FOR THE COUNCIL MEETING OF NOVEMBER 19, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Acting City Manager Chuen Wu
BY: Interim Community Development Director Dana Eady
SUBJECT: Adoption of a Resolution Approving a Public Convenience or Necessity Determination for a Type 20 Alcohol Beverage Control License for El Toro Loco Supermarket at 204 North Blosser Road , Suite B
Description:
The City Council will consider a pproving a Public Convenience or Necessity Determination for a Type 20 Alcohol Beverage Control License for El Toro Loco Supermarket at 204 North Blosser Road, Suite B.
Environmental Notice: The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines.
RECOMMENDATION:
Adopt a Resolution approving a determination of public convenience for the issuance of a Type 20 (Off -Sale Beer and Wine) alcohol beverage control license for El Toro Loco Supermarket located at 204 North Blosser Road, Suite B.
BACKGROUND:
El Toro Loco Supermarkets is a California supermarket chain with 11 open locations and five locations under construction throughout the state. El Toro Loco Supermarket – Santa Maria is currently under construction with building permits issued on January 18, 2024.
El Toro Loco will operate a neighborhood supermarket in a p ortion of a 29,000 square - foot vacant shopping center located at 204 North Blosser Road, Suite B (Attachment A – Vicinity Map). The store will be open daily from 7:00 a.m. to 9:00 p.m., and will offer fresh fruits and vegetables, a bakery, a butcher shop and general grocery store items. El Toro Loco Supermarket is requesting a Type 20 license from the California Department of Alcoholic Beverage Control (ABC) to offer the sale of beer and wine to customers for offsite consumption. Currently, 9 out of the 11 open El Toro Loco Supermarkets hold an active ABC License.
DISCUSSION:
El Toro Loco Supermarket proposes to offer beer and wine sales alongside their existing selection of typical food and beverage products sold at a grocery store as a convenience 2 for their customers. The percentage of the El Toro Loco store’s floor area dedicated to beer and wine sales , display, and storage would be no more than 5 percent (or approximately 1,000 square feet) of the store’s 22,921 square -foot building area (Attachment B – Floor Plan). The ability for customers to purchase beer and wine along with other groceries would make El Toro Loco Supermarket a full -service supermarket increasing convenience for the consumer and avoiding a separate trip to a liquor store or separate market to purchase beer and wine.
State Law
Section 23958.4(b)(2) of the Business and Professions Code provides the City Council some authority and responsibility regarding the issuance of certain types of alcoholic beverage licenses where there is a request for a new license in an area with:
1. Undue Concentration of Licenses:
An area of “undue concentration” of off-sale ABC licenses exists where the ratio of licenses to population (people residing) within a census tract exceeds the ratio of off-sale retail licenses for the overall county. This property is located in Census Tract 23.04, which encompasses the area from West Main Street to W Alvin Ave between North Blosser Road and North Broadway. The east and south boundaries of Tract 23.04 are two major commercial corridors , Broadway and Main Street , which results in an undue concentration designation for the area. ABC reports there are six existing off -sale licenses, but the tract is limited to three licenses based on the population. This Type 20 license will increase the number of licenses within the Census Tract to seven.
2. Undue Concentration of Crime:
State law defines an area of “undue concentration” of crime as a reporting district with annual reported crimes 20 percent over the jurisdiction’s average. This property is in Police Beat 010, which had 711 reported crimes in 2023, compared to the City average rate per reporting district of 318. Therefore, this proposal is in a district with an undue concentration of crime.
ABC typically denies a license request for a location with either an undue concentration of licenses or an undue concentration of crime, unless the City Council makes a finding that the license will serve the public convenience or necessity. The applicant has the option to appeal the City’s findings to ABC. However, ABC will generally not issue a license that goes contrary to the City’s determination.
Applicant’s Justification
El Toro Loco Supermarket estimates that alcoholic beverage sales will account for only a small portion (less than five percent) of the overall sales revenues at the store. The applicant has indicated that they understand and take seriously the responsibility that comes with selling alcoholic beverages regarding the maintenance of a safe environment for customers, employees and the surrounding community. Toward this end, each cashier will be properly trained in responsible alcoholic beverage sales practices. In addition, the applicant has committed that the store will not sell “single-serve containers” of beer, 3 instead offering packages with a minimum of three containers, as well as six packs, 12 - packs, etc.
Additionally, El Toro Loco Supermarket employees are required to complete an Employee Alcohol Training upon hire. The training program focuses on cashier responsibilities in preventing underage sales, methods for verifying identification, refusing a sale, documentation and record keeping, and cashier liability in upholding alcoholic beverage sales law.
With this understanding, and with the five percent maximum floor area limitation dedicated to beer and wine sales and display, the Planning Division and Police Department have no opposition to the El Toro Loco Supermarket’s Type 20 PCN request.
Council Policy
Previous City Council policy has been for all applications to be placed on the consent calendar with a staff recommendation that the City Council make a determination of public convenience. The City Council retains the option to remove the application from the consent calendar to consider another action or request additional information. If the City Council requests information to be prepared for consideration, the agenda item would need to be continued to a future meeting.
Alternative(s)
The City Council could determine that public convenience, or necessity is not served by this request. ABC would then not issue the new Type 20 license. However, El Toro Loco Supermarket could appeal the decision to the ABC.
Environmental Review
The project qualifies for a Class 1 Categorical Exemption (Section 15301) as the project is located within an existing structure involving negligible or no expansion of former use.
None of the exceptions to the Class 1 Categorical Exemption that are listed in Sect ion 15300.1 of the State CEQA Guidelines would apply. No further environmental review is required.
Fiscal Considerations
Approval of the ABC license would have nominal sales tax impact. The Police Department did not raise any concern regarding the potenti al for increased calls for service provided that single serving beverages are not sold at the location.
Impact to the Community
A finding of public convenience , thus allowing the issuance of the ABC license, would provide a higher degree of convenience f or residents of Santa Maria , allowing grocery shoppers to also purchase beer and wine at the El Toro Loco Supermarket.
ATTACHMENTS
Attachment A: Vicinity Map
Attachment B: Floor Plan
Attachment C: Employee Alcohol Training Document