City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: SEPTEMBER 15, 2026 WARD: 3
FROM: COMMUNITY & ECONOMIC DEVELOPMENT
DEPARTMENT
SUBJECT: PC 2025-001785 – CONDITIONAL USE PERMIT, DESIGN REVIEW, AND PUBLIC FINDING OF CONVENIENCE OR NECESSITY - TO CONSIDER AN APPEAL BY JASMIN PATEL OF PRAGAT LAXMI CORP OF THE CITY PLANNING COMMISSION’S DENIAL OF THE FOLLOWING ENTITLEMENTS FOR THE ESTABLISHMENT OF A HIGH-END BOTTLE SHOP AND BAR: 1) CONDITIONAL USE PERMIT FOR THE PROPOSED OFF-SALE (BOTTLE SHOP) AND ON-SALE (BAR) OF ALCOHOL; 2) DESIGN REVIEW OF PROJECT PLANS; AND 3) PUBLIC CONVENIENCE OR NECESSITY FOR AN OVERCONCENTRATION OF OFF-SALE ALCOHOL LICENSES IN CENSUS TRACT 311.00 ISSUE:
Consider an appeal, requested by Jasmin Patel of Pragat Laxmi Corp, of the Planning Commission’s denial of entitlements for the establishment of a high-end bottle shop and bar.
RECOMMENDATIONS:
That the City Council:
DETERMINE that this project is categorically exempt from the California Environmental Quality Act (CEQA) review pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, as the project will not have a significant effect on the environment; and UPHOLD the appeal by Jasmin Patel (Applicant) and approve Planning Case PC-2025-001785 (Conditional Use Permit, Design Review, and Public Finding of Convenience or Necessity) based on the findings outlined in the staff report and summarized in the attached findings and subject to the recommended conditions of approval.
PLANNING COMMISSION RECOMMENDATION:
On April 9, 2026, the project was considered by the City Planning Commission. During the public hearing and deliberations, concerns were raised regarding overconcentration of off-sale licenses within the census tract, public outreach, and compatibility with the surrounding neighborhood. (Attachments 1 and 2) A motion to accept Staff’s recommendation resulted in a vote of two (2) ayes, six (6) noes, one (1) Planning Commissioner absent and zero (0) abstentions. The motion to approve the project failed; therefore, the project was not approved and was denied.
BACKGROUND:
The 1.86-acre project site is developed with an existing 50,736-square-foot multi-tenant retail building. Unit A is occupied by Big 5 Sporting Goods. Units B and C are vacant and were formerly occupied by retail (Allin Party Supply) and a salon, respectively. The project site is surrounded by commercial uses.
Project Description
The applicant is requesting approval of the following entitlements for the establishment of Jazz’s Wine and Spirit shop and bar within an existing 40,791-square-foot tenant space:
Conditional Use Permit: To permit off-sale (Jazz’s Wine and Spirits shop) and on-sale (bar) alcohol; Design Review: Site design and building elevations; and Public Convenience or Necessity Determination: To allow for an over-concentration of alcohol licenses in Census Tract 311.00.
The applicant is proposing a phased development consisting of two phases:
Phase 1: Jazz’s Wine and Spirits Shop
The wine and spirit shop will operate with a Type 21 – Off-Sale General license from the California Department of Alcoholic Beverage Control (ABC), offering a range of specialty, high-end wine and spirits, including limited releases and collector-oriented inventory. The establishment will also offer a small market with grab-and-go food and snack items. It will operate from 8:00 AM to 10:00 PM Monday through Thursday, and 8:00 AM to 12:00 AM Friday through Sunday. No on-sale consumption of alcohol or exterior building improvements are proposed for Phase 1. Minor landscaping improvements are proposed along Magnolia and Brockton Avenues.
Phase 2: Bar and Tasting Room
Phase 2 will include the operation of a 5,990-square-foot bar and tasting room with a patio and will operate with a Type 48 ABC license. On-premise consumption is anticipated to focus on educational wine and spirit experiences. The bar will operate Monday through Thursday from 3:00 PM to 12:00 AM, and Friday through Sunday from 11:00 AM to 12:00 AM. The tasting room will operate from 11:00 AM until bar close, for scheduled events only.
Phase 2 also includes exterior improvements, including landscape improvements along Beatty Drive and facade remodel.
As part of business operations, the operator will provide security measures including surveillance cameras, alarm systems, security staffing during peak periods, and storefront lighting. All staff members will be trained in emergency procedures and conflict resolution including Responsible Beverage Service (RBS) training as required by ABC and the Riverside Police Department.
Analysis
The proposed project is consistent with the intent of the General Plan Land Use Designation of MU-U – Mixed-Use – Urban - which provides for high-density residential development with commercial, office, institutional, and business uses emphasizing retail, entertainment, and other student-oriented activities. It is also consistent with all standards of the Magnolia Avenue Specific Plan and Zoning Code.
DISCUSSION:
Appeal:
The Applicant/Appellant filed a timely appeal of the Planning Commission’s denial of the Project. The Applicant/Appellant’s basis for the appeal is that the Project is compliant with all applicable City, State and other regulatory requirements, and that the Project meets the requirements for granting a Public Convenience or Necessity to allow for an over-concentration of alcohol licenses in Census Tract 311.00 (Attachment 3).
Per the California Department of Alcoholic Beverage Control (ABC), there are 11 existing off-sale licenses within the tract, where two off-sale licenses are anticipated, and 28 on-sale licenses within the tract, where five off-sale licenses are anticipated. The proposed license would be the twelfth off-sale license and twenty-ninth on-sale license in the tract requiring the local jurisdiction to make a determination that issuance of the additional license will service the public convenience or necessity pursuant to State law.
Census Tract 311 contains the Midtown area of the city, generally developed with gathering and entertainment uses, including the Brockton Arcade and Riverside Plaza, resulting in the high concentration of ABC licenses. It also includes licenses associated with community groups and gathering areas such as restaurants that include on-sale consumption of alcohol.
The request serves the public convenience or necessity findings required by Chapter 19.450.040 of the Riverside Municipal Code based on the following:
The operator of Jazz’s Wine and Spirits has submitted a request for a Type 48 and Type 21 liquor license, and will agree to all conditions of approval placed on the application (Attachment 4).
The proposed wine and spirit shop and bar is compatible with surrounding commercial uses and consistent with other development in the census tract, including Brockton Arcade and Riverside Plaza. The proposed use will enhance economic vitality and improve consumer choice in the surrounding area.
The wine and spirit shop and bar includes a comprehensive security plan including 24/7 surveillance footage, adequate site lighting, trained staff, and on-site security during peak times. As such, the proposed use will not increase the severity of existing law enforcement or public nuisance problems in the area.
The applicant conducted additional outreach to address the Planning Commission’s concerns regarding community input. A flyer was mailed on July 31, 2026 to all addresses within 500 feet of the property – exceeding the City’s usual public notice radius of 300 feet. The applicant also conducted door-to-door canvassing the week of August 17, 2026 and weekend of August 22, 2026.
FISCAL IMPACT:
There is no fiscal impact since all costs are borne by the Applicant.
Prepared by: Veronica Hernandez, Senior Planner
Reviewed by: Miranda Evans, Community & Economic Development Director Certified as to
availability of funds: Julie Nemes, Finance Director
Approved by: Thomas Hatch, Interim City Manager
Approved as to form: James Johnson, City Attorney
Attachments:
City Planning Commission Minutes – April 9, 2026
City Planning Commission Report and Exhibits – April 9, 2026 Appeal Letter
Recommended Conditions of Approval
Presentation
PC-2025-001785 (CUP, DR, PCORN) ● Page 2