are attached to this staff report (Attachment C).
City Council Staff Report
November 12, 2025 -- Page 3
Determination of Public Convenience or Necessity - PCN-2025-0003 BACKGROUND:
The applicant is requesting a determination of public convenience or necessity for a Type 20 liquor license for an existing business, Acai Oasis, which is located at La Plaza. The business is a 977-SF food establishment which specializes in food items such as acai cups, smoothies, and tapioca (Visit Palm Springs Website:
https://visitpalmsprings.com/listing/acai-oasis/699/). Located in the CBD (Central Business District) Zone, the business operation is subject to Land Use Permits, LUP 22- 041 and 22-048 (Attachment G).
STAFF ANALYSIS:
The California Department of Alcoholic Beverage Control (ABC) requires a Type 20 (Off- Sale Beer & Wine) liquor license for the proposed sale of beer and wine for off-site consumption purposes, as well as the determination of Public Convenience or Necessity (PCN) due to undue concentration of liquor licenses within the Census tract in which the site is located. The ABC identifies the Type 20 liquor license as follows:
“Issued to retail stores. Authorizes the sale of beer and wine for consumption off the premises where sold. Minors are allowed on the premises.”
The second paragraph of Section 23958 of the State of California Business and Professions Code states that the California Department of Alcoholic Beverage Control (ABC) is required to “…deny an application for a license if issuance of that license would tend to create a law enforcement problem, or if issuance would result in or add to an undue concentration of licenses, except as provided in Section 23958.4.” Section 23958.4(a)(3) of the Code defines undue concentration as follows:
“As to off-sale retail license applications, the ratio of off-sale retail licenses to population in the census tract or census division in which the applicant premises are located exceeds the ratio of off-sale retail licenses to population in the county in which the applicant premises are located.”
The Section further states that a license may nevertheless be issued in an area of undue concentration when “…the local governing body of the area in which the applicant premises are located, or its designated subordinate officer or body, determines within 90 days of notification of a completed application that public convenience or necessity would be served by the issuance.” (State of California Business and Professions Code, Section 23958.4(b)(2).
The project site is located within Census Tract No. 446.06, which is generally identified as the area between the west side of Indian Canyon Drive and the east side of Via Monte City Council Staff Report
November 12, 2025 -- Page 3
Determination of Public Convenience or Necessity - PCN-2025-0003 Vista between East Ramon Road and Tramway Road. A majority of the tract is located outside the City boundary (Attachment E).
According to the ABC liquor license application (Attachment D), only one (1) Type 20 liquor license would be allowed in this particular tract while 9 licenses have been issued.
Hence, the applicant is requesting a determination of public convenience or necessity from the City Council to allow ABC to issue a liquor license for the sale of beer and wine in conjunction with the operation of the existing business, notwithstanding the undue concentration in the Census tract.
The Justification Letter (Attachment F) states that the issuance of a Type 20 liquor license would allow the business to enhance the experience of the customers, and it would provide their customers “…a convenient option to complete their meals and special occasions, while remaining consistent with our brand’s focus on quality and lifestyle...”
The business is located at La Plaza, which is a landmark in the Downtown district.
Located at the core of a tourism destination, the business is easily accessible to both residents and visitors. The area has a higher concentration of businesses compared to other parts of the City, and the applicant has indicated that it is critical for the business to offer a variety of products that meet the needs of a wide range of patrons for competitive advantage. As provided in the Justification Letter, alcoholic beverages will be approximately 25% of all beverages that will be sold at the site, and the sale of alcoholic beverage products will be accessory to the operation of the business so that the identity of the business as a specialty food establishment will be preserved. The alcoholic beverages to be sold under the Type 20 liquor licenses are intended for off-site consumption. The issuance of the liquor license would allow visitors to purchase alcoholic beverages while visiting La Plaza, and this would eliminate customers’ need to travel outside and help reinforce the area’s identity as the City’s retail core. For the reasons stated above, staff has determined that the project would serve the Public Convenience and Necessity.
ALIGNMENT WITH STRATEGIC PLANNING:
Economic Development.
FISCAL IMPACT:
None.
REVIEWED BY:
Department Director: Christopher Hadwin
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
City Council Staff Report
November 12, 2025 -- Page 3
Determination of Public Convenience or Necessity - PCN-2025-0003 ATTACHMENTS:
A. Vicinity Map
B. Draft Resolution
C. Public Integrity Disclosure Form
D. ABC License Application
E. Census Tract No. 446.06
F. Justification Letter
G. Land Use Permits
H. Floor Plan
I. Context Map