REPORT TO THE PLANNING COMMISSION
May 17, 2017
FROM: MIKE SANCHEZ, Assistant Director
Development Services Division
THROUGH: WILL TACKETT, Supervising Planner
Development Services Division
BY: MARGO LERWILL, Planner
Development Services Division
SUBJECT
Title
Consider the appeal of Conditional Use Permit Application No. C-16-077, located on the north side of East Bullard Avenue east of North First Street. (Council District 6) - Development and Resource Management Department.
1. ADOPT Environmental Assessment No. C-16-077 dated March 7, 2017, a determination that the proposed project is exempt from the California Environmental Quality Act (CEQA) through a Class 1 Categorical Exemption; and,
2. DENY the appeal and UPHOLD the Director’s Approval of Conditional Use Permit Application No. C-16-077 to authorize the applicant to establish a State of California Alcoholic Beverage Control (ABC) Type 20 alcohol license, subject to compliance with the Conditions of Approval dated March 24, 2017.
Body
EXECUTIVE SUMMARY
Conditional Use Permit Application No. C-16-077 was filed by Steve Rawlings of Alcoholic Beverage Consulting, on behalf of Gregory Hinds, and pertains to the existing 22,917-square-foot grocery and household goods store, 99 Cents Only, located at 6036 North First Street. The subject property comprises ±2.12 acres of area located on the north side of East Bullard Avenue, east of North First Street. The applicant requests authorization to establish a State of California ABC Type 20 alcohol license (Package Store - sale of beer and wine for consumption off the premises where sold).
On April 6, 2017, during the protest period following the Notice of Action approving Conditional Use Permit Application C-16-077, staff received a letter from Fresno Unified School District indicating they wished to appeal approval of this application.
BACKGROUND
Conditional Use Permit Application No. C-16-077 was filed by Steve Rawlings of Alcoholic Beverage Consulting, on behalf of Gregory Hinds, and pertains to the existing 22,917-square-foot grocery and household goods store, 99 Cents Only, located at 6036 North First Street. The subject property comprises ±2.12 acres of area located on the north side of East Bullard Avenue, east of North First Street. The applicant requests authorization to establish a State of California ABC Type 20 alcohol license (Package Store - sale of beer and wine for consumption off the premises where sold). Per Table 15-1202, a General Market is permitted by right in the CC (Commercial - Community) zone district. Alcohol sales may be allowed in the CC zone district subject to an approved Conditional Use Permit. Fresno Municipal Code (FMC) Section 15-2706 Alcohol Sales, which regulates a variety of types of alcohol sales and sales locations, does not apply. Under Section 15-2706-C-2, establishments that are larger than 10,000 square feet are exempt from requirements and restrictions contained in that section.
Despite the location of the project being exempt from Section 15-2706, in particular the subsections restricting alcohol sales in areas of high crime and alcohol license overconcentration, the applicant met with the Director and staff to discuss these concerns. The applicant submitted materials indicating the 99 Cents Only store chain derives approximately 70% of their revenue from the sale of fresh produce and other food stuffs. At 22,917 square feet in size, the store is considered by the applicant and owner to be a mid-sized neighborhood alternative to a supermarket. The store is seeking to offer a more complete grocery shopping experience to its budget-minded customers, consisting primarily of females shopping for their families and senior citizens on a fixed income.
To overcome concerns about overconcentration of alcohol sales in Fresno and that alcohol sales at the location would be conducted in a manner similar to a convenience or liquor store rather than a grocery store, the applicant proposed or agreed to several conditions of approval including:
• The purchase of an existing alcohol license from within Fresno city limits;
• All conditions required by the Fresno Police Department;
• Only warm display of beer and wine, limited to 36 lineal feet of shelving units;
• Beer and malt products sold only in manufacturer pre-packaged multi-unit quantities, never as a single serving;
• Wine sold in minimum 750 ml bottles;
• No beer or wine advertisements in the store windows.
It should be noted that the store does not intend to sell alcohol for 99 cents and that it would be economically infeasible to do so with the prohibition on single-serving sales.
Police Department Review
The Northeast Policing District does not oppose the project but has requested conditions addressing compliance with Fresno Municipal Codes limiting noise and unlawful nuisance, compliance with State of California Alcoholic Beverage Control (ABC) rules and employee education, video camera surveillance, limitations on alcohol types and servings, and limitations on on-site alcohol consumption and loitering.
The Fresno Police Department’s comments (included in Exhibit I) have been incorporated into the Conditions of Approval dated March 24, 2017 (Exhibit M) in their entirety.
Fresno Unified School District (FUSD) Review
FUSD provided comments indicating the district does not support this application. Their comment letter expressed concerns regarding potentially dangerous interactions between students and the proposed operation but indicated their response was subject to the Alcoholic Beverage Control Act and the Fresno Police Department’s review and support of the proposed project. The location is approximately 450 feet from Ahwahnee Middle School.
On April 6, 2017, during the appeal period following the approval of Conditional Use Permit Application C-16-077, FUSD sent DARM staff a letter appealing the approval (Exhibit J).
Housing and Neighborhood Revitalization Review
On January 5, 2017, per the request of the City of Fresno Development Team, DARM staff met with the City of Fresno Housing and Neighborhood Revitalization Manager to discuss possible impacts of the proposed project. Concerns expressed at that meeting included the fact that the shopping centers on the northeast corner of North First Street and East Bullard Avenue, including the shopping center just east of the corner, which contains the proposed project, are somewhat blighted and pose a challenge with unstable tenancy. It was also noted that the other corners are more stable, in particular the southeast corner, which has seen new and stable development over the last few years. The area also has a stable tenancy of medical offices. The question was whether it was in the best interest of the neighborhood to jeopardize the recent improvement in local commercial development by introducing a use that could cause anxiousness among the current tenants and discourage quality development in the struggling portions of the area.
DARM staff believes that the conditions of approval, in particular the prohibitions on window advertisement and on single-serving sales and the limitation to warm storage only, will effectively discourage on-premise consumption and a negative evaluation of development in the area stemming from the proposed use. Fresno Police Department conditions will also serve to alert the business to loitering and nuisance issues that could violate the conditions of approval and could lead to revocation of their pending Type 20 license by the ABC.
Other Agencies
All comments received from the applicable agencies have been incorporated into the conditions of approval for Conditional Use Permit Application C-16-077. See Exhibit I for all written agency comments received.
Alcoholic Beverage Control Regulations
In addition to obtaining a Conditional Use Permit from the City of Fresno, the applicant is required to obtain a license from the ABC in order to sell alcohol. Prior to the issuance of an ABC license, the ABC will conduct its own analysis of the applicant’s Type 20 license application. As part of that analysis, the ABC is awaiting the decision on Conditional Use Permit Application C-16-077 from the City of Fresno.
Letters of Opposition
On March 9, 2017, a Notice of Intent to Take Action was mailed to residents and businesses within 1,000 feet of the location (see Exhibit E for Noticing Map). No letters of opposition were received.
On March 24, 2017, a Notice of Action was mailed to residents and businesses within 1,000 feet of the location notifying them of the conditional approval of Conditional Use Permit Application C-16-077. During the appeal period, only the appeal from FUSD was received.
Land Use Plans and Policies
The Fresno General Plan designates the subject property for the CC (Commercial-Community) planned land uses and provides objectives to guide in the development of this project. The CC (Commercial-Community) planned land use designation is intended for commercial development that primarily serves local needs such as convenience shopping and offices. Specific uses allowed include medium-scale retail, office, civic and entertainment uses, supermarkets, drug stores, and supporting uses.
Conditional Use Permit Application No. C-16-077 meets the policies and objectives of the Fresno General Plan. The following are excerpts of such objectives.
Goal 1: Increase opportunity, economic development, business, and job creation. Use urban form, land use, and Development Code policies to streamline permit approval, promote local educational excellence and workforce relevance, significantly increase business development and expansion, retain and attract talented people, create jobs and sustained economic growth, strategically locate employment lands and facilities, and avoid over-saturation of a single type of housing, retail, or employment.
Goal 8: Develop Complete Neighborhoods and districts with an efficient and diverse mix of residential densities, building types, and affordability which are designed to be healthy, attractive, and centered by schools, parks, and public and commercial services to provide a sense of place and that provide as many services as possible within walking distance.
Policy LU-1-A: Promote Development within the Existing City Limits as of December 31, 2012. Promote new development, infill, and rehabilitation of existing building stock in the Downtown Planning Area, along BRT corridors, in established neighborhoods generally south of Herndon Avenue, and on other infill sites and vacant land within the City.
Objective LU-6: Retain and enhance existing commercial areas to strengthen Fresno’s economic base and site new office, retail, and lodging use districts to serve neighborhoods and regional visitors.
Hoover Community Plan
Upon reviewing the policies contained in the Hoover Community Plan, staff has determined that there are no policies that are applicable or are more restrictive than those contained in the FMC or the Fresno General Plan.
District 6 Plan Implementation Committee
The applicant spoke to the District 6 Plan Implementation Committee at their normal meeting on November 7, 2016. The committee voted to recommend approval of the proposed project at that time.
Notice of Planning Commission Hearing
The Development and Resource Management Department mailed notices of this Planning Commission hearing to surrounding property owners within 1,000 feet of the subject property (Exhibit E). Staff also sent notices, via U.S. mail and email, to individuals who requested notification.
ENVIRONMENTAL FINDINGS
Environmental Assessment No. C-16-077 considered potential environmental impacts associated with the development permit application request. The California Environmental Quality Act (Public Resource Code Section 21000 et seq.) permits a public agency to determine whether a particular project is exempt from CEQA. A determination of a Categorical Exemption, Section 15301/Class 1 of the CEQA Guidelines was made based on the conclusion that the application represented a negligible expansion of use with no associated physical expansion, and Environmental Assessment No. C-16-077 was completed for this project on March 7, 2017 (Exhibit K).
FRESNO MUNICIPAL CODE FINDINGS
The required findings under Section 15-5306 of the Fresno Municipal Code are as follows:
a. The proposed use is allowed within the applicable zoning district and complies with all other applicable provisions of this Code and all other chapters of the Municipal Code; and,
b. The proposed use is consistent with the General Plan and any other applicable plan and design guideline the City has adopted; and,
c. The proposed use will not be substantially adverse to the public health, safety, or general welfare of the community, nor be detrimental to surrounding properties or improvements; and,
d. The design, location, size, and operating characteristics of the proposed activity are compatible with the existing and reasonably foreseeable future land uses in the vicinity; and,
e. The site is physically suitable for the type, density, and intensity of use being proposed, including access, emergency access, utilities, and services required.
If the Planning Commission decides to grant approval of the proposed project, the Commission must find that there is substantial evidence in the administrative record to make these findings. Staff believes that there is substantial evidence to support the findings, as noted below.
Finding A: All applicable provisions of this Code are complied with and the site of the proposed use is adequate in size and shape to accommodate said use, and accommodate all yards, spaces, walls, and fences, parking, loading, recycling areas, landscaping, and other required features; and,
• The use proposed by Conditional Use Permit Application No. C-16-077, the addition of Type 20 alcohol sales within an existing grocery store, is allowed in the CC (Commercial-Community) zone district with a conditional use permit. The existing and proposed use is in compliance with all applicable chapters of the FMC.
Finding B: The site for the proposed use relates to streets and highways adequate in width and pavement type to carry the quantity and kind of traffic generated by the proposed use; and,
• The proposed project is in compliance with the Fresno General Plan and the Hoover Community Plan. The proposed use is compatible with the surrounding uses and the concept of creating complete neighborhood with a full range of amenities within walking distance for residents.
Finding C: The proposed use will not be detrimental to the public welfare or injurious to property or improvements in the area in which the property is located.
• The Type 20 ABC license will not have a negative impact on either the subject site or neighboring properties given the project conditions of approval. The applicant will be required to comply with the Fresno Police Department and the County of Fresno Department of Public Health requirements. These conditions are intended to help protect the public health, safety, and welfare of patrons and surrounding properties. Approval of the special permit would be in accordance with applicable provisions of the FMC, including the determination that all findings have been made relative to the issuance of a conditional use permit for the proposed project.
Finding D: The design, location, size, and operating characteristics of the proposed activity are compatible with the existing and reasonably foreseeable future land uses in the vicinity; and,
• The grocery and household goods store is surrounded by commercial uses at this developed intersection. Medium density residential uses are found immediately surrounding the commercial districts at this location, which provides an amenity for those residents. The use is compatible with the planned land use for the location and surrounding area, indicating that it will remain compatible for the foreseeable future.
Finding E: The site is physically suitable for the type, density, and intensity of use being proposed, including access, emergency access, utilities, and services required.
• The proposed establishment of a State of California Alcoholic Beverage Control Type 20 (Package Store - sale of beer and wine for consumption off the premises where sold) is consistent with the allowable land use and intensity requirements per the underlying zone district. Adequate access, parking, utilities and services has been provided to serve the property and were reviewed for consistency with the requirements of the CC (Commercial-Community) planned land use and zone district.
These findings are attached as Exhibit L.
CONCLUSION
The appropriateness of the proposed project has been examined with respect to its consistency with goals and policies of the Fresno General Plan and the Hoover Community Plan; compliance with the provisions of the Fresno Municipal Code; its compatibility with surrounding existing or proposed uses; and its avoidance or mitigation of potentially significant adverse environmental impacts. These factors have been evaluated as described above and by the accompanying environmental assessment. Upon consideration of this evaluation, it can be concluded that Conditional Use Permit Application No. C-16-077 is appropriate for the project site.
Action by the Planning Commission is final unless appealed to City Council in accordance with Section 15-5017 of the FMC.
Attachments:
Exhibit A - Vicinity Map
Exhibit B - 2015 Aerial Photograph of Site
Exhibit C - Planned Land Use Map
Exhibit D - Zoning Map
Exhibit E - Noticing Map
Exhibit F - Site Plan
Exhibit G - Floor Plan
Exhibit H - Operational Statement
Exhibit I - Comments from Responsible Agencies
Exhibit J - FUSD Appeal Letter
Exhibit K - Environmental Assessment
Exhibit L - Fresno Municipal Code Findings
Exhibit M - Conditions of Approval dated March 24, 2017