08-07-17 CUP Santiago Hills Auto Spa 8544 E. Chapman Avenue #A
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 No. 3040-17 – Santiago Hills Auto Spa, 8544 E.
Chapman Avenue #A
SUMMARY
The applicant is requesting an Alcoholic Beverage Control Type 20 License (Off-Sale Beer and Wine)
for off-site consumption and to make a finding of public convenience and necessity for an existing gas
station/car wash convenience store.
RECOMMENDED ACTION
Adopt Planning Commission Resolution No. PC 18-17 entitled:
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF ORANGE APPROVING CONDITIONAL USE
PERMIT NO. 3040-17 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 FOR AN EXISTING GAS STATION/CAR WASH
CONVENIENCE STORE LOCATED AT 8544 E. CHAPMAN
AVENUE #A
Planning Commission
Agenda Item
August 7, 2017
Planning Commission Staff Report
CUP No. 3040-17 Santiago Hills Auto Spa
August 7, 2017
Page 2
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.
PUBLIC NOTICE
On July 27, 2017, the City mailed a Public Hearing Notice to a total of 787 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 an existing
gas station/car wash convenience store and involves negligible or no expansion of an existing use
beyond that existing at the time of the lead Agency’s determination.
PROJECT BACKGROUND
Applicant: Jay Ganjineh, Santiago Hills Auto Spa
Property Owner: Nick Nodoust, Santiago Hills Development, LLC
Property Location: 8544 E. Chapman Avenue #A
Existing General Plan
Land Use Element designation:
General Commercial (GC)
Existing Zoning
Classification:
Planned Community (PC)
Old Towne: Not Applicable
Specific Plan/PC: Upper Peters Canyon Specific Plan
Site Size: 2,878 SF tenant space
Circulation: The gas station/car wash and convenience store is on the
southwest corner of East Chapman Avenue and
Jamboree Road with access to the property provided by
three curb cuts, one off East Chapman Avenue and two
off Jamboree Road. Chapman Avenue and Jamboree are
designated as major arterials and based on the General
Plan this intersection is considered a ‘Critical
Intersection’.
Existing conditions: The site is currently improved with a multi-tenant retail
shopping center, which includes Alberton’s grocery
Planning Commission Staff Report
CUP No. 3040-17 Santiago Hills Auto Spa
August 7, 2017
Page 3
store, Santiago Hills Auto Spa and other commercial
tenants with a surface parking lot.
Surrounding land uses
and Zoning:
North: Santiago Canyon College, Public Institution (PI)
East: Open Space, Santiago Hills Reservoir, Planned
Community (PC)
South: Single Family Residences, Planned Community
(PC)
West: Multi-Family Residences, Planned Community
(PC)
Previous
Applications/Entitlements:
Resolution No. 42-92 approved by the Planning
Commission on July 6, 1992 for the approval of the
commercial center with fast restaurants, car wash and
alcohol sales for the market and drug store.
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 an existing gas station/car wash convenience store.
The 2,878-square foot tenant space contains a Subway sandwich kiosk, display shelves of
prepackaged food, medicine and dry goods, a cashier counter, office and storage area, coffee beverage
area, restrooms and walk-in refrigeration coolers for various beverages including the proposed beer
and wine beverages. The doors of these coolers are accessible to customers and will have locks on
them to prevent customers from purchasing during prohibited hours. There are four entrances and
exits in the convenience store, one primary double door facing the parking area and another side
double door for car wash customers. The proposed hours of operation of the gas station and
convenience store will be 24 hours with limited hours for alcohol sales between 6:00 AM-11:00 PM,
7 days a week. The applicant’s letter of explanation/justification is included in Attachment 3 of this
report.
The subject site is located at the southwest corner of East Chapman Avenue and Jamboree Road. The
71,718 sq. ft. commercial property is developed with multiple commercial buildings consisting of a
carwash, convenience store, service facility, auto detail shop, gas canopy and surface parking area
with a total of 45 parking stalls. The properties are independently owned lots and are integrated with
the abutting ‘Santiago Hills Market Place’ commercial center to the west where reciprocal access
between them exists. Retail convenience stores are permitted by right in the Planned Community
district, but the retail sale of alcoholic beverages is permitted by issuance of a conditional use permit
(CUP).
Planning Commission Staff Report
CUP No. 3040-17 Santiago Hills Auto Spa
August 7, 2017
Page 4
Development Standards
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.
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 at this
location. Based on its experiences and analysis with the proposed Santiago Hills Auto Spa 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.
Planning Commission Staff Report
CUP No. 3040-17 Santiago Hills Auto Spa
August 7, 2017
Page 5
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
Alberton’s Grocery 21, 86 (pending) 8440 E. Chapman Avenue
Chens Panda 41 8422 E. Chapman Avenue
Issue 2: Sensitive Receptors
The OMC requires a CUP 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:
Sensitive Receptors
Establishment Name Address Distance To
Project Site
Single Family Residences East White Oak Ridge 700 feet
Multi-Family Residences Cross Creek Road 850 feet
Santiago Canyon College 8415 E. Chapman Avenue 470 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 400 feet from 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 7
Off-Sale Licenses 3 3
Planning Commission Staff Report
CUP No. 3040-17 Santiago Hills Auto Spa
August 7, 2017
Page 6
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 Alberton’s
grocery. Other existing off-sale licenses within the census tract but located west on East Chapman
Avenue towards Newport Boulevard are Pacific Ranch Market and Orange Hill Liquor. If approved,
the proposed Santiago Hills Auto Spa convenience store would be the 4th off-sale ABC license within
this census tract.
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 per
District
Percent Difference
25 68 63% below average
The subject property is located in Reporting District (RD) 164. RD 164 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. The average number of reported crimes per
reporting district is 68. Additionally Reporting District 164 is ranked 61 out of 92 districts in the City,
and is 63% below the average of reported crimes. According to OPD statistics in 2016, a total of 2
alcohol-related arrests were made in RD 164 for driving under the influence.
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
has given strong consideration based on the reputation of the applicant’s history as a responsible
business owner and the area is considered low crime with only two alcohol related incidents . With
the appropriate controls in security, video surveillance and employee training along with the
conditions of approval, the proposed alcohol sales are 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.
Planning Commission Staff Report
CUP No. 3040-17 Santiago Hills Auto Spa
August 7, 2017
Page 7
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 and approving an additional license to sell
beer and wine from this location will operate in a manner compatible with the retail operations of a
convenience store and provide an expected service to both residents and visitors to this area of the
City.
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 gas station/car wash 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 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 18-17
2. Vicinity Map
3. Applicant Letter of Justification and Site Photographs
4. Planning Commission Evaluation Map
5. Orange Police Department Memo and Recommendation, dated April 18, 2017
6. Draft Letter to ABC for Finding of Public Convenience or Necessity
Exhibits provided to the Planning Commission:
A. Site and Floor Plan received April 12, 2017
Planning Commission Staff Report
CUP No. 3040-17 Santiago Hills Auto Spa
August 7, 2017
Page 8
CC: Lisa Edwards
PO Box 4332
Huntington Beach, CA 92605
planitlisa@yahoo.com
Jay Ganjineh
Santiago Hills Auto Spa
8544 E. Chapman Avenue #A.
Orange, CA 92869
ganjineh2000@yahoo.com
Nick Nodoust
Santiago Hills Development, LLC
8544 E. Chapman Avenue #A.
Orange, CA 92869
nicknodoust@sbcglobal.net
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3040-17 PC Staff Report Draft.Docx