04-03-17 CUP 7-Eleven Inc. 125 N. TUSTIN STREET, SUITES F & G
TO: Chair Glasgow and
Members of the Planning Commission
THRU: Anna Pehoushek
Assistant Community Development Director
FROM: Vidal F. Márquez
Assistant Planner
SUBJECT
PUBLIC HEARING: Conditional Use Permit (CUP) 3029-16 – 7-Eleven, Inc., 125 N. Tustin Street,
Suites F&G
SUMMARY
The applicant is requesting an Alcoholic Beverage Control Type 20 License (Off-Sale Beer and Wine)
for the sale of beer and wine for off-site consumption within a proposed convenience store.
RECOMMENDED ACTION
Adopt Planning Commission Resolution No. PC 08-17 entitled:
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF ORANGE APPROVING CONDITIONAL USE
PERMIT NO. 3029-16 AUTHORIZING THE SALE OF
ALCOHOLIC BEVERAGES (TYPE 20 LICENSE – OFF-SALE
BEER AND WINE) FOR OFF-SITE CONSUMPTION AND TO
MAKE A FINDING OF PUBLIC CONVENIENCE AND
NECESSITY WITHIN A PROPOSED CONVENIENCE STORE
LOCATED AT 125 N. TUSTIN STREET, SUITES F&G
AUTHORIZATION/GUIDELINES
Orange Municipal Code (OMC) Table 17.08.020, Section 17.30.030.C. and 17.30.030.D. authorize
the Planning Commission to review and take action on Conditional Use Permits for the retail sale of
alcoholic beverages.
Planning Commission
Agenda Item
April 3, 2017
Planning Commission Staff Report
CUP No. 3029-16 7-Eleven
April 3, 2017
Page 2
PUBLIC NOTICE
On March 23, 2017, the City sent a Public Hearing Notice to a total of 55 property owners and
occupants within a 300-foot radius of the project site. The project site was also posted in two locations
with notification on that same date.
ENVIRONMENTAL REVIEW
Categorical Exemption: The proposed project is categorically exempt from the provisions of the
California Environmental Quality Act (CEQA) per State CEQA Guidelines 15301 (Class 1 – Existing
Facilities) because the project consists of licensing the retail sale of alcoholic beverages at a proposed
convenience store.
PROJECT BACKGROUND
Applicant: Lorena Muniz for 7-Eleven, Inc.
Property Owner: SL Beach, LLC
Property Location: 125 N. Tustin Street, Suite F&G
Existing General Plan
Land Use Element designation:
General Commercial (GC)
Existing Zoning
Classification:
Commercial-Limited Business (C-1)
Old Towne: Not Applicable
Specific Plan/PC: Not Applicable
Site Size: 26,300 SF lot (.60 AC); 8,898 SF building
Circulation: The site is on the northeast corner of Tustin Street and
Chapman Avenue with access to the property provided
by two curb cuts, one on each of those streets. Tustin
Street and Chapman Avenue are designated as major
arterials and based on the General Plan this intersection
is considered a ‘Critical Intersection’.
Existing conditions: The site is developed with a single story multi-tenant
commercial building with a surface parking lot.
Surrounding land uses
and Zoning:
North: Orange Square Shopping Center (C1)
South: Chevrolet Auto Dealership (C1) and (C2)
East: Orange Square Shopping Center (C1)
West: Arco Service Station with ‘AMPM Convenience
Store (C1)
Previous
Applications/Entitlements:
None
Planning Commission Staff Report
CUP No. 3029-16 7-Eleven
April 3, 2017
Page 3
PROJECT DESCRIPTION
Alcoholic Beverage Control Type 20 License
The applicant requests to sell beer and wine for off-site consumption under a State Alcohol and
Beverage Control (ABC) Type 20 License within a proposed convenience store. The 2,743-square
foot tenant space will be remodeled to accommodate retail display shelves of prepackaged food,
medicine and dry goods, a cashier counter, office and storage area, cold and hot beverage stations,
restrooms and walk-in refrigeration coolers for various beverages including alcoholic beverages. Beer
would only be kept in four refrigerated coolers approximately 28 sq. ft. in size and wine 5 sq. ft. The
doors of these coolers are accessible to customers and will have locks on them to prevent customers
from purchasing during prohibited hours. The proposed tenant improvements will modify the
entrance to the store with one new double door and a new single door exit to the rear. The proposed
hours of operation will be 24 hours with limited hours for alcohol sales between 6:00 AM-2:00AM,
7 days a week. The applicant’s letter of explanation is included in Attachment 3 of this report.
The subject site is located at the northeast corner of Tustin Street and Chapman Avenue. The 26,300
sq. ft. commercial property is developed with a single story multi-tenant building and surface parking
area with a total of 40 parking stalls. The property is an independent lot and is not integrated with the
abutting commercial center to the north and no reciprocal access between them exists. Retail
convenience stores are permitted by right in the C-1 zoning district, but the retail sale of alcoholic
beverages is permitted by issuance of a conditional use permit.
Development Standards
A tenant improvement is proposed to accommodate the new convenience store. No changes are
proposed to the lot size, building square footage, building height, or parking as part of this application.
Therefore, a comparison of the building to existing development standards has not been conducted.
APPLICATION(S) REQUESTED/REQUIRED FINDINGS
Conditional Use Permit: The applicant is requesting a Conditional Use Permit to sale beer and wine
beverages for off-site consumption within a proposed convenience store under an ABC Type 20
License.
Required Findings:
1. A Conditional Use Permit shall be granted upon sound principles of land use and in
response to services required by the community.
2. A Conditional Use Permit shall not be granted if it will cause deterioration of bordering
land uses or create special problems for the area in which it is located.
3. A Conditional Use Permit must be considered in relationship to its effect on the
community or neighborhood plan for the area in which it is located.
Planning Commission Staff Report
CUP No. 3029-16 7-Eleven
April 3, 2017
Page 4
4. A Conditional Use Permit, if granted, shall be made subject to those conditions necessary
to preserve the general welfare, not the individual welfare of any particular applicant.
ANALYSIS/STATEMENT OF THE ISSUES
Alcoholic beverage sales are a customary accessory use for many convenience stores, complementary
to the primary use. The subject property does not currently have an ABC licensed establishment and
it will be the first Type 20 ABC to sale beer and wine beverages for off-site consumption. Based on
its experiences and analysis with the proposed 7-Eleven business in this location the Orange Police
Department does not oppose the application. Given the location of the convenience store at a major
commercial intersection within a commercial zone, Planning staff also recommends approval of the
application. However, four issue items were identified for this project, and analysis is provided below.
Issue 1: Existing Licenses within 600 feet of the Site
For information purposes, staff identified the following facilities selling alcoholic beverages that are
located within a 600-foot proximity to the proposed convenience store’s entrance (See Attachment 4
- Planning Commission ABC Evaluation Map).
Existing Licenses
Establishment Name License Type Address
Rite Aid 21 1825 E. Chapman Avenue
Grocery Outlet 21 1803 E. Chapman Avenue
Lamppost Pizza 41 1829 E. Chapman Avenue
Jimmy Bones Bar 48 1815 E. Chapman Avenue
Arco/AMPM Service Station 20 100 N. Tustin Street
Ostioneria Bahia Restaurant 41 144 S. Tustin Street
Issue 2: Sensitive Receptors
The OMC requires a Conditional Use Permit for the sale of alcoholic beverages to ensure there will
be no adverse impact on surrounding land uses or allow the availability of alcoholic beverages to
minors. When reviewing alcohol permits, OMC 17.30.030 details specific land uses that are sensitive
to alcohol activities, but does not establish any specific distances for these uses. The State ABC Board
investigation requires applicants to identify the sensitive land uses within 600 feet of the site. The
following sensitive receptors are in the vicinity of the subject property:
Planning Commission Staff Report
CUP No. 3029-16 7-Eleven
April 3, 2017
Page 5
Sensitive Receptors
Establishment Name Address Distance To
Project Site
Single Family Residences Shattuck Place, north of Chapman
Avenue
330 feet
Multiple Family Apartments 210-225 N. Oak Street 470 feet
Multiple Family Apartments 201 N. Wayfield Street 700 feet
The selling of alcoholic beverages from the proposed location is not anticipated to have an adverse
impact on these sensitive land uses because they are more than 300 feet of the business location and
do not have direct access to the business.
Issue 3: Census Tract Alcohol and Crime Statistics Information
The Orange Police Department (OPD)’s Vice Unit reports that the proposed business within Census
Tract 758.05 is over concentrated with on-sale and off-sale ABC licenses:
Alcohol Licenses
Existing Allowed
On-Sale Licenses 10 5
Off-Sale Licenses 7 2
Census tracts are defined as small geographical areas established by local committees and approved
by the Census Bureau, which contain a population segment with relatively uniform economic and
social characteristics and clearly identifiable boundaries averaging approximately 1,200 households.
The ABC establishes an over concentration of alcohol licenses based on the average number of
alcohol licenses per capita in a given census tract. However, the ABC and the City recognize that
licenses should be reviewed on a case-by-case basis to ensure that such sales will not adversely affect
surrounding residents, businesses, and institutions and to ensure that any such use operates in a
manner compatible with existing and future adjacent uses. This site is located at a significant
commercial intersection in the City that is expected to have an over concentration of alcohol licenses
due to a concentration of retail and gas/convenience stores that are commonly associated with major
intersections. The existing off-sale licenses within the vicinity of the proposed location are Rite Aid
Pharmacy, Grocery Outlet and Arco/AMPM service station. Other existing off-sale licenses within
the census tract but located north of Tustin Street towards Collins Avenue are Stater Bros. Market,
World Liquor, JK Food Store, Orange Liquor & Deli and the recently approved Shell Service station
(pending ABC License). If approved, the proposed 7-Eleven convenience store would be the 9th off-
sale ABC license within this census tract.
Planning Commission Staff Report
CUP No. 3029-16 7-Eleven
April 3, 2017
Page 6
Crime Statistics
The applicant is applying for an ABC license in a reporting district that is considered a low crime
area as follows:
Census Tract
Reported Crimes
Citywide Average
Reported Crimes
Percent Difference
72 74 1% above average
The subject property is located in Reporting District (RD) 26S. RD 26S is considered a low crime
area. High crime areas are defined as any Reporting District with more than 20% above average
reported crime for all Reporting Districts in the City. OPD’s analysis states that 74 crimes were
currently reported in RD 26S. The average reported number of crimes per district citywide was 72
from crime statistics in 2015; RD 26S had 1% more reported crimes than the average RD in the City.
According to OPD statistics in 2015, a total of 12 alcohol-related arrests were made in RD 26S,
including driving under the influence, public intoxication and open container in vehicle while driving.
The majority of crime activity were property crimes, which includes vehic le thefts, auto burglaries
and petty thefts.
OPD does not oppose the applicant’s request to obtain a Type 20 license because the proposed
business is located in a low-crime area and in spite of the over-concentration in ABC licenses, OPD
finds most Type 20 licenses are located further north of the census tract and strong consideration is
being given based on the reputation of the other 7-Eleven convenience stores in the City of Orange.
With the appropriate controls in security, video surveillance and employee training along with the
conditions of approval, the proposed use is not anticipated to create an undue burden on public safety
resources or have an adverse impact on the surrounding community. Attachment 5 provides additional
details related to the analysis prepared by OPD.
Issue 4: Finding of Public Convenience or Necessity
The ABC establishes an over concentration of alcohol licenses based on the average number of
alcohol licenses versus the population in a given census tract. However, the ABC and the City
recognize that licenses should be reviewed on a case-by-case basis to ensure that such sales will not
adversely affect surrounding residents, businesses, and institutions and to ensure that any such use
operates in a manner compatible with existing and future adjacent uses. This site is located within a
significant commercial intersection in the City of Orange, where it is expected to find an over-
concentration of alcohol licenses. This is not uncommon for any commercial store type business
throughout the county.
The ABC is requesting the Planning Commission to make a finding of public convenience or
necessity. The Planning Commission may find that the sale of beer and wine for off-site consumption
within a proposed convenience store is an appropriate accessory use to the sale of non-alcoholic retail
products and is a service typically expected by the public. In addition, the proposal is not anticipated
Planning Commission Staff Report
CUP No. 3029-16 7-Eleven
April 3, 2017
Page 7
to have adverse impacts to the neighboring land uses since a retail convenience store use is compatible
with mixed commercial uses within the area. Should the project be approved, a draft letter to the ABC
finding that the project merits favor based on public convenience or necessity is provided for the
Commission Chair’s signature (Attachment 6).
ADVISORY BOARD RECOMMENDATION
No advisory board review occurred for this application because the Planning Division and Police
Department, Vice Division are the responsible departments for reviewing alcohol permit requests.
ATTACHMENTS/EXHIBITS
Attachments to Report:
1. Planning Commission Resolution No. PC 08-17
2. Vicinity Map
3. Applicant Letter of Justification
4. Planning Commission Evaluation Map
5. Police Department Analysis Memo and Recommendation
6. Draft Letter to ABC for Finding of Public Convenience or Necessity
Exhibits provided to the Planning Commission:
A. Site and Floor Plan received November 9, 2016
CC: Sherrie Olson
PLRC
1030 N. Mountain Ave. #190
Ontario, CA 91762
Sherrieolson2@gmail.com
Lorena Muniz
7-Eleven, Inc.
330 E. Lambert Rd.
Brea, CA 92821
Lorena.muniz@7-11.com
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