TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing, and consider the appeal from the applicant, Steve Rawlings representing Grocery Outlet (APL21-007); and
Uphold the Planning Commission’s decision to approve a Conditional Use Permit (CUP21-004) with conditions of approval, to allow the off-site sale of beer, wine and distilled spirits (Type 21 License) in conjunction with a 6,000-square-foot expansion of the existing grocery store located at 1340 East 7th Street in the Community Auto-Oriented Commercial (CCA) Zoning District. (District 2)
DISCUSSION
On September 16, 2021, the Planning Commission held a public hearing and conditionally unanimously approved a Conditional Use Permit (CUP) for the modification of an existing California Department of Alcoholic Beverage Control (ABC) Type 20 (Off-Sale Beer and Wine) License, to allow a Type 21 (off-site sale of beer, wine and distilled spirits) License in conjunction with a 6,000-square-foot expansion of the existing grocery store (Attachment A).
Background
The project site is located on the south side of 7th Street, between Almond and Nebraska Avenues at 1340 E. 7th Street (Attachment B). The site is approximately 62,900 square feet in area and is developed with a multi-tenant commercial building consisting of a 14,470-square-foot grocery store (Grocery Outlet), a vacant 6,000-square-foot tenant space, and a 1,900-square-foot dance studio. The project site is part of an existing commercial strip, shared with the contiguous parcel to the east. The commercial strip also includes a liquor store and laundromat on the contiguous parcel, housed in a separate building. The site includes 97 parking spaces and is bordered by residential land uses in every direction. Other properties in the surrounding neighborhood have a variety of land uses including commercial, mixed-use, and more residential properties.
The applicant currently operates the grocery store, the Grocery Outlet, which includes the sale of beer and wine for off-site consumption (Alcoholic Beverage Control License Type 20). The existing off-site alcohol sales was approved by way of CUP by the Planning Commission on December 4, 2008, when Fresh & Easy was the tenant. The applicant now proposes to upgrade the Type 20 License to a Type 21 (Off-Sale General) License for the sale of beer, wine, and distilled spirits for off-site consumption. In conjunction with the request for the upgraded ABC License, the applicant proposes to expand the floor area of the existing grocery store by 6,000 square-feet, into the neighboring vacant tenant space (Attachment C). The newly expanded grocery store will be 20,470 square-feet.
On September 16, 2021, the Planning Commission held a public hearing, received a staff report, and took public testimony. Public testimony included written correspondence from two people (Attachment D). The Planning Commission approved Conditional Use Permit CUP21-004 for the proposed ABC License upgrade in conjunction with an expansion of existing floor area, all based on positive findings (Attachment E). Long Beach Municipal Code (LBMC) Section 21.52.201 places a number of conditions on alcohol CUPs, which must be met unless the conditions are waived with written findings, as stipulated by LBMC Section 21.52.100.
One of those conditions state that a CUP for alcohol shall not be approved in a reporting district with an over concentration of on- or off-sale premises, as recommended by the Long Beach Police Department (LBPD). The LBPD reported that the project site is located within Census Tract 5765.02, where up to two establishments are recommended for off-site alcohol sales, based on ABC criteria for population (Attachment F). Currently, there are four ABC Licenses for off-site alcohol sales, including the project location, within Census Tract 5765.02, which is above the threshold. However, the Planning Commission found that approval of the project would not exacerbate further overconcentration within the Census Tract since the existing tenant has one of those licenses and the overall number of licenses would not increase. The existence of four ABC Licenses for off-site sales will remain unchanged from project approval.
Findings also state that a CUP for alcohol shall not be approved in a Police Reporting District with a high crime rate as reported by the LBPD. As reported by the LBPD, the project site is located within Police Reporting District 361, which is not a high-crime district. In 2020, the average number of “part 1” crimes (murder, manslaughter, robbery, aggravated assault, burglary, motor vehicle theft, arson, and sex offenses) committed throughout all Police Reporting Districts in the City of Long Beach was 97. A high-crime Police Reporting District is defined in the Zoning Ordinance as one in which crime is 20 percent above the city-wide average for all crimes. With the average crime rate across all districts of 97, the high-crime threshold for 2020 was 116. By comparison, Police Reporting District 361 had 92 crimes reported, which is below the citywide average, and thus is not considered a high-crime district.
Appeal
Within the 10-day appeal period of the Planning Commission’s approval, an application for appeal was filed by the applicant, Steve Rawlings, representing Grocery Outlet (Attachment G). The applicant is not objecting to the CUP approval as a whole, rather they are contesting the following specific Conditions of Approval (Attachment H Approval):
• Condition No. 20. Between the hours of 2:00 p.m. and 6:00 p.m. daily, the operator shall employ an on-site security guard to monitor the grocery store and parking lot.
The applicant is requesting that Condition No. 20 be omitted in its entirety, asserting that the project site’s location within a Police Reporting District that has a low crime rate, compared to the citywide average, does not warrant the necessity for on-site security
• Condition No. 14. The sales of beer or malt beverages in quantities of quarts, 22oz, 33oz or 40 oz, or similar sizes are prohibited.
The applicant is requesting that Condition No. 14 be modified to allow the sale of beer or malt beverages in 22 oz. containers, asserting that many craft beers (of which sales are permissible under Condition No. 12) are commonly available in 22 oz. to 24 oz. containers.
The Conditions of Approval that were approved by the Planning Commission were originally drafted by Development Services staff, in concert with the LBPD. After further consultation with the applicant and LBPD regarding the requirement to provide on-site security between 2:00 p.m. and 6:00 p.m. (Condition No. 20) staff believed that the condition was not necessary to ensure the use’s compatibility with the surrounding area. In order to avoid an undue burden on Grocery Outlet to provide on-site security for the commercial strip, staff requested that the Planning Commission remove Condition No. 20.
However, after hearing public testimony and discussing the ABC Statistics (calls for service at Grocery Outlet in particular), the Planning Commission found that Condition No. 20 should remain in place. Verbal public testimony included objections to the lack of general maintenance and cleanliness of the Grocery Outlet site, contributing to the possibility of nuisance behavior onsite. Testimony also included opposition to an added liquor license within the same commercial strip. Regarding the calls for police service attributed to Grocery Outlet, the Planning Commission expressed concerns with the high number of calls. As indicated in Attachment F, between August 11, 2020 and August 11, 2021 there were 20 calls for service attributed to Grocery Outlet. While the project site is not located within a high-crime district, the Planning Commission’s concern about the 20 calls for service factored in their decision to retain Condition No. 20. The Planning Commission also modified Condition No. 6 which requires the applicant to keep the premises and adjoining sidewalk free of litter and debris; an additional provision added a requirement that the applicant provide trash cans on premises for refuse collection that will be emptied no less than twice daily, as a way to address the public’s concerns about the maintenance and upkeep of the site.
Regarding Condition No. 20, an option available to City Council is to update the condition to allow the applicant to be relieved of the requirement for the on-site security guard, by way of Zoning Administrator action (Modification of an Approved Permit), after a 12-month period of good operations.
The applicant is also appealing Condition No. 14 pertaining to the single-serving beverage container size that is permitted to be sold. Increasing numbers of grocery stores are being permitted to offer craft beers, and it is not uncommon for the Planning Commission to allow for the sale of beverages in smaller containers than this CUP permits. However, this request for the modification of the beverage size was not raised at the Planning Commission hearing. In consideration of the fact that it is increasingly common for grocery stores to sell craft beers in container sizes of 22 oz to 24 oz, staff is supportive of amending Condition No. 14 as follows:
The sales of beer or malt beverages in quantities of quarts, 22 oz, 33 oz or 40 oz, or similar sizes are prohibited, with the exception of microbrews and specialty malt products sold under such designations as Stout, Porter, India Pale Ale (IPA), English Special Bitters (ESB), and similar types, which are commonly offered in 22 oz and 24 oz containers.
Public Hearing notices were distributed on November 22, 2021, in accordance with the requirements of Chapter 21.21 of the LBMC. No responses were received as of the date of preparation of this report.
This matter was reviewed by Assistant City Attorney Michael J. Mais on November 8, 2021 and by Budget Operations and Development Officer Rhutu Amin Gharib on November 8, 2021.
TIMING CONSIDERATIONS
The Long Beach Municipal Code requires this item to be transmitted to the City Council within 60 days of receiving an appeal, the first of which was filed on September 27, 2021. However, the Development Services Department can provide an extension of up to 90 days for the appeal to be adjudicated pursuant to LBMC Section 21.21.504. City Council action is requested on December 7, 2021, to ensure timely response to appellant.
FISCAL IMPACT
This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no fiscal or local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
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[Enter Body Here]
Respectfully Submitted,
OSCAR W. ORCI
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
THOMAS B. MODICA
CITY MANAGER