FOR COUNCIL MEETING OF SEPTEMBER 18,2012

COUNCIL AGENDA REPORT

September 18, 2012

TO: City Council

FROM: City Manager Prepared by: Lawrence W. Appel, Director of Community Development

SUBJECT: FINDING OF PUBLIC CONVENIENCE IN THE MATTER OF THE ISSUANCE OF A TYPE 20 (OFF-SALE BEER AND WINE) ALCOHOLIC BEVERAGE LICENSE FOR SUPER CARNICERIA LA CHIQUITA, 1000 WEST MAIN STREET, SP-2012-0032

RECOMMENDATION:

That the City Council make the following findings and a determination that public convenience will be served in the matter of the issuance of a Type 20 (Off-Sale Beer and Wine) alcoholic beverage license for the sale of packaged beer and wine at Super Carniceria La Chiquita, 1000 West Main Street:

1. That the finding of public convenience is subject to the following condition:

a) That the proposed business shall be operated in accordance with the project description, method of operation, hours of operation, and floor plan as described in this report and as shown on Attachments 3-5.

2. That the City Council hereby finds:

a) That the Department of Alcoholic Beverage Control (ABC) has determined that the subject application requires consideration of a finding of Public Convenience or Necessity;

b) That the applicant will surrender the existing Type 21 license (Off-Sale General) for a Type 20 license (Off-Sale Beer and Wine), thereby reducing the types of alcoholic beverages sold on the premises;

c) That the proposed use of the premises is the same as the previous long­standing use of the property, but alcoholic sales will now be limited to beer and wine;

d) That the beer and wine shall be displayed only within the beverage cooler shown on the attached floor plan, with the beer and wine occupying no more than approximately 100 square feet (28%) of the 360-square-foot beverage cooler;

e) That the amount of area within the beverage cooler to be used for the display of alcoholic beverages represents approximately two percent of the total floor area of the store;

f) That Census Tract No. 24.03 encompasses a large area, approximately 325 acres, in the center of town, extending from Main Street to Jones Street, between Broadway and Blosser Road;

g) The Police Department has no objection to issuance of the license on their memo dated August 28, 2012.

C1ty Council September 18, 2012 Page 2 of 5

BACKGROUND:

An application for a Type 20 (Off-Sale Beer and Wine) alcoholic beverage license has been filed with the Alcoholic Beverage Control (ABC) office. A copy of the application for an alcoholic beverage license is provided as Attachment 1.

This site has had a history of selling not only beer and wine, but also distilled spirits under the Type 21 (Off-Sale General) alcoholic beverage license which is currently held by the market The applicant no longer wishes to sell distilled spirits and is therefore surrendering the Type 21 license. However, the applicant requires the Type 20 license to continue to sell beer and wine at this location.

Even with the reduction in the types of alcoholic beverage products to be sold, the applicant is requesting a new license for a site that is within an area of overconcentration of off-sale licenses, and an area of "undue concentration" of crime as defined by Section 23958.4 of the California Business and Professions Code. Therefore, the City Council must make a finding of Public Convenience or Necessity, or specifically decline to make the finding for the Type 20 alcoholic beverage license request

Description of Proposed Use

The property is located at the southwest corner of West Main Street and South Western Avenue along a corridor dominated by commercial uses, with single family residential uses to the south. This location has been a market for many years; the applicant notes the market has served the neighborhood as Super Carniceria La Chiquita for the past 12 years. The site has off-street parking available, accessed from West Main Street and South Western Avenue. A vicinity map is provided as Attachment 2.

The building is approximately 5,600 square feet in size, composed of the market occupying the 4,860-square-foot ground floor area, and a 740-square-foot second floor apartment The public area of the market comprises approximately 55 percent (3, 100 square feet) of the total market floor area. The floor plan for the market is provided as Attachment 3.

The applicant proposes to display beer and wine only within a portion of the existing 360-square-foot beverage cooler shown on the attached floor plan. Approximately 100 square feet (28 percent) of that beverage cooler will be used for the display of alcoholic beverages, representing approximately two percent of the total floor area of the store. The remainder of the cooler will be used for water, dairy, and soft drinks. Beer and wine would not be displayed in any other location of the store.

The market carries general groceries, meat, produce, and soft drinks. The market also includes a small deli counter and a money transfer services kiosk. The market employs 18 persons, including cashier, butchers, cooks, and administrative positions. The applicant reports between 550 and 850 customers each day. The proposed operating hours of the market are weekdays from 8:00 a.m. to 9:00 p.m. and weekends from 7:00 a.m. to 9:00 p.m. The amount of alcohol sales is anticipated to be up to six percent of the market's total daily sales, or $10,000 to $12,000 monthly.

City Counc1l September 18, 2012 Page 3 of 5

Applicant Information in Support of License Application

The applicant has submitted a brief statement in support of the application, which is provided as Attachment 4. The applicant cites the long history of this location as a neighborhood market, and the convenience the location provides, including general groceries, fresh meats, and prepared foods.

Summary of Section 23958 of the California Business and Professions Code

Section 23958 of the California Business and Professions Code relates to alcoholic beverage licensing, and allows the City Council some authority and responsibility regarding the issuance of certain types of alcoholic beverage licenses. This authority and responsibility relates to new locations (or a new type of alcoholic beverage license for an existing location) where there is a higher than average number of alcoholic beverage licenses and/or a higher than average crime rate (described as "undue concentration"). When this situation occurs, the State law allows the City Council to make a determination of public convenience or necessity, thus allowing the alcoholic beverage license to be issued, and also allows the City Council not to make a determination of public convenience or necessity. If the City Council does not make a determination of public convenience or necessity, the Department of Alcoholic Beverage Control, upon receipt of an appeal, may still issue the license if the applicant shows the Department that public convenience or necessity would be served by the issuance.

DISCUSSION:

Undue Concentration of Crime Section 23958 states that a crime reporting district which exceeds the average number of reported crimes in the City by 20 percent is considered an area of "undue concentration" of crime.

This property is located in Crime Reporting District P040, which is an area of "undue concentration" of crime. The average rate of reported crimes per reporting district in the City is 74.3; the average plus 20 percent is 89.2. The number of reported crimes in this reporting district is 106, or 19 percent greater than the threshold identified by Section 23958.4 of the California Business and Professions Code. A chart of crime statistics in the City is provided as Attachment 5.

The Police Department has no objection to a finding of public convenience. A copy of the Police Department memorandum is provided as Attachment 6.

Undue Concentration of Liquor Licenses Section 23958 states that a census tract which exceeds the ratio of licenses to population in the county is considered an area of "undue concentration" of licenses.

This property is located in Census Tract 24.03, which is an area of "undue concentration" of off-sale alcoholic beverage licenses. The Alcoholic Beverage Control office reports that there are 11 existing off-sale licenses in that census tract, and the number of licenses authorized is six, based on Section 23958. One of the existing licenses identified is the Super Carniceria La Chiquita's Type 21 license, which is proposed to be relinquished by this applicant upon receiving the Type 20 license. A list of the existing off-sale license locations within Census Tract 24.03, is provided below:

City Council September 18.2012 Page 4 of 5

EXISTING OFF..SALE LICENSE LOCATIONS WITHIN CENSUS TRACT 24.03

Business Address ABC License Type

PARKS MARKET 300 S BLOSSER RD 20 - Off -Sale Beer and Wine

LA VICTORIA MARKET 900WMAINST 20- Off-Sale Beer and Wine

MAIN CENTRAL MARKET 822WMAINST 20 - Off-Sale Beer and Wine

LA GUELAGUETZA MARKET 603 S THORNBURG ST 20 - Off-Sale Beer and Wine

7 ELEVEN 213316769 804WCOOKST 20 - Off-Sale Beer and Wine

LA PERLA MARKET AND DELl 1138 W CHURCH ST 20 - Off-Sale Beer and Wine

LOS PRIMOS MARKET 501 S LINCOLN ST 20 - Off-Sale Beer and Wine

SUPER CARNICERIA LA CHIQUITA 1000 W MAIN ST 21 -Off-Sale General

EL CAMINO LIQUOR 602WMAINST 21 -Off-Sale General

DRIVE IN LIQUOR 1010 W MAIN ST 21 -Off-Sale General

MAGUEY LIQUOR 400WMAINST 21 -Off-Sale General

A map showing the locations of all alcoholic beverage licenses in Census Tract 24.03 is provided as Attachment 7.

A map showing license locations within a Y. mile and 1 mile radius is provided as Attachment 8. The table below lists the existing off-sale license locations within Y. mile of the proposed 1000 West Main Street site.

EXISTING OFF..SALE LICENSE LOCATIONS WITHIN Y. MILE OF 1000 WEST MAIN STREET

BusiiiMS Address ABC License Type EL MILAGRO MARKET 408 N BENWILEY AVE 20 - Off-Sale Beer and Wine

PARKS MARKET 300 S BLOSSER RD 20 - Off-Sale Beer and Wine

ALOHA MARKET 900WMAIN ST 20 - Off-Sale Beer and Wine

BLOSSER MARKET 401 S BLOSSER RD 20 - Off-Sale Beer and Wine

MAIN CENTRAL MARKET 822WMAINST 20 - Off-Sale Beer and Wine

CARNICERIA EL TORO 2 1125 W MAIN ST 20 - Off-Sale Beer and Wine

7 ELEVEN 2133 16769 804WCOOKST 20 - Off-Sale Beer and Wine

AJ GROCERY EXPRESS 101 N DEPOT ST 20 - Off-Sale Beer and Wine

MERCADO Y CARNICERIA SU MESA 123 S BLOSSER RD 20 - Off-Sale Beer and Wine

LA PERLA MARKET AND DELl 1138 W CHURCH ST 20 - Off-Sale Beer and Wine

EL RANCHERO LIQUOR 1131 W MAIN ST 21 -Off-Sale General

SUPER CARNICERIA LA CHIQUITA 1000 W MAIN ST 21 -Off-Sale General

EL CAMINO LIQUOR 602WMAINST 21 -Off-Sale General

DRIVE IN LIQUOR 1010WMAINST 21 -Off-Sale General

Census Tract No. 24.03 encompasses a large 325-acre area and includes three of the City's chief thoroughfares, with the majority of existing off-sale licenses within the tract concentrated along Main Street and Blosser Road. Although the number of off-sale alcoholic beverage licenses in the census tract exceeds the number allowed per Section 23958 of the Business and Professions Code, it can be expected that a census tract with these characteristics would have a greater number of off-sale alcoholic beverage licenses.

City Council September 18, 2012 Page 5 of 5

City 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 other action or request additional information. If the City Council requests information to be prepared for consideration, the application would need to be continued to a future meeting.

Alternatives: The City Council could determine not to make a finding of public convenience, thereby transferring the responsibility for making the finding to the Department of Alcoholic Beverage Control if an appeal is filed.

Fiscal Considerations: Approval of the alcoholic beverage license would assist the applicant in maintaining an economically viable business and could increase sales tax revenues for the City.

Impact to the Community: A finding of "public convenience," thus allowing the issuance of the alcoholic beverage license, would provide a higher degree of convenience for the residents of Santa Maria and the surrounding area who are purchasers of beer and wine.

Director of Community Development

Attachments:

1) Alcoholic beverage license application 2) Vicinity Map 3) Proposed floor plan, with alcohol sales area highlighted 4) Applicant's Statement in support of the application 5) Chart of offenses according to Police Department Reporting Districts 6) Police Department memorandum 7) Map showing existing ABC licenses (including off-sale) in Census Tract 24.03 8) Map showing existing ABC licenses (including off-sale) within Y, mile

ALCOHOLIC BEVERAGE LICENSE APPLICATION

ATTACHMENT 1 SP-2012-0032 SEPTEMBER 18, 2012

Department of Alcoholic Beverage Control · State of California

APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) ABC 21 1 (6/99)

TO:Department of Alcoholic Beverage Control 3220 S HIGUERA ST

File Number: 522627 Receipt Number: 2116371 Geographical Code: 4204 . STE 233

SAN LUIS OBISPO, CA 93401 (805) 543-7183 .

DISTRlCT SERVING LOCATION:

_First Owner: .

Name of Business:

Location of Business:

County:

. Copies Mailed Date: June 7, 2012 Issued Date: ·

SAN LIDS OBISPO

TIENDA MAIN INC SUPER C.A.RNICERIA LA CHIQUITA

1000 W MAIN ST SANTA MARIA, CA 93458~4238

SANTA llARnARA

Is Premise inside city limits?

Mai ling Address:

Yes Census Tract 0024.03

(If different from premises address)

Type oflicense(s): 20

Transferor's license/name: 408466 I VILLAGE MARKET INC Dropping Pruiner: Yes_ No_

License Tyge Transaction Tyge Fee Tyge Master Dug Date Fee

20- Off-Sale Beer And Wi~e ANNUAL FEE NA y 0 06/07/12 $254.00

20 - Off-Sale Beer And Wine PREMISE TO PREMISE TRANSFER NA y 0 06/07/12 $100.00

20 - Off-Sale Beer And Wine PERSON-TO-PERSON TRANSFEK NA y 0 06/07/12 '$50.00

Total $404.00

Have you ever been convicted of a felony? No Have you ever violated any provisions of the Alcoholic Beverage Control Act, or regulations of the Department pertaining to the Act? No . Explain any "Yes" answer to lhe above questions on an aNnchment which shall be deemed part of this application.

Applicant agrees (a) that any l)lanager employed in an on-sale licensed premises will have all the qualifications of a licensee, and (b) that he will not violate or cause or permit to be violated any of the-provisions ofthe Alcoholic Beverage Control Act.

STATE OF CALIFORNIA County of SANTA BARBARA Date: June 7, 20 12 Under penally of perjury; each person whose signature appears below, certifies and says: (l) tie is an applicant, or one of the appl icants, or an executive officer of the applicant corporation, named in lhe foregoing application. duly authorized to make th is application on1ts behalf; (2) that he has read the foregoing and knows the contents thereof and that each of the above statements therein made are trl!e; (3) that no person other lhan the applicant or applicants has any direct or indirect interest in the applicant or applicanrs business to be conducted under the license(s) for which this application is made; (4) that the transfer application or proposed transfer is not made to satisfy the payment of a loan or to fulfill an agreement en tered into more than ninety (90) days preceding the day on which the transfer application is filed wid1 the Department or to gain or establish a preference to or for any creditor or transferor or to defraud or injure any creditor ofu·ansferor; (5) U1at the transfer application may be withdrawn by either the applicant or the licensee with no resulting liability to lhe Department.

Applicru1t Nrune(s)

TTENDA MAIN INC

Appl icant Signature(s)

See 211 Signatm-e Page

RECEIVED JUN 1 4 2012

COMMUNITY DEVELOPMENT DEPT. rN. i

LOCATION MAP

ATTACHMENT 2 SP-2012-0032 SEPTEMBER 18, 2012

PROPOSED FLOOR PLAN

ATTACHMENT 3 SP-2012-0032 SEPTEMBER 18, 2012

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APPLICANT’S STATEMENT

ATTACHMENT 4 SP-2012-0032 SEPTEMBER 18, 2012

Wednesday, July 18,2012

Commun ity Development Department Peggy Woods, Planning Division Manager II 0 S Pine Street# I 0 I Santa Maria, CA 93458

Tienda Main, Inc. I 000 W Main Street Santa Maria, CA 93458

Ms. Woods:

RECEIVED -<;..'5

Jl!.. ~ d 12 COMMUNITY DEVELOPMENT DEPT· ov.~.---------~

In accordance with the provisions of Section 23958.4 of the Califomia Business and Professions Code, this letter is provided to support a finding that Public Convenience and Necessity wou ld be served by the issuance of a liquor license fo r the above referenced premises, Super Carniccria La Chiquita.

Our grocery has served the community for around 12 years now, every day of the week. While alcoholic beverage sales will generate a minimal percentage of the overall sales, the investment in a liquor license is requested as a service and convenience to the customers and surrounding community, supplementing the services we are already equipped to offer.

La Chiquita is already popular with the public, providing a conveniently located grocery, deli, and butcher for around 550-850 customers every Days. We can offer our guests great customer service, fresh, affordable groceries, and a full service butcher/deli that includes prepared foods and fresh juices. The inclusion of a license for incidental alcohol sales with grocery purchases will allow patrons the same service that they would experience at other stores in the area that have fewer amen ities to offer than we do. We' ll strive to become a valuable member of the community and will work hard to help the neighborhood achieve their development goal and continual ly improve the character of the neighborhood.

I respectfully request that the Califo rnia Department of Alcoholic Beverage Control f inds that Public Necessity and Convenience would be served by the issuance of a liquor license to the requested premises.

If you have any further questions or req uire any add itional information please do not hesitate to contact me.

Thank you for your assistance.

Sincerely,

Email: consuelolachiquita@yahoo.com

Office 805.925.8470 - Fax 805.925.5816

I 000 W. Main St. Santa Maria, CA 93458

APPLICANT’S STATEMENT, CONT.

ATTACHMENT 4 SP-2012-0032 SEPTEMBER 18, 2012

Statement of Operation

Super Carniceria La Chiquita has been operating in the city of Santa Maria for over 12 years as a neighborhood grocery. We have been in good standing with our current type-21 liquor license since it was approved in 2002. At this time we wish to downgrade our liquor license to a type-20 beer & wine only at the Depa rtment of Alcoholic Beverage Control.

La Chiquita has fresh produce, dry goods, a full dairy case, fresh meat, a variety of Mexican and American brand products, and money services for the neighborhood. We can offer fresh butchered meat and prepared foods as well as fresh juices at out deli counter. We also have a kiosk where people can complete money transfers and cash checks. We have the typical fixtures and equipment found in groceries: cash registers, sma ll office equipment such as phones, computers, and a fax machine, refrigerators and coolers, sca les, butchering tools behind the counter in the deli area, produce displays, and shelves for food products.

Little will change about our day-day operations when the new license issues we simply will discontinue sales of distilled liquor.

ATTACHMENT 5 SP-2012-0032 SEPTEMBER 18, 2012

CRIME STATISTICS Number of Offenses by Police Department Reporting Districts

All Crime Reporting Districts – 2011 Red shade indicates reported crimes in excess of the average plus 20% (89.2) Orange shade indicates reported crimes in excess of the average (74.3)

Super Carniceria La Chiquita, 1000 West Main Street, is within Crime Reporting District No. P040, a crime reporting district that is an area of “undue concentration” of crime, based on Section 23958 of the Business and Professions Code. In 2011, there were 6539 total reported crimes in all districts. The average number of reported crimes was 74.3, and the average plus 20% (per Section 23958) was 89.2 During 2011, Crime Reporting District No. P040 had 106 reported crimes.

89.2 Average Plus 20%

75.6 Median Plus 20%

POLICE DEPARTMENT MEMORANDUM

Memo

To: Frank Albro, LaVonne McGee, Project Planners

From: Lieutenant Rico Flores

Date: 8/31/2012

Re: Super Carniceria La Chiquita , 1000 West Main Street

I have read the PCN memo and do not see any issues with their request at this time. Respectfully Submitted

ATTACHMENT 6 SP-2012-0032 SEPTEMBER 18, 2012

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