TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Carrie Tai, AICP, Community Development Director
Talyn Mirzakhanian, Planning Manager
Elaine Yang, Associate Planner
SUBJECT:Title
Public Hearing De Novo to Consider a Use Permit to Upgrade An Existing Alcohol License From Allowing Off-Sale Beer and Wine to Allow Off-Sale Beer, Wine, and Distilled Spirits At An Existing Convenience Store at 1221 Artesia Boulevard, Suite 101, and Associated Environmental Determination in Accordance with the California Environmental Quality Act. (7-Eleven) (Community Development Director Tai).
(Estimated Time: 1 Hr. 15 Min.)
A) CONDUCT PUBLIC HEARING DE NOVO
B) CONSIDER DIRECTING STAFF TO DRAFT RESOLUTION MAKING AN ENVIRONMENTAL DETERMINATION OF CATEGORICAL EXEMPTION IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND CONDITIONALLY APPROVING THE SUBJECT USE PERMIT FOR CONSIDERATION AT A SUBSEQUENT COUNCIL MEETING
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Recommended Action
RECOMMENDATION:
Staff recommends that after conducting a public hearing de novo, the City Council direct staff to draft a resolution making an environmental determination of exemption under CEQA and approving the Use Permit subject to conditions.
FISCAL IMPLICATIONS:
Costs associated with the processing of the Use Permit are paid by the applicant; and costs associated with the appeal of the Planning Commission’s decision are paid by the appellant. Therefore, there are no fiscal impacts to the City associated with this request.
BACKGROUND:
An application was submitted by 7-Eleven for a Use Permit to upgrade their existing alcohol license, from Type 20 (off-sale beer and wine) to Type 21 (off-sale beer, wine and distilled spirits). As a proactive measure, and to minimize potential adverse impacts on the community, the applicant proposes to keep distilled spirits locked in a cabinet that is accessible only to employees. No physical exterior modifications or expansion of the convenience store is proposed. A Use Permit is required to upgrade an existing alcohol license or to obtain a new one in the General Commercial (CG) zoning district per Manhattan Beach Municipal Code (MBMC) Section 10.16.020(C Districts: Additional Land Use Regulations)(L) <https://library.municode.com/ca/manhattan_beach/codes/code_of_ordinances?nodeId=TIT10PLZO_PTIISEDIRE_CH10.16CCODI_10.16.020CLCCCGCDCNDILAUSRE>.
In 1983, the City approved building plans for a 5,000 square-foot three-tenant commercial center (Suites 101, 102, and 103) at the subject property. The approved building plans show 7-Eleven as an anticipated tenant for Suite 101. In 1984, the City approved 7-Eleven’s business license, and the California Department of Alcoholic Beverage Control approved their alcohol license for off-sale beer and wine. At that time, the Manhattan Beach Municipal Code (MBMC) did not require a Use Permit for the sale of alcohol, and so 7-Eleven’s business license was sufficient for the entire operation, including the ancillary sale of alcohol. However, City records include a memorandum dated March 6, 1984, acknowledging the person-to-person alcohol license transfer, during which 7-Eleven acquired their off-sale beer and wine license. The MBMC has since been changed to require a Use Permit for a new or modified alcohol license. Therefore, 7-Eleven’s current alcohol sales are a legal non-conforming use.
On February 9, 2022, the Planning Commission unanimously and conditionally approved 7-Eleven’s Use Permit request. Richard McQuillin appealed the Planning Commission’s decision on the following bases: 1) the store’s proximity to residences; 2) the alleged abundance of existing liquor stores in the South Bay area in conjunction with his opposition to the approved hours for the sale of distilled spirits; and 3) the belief that 7-Eleven negatively impacts the quality of life in the area (Attachment 4).
The Municipal Code provides that appeals and reviews of Planning Commission quasi-judicial hearings be conducted as a public hearing de novo. De novo means that the City Council must take a “fresh look” at all of the evidence presented at its public hearing, and after the public hearing is closed, base its decision on the evidence presented at the public hearing before the City Council.
DISCUSSION:
The applicant (7-Eleven) is located within an existing, three-tenant commercial center located at 1221 Artesia Boulevard, in the City’s General Commercial (CG) zoning district. Currently, the commercial center is occupied by the following tenants: 7-Eleven (Food and Beverage Sales-convenience store), Sports Clips (Personal Improvement Service-barber), and Amigos Tacos (Eating and Drinking Establishment-restaurant). Neighboring properties are occupied with the following uses: multi-family residential apartments (north), religious institution/church complex (east), fast food restaurant (west), and office complex (south). A detailed project overview is included below:
PROJECT OVERVIEW:
Ø Location: 1221 Artesia Boulevard, Suite 101
Ø Legal Description: AMENDED MAP OF SEASIDE PARK E 135 FT OF S 125 FT EX OF STS LOT 10
Ø General Plan Land Use: General Commercial
Ø Zoning: General Commercial
Ø Area District: I
Ø Parking for Commercial Center: 23 (existing); no change proposed
Ø Applicant Tenant (7-Eleven):
• Use: Food and Beverage Sales (Convenience Store) (existing); no change proposed
Ø Applicant Tenant (7-Eleven) (Continued from page 2):
• Size: 2,400 sq. ft. (existing); no change proposed
• Alcohol License: Off-Sale Beer & Wine (existing); Off-Sale Beer, Wine & Distilled Spirits (proposed)
• Hours of Store Operation: 24 Hours/Day; 7 Days/Week (existing); no change proposed
• Hours of Alcohol Sale: 6 AM to 2 AM Daily (existing); no change proposed
• Neighboring Zoning & Land Uses:
North: General Commercial (Apartments)
South (Hermosa Beach): General and Highway Commercial (Office)
East: High Density Residential/Residential Medium (Church)
West: General Commercial (Fast Food)
Throughout its 37 years of operation, the applicant has had no notable issues pertaining to alcohol license violations. The Police Department has reviewed the request and has raised no concerns or objections. The applicant’s request is solely focused on upgrading its existing alcohol license to include the off-sale of distilled spirits, and will not involve any other changes to the existing primary use (Food and Beverage Sales), nor will it expand the physical tenant space. Such a request is allowed in the CG zone subject to the approval of a Use Permit. Draft conditions of approval are attached for City Council review. Conditions No. 4 through 14 represent conditions designed to minimize the potential for negative impacts to surrounding uses.
MBMC Section 10.84.010 <https://library.municode.com/ca/manhattan_beach/codes/code_of_ordinances?nodeId=TIT10PLZO_PTVMIRE_CH10.84USPEVAMIEXPRDEPLSIDEPE_10.84.010PU> provides that, “[u]se permits are required for use classifications typically having unusual…operating characteristics requiring special consideration so that they may be designed, located, and operated compatibly with uses on adjoining properties and in the surrounding area.” Alcohol sales in the CG zone constitute an unusual operating characteristic that necessitates special consideration. Furthermore, pursuant to MBMC 10.84.060(A) <https://library.municode.com/ca/manhattan_beach/codes/code_of_ordinances?nodeId=TIT10PLZO_PTVMIRE_CH10.84USPEVAMIEXPRDEPLSIDEPE_10.84.060REFI>, an application for a Use Permit shall be approved by the decision-making authority only if all of the required findings below can be made:
1. The proposed location of the site is in accord with the objectives of this title and the purposes of the district in which the site is located.
2. The proposed location of the use and the proposed conditions under which it would be operated or maintained will be consistent with the General Plan; will not be detrimental to the public health, safety, or welfare of persons residing or working on the proposed project site or in or adjacent to the neighborhood of such use; and will not be detrimental to properties or improvements in the vicinity or to the general welfare of the City.
3. The proposed use will comply with the provisions of the City’s Planning and Zoning Title, including any specific conditions required for the proposed use in the district in which it would be located.
4. The proposed use will not adversely impact or be adversely impacted by nearby properties.
As demonstrated in the discussion herein, staff evaluated the request in light of the required Use Permit findings and concludes that there is sufficient evidence that all four findings can be made.
First, the MBMC’s stated purpose for the CG zone is that the district is intended to provide opportunities for the full range of retail businesses that are suitable for location in Manhattan Beach. Food and beverage stores are quintessential community businesses that provide food, beverages and other household goods to residents and visitors. The sale of alcoholic beverages, including beer, wine and distilled spirits, alongside food is a common component of a convenience store operation. The proposal to upgrade the existing alcohol license to include the sale of distilled spirits in addition to beer and wine is incidental to, and does not alter, the existing primary use of the commercial space.
Second, 7-Eleven’s food and beverage use is consistent with the General Plan’s General Commercial land use designation of the subject property. The project proposes an upgrade to an existing alcohol license and will not change the primary use of the business. The proposed project is compatible with neighboring uses, as neighboring lots to the west are developed with commercial uses. Some of those businesses sell alcohol, including El Sombrero (restaurant) and Manhattan Fine Wines (beverage sales). The General Plan encourages a broad range of retail and service commercial and professional office uses intended to meet the needs of local residents and businesses and to provide goods and services for the regional market. Since 1984, 7-Eleven has contributed to this goal of meeting the food and beverage needs of local and regional residents, and will continue to do so if the Use Permit is approved.
Third, the primary use of the 7-Eleven convenience store, food and beverage, is not changing and is permitted by right in the subject property’s zone (CG) per MBMC Section 10.16.020 <https://library.municode.com/ca/manhattan_beach/codes/code_of_ordinances?nodeId=TIT10PLZO_PTIISEDIRE_CH10.16CCODI_10.16.020CLCCCGCDCNDILAUSRE>. If the Use Permit is approved, 7-Eleven will be in compliance with all provisions of MBMC Title 10 Planning and Zoning <https://library.municode.com/ca/manhattan_beach/codes/code_of_ordinances?nodeId=TIT10PLZO>. Furthermore, draft Conditions 4 through 14, are included to promote caution and safety (See Attachment 1). No exterior changes are proposed as a part of this project.
Fourth, the 7-Eleven has operated as a food and beverage business and has sold beer and wine under a Type 20 alcohol license for more than three decades, and now requests to expand its alcoholic offerings to include distilled spirits. As mentioned previously, the applicant proposes safety measures that limit the direct accessibility of distilled spirits to employees; thereby, minimizing opportunities for adverse impacts to the community. As shown on the floor plan, the distilled spirits are located behind the cash register in an area only accessible to employees (Attachment 3, Page 21). Draft Condition No. 7 requires that distilled spirits must be kept in a location that is inaccessible to customers and directly accessed only by employees (Attachment 1, Page 3). Additionally, full alcohol service will not create demands exceeding the capacity of public services and facilities. The project, as proposed was reviewed by the Police Department; no issues of concern were raised.
Planning Commission
At the February 9, 2022, Planning Commission meeting, staff presented the Use Permit request with a recommendation of approval. The public hearing was opened, and the applicant’s representative, Bruce Evans, spoke in favor of the project. One member of the public, Mr. Richard McQuillin, spoke in opposition to the project. He expressed concern that the approval of the Use Permit would exacerbate the alleged existing prevalence of trash, urine, graffiti, and vomiting in the surrounding neighborhood and consequently damage the residents’ quality of life. No further public comment was received.
After discussion, the Planning Commission voted 5-0 to adopt the resolution approving the applicant’s Use Permit request and adopting the associated environmental determination. The Planning Commission meeting minutes are attached for reference (Attachment 2).
Appeal
Richard McQuillin submitted his appeal on February 22, 2022, before the appeal period lapsed. In a letter to the City Council, the appellant described concerns regarding the store’s proximity to residences, the need to further restrict the hours for sale of distilled spirits, and existing conditions near the store (Attachment 4).
Below, staff provides responses to the specific arguments on which the appellant has based his appeal, with the bold and italicized text taken directly from the appellant’s written materials submitted to the City Council.
“The premises lie within 100 feet of residences…”
The 7-Eleven tenant is an approximately 140-foot walk from an apartment complex at 715 South Prospect Avenue, which is the residential development in closest proximity to the store. City regulations do not establish a required minimum distance between a store that sells alcohol and the nearest residence. Rather, approval of a Use Permit is based on the City’s ability to make all required findings for a Use Permit, none of which dictate a requirement for a buffer between residences and commercial uses selling alcohol. Conditions of approval for the Use Permit request have been designed to minimize the potential adverse impacts of the sale of distilled spirits to all surrounding uses. The Planning Commission was able to make the findings that the proposed use would not be detrimental to the public health, safety or welfare of persons nor adversely impact nearby properties (Findings 2 and 4). Furthermore, the applicant is required to obtain the corresponding California Department of Alcoholic Beverage Control (ABC) license and comply with all of the State’s applicable regulations.
“There are plenty of liquor stores in the South Bay open until 2 AM. Please don’t approve another one next door to residences in our neighborhood.”
The City evaluates each Use Permit on its individual merits. City regulations do not limit the number of similar businesses nearby. The availability of other similar operators is not a consideration required by Use Permit findings. The Planning Commission was able to make all four of the required findings for a Use Permit. Additionally, the request was reviewed by the Police Department. 7-Eleven is a 24-hour business and has historically cut off alcohol sales at 2 AM to in compliance with ABC regulations. According to the California Department of Alcoholic Beverage Control, there are 16 stores in Manhattan Beach with the same alcohol license (off-sale beer, wine and distilled spirits) as requested by 7-Eleven. Of those stores, none are open as late as 2 AM and most close before midnight.
“In the past year I have encountered these things on Tennyson Street, just north of the 7-11: (a) used contraceptives, (b) a bag of urine, and (c) repeated graffiti. I’ve photographed these things and called the city for their removal. I once observed a young lady exit the passenger side of car, sweat profusely, vomit on the sidewalk, and return to her car. Families are out and children play on Tennyson Street. We need less of this junk and activity, not more.”
While the encounters stated by the appellant constitute nuisances, there has been no indication that they are attributed to 7-Eleven. The proposed conditions of approval for the requested Use Permit are intended to hold 7-Eleven accountable for its operation in compliance with these conditions. Noncompliance with the conditions of approval could result in a review and potential revocation of its privilege to sell alcohol. Without the approval of the subject Use Permit, the store is legally permitted to continue selling beer and wine until 2 AM, consistent with its legal, nonconforming operations over the last 37 years. Therefore, the granting of a Use Permit gives the City a greater ability to regulate the business and its alcohol sales.
“Also, the 7-Eleven parking lot was dirty and littered with trash when visited, including two empty Tequila boxes. The same trash was there when I came back the next morning…There’s graffiti in two places right on the front of the store.”
Staff was unable to substantiate the appellant’s claims. The City’s records to not show reports or confirmed violations on the subject property. Furthermore, draft Condition No.10 requires that the management of the property must police the property during its tenants’ hours of operation to keep it free of litter and food debris. A lack of compliance with this or any other condition could trigger a review of the Use Permit.
CONCLUSION:
Staff evaluated the appeal of the Use Permit, as presented by the appellant, and found no basis for granting the appeal. Furthermore, as demonstrated above, the Use Permit findings can be made in support of approval. Accordingly, staff recommends approval of the Use Permit request and adoption of the associated environmental determination in accordance with CEQA.
PUBLIC OUTREACH:
A public notice for the project’s May 17, 2022, City Council public hearing was published in the Beach Reporter, mailed to surrounding property owners, and posted online on Thursday, May 5, 2022. The agenda posted on Wednesday, May 11, 2022, included information on how members of the public could comment via eComment, email, and voicemail prior to the meeting. The public notice also informed that the public that anyone can provide live testimony by Zoom, and instructions were included on the City website as well as the meeting agenda.
As of the writing of this report, staff has received no public comments in support of and in opposition to the project.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines, which exempts the permitting and licensing of existing private structures involving negligible expansion of existing or former use. Furthermore, there are no features that distinguish this project from others in the exempt class, and therefore, there are no unusual circumstances. Thus, no further environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Draft Conditions of Approval
2. Planning Commission Minutes (February 9, 2022)
3. Link to Planning Commission Report and Attachments (February 9, 2022) (Web-Link Provided)
4. Appellant Materials (Richard McQuillin)
5. Use Permit Application (Floor Plan, Site Plan & Applicant Narrative)
6. PowerPoint Presentation