SR - APP-547-16 - 7-11 APPEAL OF PLANNING COMMISSION DECISION TO MODIFY EXISTING ABC TYPE 20 LICENSE1. SUBJECT
APPEAL HEARING: Appeal No. 547 -16 - An appeal of the Planning Commission decision to
deny Conditional Use Permit No. 2997 -15 to modify an existing Alcoholic Beverage Control
(ABC) Type 20 license to allow the sale of single alcoholic beverages at 615 S. Tustin Street.
2. SUMMARY
An appeal by the applicant, Tustin 7- Eleven (Rassol Eftekharian), of a decision by the Planning
Commission (PC) to deny Conditional Use Permit (CUP) No. 2997 -15 to modify an existing
State of California, Department of Alcoholic Beverage Control, Type 20 License (Off -Sale Beer
& Wine) to allow the sales of single alcoholic beverages inside a 7- Eleven convenience store
located at 615 S. Tustin Street.
3. RECOMMENDED ACTION
Deny Appeal No. 547 -16
4. FISCAL IMPACT
Potential minor sales tax gains from alcoholic beverage sales.
5. STRATEGIC PLAN G
1(d). Provide for a safe community; assure the development of the City occurs in a fashion that
maximizes public safety.
6. GENERAL PLAN IMPLEMENTATION
Public Safety Element
Goal 7.0 Improve community safety and reduce opportunities for criminal activity.
Policy 7.2 Promote and integrate crime - preventive characteristics and design features into all
phases of the planning and development process.
7. DISCUSSION and BACKGROUND
Tustin 7- Eleven (Rassol Eftekharian) submitted a Land Use Project Application requesting a
Conditional Use Permit (CUP) for modification of an existing ABC Type 20 License (Off -Sale
Beer & Wine) to allow the sales of single alcoholic beverages. The existing Type 20 License for
the convenience store located at 615 S. Tustin Street was approved in 2009.
The Police Department conducted an assessment of the proposal and identified a series of
concerns that were included in the September 7, 2016 Planning Commission staff report
(Attachment 5) including:
1. Existing Licenses within 600 feet of the Site: there are two establishments within 600
feet of the site.
2. Sensitive Receptors: there are 20 single family residences and eight multi - family
residences within 600 feet of the site.
3. Census Tract Alcohol and Crime Statistics Information: the site is located in an over -
concentrated area. There are eight existing licenses (combination of On -Sale and Off -
Sale with a maximum of 10 possible permits).
Detective Charles Moten representing the Police Department expressed concerns about single
alcohol sales, and the potential for drinking and driving. The Police Department
recommendation for denial was also based on expected calls for service and the department's
experience with similar scenarios.
ITEM 11/9/2016
Planning Commission Action
On September 7, 2016, the Planning Commission held a public hearing to consider CUP No.
2997 -15. The Planning Commission considered the entire record, including all testimony and
additional information offered at the public hearing. The Commission voted 3 -1, with one
Commissioner absent, to adopt the resolution denying the request to modify the existing Type 20
License, to allow the sale of single alcoholic beverages on the property.
Public Comments
There were no public speakers at the September 7, 2016 hearing.
8. APPELLANT'S STATEMENT
On September 22, 2016, the applicant, Tustin 7- Eleven (Rassol Eftekharian), appealed the
Planning Commission decision based on the following statement provided in the appeal
application (Attachment 2):
"....The decision not to allow me to sell single beer was based on communication
from the City of Orange police department representative who stated this act
would increase the crime rate. I believe this is an unreasonable statement. There
are several other similar businesses in the area that have been authorized to sell
single beer within less than .5 miles radius. Some of those include, but not limited
to two (2) Arco gas station, and a liquor store.
As a business owner it is imperative for me to provide high quality service that is
safe to my customers. Time after time, I have regular customers that request to a
have the ability to purchase single beer versus having to purchase them in a pack.
Business journals embrace and advocate for the ability to sell single beer as this is
the wave for future and for customers to have the ability to choose different
products.
The outcome of your decision not to allow me to sell single beer is that I am
losing my loyal customers and my revenue to other businesses in the area.
Research demonstrates that customers would prefer to have one stop to make as
many purchases as possible. Hence, I lose business from my snack shop, and
gasoline due to this decision. I can understand if this decision was related to a law,
enforced equally throughout the community, but it does not. My customers are
requesting for me to have the ability to provide them with the reasonable request
of the ability to sell them single beer and would like to sign a petition ".....
9. POTENTIAL ACTIONS ON APPEAL
A Conditional Use Permit for an ABC License runs with the land and authorizes both current and
future operators to serve alcohol under the regulations for the specific license type set by the
State Department of Alcoholic Beverage Control. Under OMC 17.08.050.F, the City Council
ITEM 11/9/2016
may affirm, reverse or modify, in whole or in part, the Planning Commission action to deny the
CUP for the modification of the existing Type 20 License that is under appeal.
Deny AppeaUAfrrm Planning Commission Action
Should the City Council deny the appeal and affirm the Planning Commission action, the
applicant would not be able to modify their ABC Type 20 License which would allow them to
sell single alcoholic beverages.
Uphold AppeaUReverse Planning Commission Action
Should the City Council uphold the appeal and reverse the Planning Commission action, PC
Resolution 15 -16 would not take effect and would allow for modification to the existing Type 20
license to permit the sale of single alcoholic beverages. Existing Resolution No. 10649 would be
modified by eliminating Condition No. 13:
The sale of beer or malt beverages in quantities of quarts, 22 ounces, 32 ounces, 40 ounces, or
similar size containers is prohibited. Beer, malt beverages, and wine coolers in containers of 16
ounces or less cannot be sold by single containers, but must be sold in manufacturer pre-
packaged multi -unit quantities.
10. ATTACHMENTS
Attachments to Report
1. Draft Resolution No. 10986
2. Vicinity Map
3. Appeal No. 547 -16
4. Planning Commission Resolution No. PC 15 -16
5. Existing Resolution No. 10649
6. Planning Commission Staff Report dated September 7, 2016
7. Planning Commission Minutes from Meeting of September 7, 2016
N:\ CDD\ PLNG\Applications \APPEALS\Appea10547 -16 7 -11 at 615 S Tustin\APP0547 -16 Staff Report _CC.doc
ITEM 11/9/2016
RESOLUTION NO. 10986
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE DENYING APPEAL NO. 547 -16,
WHICH UPHOLDS THE DECISION OF THE
PLANNING COMMISSION TO DENY THE
MODIFICATION OF A CONDITIONAL USE
PERMIT FOR A STATE OF CALIFORNIA,
DEPARTMENT OF ALCOHOLIC BEVERAGE
CONTROL, TYPE 20 LICENSE (OFF -SALE BEER
& WINE) TO ALLOW THE SALE OF SINGLE
ALCOHOLIC BEVERAGES ON PROPERTY
LOCATED AT 615 S. TUSTIN STREET
APPLICANT: RTNSP INVESTMENT GROUP, LLC,
APPEAL NO. 547-16
WHEREAS, the application for Conditional Use Permit No. 2997 -15 was filed by the
applicant in accordance with the provisions of the City of Orange Municipal Code; and
WHEREAS, the application for Conditional Use Permit No. 2997 -15 was processed in
the time and manner prescribed by state and local law; and
WHEREAS, Conditional Use Permit No. 2997 -15 is categorically exempt from the
provisions of the California Environmental Quality Act per State CEQA Guidelines 15301 (Class
1 — Existing Facilities), because the project consists of a modification to an existing license for
alcohol sales at an existing establishment; and
WHEREAS, the Planning Commission conducted a public hearing on September 7,
2016, at which time interested persons had an opportunity to testify either in support of, or
opposition to, Conditional Use Permit No. 2997 -15, and at the conclusion of the hearing denied
the proposed request; and
WHEREAS, on September 22, 2016, the Applicant filed Appeal No. 547 -16, in
accordance with the provisions of the Orange Municipal Code, seeking to overturn the decision
of the Planning Commission; and
WHEREAS, the City Council conducted a public hearing on November 9, 2016, at
which time interested persons had an opportunity to testify either in support of, or opposition to,
Appeal No. 547 -16, seeking to overturn the denial of Conditional Use Permit No. 2997 -15, upon
property described as follows:
LOT 1 OF TRACT NUMBER 4675, AS PER MAP RECORDED IN BOOK 169,
PAGE 3 AND 4 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF ORANGE COUNTY, CALIFORNIA
ATTACHMENT NO. 1
DRAFT RESOLUTION 10986
APPEAL 547 -16
NOVEMBER 9, 2016 CC MTG.
CITY COUNCIL MINUTES NOVEMBER 9, 2016
11. PUBLIC HEARINGS (Continued)
11.2 Appeal Hearing for a modified Alcoholic Beverage Control (ABC) License at 615 S.
Tustin St. (A4000.0)
Consideration of Appeal No. 547 -16, an appeal of the Planning Commission decision to
deny Conditional Use Permit No. 2997 -15 to modify an existing Alcoholic Beverage
Control (ABC) Type 20 license to allow the sale of single alcoholic beverages at 615 S.
Tustin St.
THE MAYOR OPENED THE PUBLIC HEARING.
Public Speakers:
Nathan Goss — submitted a petition on behalf of the applicant from customers and
neighboring residents that support the store selling single serve alcoholic beverages.
Rassol Eftekharian, applicant — spoke in favor of upholding the appeal.
THE MAYOR CLOSED THE PUBLIC HEARING.
During discussion, Sergeant Aaron Towner answered Council's questions regarding the
Police Department's concerns with allowing the sale of single alcoholic beverages.
Sergeant Towner reported that this type of CUP has not been allowed since 2004.
MOTION — Murphy
SECOND — Whitaker
AYES — Alvarez, Whitaker, Smith, Murphy, Nichols
Moved to deny Appeal No. 547 -16.
12. ADJOURNMENT — The City Council adjourned at 8:45 p.m. to an Adjourned Regular
City Council Meeting on Tuesday, December 6, 2016, at 6:00 p.m. in the Council Chamber,
for the Oath of Office Ceremony.
The next Regular City Council Meeting will be held on Tuesday, December 13, 2016, at
6:00 p.m. in the Council Chamber, with Closed Session beginning at 5:00 p.m., if
necessary.
fAtAtit./ /C
M ' ' URPHY ` ERESA E. SMITH
CITY CLERK MAYOR
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