City Council Meeting: January 8, 2008

Agenda Item: 6-A 

To:                   Mayor and City Council 

From:              Eileen Fogarty, Director, Planning and Community Development

Subject:          Appeal (07APP008) of Planning Commission’s approval of Conditional Use Permit (07CUP005) to allow the off-site and on-site sale and dispensation of alcoholic beverages at a retail grocery store.

 

Recommended Action

Staff recommends that the City Council deny the appeal and uphold the Planning Commission’s approval of Conditional Use Permit (07CUP005) to allow the sale and limited service of alcoholic beverages at a retail grocery store.

 

Executive Summary

This report supports the Planning Commission’s approval of a Conditional Use Permit (CUP) to allow a retail store with thirty percent or less of the total linear shelf display area devoted to alcoholic beverages and the dispensation of alcoholic beverages. The proposed retail grocery store is located within a mixed-use building at 2000 Main Street in the CM (Main Street Commercial) zoning district.  The appellant appealed the Planning Commission’s decision on the basis that the use would be incompatible with the neighborhood and create adverse impacts to public health, safety, and general welfare. This report addresses the points of the appeal and concludes that the proposed project, as conditioned with limited alcohol sales and service, would not result in negative impacts to the surrounding neighborhood. There is no fiscal impact associated with this item. 

 

Background

On June 14, 2007, the applicant, In Hwan Kim, applied for a Conditional Use Permit to allow the off-site and on-site sale and dispensation of alcoholic beverages (wine only) at a proposed retail grocery store, Goudas & Vines.  A CUP is required in the CM district for retail stores with thirty percent or less of the total linear shelf display area devoted to alcoholic beverages.   

 

The Planning Commission reviewed and approved the CUP on September 19, 2007, based on findings that:

·        The proposed use would be compatible with the surrounding neighborhood;

·        The use would not be detrimental to the public interest, health, safety, convenience, and general welfare;

·        The use would not result in an over-concentration of similar uses in the vicinity; and

·        The use would be consistent with the City’s General Plan. 

 

On October 3, 2007, Ramon Gastelumiribe appealed the Planning Commission’s approval of the CUP. 

 

Discussion

Project Description

The existing four-story mixed-use development at 2000 Main Street consists of 107 residential units, 11,549 square feet of ground floor commercial space for four tenants, and three levels of subterranean parking that contain 304 off-street parking spaces. Goudas & Vines will occupy a 2,710 square foot tenant space along Main Street adjacent to the recently approved Le Grande Orange restaurant which is located on the northwest corner of Main Street and Bicknell Avenue.  The entrance to the store will be located at the south end of the space’s Main Street frontage.  A variety of fine wines, cheeses, and other gourmet groceries will be available at the store.  Pursuant to SMMC Section 9.04.08.28.040(r), shelf display area devoted to alcoholic beverages is limited to thirty percent or less of the total linear shelf display area.  A total of 25.5 percent of the shelf area is proposed for the display of wine. The majority of the space will be utilized for retail sales including grocery display areas and a counter for the sale of deli items, ice cream, and coffee. A 283 square foot wine tasting area with 12 seats is proposed, and 497 square feet of area is devoted to office, storage, and restroom areas. The overall number of required parking spaces for all of the uses in the building is 263 spaces.  The 304 spaces provided in the three levels of subterranean parking satisfy this requirement.

 

The applicant is proposing hours of operation between 8:00 AM to 11:00 PM daily, with wine tasting limited to three nights a week (Thursday – Saturday) between 5:30 PM and 11:00 PM.  The wine tasting will be limited to an area that is physically separated from the remainder of the store on three sides by wine racks and a counter. Customers will be able to schedule wine tasting appointments ahead of time or walk-in for wine tasting if openings are available during the designated tasting hours and days. The applicant is proposing to limit wine tasting portions to customers to one-ounce servings. Light snacks will also be available for purchase to accompany the wine tasting.  According to the applicant, the store will not feature any live music, DJ’s, or entertainment

 

Commission Action

At the September 19, 2007 Planning Commission meeting, public testimony was presented regarding the local residents’ support for existing retail grocery and liquor stores along Main Street including Star Liquor and L&K Market.  Many residents expressed their concerns regarding the potential financial impacts to these existing establishments and the resulting business competition that could jeopardize the success of these existing stores.  Other concerns included the over-concentration of alcohol outlets along Main Street and the negative impacts created by these outlets such as homelessness, public intoxication, and traffic.   

 

Based on all of the information presented, the Planning Commission voted 4-0 to approve the Conditional Use Permit and allow the off-site and on-site sale and dispensation of alcoholic beverages at the proposed retail grocery store. In their deliberation, the Commission stated that the alcohol sales would be incidental to the primary use of the retail store and, as conditioned, the proposed retail store with alcohol sales and limited alcohol service would not create any negative impacts to the surrounding neighborhood.  In addition, the Commission believed that any potential business competition or economic impacts should not be the basis for their decision.  The following conditions of approval, among others, would ensure that the proposed primary use remained a retail store with limited alcohol sales and service:

·        Limiting the total linear shelf display area devoted to alcoholic beverages to no more than 25.5 percent of the total retail linear shelf display area;

·        Limiting wine tasting opportunities to Thursday – Saturday between the hours of 5:30 PM to 11:00 PM;

·        Limiting the amount of wine consumed to one-ounce portions; and

·        Prohibiting the sale of distilled spirits.

 

Alternatives

In addition to the recommended action, the City Council could consider the following with respect to the project if supported by the full evidentiary records:

1.      Continue the project for specific reasons, consistent with applicable deadlines and with agreement from the applicant;

2.      Uphold the appeal and reverse the Planning Commission’s decision to approve the Conditional Use Permit; or

3.      Deny the appeal and approve the project with revised findings and/or conditions of approval.

 

Appeal Summary

As detailed in the appellant’s statement (Attachment A), the appellant believes that the proposed retail grocery use with limited alcohol service and sales will adversely affect the welfare of the neighborhood residents in a significant manner and that the proposed conditions cannot successfully mitigate the adverse impact of the proposed use.  The appellant states that the alcohol sales will create an undue concentration of alcohol outlets in the area, and the use will result in public intoxication, drunk driving, traffic accidents, violent crime, noise, and nuisance. 

 

Appeal Analysis

Although the appellant contends that the proposed use will result in a number of negative, immitigable impacts, the appellant does not provide any direct evidence to explain the correlation between the proposed use and any potential adverse effects of the use on the neighborhood.  Main Street is designated as a Service and Specialty Commercial Area in the City’s Land Use Element and is targeted as a specialty commercial area serving both local and regional needs.  The designated growth and allowable level of intensity for development within Main Street is intended to correspond to the existing context, current uses, and traffic capacity. The Main Street Master Plan further reinforces that the Main Street Commercial District has historically accommodated both residential and commercial uses that serve surrounding residences as well as the tourist and visitor population.

 

In order to regulate the concentration of similar uses in the area, the Main Street Commercial district section of the Zoning Ordinance and the Main Street Specific Plan evaluated limitations for the number of on-sale alcohol outlets along Main Street. SMMC Section 9.04.08.28.070(d) limits the number of on-sale alcohol outlets to twelve in total north of Ocean Park Boulevard.  The subject alcohol outlet would represent the eighth on-sale outlet north of Ocean Park Boulevard.

 

The location of Goudas & Vines is on the northern end of the Main Street corridor, which has seen lower levels of commercial activity and pedestrian traffic as compared to the southern portions of Main Street.  Residential uses are located directly above and adjacent to the subject site along all four sides of the property.  As a result, staff believes that the hours of operation for the store between 8:00 AM - 11:00 PM daily and the limited hours of operation for wine tasting between 5:30 PM – 11:00 PM on Thursday - Saturday ensures the retail operation is compatible with the area’s mixed use context and activity level. The adjacent Le Grande Orange restaurant was recently approved for hours of operation between 7:00 AM – 11:00 PM Sunday through Thursday and between 7:00 AM – 12:00 AM on Friday and Saturday. 

 

The following is a list of the existing alcohol licenses that are within a 500’ radius of the proposed project:

 

Type 41 (On-Sale Beer and Wine for Public Eating Place)

Establishment

Address

Dhaba Cuisine of India  

2104 Main Street

Type 47 (On-Sale General for Public Eating Place)

AMF Bay Shores Lanes

234 Pico Boulevard

Whist (in the Viceroy Hotel)

1819 Ocean Avenue

Catch, formerly Ocean Front (in Casa Del Mar)

1910 Ocean Way

Le Grande Orange

2000 Main Street

Type 20 (Off-Sale Beer and Wine)

L and K Market

2127 Main Street

Type 21 (Off-Sale General)

Star Liquor

1927 Main Street

Type 58 ( Caterer Permit)

Type 66 (Controlled Access Cabinet Permit)

Viceroy Hotel

1819 Ocean Avenue

Casa Del Mar Hotel

1910 Ocean Way

 

The proposed use will not result in an over-concentration of similar uses in the immediate vicinity as the retail store will be located on Main Street, which is an active part of the City that is frequented often by local residents as well as office workers, shoppers, and visitors from outside the City. 

 

The Santa Monica Police Department was contacted regarding this proposal and expressed their concerns which are consistent for any business which proposes any level of off-sale alcohol sales.  The Police Department cited the proximity of three other alcohol outlets with off-sale capability located along Main Street at Bay Street, Pacific Street, and Ocean Park Boulevard and indicated that the area is a significant source of calls for police, fire, and ambulance services.  The calls are often related to public drunkenness, urination in public, and persons needing medical attention due to over-intoxication.  These existing alcohol outlets do not have operating conditions as they preceded the City’s conditional use permit requirement for alcohol sales. These businesses currently close between 12:00 AM and 2:00 AM.  When the Police Department was informed of the Planning Commission’s approval of the CUP, they stated that they accepted the Commission’s decision and were satisfied that their concerns had been relayed to the Commission.        

 

Several of the conditions of approval in the Planning Commission Statement of Official Action (Attachment B) are intended to address the Police Department’s concerns regarding the subject application:

·        Condition No. 2 requires that the store close at 11:00 PM nightly. 

·        Condition No. 4 limits the total linear shelf display area devoted to alcoholic beverages to 25.5 percent of the total shelf display area. 

·        Condition No. 11 requires that a security plan be submitted to the Chief of Police for review and approval prior to final inspection or commencement of alcohol service. The plan will address both physical and operational security issues.

·        Condition No. 12 requires an employee alcohol awareness training program.  

·        Condition No. 13 requires a designated driver program.

·        Condition No. 15 prohibits dancing, DJ’s, or live entertainment.  

 

The addition of a retail store offering gourmet groceries and fine wines on Main Street will provide additional retail opportunities for residents and visitors and encourage pedestrian activity on the north end of Main Street within the evening hours. Alcohol service will be incidental to the primary use of the retail store and, as conditioned, the proposed retail store with alcohol sales and limited alcohol service is not anticipated to create any negative impacts to the surrounding neighborhood.

 

 

Environmental Analysis

An Environmental Impact Report was adopted and certified in 2002 by the City Council for the development of the existing four-story mixed-use project. 

 

This request is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to Section 15301 (Class 1), Existing Facilities, of the State Implementation Guidelines in that the project involves the interior improvements to a building to establish a retail store with the sale of wine for consumption off the premises and allow for wine tasting on-site.  The scope of the improvements will occur within an existing tenant space and involve only minor alterations with no increase in floor area to the building

 

Public Outreach

Pursuant to Municipal Code Section 9.04.20.22.050, notice of the public hearing was mailed to all owners and residential and commercial tenants of property located within a 500 foot radius of the project and published in the Santa Monica Daily Press at least ten consecutive calendar days prior to the hearing.

 

Financial Impacts & Budget Actions

The recommendation presented in this report does not have a budget or fiscal impact.

 

Prepared by:

Tony Kim, Associate Planner

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Eileen Fogarty

Director, Planning & Community Development

 

P. Lamont Ewell

City Manager

 

 

 

Attachments:

 

A.                 Appellant’s Appeal Statement

B.                 Public Notification & Comment Material (includes published notice, and Correspondence)

C.                Project Plans


ATTACHMENT A

 

APPELLANT’S APPEAL STATEMENT

 

Electronic version of attachment is not available for review.  Document is available for review at the City Clerk’s office and the libraries.

 


ATTACHMENT B

 

PUBLIC NOTIFICATION & COMMENT MATERIAL

(includes published notice, and correspondence)

 

Electronic version of attachment is not available for review.  Document is available for review at the City Clerk’s office and the libraries.

 


ATTACHMENT C

 

PROJECT PLANS

 

Electronic version of attachment is not available for review.  Document is available for review at the City Clerk’s office and the libraries.