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AGENDA ITEM: 2. DATE: 02-22-16 STAFF REPORT CONDITIONAL USE PERMIT NO. 15-21 DATE: TO: FROM: APPLICANT: LOCATION: REQUEST: Lancaster Planning Commission Planning Section, Community Development Division Development Services Department SADAD ANF Inc. (Antoun Abdullatif) 710 West Avenue L (Ben s Corner) Change an Alcohol Beverage Control Type 20 license to an Alcohol Beverage Control Type 21 license (primary off-sale alcoholic beverage establishment), plus waiver from distance requirements, at an existing business in the Light Industrial (LI) Zone RECOMMENDATION: Adopt Resolution No. 16-02 approving. BACKGROUND: There have been no prior hearings before either the City Council or the Planning Commission concerning this property. GENERAL PLAN DESIGNATION, EXISTING ZONING AND LAND USE: The subject location is designated Light Industrial (LI) by the General Plan and is zoned Light Industrial (LI), and is developed as retail commercial. The General Plan designation, zoning, and land use of the surrounding properties are as follows: GENERAL PLAN ZONING EXISTING USE NORTH Healthcare/Commercial with Specific Plan overlay (H, C) Amargosa Creek Specific Plan (SP) Vacant land and Kaiser Permanente medical office building SOUTH Light Industrial (LI) Light Industrial (LI) Warehouse EAST Light Industrial (LI) Light Industrial (LI) Auto repair WEST Light Industrial (LI) Light Industrial (LI) Warehouse PUBLIC IMPROVEMENTS: The site is bounded to the north by Avenue L, which is improved with three lanes in the east direction and two lanes in the west direction. All utilities are available to serve the site.

PC Staff Report Page 2 ENVIRONMENTAL REVIEW: The proposed project is not subject to the California Environmental Quality Act (CEQA) per Section 15061(b)(3), which states that where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. As the proposed project is a use permit for the sale of alcohol at an existing facility, no impacts on environmental resources would be expected to occur. LEGAL NOTICE: Notice of Public Hearing was mailed to all property owners within a 500-foot radius of the project, posted in three places, posted on the subject property, and noticed in a newspaper of general circulation per prescribed procedure. ANALYSIS: The applicant is requesting off-sale beer, wine, and distilled spirits with a Type 21 alcohol license for an existing business. The business currently has a Type 20 license for beer and wine. The majority of the sales floor area is devoted to groceries, fresh meat, and produce, and falls under the definition of Convenience market in Lancaster Municipal Code (LMC) Section 17.42.020. The store also currently devotes less than 5% of the sales floor area to the sale of alcohol which qualifies it as an "Incidental off-sale alcoholic beverage establishment" per the LMC, and is therefore not bound by any distance requirements. Obtaining a Type 21 license would change the category of the business per the LMC to that of a Mini-mart, which is considered a Primary Alcoholic Beverage Establishment by definition. Primary establishments are bound by distance requirements, measured from closest property lines between two uses, and 300 feet is required between a primary establishment and a residential use. There is a residential parcel north-west of the establishment approximately 275 feet away, therefore a waiver to the distance requirement is necessary in order to obtain the Type 21 license. The applicant also wishes to expand the amount of sales floor area devoted to alcohol. The applicant is proposing to expand alcohol sales to approximately 536 square-feet. This is 6.6% of 8,100 square-feet, the gross floor area of the building. This calculation includes the area occupied by product displays and a three-foot aisle in front of each display. The applicant s intent is to offer a wider selection of alcohol, including spirits, while maintaining the business primarily as a small grocer. The area not devoted to alcohol sales would be approximately 3,784 square-feet, which is 47% of the gross floor area of the building. To accommodate the change, two cabinets with lockable glass doors will be installed in the northeast corner of the building, and a walk-in cooler installed in the northwest corner. In addition, one row of display podiums adjacent to the butcher case will be removed and replaced with a double row of shelving, one side of which will be devoted to alcohol display. There will be no changes visible from the exterior. Separation Distance Requirements. The City s alcohol ordinance Section 17.42.040 establishes separation distance requirements between certain types of alcohol sellers and uses identified as sensitive uses. This provision in the ordinance goes to the core reason that the City has enacted regulations for alcohol sales, which is to deal with the potential for negative external effects on adjacent areas that certain alcohol establishments can create. These effects can include noise, loitering, trash and debris, or increased need for police services, for example, but are not intended to

PC Staff Report Page 3 include more social concerns (whether the consumption of alcohol in the community is good or bad, for example). The ordinance makes a distinction between retail uses that sell alcohol as an incidental activity (grocery stores, drug stores, etc., that devote 5% or less sales floor area to alcohol sales) and those that are primary alcohol sellers, such as nightclubs or bars that sell alcoholic beverages for on-site consumption, or liquor stores whose primary business is the sale of alcohol. Incidental alcohol establishments are considered to have external negative effects that are minimal, and the positive effects that the retail uses provide to the community outweigh these negative effects. Primary alcohol sellers, on the other hand, are considered much more likely to create adverse effects on surrounding uses. Obtaining a Type 21 license and expanding the area devoted to alcohol sales will designate this business as a Primary Alcoholic Beverage Establishment. There is a residential development within 300 feet of the property line, therefore a distance waiver is required for the applicant to obtain their Conditional Use Permit. The Planning Section has received the Alcoholic Beverage Establishment Application Investigation form from Deputy Lance Jordan of the Lancaster Sheriff s Station stating that the Los Angeles Sheriff s Department does not oppose the applicants request for a Type 21 ABC license. According to Deputy Jordan, the request for a Type 21 license would not be detrimental to the public safety based on the criteria outlined in the investigation report, which coincides with the Lancaster Municipal Code. Staff is recommending approval of the Type 21 license request and distance waiver, because no adverse effects are anticipated if the business becomes categorized as a Primary Alcoholic Beverage Establishment. The nature of the business is primarily that of a grocery store, though because it is under 10,000 square feet it is not considered a grocery store per the LMC. However, the character of the business is clear and well-established, and staff believes the requested expansion of alcohol sales, subject to the approved conditions, will not significantly change the primary nature of the business. Staff is recommending approval of the proposed Type 21 license, and waiver of the distance requirements because the proposed project meets the requirements of the zone; meets a community need; and will not adversely affect nearby businesses or residences. The conditions of approval have been included, which would ensure that the primary character of the business as a small grocer be maintained. Staff believes the Planning Commission could make a favorable determination in support of the proposal. Respectfully submitted, Tim Rosenstein, Assistant Planner cc: Applicant Engineer

RESOLUTION NO. 16-02 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LANCASTER, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT NO. 15-21 WHEREAS, a conditional use permit has been requested by Antoun Abdullatif, to change an Alcohol Beverage Control Type 20 license to an Alcohol Beverage Control Type 21 license (primary off-sale alcoholic beverage establishment), plus waiver for distance requirements, at an at an existing business in the Light Industrial (LI) Zone; and WHEREAS, an application for the above-described conditional use permit has been filed pursuant to the regulations contained in Article I of Chapter 17.32 and Chapter 17.42, of the Lancaster Municipal Code; and WHEREAS, a notice of intention to consider the granting of a Conditional Use Permit has been given as required in Article V of Chapter 17.32 of the Lancaster Municipal Code, and in Section 65905 of the Government Code of the State of California; and WHEREAS, staff has performed necessary investigations, prepared a written report, and recommended approval of this conditional use application, subject to conditions; and WHEREAS, public notice was provided as required by law and a public hearing was held on ; and WHEREAS, the proposed project is not subject to the California Environmental Quality Act (CEQA) per Section 15061(b)(3), which states that where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. As the proposed project is a use permit for the sale of alcohol at an existing facility, no impacts on environmental resources would be expected to occur. WHEREAS, this Commission hereby adopts the following findings in support of approval of this application: 1. The proposed use of a Mini-Mart with off-sale beer, wine, and spirits (ABC License Type 21) is in conformance with the General Plan land use designation of Light Industrial (LI). 2. The requested alcohol use at the location proposed will not: a. Adversely affect the health, peace, comfort, or welfare of persons residing or working in the surrounding area, because the character of the business will still primarily be that of a small grocery store. b. Be materially detrimental to the use, enjoyment, or valuation of property of other persons located in the vicinity of the site, because activity at the property is unlikely to change substantially.

PC Resolution No. 16-02 Page 2 c. Jeopardize, endanger or otherwise constitute a menace to the public health, safety, or general welfare, because the business is not in a location likely to attract unwelcome activity solely due to a change in the amount and variety of alcoholic beverages it sells. 3. The proposed site is adequately served: a. By Avenue L which is of sufficient width and improved to carry the anticipated daily vehicle trips such use would generate; and b. By other public or private service facilities, including sewer, water, fire, and police services as required. 4. The proposed use will not result in a significant effect on the environment, because all potential impacts have been found to not be significant as noted in the environmental review section of the staff report prepared for this project. 5. The proposed change, from a Type 20 to a Type 21 alcohol license, and the change in the amount and variety of alcoholic beverages that will be offered, serves the public convenience and necessity. 6. The change in license will serve a specific community need since there are few establishments nearby that fill the same niche as a small grocer.

PC Resolution No. 16-02 Page 3 NOW, THEREFORE, BE IT RESOLVED: This Commission hereby approves, subject to the conditions attached hereto and incorporated herein. vote: PASSED, APPROVED and ADOPTED this 22nd day of February 2016, by the following AYES: NOES: ABSTAIN: RECUSED: ABSENT: JAMES D. VOSE, Chairman Lancaster Planning Commission ATTEST: BRIAN S. LUDICKE, Planning Director City of Lancaster

ATTACHMENT TO PC RESOLUTION NO. 16-02 CONDITIONAL USE PERMIT NO. 15-21 CONDITIONS LIST GENERAL ADVISORY 1. All standard conditions as set forth in Planning Commission Resolution Number 15-29 for Conditional Use Permits shall apply except for Conditions No. 5, 21, 26, 27. ADDITIONAL CONDITIONS 2. Display areas devoted to alcohol sales, including reasonable public access aisles within or adjacent to said display areas, shall not exceed 600 square feet. 3. There shall be no exterior advertising or sign of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages. 4. The City reserves the right to periodically review the operation for potential problems. If problems (on-site or within the immediate area) including, but not limited to, public drunkenness, the illegal sale or use of narcotics, drugs or alcohol, lewd and/or disorderly conduct, and disturbing the peace result from the proposed land use, etc., the conditional use permit may be subject to review and revocation by the City of Lancaster.