CITY COUNCIL STAFF REPORT
DATE: MAY 27, 2026 CONSENT CALENDAR
SUBJECT: A REQUEST BY G&M OIL CO., LLC, FOR A RESOLUTION OF PUBLIC
CONVENIENCE OR NECESSITY (PCN) TO SELL BEER, WINE, AND
DISTILLED SPIRITS FOR OFF-SITE CONSUMPTION (TYPE 21 – OFF-
SALE GENERAL) AT AN AUTOMOBILE SERVICE STATION
CONVENIENCE MARKET LOCATED AT 6600 NORTH INDIAN CANYON
DRIVE, ZONE HC, SECTION 23 (CASE PCN-2026-0001)
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 21 (Off-Sale General) liquor license for an existing automobile service station convenience market (Chevron). 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, wine, and distilled spirits at the site for off-site consumption purposes.
RECOMMENDATION:
Adopt a Resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, DETERMINING THAT PUBLIC CONVENIENCE WOULD BE SERVED BY THE ISSUANCE OF A TYPE 21 (OFF-SALE GENERAL)
ALCOHOLIC BEVERAGE CONTROL LICENSE AT AN AUTOMOBILE SERVICE STATION CONVENIENCE MARKET (CHEVRON) LOCATED AT 6600 NORTH INDIAN CANYON DRIVE (APN: 669-091-019 & 669-091-020) WITHIN CENSUS TRACT NO. 445.24 (CASE NO. PCN-2026-0001)"
BUSINESS PRINCIPAL DISCLOSURE:
Public Integrity Disclosure Forms are attached to this staff report (Attachment C).
City Council Staff Report
May 27, 2026 -- Page 2
Determination of Public Convenience or Necessity – PCN
BACKGROUND:
The applicant is requesting a determination of public convenience or necessity for a Type 21 liquor license for the sale of beer, wine, and distilled spirits at an existing 3,112-SF automobile service station convenience market (Chevron). The business currently holds a Type 20 (Off-Sale Beer & Wine) ABC liquor license which permits the sale of beer and wine at the premises for off-site consumption purposes. The business operates twenty- four hours a day, seven days a week; however, sales of alcoholic beverages are limited to between 6:00 AM and 1:45 AM, seven days a week.
The business’ primary retail product is fuel, and the alcoholic products to be sold under the Type 21 ABC liquor licenses are estimated to account for 2% of the total product inventory offered at the site. Combined with the alcoholic products that are currently sold under the Type 20 ABC liquor license, alcoholic beverages will comprise approximately 6% of the total product inventory (Attachment F). An exhibit included in the Justification Letter (Attachment G) indicates that distilled spirits will be stored in a designated cabinet.
According to the ABC records staff obtained on April 20, 2026, there are no operating restrictions, disciplinary actions, or holds associated with the Type 20 ABC liquor license the business has held at the site since December 19, 2008. Additionally, the City database shows that there are no previous or current code compliance cases associated with the property.
STAFF ANALYSIS:
The California Department of Alcoholic Beverage Control (ABC) requires a Type 21 (Off- Sale General) liquor license for the proposed beer, wine, distilled spirit sales for off-site consumption purposes at the automobile service station convenience market, 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 21 liquor license as follows:
“Issued to retail stores. Authorizes the sale of beer, wine and distilled spirits 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:
City Council Staff Report
May 27, 2026 -- Page 3
Determination of Public Convenience or Necessity – PCN
“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. 445.24, which covers a vast area that includes the City of Palm Springs, City of Desert Hot Springs, and unincorporated areas of Riverside County. A majority of the tract lies outside the City boundary. The portion of the City of Palm Springs located within the tract is generally defined as the area bounded by the Union Pacific Railroad to the south, Indian Canyon Drive to the east, 16 th Avenue to the north, and Diablo Road to the west. The Census tract map is attached to this report (Attachment E).
According to the ABC liquor license application (Attachment D), only one (1) off-sale liquor license would be allowed in this particular tract while nine licenses have been issued (Attachment E). 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, wine, and distilled spirits in conjunction with the operation of an automobile service station convenience market, notwithstanding the undue concentration in the Census tract.
In the Justification Letter (Attachment F), the applicant describes the business as “a convenient one-stop shop” which offers a variety of products and services ranging from food and beverages to automotive products and electric vehicle charging stations. The applicant further states that their request for a Type 21 ABC liquor license is “…an organic extension of the current surrounding uses and will therefore remain in appropriate relation to the contiguous uses and ongoing development of the community” (Attachment F).
The business is located within the Highway Commercial (HC) and Regional Business Center (RBC) zoning and General Plan land use designation areas, which are intended to provide for “…the retail and service needs of freeway travelers” (PSZC § 92.14.1.00) and “…accommodate a wide variety of business activities in a multi-use environment…” to “…serve an area larger than the City proper…” (Palm Springs 2040 General Plan, page 2-17). As shown on the context map (Attachment H), there is no business within the site’s immediate vicinity that holds a Type 21 ABC license. The closest license holder to the project site is the Rocket convenience store (19995 N. Indian Canyon Dr.), which is located on the north side of Interstate 10 approximately 0.26 mile away from the site.
Issuance of a Type 21 ABC liquor license would allow the applicant to become the nearest City Council Staff Report
May 27, 2026 -- Page 4
Determination of Public Convenience or Necessity – PCN
establishment to Interstate 10 on its south side on North Indian Canyon Drive to serve the eastbound travelers. This would strengthen the business’ identity as a “convenient one- stop shop” by offering a more diversified range of products and better serving local and regional travelers. Therefore, staff has determined that the project would serve the public convenience.
ENVIRONMENTAL ASSESSMENT:
Pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA), the proposed project is exempt from further CEQA review. It can be seen with certainty that determining whether the issuance of a Type 21 alcoholic beverage license would serve the public convenience or necessity will not have a significant environment effect as it has no potential to result in physical changes to the environment either directly or indirectly.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Economic Development
FISCAL IMPACT:
None.
REVIEWED BY:
Department Director: Christopher Hadwin
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Vicinity Map
B. Draft Resolution
C. Public Integrity Disclosure Form
D. ABC License Application
E. Census Tract No. 445.24 & List of Type 21 ABC Liquor License Holders F. Justification Letter
G. Floor Plan
H. Context Map