Title
Hold a Public Hearing to Consider an Appeal of an Administrative Use Permit to Allow Sale of Beer, Wine, and Spirits for Off-Site Consumption as an Accessory Use at the Existing Walgreens Store at 1600 Park Street; and Adoption of Related Resolution
Body
CITY OF ALAMEDA
Memorandum
To: Honorable President and
Members of the Planning Board
From: Allen Tai
Planning Services Manager
Date: March 9, 2015
Re: Hold a Public Hearing to Consider an Appeal of an Administrative Use Permit to Allow Sale of Beer, Wine, and Spirits for Off-Site Consumption as an Accessory Use at the Existing Walgreens Store at 1600 Park Street; and Adoption of Related Resolution
BACKGROUND
On February 3, 2015, the Zoning Administrator held a public hearing and conditionally approved an administrative use permit to allow up to 74 square-feet of retail area for the sale of beer, wine, and spirits for off-site consumption as an accessory use at the new Walgreens at 1600 Park Street (Exhibit 1). A 74-square-foot area inside the Walgreens store is equivalent to approximately 18 linear feet of shelf space (six sections of shelf at three feet each) and eight feet of cooler space (four cooler doors at two feet each).
On February 10, 2015, O Hwan Kwon of 1601 Park Street (Pit Stop Market) filed an appeal of the Zoning Administrator approval. The Petition for Appeal makes eight arguments as to why the Planning Board should overturn the Zoning Administrator's decision to approve the proposal (Exhibit 2).
ANALYSIS
The following analysis addresses each of the appellant's eight arguments provided in the Petition for Appeal and briefly summarized below.
Argument #1: The appellant argues that sale of beer, wine, and spirits is not a necessity.
Staff would agree; alcohol sales at this location is not a necessity, but it is a convenience. To approve this use permit and allow Walgreens to sell beer, wine and spirits, the City must make the findings necessary to approve a use permit, and the City must make a finding that the proposal is either a necessity or a convenience to the public. The Zoning Administrator made the findings necessary for use permit approval and the additional finding that the proposal to dedicate 74 square feet of display area for alcohol sales would be a convenience for the Alameda community.
Argument #2: The appellant argues that the area is already "oversaturated" with businesses selling alcohol, including restaurants, bars, markets, and convenience stores.
The concentration of businesses with alcohol sales within particular geographic areas is a function of the City's land use regulations set forth in the General Plan and Zoning Ordinance. The zoning regulations specifically limit the sale of alcohol to commercial zones as a way to segregate these uses from residential neighborhoods. These commercial areas include the Park Street and Webster Street business districts, various shopping centers and other isolated commercial locations throughout the city.
Based upon information provided by the California Department of Alcoholic Beverage Control (ABC), there is not a disproportionately large number of businesses that sell packaged alcohol for off-sale consumption on Park Street. The ABC database of liquor licenses identifies approximately 50 on-sale licenses and 12 off-sale licenses along the vicinity of the entire Park Street corridor. On-sale licenses pertain to food establishments, including restaurants, cafes and bars that sell alcohol for on-site consumption. Off-sale licenses pertain to those businesses that sell packaged alcohol for off-premises consumption.
Liquor licenses are also distinguished by the type of liquor that can be sold. Most off-sale licenses are for beer and wine only. Other licenses allow the sale of a full range of alcoholic beverages, including distilled spirits. These Type 21 General Off-Sale licenses, are typically licensed to liquor stores. Of the 12 businesses identified with off-sale licenses, only four have a Type 21 license - the Alameda Cellars liquor store on Encinal Avenue, the CVS drug store at Santa Clara and Oak, Pit Stop Market owned by the appellant, and Walgreen's South Shore location. This Walgreens would be the fifth business along Park Street with a Type 21 license. The Zoning Administrator does not consider five Type 21 licenses on the entire Park Street commercial corridor to be an "oversaturation."
Argument #3: The applicant argues that this use permit will "impede" the City's efforts to revitalize Park Street.
Historically, the Park Street commercial district has been a permitted location for liquor sales, and the presence of alcohol has not impacted the overall vitality of businesses in the commercial district. In fact, the district has seen dramatic improvement over the last 10 years with the rehabilitation and expansion of the Alameda Theatre and the subsequent rejuvenation of the area with new businesses and entertainment venues. From staff's perspective, the Park Street business district is thriving, and the introduction of alcohol sales in 74 square feet of display at Walgreens will have a negligible impact on the continued success of the business district.
Argument #4: The applicant argues that the approval will result in "increased crime and vagrancies."
As a national retailer, Walgreens has established policies and procedures requiring management oversight and employee training with alcohol sales. These procedures are intended to minimize crime and ensure compliance with applicable laws and regulations. The Alameda Police Department does believe that the proposal will result in public safety impacts. The Police Department also noted there are no police incidents related to alcohol sales at Walgreen's South Shore location, which indicates that Walgreens manages the sale of alcohol in a responsible manner.
To further limit the possibility of crime and vagrancy, the Zoning Administrator conditioned the approval to exclude sale of airplane liquor bottles and other beverage types which are often associated with vagrant activity. Moreover, the Zoning Administrator conditioned the permit to require that all employees selling alcohol, or directly supervising such sales, to complete a course in Responsible Beverage Sales and Service through the ABC within six months of employment at the establishment.
As with all use permits approved in the City of Alameda, the permit may be modified or revoked by the Zoning Administrator should it determine that: 1) the use or conditions under which the use is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity; 2) the property is operated or maintained so as to constitute a public nuisance; or 3) the use is operated in violation of the conditions of approval.
While the applicant's proposal by itself should have no impact on public safety and welfare in the community, staff believes the additional conditions imposed by the Zoning Administrator provide even further safe-guarding of the community.
Argument #5: The applicant argues that the request to sell alcohol should have been on the original plans for the building submitted and approved by the City in 2012.
In 2012, the subject building was designed to accommodate a new CVS store. CVS was not interested in selling alcohol at the time, and it did not apply for permits to do so. After the City's final approval of the project, CVS reconsidered its plans to locate at the site, and the property owners entered into contract with Walgreens to occupy the building. CVS's decision to forgo a use permit application to sell alcohol in 2012, should not be used or interpreted as a prohibition on any current or future property owner to seek permission for a use permit.
Argument #6: The applicant argues that "the community" has already requested that ABC deny the license.
At this location, ABC may only approve a liquor license if the applicant obtains approval by the local jurisdiction citing a public benefit, which is a process known as a Determination of Public Convenience or Necessity.
In approving the use permit, the Zoning Administrator found that the sale of alcoholic beverages confined to a small portion of the existing Walgreens retail area would serve public convenience to shoppers. Approval of the use permit with the finding of Public Convenience enables the ABC to issue a liquor license to Walgreens.
Argument #7: The appellant argues that the City has previously denied such applications in saturated areas.
The City did deny an application by a gas station on Webster Street to modify an existing use permit to allow alcohol sales. The original use permit prohibited alcohol sales for a number of reasons, including the fact that the gas station is located immediately adjacent to two residential structures. The Police Department also documented a number of incidents in the vicinity associated with alcohol use. In 2010, the owner of the gas station requested that the City amend the use permit to remove the prohibitions on alcohol sales. The application was denied by the City Council.
In addition, the City also denied a request in 2011 from Safeway Gas to sell alcohol at Alameda Landing. In that case, the City found that the adjacent Safeway store would provide a convenient location for Alameda customers and the additional alcohol sales from a gas station near Webster Street would not be consistent with public health, safety and welfare.
In the case of Walgreens, staff believes there are important distinctions between this application and the prior applications:
1. The Walgreens store is not located immediately adjacent residential structures, and the closest residential structure is approximately 200 feet away.
2. The Walgreens store is not a gas station.
3. The Alameda Police Department has no concerns over alcohol sales at this location.
Argument #8: The appellant argues that the project site is too close to schools.
The site is at least four blocks away from the nearest schools: Edison Elementary School and Alameda High School. The elementary school is approximately four blocks from the Walgreens site, but only three blocks from the Bridgeside Shopping Center, which contains businesses that sell alcohol. The Alameda High School is five blocks away from the Walgreens site, but is only one block away from CVS, which also sell alcohol for off-premises consumption. The appellant's Pit Stop Market is also closer to the high school than Walgreens.
Staff does not believe that this store is too close to these two schools to sell alcohol for several reasons:
1. Given the geographic characteristics of the City, a variety of retail uses including alcohol sales will be located within walking distance of schools.
2. The site is not adjacent to or in close proximity (less than a ΒΌ mile) of any school.
3. Many other retail establishments that sell alcohol are in closer proximity to schools than the subject Walgreens.
4. Laws prohibit the sale of alcohol to minors, and every retailer, including Walgreens, must seek age verification when there is a potential risk of violation.
Based on this analysis, staff is recommending that the Planning Board uphold the Zoning Administrator's approval of the use permit to sell alcohol for off-site consumption.
PUBLIC NOTICE
A notice for this hearing was mailed to property owners and residents within 300 feet of the project site, published in the Alameda Journal and posted at the subject property. Public correspondence is attached as Exhibit 3.
ENVIRONMENTAL REVIEW
This Use Permit application and the appeal request is Categorically Exempt from additional environmental review pursuant to California Environmental Quality Act (CEQA) Guidelines, Section 15301(a) - operation, permitting or leasing of existing private structures involving negligible or no expansion of use beyond that which exists.
RECOMMENDATION
Staff recommends the Planning Board hold a public hearing and approve a resolution upholding the Zoning Administrator's decision to approve the Administrative Use Permit to allow sale of alcoholic beverages for off-site consumption as an ancillary use at Walgreens (Exhibit 4).
Respectfully submitted,
Allen Tai
Planning Services Manager
Exhibits:
1. February 3, 2015 Zoning Administrator Use Permit and Conditions
2. February 10, 2015 Petition for Appeal by O Hwan Kwon
3. Public Correspondence
4. Draft Resolution