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HomeMy WebLinkAbout19-Development Services CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: James Funk, Director Dept: Development Services Date: July15,2003 ORIGiNAL Subject: Determination of Public Convenience or Necessity for a Type 20 Liquor License for Wal-Mart at 4001 N. Hallmark Parkway. MCC Date: August 4, 2003 Synopsis of Previous Council Action: That the Mayor and Common Council determine that the public convenience or necessity is served and direct the Planning Division to send a letter to the Department of Alcoholic Beverage Control for a Type 20 (off-site beer and wine) liquor license for Wal-Mart at 4001 N. Hallmark Parkway, subject to the Conditions of Approval (Exhibit 4). I'.... a .nA8L James Funk I Contact person: V~lp:r1p: R(l~~ phnnp' ,R4 ~n~7 Supporting data attached: SgffReport Ward: 6 FUNDING REQUIREMENTS: Amount: N/A Source: (Acc!. No.) (A..rt np.~("rlrtlnn) Finance: Council Notes: Agenda Item No. ~ }/po /9 f/lfjtJ.3 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT Subject: Determination of Public Convenience or Necessity for a Type 20 (off-sale beer and wine) for Wal-Mart located at 4001 N. Hallmark Parkway. Mayor and Common Council Meeting of August 4, 2003 ADDlicant Gresham, Savage, Nolan & Tilden, LLP 600 N. Arrowhead Avenue, Suite 300 San Bernardino, CA 92401 909.884.2171 BACKGROUND Wal-Mart's new corporate policy is to provide for the sale of been and wine at its retail operations. The new Wal-Mart store at 4001 N. Hallmark Parkway is nearly completed and scheduled to open in late August 2003. The store is approximately 140,000 square feet and Wal-Mart proposes to have one display area only (non- refrigerated) of approximately 40 square feet (2' X 20'). Wal-Mart proposes to sell wine and wine coolers as an ancillary service. This Wal-Mart was approved as a general retail store with various pre-packaged food items found at similar stores. It will not be a Superstore and will not carry a full line of grocery products. The Police Department does not oppose the issuance of the ABC license. Applicable conditions of approval have been included with the Development Permit. FINANCIAL IMPACT None; the applicant paid the processing fee. RECOMMENDATION Staffrecommends that the Mayor and Common Council determine that the public convenience or necessity is served and direct the Planning Division to prepare a letter for the Department of Alcoholic Beverage Control for a Type 20 liquor license at 4001 N. Hallmark Parkway, subject to the Conditions of Approval (Exhibit 4). Exhibits: I 2 3 4 Location Map Floor Plan Applicant's Findings Conditions of Approval EXHIBIT 1 CITY OF SAN BERNARDINO PROJECT: PCN - Walmart PLANNING DIVISION LOCATION MAP LAND USE DISTRICTS HEARING DATE: 8/4/03 u NORTH ~ \~ " = = ~ ~ -. = c;.'C =>s, IJCl - "1 -"00 :. 0 _. =- IJCl 0 g. =--11> ;-'='I"'to Q. ~. ~ 'C ~ -1JCl ~ ~ "<:> ., ~ ~ ~ ~ , ~ II>~ ....., o ~ ~ II> ~~ ;..= Nl"l ~~ ~ ..... ~ o 'i . I , . :I,"~~'+-- Il , , !t j--1'~ . r . T' ~- t--:-,} 'I I~t 'I ..,+ 1.1 1-- - '. 11 11- .e t I I" ; L__ :,0 "f'_" . I lf~ 1- III.. II i ~' : ,r- c::1 1111'1 ',flf-' [I_I' .1 ,.----+---1' ,- 1/1 , r .! -ii,_ :-\= ILl I: "I,: \1:'11 _L ]:-:-'-,, . . . '---=r- 1-"-:-' I" I i--.lH . Jer T i:[J' ! I ~ I- T'I . -.1-- I :~ ' I I- I I ~- -'\'--', 1-]/\' I" __-l---_ 1:,1]1 i, 1-':'1 I'i ---1 :' I I-II ,\~.L -=r [, Iklll'IIk1 111!W')~ i Ih-I III; I I' \11/j_,1 ,I -I.:r- I~---::-:--,J +-- EXHIBIT 2A .1 T ~~.~- ~,~" --! ! .~------T-- I::; I -t----j ! 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"'3 o \t [' 'I ;~r "o.l_ ---; I ] ~ ill i~ , )-~~~-~~~-~~~h'~'-C~'~C~-~~-'~f- li,l; :: :, 1-\ : 1 : I' I / .1 I I~ -t ~-,:;,. ~~l: -~=-:iS~:;;::...~~~".:.,;~~~ " <;~:'-":';',-0, ~ L ~ EXHIBIT 2B llC-.,'__ c:r;j ~~ ""I (,:', 't :" ~ ~ t~-\ ~ ',~, 1;;;;: , i ~---, j' , '" 'I ' ., , ' , " \ - 3 ~ 'J i 1 II ! ' \, ---'" I , --6- - '~"U'O'IT' L 1 ~ ~ ...~~ ~""~,:'" :::- ~, ~, EXHIBIT 3 W AL-MART SAN BERNARDINO NORTH PROPOSED FINDINGS IN SUPPORT OF PUBLIC CONVENIENCE OR NECESSITY DETERMINATION Section 23958.4 of the California Business and Professions Code provides for the issuance of an off-sale beer and wine license (type 20) for the Wal-Mart located northwest of the University Parkway and Hallmark Parkway intersection "if the local governing body of the area in which the applicant premises are located, or its designated subordinate officer of body, determines within 90 days of notification of a completed application that public convenience or necessity would be served by the issuance. The 90-day period shall commence upon receipt by the local governing body of (a) notification by the department of an application for licensure, or (b) a completed application according to local requirements, if any, whichever is later." The following information supports a determination that an off-sale beer and wine license at the Wal-Mart in north San Bernardino serves both the public convenience and necessity. 1. The approval of a beer and wine license to add the sale of wine (as an ancillary use) to the operation of a general merchandise store is proper in relation to adjacent uses. The sale of alcohol at the Wal-Mart will be limited to wine and wine coolers only (please see the inventory of alcoholic beverages proposed by Wal-Mart which is attached). The sale of wine at Wal-Mart will be ancillary to the sale of general merchandise and will enable Wal-Mart to serve the City (both the neighborhood surrounding the site and the community) as a full-service retailer. The Wal-Mart site is located in the University Business Park, within an area proposed for business park uses. Although the business park is not yet fully built-out, it contains several large facilities, for example, the McLane distribution center and a large newspaper facility. Several small business park uses have also been developed to the north of the Wal-Mart, but much ofthe business park area has not yet been developed. The Wal-Mart site is accessible from the 1-215 using the University Parkway off- ramp. The site is located south of the 1-215 freeway, northwest of the intersection of Hallmark Parkway and University Parkway. The closest intersection to the Wal-Mart store is University Parkway / Hallmark Parkway. The four comers of the intersection have already been developed with commercial uses. For example, on the eastern side of Hallmark Parkway (adjacent to the 1-215 freeway), the northeast comer of the intersection contains a Shell station and the southeast comer contains a Motel 6. Behind the Motel 6 is a new mini storage. Next to the Motel 6 (on University Parkway) is a Zendejas restaurant. The northwest corner of the intersection contains an AM/PM gasoline station/convenience store, and near the southwest comer is a propane I distribution facility. Adjacent to the AM/PM and the propane facility is a railroad track which runs parallel to the 1-215 freeway. Uses adjacent to the Wal-Mart consist of freeway, commercial and business park uses. To the northeast of the store is the 1-215 freeway, to the northwest is the business park area containing industrial uses, to the southeast is a Shell gas station and the Jack-In- The Box restaurant. Across Hallmark Parkway (on the south side of the street) is additional vacant land zoned for business park development. The sale of wine at the Wal-Mart is compatible with the adjacent business park uses and with the commercial uses in the surrounding area. The closest potentially incompatible use is the California State University at San Bernardino campus, which is located about 2 miles north of the Wal-Mart on the north side of the 1-215 freeway. The impact of adding alcohol to the inventory at the WaI-Mart is not anticipated to impact students at the campus; however, because to reach the Wal- Mart from the campus, students must pass a grocery store which sells alcohol and the AM/PM at the comer of University Parkway and Hallmark Parkway, before arriving at the Wal-Mart. Because the AM/PM located at the comer of University Parkway and Hallmark Parkway and convenience stores north of the 1-215 freeway on University Parkway would be more convenient to students than the Wal-Mart, the sale of wine at the WaI-Mart is proper in relation to adjacent uses. 11. The location of the project will be desirable to the public convenience and welfare. The addition of wine to the typical WaI-Mart inventory will be desirable at this location because the store is surrounded by a business park neighborhood, and is separated from the closest residences by the 1-215 freeway (on the north) and by train tracks (on the south). Although geographically the 1-215 and the train tracks separate the Wal-Mart from adjacent residences, the 1-215 at University Parkway off-ramp provides convenient access to the store for motorists. By combining wine with the inventory of general merchandise, Wal-Mart intends to provide a "one-stop" store. "One-stop" shopping results in increased efficiency for shoppers, and is consistent with the size and location of the store (which is visible from the 1-215). Because the location is convenient to motorists but not too close to the nearest adjacent residences, the request to permit the sale of wine will increase convenience to shoppers, but not at the expense of interfering with existing residential neighborhoods. 2 Ill. The proposed project will not be detrimental to the character of development in the immediate neighborhood. W aI-Mart' s request to sell beer and wine for off-site consumption will not jeopardize, endanger, or otherwise constitute a menace to the public health, safety or general welfare because the parking lot is well-lit and the employees are trained to prevent sales that may be detrimental to the public welfare. As a full-service retailer, Wal-Mart will offer a small inventory of alcoholic beverages in addition to its already extensive inventory of general merchandise. Because of the general commercial and business park uses surrounding the Wal-Mart, the addition of wine and wine coolers for off-sale consumption will not conflict with the adjacent land uses. In addition, the parking lot is designed with public safety in mind, for example, the parking lot is well lit (however, the light is directed onto the parking lot using shields which eliminate "spill over" light on adjacent properties) and employees frequent the parking lot to "round up" stray shopping carts. Wal-Mart has implemented an alcohol sales training program called Techniques of Alcohol Management ("TAM"), which is required training for all cashiers and managers. The training program focuses on recognizing and preventing any sales of alcohol that may be detrimental to the public welfare (Le., the sale of alcohol to minors, and intoxicated persons). Wal-Mart recently submitted the TAM for certification to the California Coordinated Council of Beverage Service (the group authorized by the ABC to certify training programs for the sale of alcohol). A copy of the letter certifying the TAM for use by Wal-Mart is attached. IV. The sale of wine at the Wal-Mart will result in an undue concentration of off-sale aIcohollicenses within census tract 0041. The Wal-Mart is located in census tract 0041. A copy of the census tract map is enclosed for your information. Pursuant to the ABC worksheet (a copy of which is also attached) twelve off-sale licenses are permitted within census tract 0041 and seventeen have been issued. v. The approval of the sale of wine at the Wal-Mart will not have a detrimental affect on nearby residentially zoned properties. The off-sale of beer and wine (as an ancillary use to the sale of general merchandise) within the 160,399 square foot store will not detrimentally affect nearby residentially zoned properties. The display area for beer and wine includes 20 linear feet of display (approximately 40 square feet of floor space, and approximately 200 square feet of shelf space). This sales area constitutes less than three one-hundredths of a percent of the total floor space (.03%). Please see the floor plan, identifying the alcohol display and storage areas with an enlargement of the alcohol display area, attached. 3 Because the inventory of alcoholic beverages will be limited to wine and wine coolers only, and will be such a small percentage of the merchandise sold in the store, it is unlikely customers will shop at Wal-Mart to purchase alcohol only. However, Wal- Mart customers will find the purchase of beer and wine, along with other general merchandise, a convenience. It is unlikely that customers will use the parking lot to consume alcohol on site because Wal-Mart does not refrigerate its alcoholic beverages. In addition, the parking lot is well lit and carefully designed to provide for direct access and safe, convenient parking for its customers. Because the highest density development of residential properties are located in tract developments, and the nearest tract homes are located more than one mile away from the Wal-Mart (across the 1-215 to the north, and across the train tracks to the south), the addition of wine to the Wal-Mart inventory should have no impact on the residential neighborhoods surrounding the store. VI. Proposed hours of operation, days of the week and proposed hours of alcohol sales are as follows: Wal-Mart proposes to operate the store between the hours of7 a.m. and II p.m., 7 days a week, with the potential of increasing operations to 24 hours a day upon written notice to the City. The sale of alcohol will be in strict conformance with California law which limits the sale of alcohol to the hours of 7 a.m. to 2 a.m. vii. Wal-Mart typically sells cups, glasses or other similar containers (which might be used for the consumption of liquor on the premises). However, the plastic cups are sold in packages, and the glasses and plastic cups are sold in a different area within the store. VIII. Wal-Mart does not advertise alcohol on the outside of the building. IX. No "fortified" wine (greater than 16 percent alcohol) will be sold, and the smallest bottle of wine will be a 48 fluid ounce (355 ml) wine cooler. Please see the inventory of wine and wine coolers which is attached. 4 I. EXHIBIT 4 CONDITIONS OF APPROVAL Development Permit II No. 01-05 Wal-Mart, San Bernardino North 1. Within two years of development approval, the applicant shall have obtained a Type 20 ABC license or this permit/approval shall become null and void. Expiration Date: August 4, 2005 2. In the event that this approval is legally challenged, the City will promptly notify the applicant of any claim, action, or proceeding and will cooperate fully in the defense of the matter. Once notified, the applicant agrees to defend, indemnify, and hold harmless the City of San Bernardino (City), the Economic Development Agency (EDA), any departments, agencies, divisions, boards or commissions of either the City or EDA as well as predecessors, successors, assigns, agents, directors, elected officials, officers, employees, representatives and attorneys of either the City or EDA from any claim, action or proceeding against any of the foregoing persons or entities. The applicant further agrees to reimburse the City and the Economic Development Agency any costs and attorney's fees which the City or the Economic Development Agency may be required by a court to pay as a result of such action, but such participation shall not relieve applicant of his or her obligation under this section. The costs, salaries, and expenses of the City Attorney and employees of his office shall be considered as "attorney's fees for the purpose of this condition. As part of the consideration for issuing this permit or approval, this condition shall remain in effect if this Permit is rescinded or revoked, whether or not at the request of the applicant. 3. The approval of this permit is for wine and wine coolers only. If the applicant wishes to include sales of beer and/or malt beverages, a new permit must be obtained from the City. 4. The physical retail space devoted to the sale of wine and wine coolers shall not exceed 40 square feet (2' X 20'). 5. The licensee shall be responsible for posting of signs prohibiting litter and loitering. Management shall be responsible for enforcing this provision and maintaining the areafree of litter and graffiti. I. 6. No alcoholic beverages shall be consumed on the licensed premises or any property adjacent to the premises. 7. The licensee shall be responsible for posting of signs prohibiting drinking on the premises as stated in San Bernardino Municipal Code chapter 9.32, Section 9.32.020. 8. Wine coolers in containers of less than 750 m!. carmot be sold by single containers, but must be sold in manufacturer pre-packaged multi-unit quantities. 9. No person under the age of21 is permitted to sell alcoholic beverages, and all staff must be trained in Responsible Beverage Service practices. 10. There shall be no exterior advertising or signage of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of wine or wine coolers. Interior displays of alcoholic beverages or signs which are clearly visible to the exterior shall constitute a violation of this condition. II. The sale of wine or wine coolers may not occur outside the store in the seasonal sales/display area.