COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: May 6, 2025
SUBJECT: Adoption of Resolutions Approving Former Sears Building Remodel Downtown Permit and Public Convenience or Necessity
Determination for a Type 21 Alcohol Beverage Control License for El Super at 226 East Main Street
Description:
The City Council will c onsider the Former Sears Building Remodel Downtown Permit (DT2023-0012), and a Public Convenience or Necessity Determ ination for a Type 21 Alcohol Beverage Control License for El Super located at 226 East Main Street.
Environmental Notice: The project was adequately covered in a previously certified Final Environmental Impact Report (EIR) for the Santa Maria Downtown Specific Plan (SCH 2007041105) pursuant to California Environmental Quality Act State Guidelines Section 15162.
RECOMMENDATIONS:
1. Adopt a Resolution approving Downtown Permit (DT2023 -0012) for the Former Sears Building Remodel at 226 East Main Street; and
2. Adopt a Resolution approving a determination of public convenience or necessity for the issuance of a Type 21 (Off-sale General) Alcohol Beverage Control license for El Super located at 226 East Main Street.
BACKGROUND:
The applicant, Mark Gabay on behalf of Shasta 2020, LP, proposes to remodel an existing 114,000-square-foot former Sears Roebuck department store building to accommodate a full-service grocery store tenant (El Super), two secondary anchor tenants, and four smaller-scale retail spaces. A component of the building remodel includes relocating an existing loading dock for the grocery store tenant, adding an additional loading dock for the future secondary tenants, and renovating the parking lot and common landscaped areas.
The grocery store tenant, El Super, is a California-based chain supermarket offering a variety of grocery products from Latin America and widely-known household favorites. El Super is also requesting the City Council make a finding of public convenience or necessity for a Type 21 (Off -Sale General) Alcohol Beverage Control (ABC) License in 2 order to sell packaged wine, beer, and spirits alongside , and ancillary to, their existing selection of typical food and beverage products sold at a grocery store.
The 5.39-acre project site is located at the southwest corner of Main Street and Miller Street and is in the SP/Town Center and Gateway District of the Downtown Specific Plan (Attachment C – Vicinity Map). The Santa Maria Town Center mall adjoins and connects to the existing two-story commercial building. Commercial uses surround the project site on all four sides, including a Town Center parking structure to the west, retail shops across Main Street to the north, and small offices to the east. The existing two -story building was approved under the Town Center Redevelopment Project and was constructed in 1976. Sears Roebuck occupied the building until 2020. Since its closure, the building has remained unoccupied.
Downtown Revitalization Committee Review
The project wa s reviewed by the Downtown Revitalization Committee (Committee) on February 12, 2025. At this meeting, the Committee received a presentation from staff and discussed all aspects of the project, including the project’s proposed re-use of the former department store, the project’s site plan, floor plan, and overall building design.
Committee members asked questions about vehicular site circulation, the proposed loading dock locations and accessibility, the connection between the project and the mall, and the proposed second -floor promenade facing Miller Street. After considering the information presented, Committee members’ comments regarding the project were positive.
Planning Commission Review
The Planning Commission reviewed the project at a public hearing on April 2, 2025, where it was continued to April 16, 2025 , with direction to the applicant to revise the building elevations to modify the cornices on the corner towers and provide some aesthetic relief using landscaping on the Miller Street second -floor promenade . After reviewing the updated design, t he Planning Commission unanimously recommended approval of the project to the City Council. A written public comment was received from Gaines & Stacey, LLP, attorneys for the Applicant, which requested to revise condition s of approval numbers 5 (regarding recommended permit expediting incentives) and 43 (regarding a required bus stop installation). Staff addressed these comments at the Planning Commission Public Hearing, and additional discussion is included in this report below.
DISCUSSION:
The project proposes to divide the building to accommodate multiple tenants includ ing a 51,117-square-foot ground-floor El Super grocery store, and two approximately 24,000 - square-foot second floor tenant spaces, and up to four smaller tenant spaces (800 square feet each) fronting the eastern portion of the building along Miller Street in the former Sears Tire Center.
El Super grocery store will occupy the entirety of the ground floor anchor space and is a full-service supermarket with grocery, produce, seafood, fresh meat, frozen food, dairy, alcoholic beverages, bakery, and tortillar ía departments. This floor plan will also include 3 a restaurant component with a counter for ordering and tables for dining in. Primary ingress and egress will be provided from the parking lot; however, interior access from El Super into the Town Center Mall will also be provided.
The interior escalators connecting the first and second floors of the former Sears will be removed. The openings between the floors will be filled in to create fully independent tenant spaces. The second-level floor plan includes new openings in the building with a new shared lobby and open -air terrace facing Miller Street. A partition wall would be proposed to run east to west to accommodate up to two 24,000 -square-foot tenant spaces. While these spaces have yet to be leased, reta il commercial, restaurant, or entertainment uses could all be considered.
The former Sears Tire Center bays are proposed to be remodeled and repurposed to accommodate potential retail commercial, restaurant, or entertainment uses. Up to four approximately 775-square-foot tenant spaces would be created. These spaces would be remodeled with storefront windows and are sized to accommodate smaller -scale “mom and pop” businesses. If a business had a need for a larger tenant space, there would be flexibility to occupy two or more suites. These storefronts would open onto a 20-foot-wide walkway/promenade that could accommodate outdoor dining shielded from Santa Maria’s winds.
Architecture
The existing building is constructed of concrete split -face masonry block with a 20-foot- tall arched covered breezeway along the northerly and westerly building exteriors, topped by S-tile mansard roof elements. The existing easterly building exterior is occupied by a similar S-tile mansard but includes garage bays rather than a breezeway. The applicant proposes modifying the northerly breezeway to a contemporary architectural style. This elevation would be updated while retaining some of the design elements prevalent in the Town Center area, such as S -tile roofing and ceramic ti le base accents. New stucco is proposed along the covered breezeway, which will be revised to present the clean lines prevalent in the contemporary modern style.
The easterly elevation facing Miller Street is to be transformed from a former tire center to a dual-level pedestrian promenade with large storefront windows that open to the wide walkway, parking lot and the public street beyond. The S -tile mansard roof over the ground floor is to be removed and replaced with pedestrian metal railings for the second- floor open air terrace and second -floor storefront windows behind. A cohesive color scheme is proposed on all three exterior elevations. A common color scheme includes the sand-colored split face block, and dark grey accents on the cornices, guard rails and storefront windows.
Parking and Vehicular Circulation
The project provides 237 parking spaces on -site for use by customers and employees , which exceeds the amount of parking required in the Downtown Specific Plan for this use.
Bicycle parking is offered near the building entrances. The project is conditioned to 4 require additional on -site bicycle parking in accordance with the City’s adopted Active Transportation Plan.
A Traffic, Circulation and Vehicle Miles Traveled study (Transportation Study) was prepared by Associated Transportation Engineers (ATE) on April 19, 2024, and was reviewed by City staff and Caltrans. The Transportation Study evaluates the existing and future transportation -related conditions in the study area t o determine the Project’s consistency with the City’s transportation policies. The areas studied included intersection analyses, as well as site access, circulation , and queuing. The study concluded that the traffic generated by the project would not result in any impacts to area intersections, and area roadways are designed to adequately serve the project.
The existing loading docks on the northeast corner of the building are proposed to be removed and relocated to the southwest corner of the building , where existing mall loading and delivery activities occur along Town Center Drive. The Transportation Study reviewed the semi -truck maneuverability and concluded there is sufficient space for maneuvering into the proposed loading bays. The pedestrian brid ges from the parking structures to the project building and the mall are confirmed to be highway -rated and a semi-truck can pass through without issue. Three loading docks are proposed on the western side of the building.
Miller Street Bus Shelter
The permit conditions of approval (Condition No. 43) require the applicant to install a new bus shelter along Miller Street to serve transit riders who will be coming to the site. El Super will attract an influx of customers to the location eager to shop at the new grocery store and other new retail outlets. The number of transit riders visiting the site is estimated to be approximately 66 boardings per day or 1,992 boardings per month, which is 2 percent of the overall number of traffic trips expected to be gene rated by the project.
These riders will use existing Route 3 (which currently has 2,178 boardings/month).
According to the July 2024 Santa Maria Regional Transit (SMRT) Route Map, the closest Route 3 transit stops to the project are southbound on Broadway at Town Center West, Main Street at School (outbound), and Main Street at Elizabeth (Inbound). For a customer visiting the project and wishing to connect to the rest of the city, the closest paired transit stop is along Main Street, approximately 0.3 miles away.
The installation of the new bus stop is supported by the Downtown Specific Plan, wh ich states that “bus shelters should be conveniently located at parking areas, shopping areas, event areas, and public facilities through coordination with the City Transit Manager and the downtown trolley.” El Super’s site redevelopment’s traffic and transit impacts justify requiring a new bus stop . The condition of approval allows the applicant to pay for the bus shelter (for construction of the shelter by the Public Works Department) prior to issuance of the building permit, or to install the bus shelter themselves prior to final occupancy clearance.
5 Landscape
The project proposes reorienting the northwest parking lot to allow grocery store patrons access to the store entrance with shopping carts. The landscape planters in this area are proposed to be re moved, and new planters are proposed with new landscaping. 15 ornamental pear trees are requested for removal. The City Arborist has accepted these trees for removal and has required large-sized replacements. The large mature magnolia and eucalyptus trees on the eastern side of the parking area are to be protected in place, and a tree protection plan is required to be approved by the Community Development Department and the Recreation and Parks Department prior to permit issuance. 59 new trees are proposed.
Downtown Specific Plan
The project meets the Downtown Vision and the Gateway District Vision by reusing an existing vacant retail building, and proposing site, architectural , and landscaping improvements. Pedestrian amenities are proposed throughout, including outdoor seating and dining opportunities, bike racks , and direct pedestrian paths from the street to the building entrances. New pedestrian walkways wrap around the building and connect to the existing mall walkways.
In their recommendation for approval, the Planning Commission included an incentive as allowed per the Downtown Specific Plan, to allow future tenants within the second -floor spaces of the building to be reviewed by the Planning Commission at a public hearing.
This would expedite the review process for future tenants , as City Council review and approval would not be required. The project has met all of the Special Downtown Permit Findings and is eligible for the aforementioned incentive. This incentive may be offered entirely at the City Council’s discretion.
Public Convenience or Necessity
El Super grocery store requests to allow the sale of a type 21 alcoholic beverages license for off-site consumption in conjunction with the new 51,000 square-foot El Super grocery store with hours of operation from 7:00 a.m. to 11:00 p.m. daily . Alcohol sales would be ancillary to the grocery store use, with 400-square-feet, or 1.3 percent of the grocery store area dedicated to alcohol sales.
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 off-sale 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 21.01, which encompasses the area from East Main Street to Jones Street and from South Broadway to Highway 101/Bradley Road. ABC limits the number of off-sale (not for onsite consumption) licenses to four licenses within this 6 tract. Currently, ABC reports that there are three active licenses in this tract area.
This Type 21 license will increase the number of licenses within the Census Tract to four, which does not result in an “undue concentration” of off-sale ABC licenses.
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 within Police Beat 012, which had 549 reported crimes in 2024, compared to the citywide reported crime average of 238. Twenty-percent over the City’s average of reported crimes is 285. 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 Super grocery store estimates that alcoholic bev erage sales will account for only a small portion (3.5 percent) of the overall sales revenues at the store. The applicant states that they have a proven track record of corporate responsibility and thoughtful ownership in the communities in which their sto res operate. The company is committed to maintaining this exemplary record with the aforementioned alcohol sales license.
Additionally, El Super will have the following security measures in effect at this new store:
All liquor will be locked up behind a glass case. Only Front End Managers and Store Director will have access to open the glass case. The store will have 70 cameras placed throughout the inside and outside perimeter of the store including a zoomed -in image of the store entrance. The recording device will hold video for at least 90 days. Uniformed Security Guards will be on-site from opening to closing seven days a week. No Loitering and No Drinking on Premises signs will be posted in the parking lots. Alcohol training is provided to associates.
Based on the information provided by El Super, including the safety and secu rity measures proposed, the Planning Division and Police Department have no opposition to El Super’s Type 21 license request.
Alternative(s)
The City Council may choose to deny the Downtown Permit and not allow the remodel of the building. To deny the project, the City Council would need to make findings for denial, specifically the findings contained within the Downtown Specific Plan. The item would need to be continued to a future City Council Meeting to provide staff time to prepare the findings for denial. Findings would need to state the reasons why the project does not meet a specific finding. The City Council may also choose to modify any of the conditions of approval for the project or may impose new conditions for the project. 7 The City Council may choose to approve the Downtown Permit, but could determine that public convenience, or necessity is not served by this request. ABC would then not issue the new Type 21 license. However, El Super could appeal the decision to the ABC.
Environmental Review
The project was adequately covered in a previously certified programmatic Final Environmental Impact Report prepared for the Santa Maria Downtown Specific Plan (SCH 2007041105) pursuant to California Environmental Quality Act (CEQA) State Guidelines Section 15162, which states that when an EIR has been certified for a project, no subsequent EIR shall be prepared for that project unless the lead agency determines, on the basis of substantial evidence in the light of the whole record: (1) substantial changes are proposed in the project that will require major revision of the EIR; (2) substantial changes occur in the circumstances under which the project is being undertaken that will require major revisions in the EIR; or (3) new information of substantial importance to the project that was not known and could not have been known at the time the EIR was certified as complete becomes available. Non e of the conditions specified in CEQA Section 15162 requiring the preparation of a subsequent EIR have occurred with the proposed project. No further environmental review is required.
Fiscal Considerations
This project is an example of high-quality reuse development in the downtown core. This project can be a great catalyst in attracting more redevelopment in the area and spurring surrounding businesses and property owners to enhance their facades or improve their buildings.
Approval of the ABC license would have a nominal sales tax impact. The Police Department did not raise any concern regarding the potential for increased calls for service.
8 Impact to the Community
The proposed tenant would occupy a building that has been vacant for approximately five years in the center of the downtown area. Occupancy of the vacant building would provide a potential for foot traffic flow to the Town Center East Mall and provide a cohesive downtown experience. Additionally, current and future resident s in the downtown and surrounding area would have a new walkable grocery store location, close to public transit, carrying fresh food options, thereby reducing vehicle trips. Since the existing building was previously occupied by a retail use, parking and traffic demands and patterns were already anticipated and designed for with the construction of the Town Center East Mall. The project meets the vision, intent, goals, and development standards of the Downtown Specific Plan. A finding of public convenience , thus allowing the issuance of the ABC license, would provide a higher degree of convenience for residents of Santa Maria, allowing grocery shoppers to also purchase alcoholic beverages as part of their regular grocery shopping trip.
ATTACHMENTS
Attachment A: Resolution Approving Downtown Permit DT2023-0012 Attachment B: Resolution Approving PCN Determination
Attachment C: Vicinity Map
Attachment D: Plan Set
Attachment E: Downtown Permit
Attachment F: PCN Project Description and Floor Plan