COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: February 17, 2026
SUBJECT: Adoption of a Resolution Approving a Public Convenience or Necessity Determination for a Type 20 Alcohol Beverage Control License for Sprouts Farmers Market at 2170 South Bradley Road
Description:
The City Council will consider approving a Public Convenience or Necessity Determination for a Type 20 Alcohol Beverage Control License for Sprouts Farmers Market at 2170 South Bradley Road.
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 or necessity for the issuance of a Type 20 (Off -Sale Beer and Wine) alcohol beverage control license for Sprouts Farmers Market located at 2170 South Bradley Road.
BACKGROUND:
Sprouts Farmers Market (“Sprouts”) is a full-service grocery store that specializes in farm- fresh produce purchased from local growers. Today, Sprouts is one of the fastest-growing retailers in the country, with over 140 stores in California alone.
Sprouts is currently under construction for its first location in Santa Maria, with building permits (tenant improvements) issued on August 7, 2025, and October 15, 2025. Sprouts will operate a full -service grocery store in a 24,199 square foot building (previously a furniture store) in the Crossroads Shopping Center located at 2170 South Bradley. The store will open daily from 7:00 a.m. to 10:00 p.m. and will offer fresh produce, meat and seafood, vitamins and supplements, bulk items, a bakery , and general grocery s tore items. Residents have expressed enthusiastic support for the coming Sprouts, and staff frequently receive inquiries regarding its status.
Sprouts is requesting a Type 20 license from the California Department of Alcoholic Beverage Control (ABC) to of fer the sale of beer and wine to customers for offsite consumption.
2 DISCUSSION:
Sprouts proposes offering beer and wine sales alongside their existing selection of typical food and beverage products sold at a grocery store as a convenience for their customers.
The percentage of the store’s floor area dedicated to beer and wine sales, display, and storage would be no more than four percent of the store’s building area, with beer and wine encompassing 53 linear feet out of 3,465 linear feet of retail space (Attachment C – Floor Plan). The ability for customers to purchase beer and wine along with other groceries would make Sprouts a full-service grocery store, increasing convenience for the customer and avoiding a separate trip to a liquor store or separat e market to purchase beer and wine.
State Law
Section 23958.4(b)(2) of the California Business and Professions Code provides the City Council with 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 retail ABC licenses exists where the ratio of off-sale retail licenses to population (people residing) within a census tract in which the applicant premises are located exceeds the ratio of off-sale retail licenses to the population in the county. This property is located in Census Tract 20.14, which encompasses the area south of Betteravia Road, west of Highway 101, north of McCoy Lane and east of Miller Street. Census Tract 20.14 is limited to five off -sale licenses. As of today, ABC reports there are five existing off-sale licenses. This Type 20 license will increase the number of licenses within the Census Tract to six , which will establish an undue concentration of off-sale retail licenses.
2. Undue Concentration of Crime:
State law defines an area of “undue co ncentration” of crime as a reporting district with annual reported crimes 20 percent over the jurisdiction’s average.
This property is in Police Beat 023, which had 386 reported crimes in 2024, compared to the City average rate per reporting district of 238. 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 fi nding that the license will serve the public convenience or necessity. The applicant has the option to appeal the City’s findings to ABC.
Applicant’s Justification
Sprouts projects that alcoholic beverage sales will account for only a small part (less than three 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 3 and the surrounding community. Toward this end, all staff will be properly trained in responsible alcoholic beverage sale practices.
Sprouts employees are required to complete the State Alcoholic Beverage Control’s mandated training, as well as internal training on the sale of alcohol as part of their new employee orientation. To verify employees’ knowledge, Sprouts partners with the BARS program. The BARS program verifies employees’ knowledge of alcohol policies by conducting mock purchases that focus on whether, upon an alcohol purchase, employees ask customers for ID and enter their date of birth on registers if they appear under 40 years of age. Additionally, all staff selling alcohol will be over 21 years of age.
A camera surveillance system with recording capabilities will also be installed, with cameras located throughout the sales area and on the exterior elevation. Furthermore, the premises, both in the interior of the store and the parking lot, are patrolled by management and staff to ensure a safe environment. The Planning Division and Police Department have no opposition to Sprouts Farmers Market 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 applica tion 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 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.
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 Section 15300.2 of the State CEQA Guidelines 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 potential for increased calls for service at the location.
4 Impact on the Community
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 beer and wine at Sprouts Farmers Market.
ATTACHMENT(S)
A. Resolution
B. Vicinity Map
C. Floor Plan
D. Employee Alcohol Training Document