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HomeMy WebLinkAbout5.0_Tanar's Tobacco Appeal_PA2023-0032 CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT August 22, 2024 Agenda Item No. 5 SUBJECT: Tanar’s Tobacco Appeal (PA2023-0032) ▪ Minor Use Permit SITE LOCATION: 2233 West Balboa Boulevard APPELLANT: Glocal 4T Inc APPLICANT/OWNER: Glocal 4T Inc PLANNER: Jenny Tran, Associate Planner 949-644-3212 or jtran@newportbeachca.gov PROJECT SUMMARY An appeal of the Zoning Administrator’s May 30, 2024, decision to deny a minor use permit to allow a Type 20 (Off-Sale Beer & Wine) Alcoholic Beverage Control (ABC) License at an existing tobacco retail store. The Type 20 (Off-Sale Beer & Wine) ABC License would allow the existing retail business to sell beer and wine for off-site consumption. No other changes to the operation are requested and no construction is proposed. No on-site consumption of alcohol is proposed as part of the project. RECOMMENDATION 1) Conduct a de novo public hearing; 2) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Article 18, Section 15270 (Projects Which Are Disapproved) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 because a project which a public agency rejects or disapproves is statutorily exempt and not subject to review under CEQA; and 3) Adopt Resolution No. PC2024-018 affirming the decision of the Zoning Administrator denying the Minor Use Permit filed as PA2023-0032 (Attachment No. PC 1). 1 IN T E N T I O N A L L Y B L A N K P A G E 2 Tanar’s Tobacco Appeal (PA2023-0032) Planning Commission, August 22, 2024 Page 2 VICINITY MAP GENERAL PLAN ZONING LOCATION GENERAL PLAN ZONING CURRENT USE ON-SITE Mixed-Use Water 2 (MU-W2) Mixed-Use Water (MU-W2) Various commercial uses NORTH MU-W2 MU-W2 Residential and retail SOUTH MU-W2 MU-W2 Office and restaurants EAST MU-W2 MU-W2 Balboa Boulevard, Newport Boulevard, restaurants, and retail WEST MU-W2 MU-W2 Residential Subject Property 3 IN T E N T I O N A L L Y B L A N K P A G E 4 Tanar’s Tobacco Appeal (PA2023-0032) Planning Commission, August 22, 2024 Page 3 INTRODUCTION Project Setting The subject property is located on the peninsula on the southern corner of West Balboa Boulevard and 23rd Street near McFadden Square. This area includes mixed-use development and eating and drinking establishments, visitor serving retail and accommodations, and residential uses. The subject property consists of a small shopping center and surface parking lot developed with several commercial uses including a tattoo shop, a bicycle rental, and restaurants. The subject suite is an existing tobacco retail store. The area is a popular location for both residents and visitors to the City and is approximately 270 feet from the public beach and within proximity to the Newport Pier. Project Description The Applicant requests a minor use permit to allow a Type 20 (Off-Sale Beer & Wine) Alcoholic Beverage Control (ABC) License at an existing tobacco retail store. The Type 20 ABC License would allow the existing retail business to sell beer and wine for off-site consumption. No other changes to the operation are requested and no construction is proposed. No on-site consumption of alcohol is proposed as part of the project. The existing tobacco shop has been operating since 2012 and is open from 9:00 a.m. to 9:00 p.m., daily. The current business sells tobacco products including specialty cigars, cigarettes, hookahs, accessories, etc. The existing tenant space is approximately 800 square feet and includes a retail area at the front of the business and an office, storage, and restroom in the back. Zoning Administrator Hearing and Decision The project was heard at a noticed public hearing with the Zoning Administrator on May 30, 2024, online via Zoom. During the hearing, the City provided a brief presentation discussing the proposed project and location, the required findings that must be made to approve the project, and the Newport Beach Police Department’s (NBPD) review and recommendation for the project. Based on the memorandum that the NBPD provided, staff recommended denial of the application. Additionally, the applicant and the applicant’s representative provided a presentation that described their request for a new Type 20 ABC License to allow for the sale of alcohol (beer and wine) for consumption off-site (i.e. off-sale). The presentation included a justification for their request, and referenced five resolutions that were adopted by the Zoning Administrator and/or Planning Commission between 2021 and 2022. Four of the approvals authorized on-sale alcohol sales (i.e. onsite consumption) and one establishment (Rye Bakery) was approved with both on-sale and off-sale ABC Licenses. The applicant’s representative indicated that the Applicant’s business should not be penalized based on the alcohol and crime statistics provided by the NBPD and felt that 5 Tanar’s Tobacco Appeal (PA2023-0032) Planning Commission, August 22, 2024 Page 4 the establishments with on-sale ABC Licenses contribute to the high crime statistics as much as the existing establishments with off-sale ABC Licenses. Wendy Joe, Civilian Investigator with the NBPD stated that the Chief of Police is concerned with additional alcohol licenses in the subject Reporting District (RD 15) and census tract, but especially within this specific neighborhood by McFadden Square. Civilian Investigator Joe also indicated that the NBPD has been making efforts to reduce the number of off-sale ABC Licenses in Newport Beach to further prevent the ability to purchase and take alcohol onto the public beach. A member of the public, Jim Mosher, spoke and stated that he appreciated staff recommendation and thought that the City should be more mindful of the alcohol licenses approved. After considering all public comments and findings, both written and oral, the Zoning Administrator adopted Resolution No. ZA2024-033 denying Minor Use Permit (PA2023- 0032). The minutes from this hearing are included as Attachment No. PC 5. Zoning Administrator Appeal On June 11, 2024, the applicant, Yalcin Tanar of Glocal 4T Inc., filed a timely appeal of the Zoning Administrator’s decision citing six factors for the appeal: misinterpretation of crime statistics, overemphasis on saturation of ABC licenses, inconsistency with similar approvals, community support, limited availability of off-sale licenses, and mitigating measures to address concerns. The appeal describes the Applicant’s concerns with the statistics provided by the NBPD and fairness in decision making for the applicant compared to other establishments in the City. The appeal also states that the applicant is willing to comply with additional measures such as increasing security and limiting hours for alcohol sales. The appeal application is included as Attachment No. PC 2. Pursuant to Section 20.64.030(C)(3) (Conduct of Hearing), a public hearing on an appeal is conducted “de novo,” meaning that it is a new hearing. The prior decision of the Zoning Administrator to deny Minor Use Permit (PA2023-0032) has no force or effect. The Planning Commission is not bound by the Zoning Administrator’s prior decision. DISCUSSION General Plan and Zoning The property is categorized as MU-W2 (Mixed-Use Water 2) by the General Plan Land Use Element and is located within the MU-W2 Zoning District, which is applied to waterfront locations in which marine-related uses may be intermixed with buildings that provide residential on the upper floors. The existing tobacco store is a general commercial use that serves visitors, residents, and employees in the City that is allowed by right. The proposed addition of alcohol sales, however, requires the approval of a minor use permit. 6 Tanar’s Tobacco Appeal (PA2023-0032) Planning Commission, August 22, 2024 Page 5 Local Coastal Plan The property is located in the MU-W (Mixed-Use Water Related) Coastal Land Use Plan category and the MU-W2 (Mixed-Use Water) Coastal Zoning District, which applies to waterfront properties in which marine-related uses may be intermixed with general commercial, visitor-serving commercial and residential dwelling units on the upper floor. The proposed addition of alcohol sales does not involve any construction, nor does it result in the intensification of use, and is therefore exempt from requirements of a coastal development permit. Minor Use Permit Findings In accordance with Section 20.52.020 (Conditional Use Permits and Minor Use Permits) of the NBMC, the Planning Commission must make the following findings for approval of a minor use permit: 1. The use is consistent with the General plan and any applicable Specific Plan; 2. The use is allowed within the applicable zoning district and complies with all other applicable provisions of the Zoning Code and Municipal Code; 3. The design, location, size, and operating characteristics of the use are compatible with the allowed uses in the vicinity; 4. The site is physically suitable in terms of design, location, shape, size, operating characteristics, and the provision of public and emergency vehicle (e.g., fire and medical) access and public services and utilities; and 5. Operation of the use at the location proposed would not be detrimental to the harmonious and orderly growth of the City, or endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. The property is adjacent to residential uses across 23rd Street and the West Oceanfront alley and located approximately 270 feet from the beach. As discussed in more detail below, due to the adjacent residential developments, proximity to the beach, and over concentration of off-sale alcohol licenses in the area, the request to add a Type 20 ABC license to the tobacco store would be detrimental to the harmonious and orderly growth of the City, and would endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. Alcohol Sales Findings The applicant is proposing to add a Type 20 ABC license to an existing tobacco store and Section 20.48.030 (Alcohol Sales) of the NBMC requires the Planning Commission to 7 Tanar’s Tobacco Appeal (PA2023-0032) Planning Commission, August 22, 2024 Page 6 consider impacts to adjacent uses and proximity to existing alcohol sales, both for on-site and off-site consumption. The Planning Commission must find that: 1. The use is consistent with the purpose and intent of Section 20.48.030 (Alcohol Sales) of the Zoning Code. a. The crime rate in the reporting district and adjacent reporting districts as compared to other areas in the City. b. The numbers of alcohol-related calls for service, crimes, or arrests in the reporting district and in adjacent reporting districts. c. The proximity of the establishment to residential zoning districts, day care centers, hospitals, park and recreation facilities, places of worship, schools, other similar uses, and any uses that attract minors. d. The proximity to other establishments selling alcoholic beverages for either off- site or on-site consumption. e. Whether or not the proposed amendment will resolve any current objectionable conditions. As part of the project review, the Newport Beach Police Department (NBPD) reviewed the proposed application on October 10, 2023, and does not support the request due to the high concentration of existing ABC Licenses in this area (Attachment No. PC 7). The NBPD reviewed the proposed application again on May 14, 2024, to reevaluate the business after they made significant positive changes (Attachment No. PC 8). For example, during the applicant’s ABC License process, ABC Agents discovered the applicant was selling items considered to be drug paraphernalia under Section 24200.6 of the Business & Profession Code. Whereas, during a recent site visit, the business was compliant with all laws and all drug paraphernalia had been removed. Although the applicant addressed an objectionable condition of the business, the NBPD continues to not support the project due to the location’s undue concentration pertaining to on-sale and off-sale alcohol licenses. They also stated that added access to alcohol in the immediate area would increase current quality of life challenges for the residents, visitors, and businesses, and would generate additional public safety concerns in this already impacted Reporting District. Preventing alcohol consumption on public beaches or pier areas is crucial for maintaining public safety, cleanliness, and community enjoyment. Access to alcohol and excessive drinking generally increases the risk of accident, injury and disruptive behaviors such as littering, public urination, loitering, assault, and vandalism. These increases create a greater burden on police and lifeguard resources as well as other city services and diminishes the experience for beach goers and area visitors. By enforcing restrictions on alcohol, the City can promote a safer atmosphere, ensuring that these public spaces remain welcoming and enjoyable for everyone. Response to Appeal The applicant filed an appeal on June 11, 2024, based on the following reasons: misinterpretation of crime statistics, overemphasis on saturation of ABC Licenses, 8 Tanar’s Tobacco Appeal (PA2023-0032) Planning Commission, August 22, 2024 Page 7 inconsistency with similar approvals, community support, limited availability of off-sale licenses, and mitigating measures to address any remaining concerns (Attachment No. PC 2). Subsequently, on July 23, 2024, the applicant provided an additional narrative documenting their reasoning for the appeal, which reiterated and expanded upon the points made in the original appeal application (Attachment No. PC 3). On August 5, 2024, the NBPD provided a response to the applicant’s appeal (Attachment No. PC 9). The following sections provide a response to the applicant’s statements identified in their appeal letters. Inconsistency with Similar Approvals The Applicant asserted that the City has history of approving ABC licenses within the subject Reporting District, RD 15. Specifically, the applicant stated in 2021, the Zoning Administrator adopted Resolution No. ZA2021-014 approving a minor use permit to allow a Type 20 ABC License for a boutique retail wine shop within the Cannery Village area of the Peninsula. The operation did not allow for on-site tastings or food to be served. At the time the Type 20 ABC License was approved for the boutique retail wine shop, Resolution No. ZA2021-014 stated that the property is approximately 600 feet from the nearest park and 500 feet from the nearest church. Additionally, the property is approximately 1,400 feet from the public beach where there is an increased risk of alcohol related crime. The NBPD stated that the location is in a residential neighborhood with little foot traffic and intended to be a small satellite shop of a neighboring restaurant. Furthermore, in 2022, the Zoning Administrator adopted Resolution No. ZA2023-017 that approved an amendment to the minor use permit to remove the Type 20 ABC License and, instead, allow a Type 41 (On-Sale Beer & Wine – Eating Place) and Type 58 (Caterer’s Permit) ABC License for a private dining room in conjunction with an existing restaurant to replace the boutique retail wine shop. This amendment is consistent with the NBPD’s effort to limit the number of off-sale ABC Licenses in RD 15. Additionally, the applicant referenced Resolution No. PC2021-033 adopted by the Planning Commission that approved a minor use permit to allow a Type 47 (On-Sale General – Eating Place) ABC License for a new eating and drinking establishment. This approval, as well as other approvals in the City for on-sale ABC Licenses, are different in nature to off-sale ABC Licenses since they are typically operated in conjunction with a restaurant where patrons are to consume alcohol on the premises and are not able to purchase alcohol and consume it on public beaches or other public areas in the City. The NBPD stated that the referenced application was for a family restaurant in Lido Marina Village, a business complex with 24/7 security guards. Currently there are only five off-sale ABC Licenses in the subject property’s census tract as shown in Table 1 below: 9 Tanar’s Tobacco Appeal (PA2023-0032) Planning Commission, August 22, 2024 Page 8 Table 1 – Existing Off-Sale ABC Licenses in Census Tract No. 635 Business Name Address License Type Original Issue Date Pavillions 3100 West Balboa Boulevard Type 21 (Off- Sale General) November 27, 1984 7-Eleven 1920 West Balboa Boulevard Type 20 July 1, 1988 Bal-Port Liquors 4521 West Coast Highway Type 21 December 21, 1989 Sportsman’s Liquor 2615 Newport Boulevard Type 21 December 11, 1992 Road Trip Wines (Internet Sales Only) 2912 Lafayette Avenue Type 20 July 31, 2020 Misrepresentation of Crime Statistics The property is located in the NBPD Reporting District 15 (RD 15), which is the highest crime area in Newport Beach with significant quality-of-life concerns for the residents, as well as the Police Department. The NBPD is required to report offenses of criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny, theft, and motor vehicle theft, combined with all arrests for other crimes, both felonies and misdemeanors (except traffic citations) to the Department of ABC. These figures make up the “Crime Count.” RD 15’s ABC crime count is 914, which is 805% over the Citywide average crime count of 118. Since this area has at least a 20% greater number of reported crimes than the citywide average number of reported crimes, the area is found to have undue concentration. In comparison, nearby RD 13 is 226% above the citywide average, RD 16 is 94% above, and RD 25 is 111% above. Although these reported crimes are caused by a variety of reasons, RD 15 has a significantly higher crime rate than other areas in the City, many of which are attributed to alcohol related crimes and further exacerbated by the subject property’s proximity to the beach and pier. The NBPD provided a breakdown of calls for service for 2022 and 2023 for each existing location with an off-sale ABC License as well as the subject property (Table 2). Limiting the number of off-sale licenses in this area around McFadden Square where there is a high concentration of crime is necessary to prevent additional opportunities for visitors to this area to easily access alcohol that can be taken onto the public beach. 10 Tanar’s Tobacco Appeal (PA2023-0032) Planning Commission, August 22, 2024 Page 9 Table 2 – Calls for NBPD Service Business Name Address 2022 Calls for Service 2023 Calls for Service Tanar’s Tobacco (Subject Property)1 2233 West Balboa Boulevard 19 17 Pavillions 3100 West Balboa Boulevard 140 113 7-Eleven 1920 West Balboa Boulevard 164 115 Bal-Port Liquors 4521 West Coast Highway 25 24 Sportsman’s Liquor 2615 Newport Boulevard 46 37 Road Trip Wines (Internet Sales Only) 2912 Lafayette Avenue 1 2 1 Calls for Services are for all suites at 2233 West Balboa Boulevard. The calls for service at the subject property are lower than the properties with off-sale ABC Licenses and the NBPD is of the opinion that adding alcohol to this location will likely increase the calls for service, thus increasing the existing burden on police services. Limited Availability of Off-Sale Licenses This census tract currently has five off-sale ABC Licenses as shown in Table 1. However, two of the off-sale licenses belong to national retail chains (Pavillions and 7-Eleven) and one to an online-only store (Road Trip Wines). Pavillions sells alcohol as an accessory sale use where the display area for alcoholic beverages does not exceed 30% of the net floor area and is allowed by right. The other retail chain is 7-Eleven with an existing Type 20 ABC License that was issued in 1988, and any upgrades to this ABC License will require approval of a minor use permit. Four of those five off-sale licenses were issued between 1984 and 1992 which further points to the trend of the NBPD preventing new off-sale ABC licenses within this census tract. The fifth off-sale ABC license was issued in 2020 to a business that operates online with a wholesaler’s license and does not require a use permit to operate. This business does not directly contribute to the ability and opportunity to purchase alcoholic beverages and consume it on public beaches or other public areas on the peninsula. The limitation of off-sale licenses is part of the NBPD’s ongoing effort to reduce the ability for residents and visitors to the City to purchase and consume alcohol within proximity to the public beach and public areas with heavy foot traffic. 11 Tanar’s Tobacco Appeal (PA2023-0032) Planning Commission, August 22, 2024 Page 10 Mitigating Measures The applicant offered additional measures that the business can take to ensure that the alcohol sales are limited to reduce the impact to the surrounding area. This includes reducing the volume of alcohol that the business can sell and limiting the hours of operation to prevent late hour sales of alcohol. Further, the applicant states that significant steps have been taken to upgrade the security system to ensure a safe environment for both customers and the surrounding community. However, as previously stated, creating a new opportunity for visitors to this area to access alcohol that could be taken onto the public beach and around public areas of the City creates a risk for increased crime that the NBPD does not support. Community Support During the Zoning Administrator Hearing on May 30, 2024, no public correspondence was submitted that either supported or opposed the request. However, one member of the public, Jim Mosher, was present during the public hearing and expressed that he appreciated staff’s recommendation and thought that the City should be more mindful of alcohol licenses allowed in the City. This comment is reflected in the Minutes of the Zoning Administrator Hearing (Attachment No. PC 5). Summary and Alternatives In conclusion, staff is unable to make all the required findings to approve the minor use permit, especially regarding the findings related to alcohol sales. The property is located in an area with high crime statistics that is in proximity to the public beach and residential development and the Type 20 ABC License is not compatible with the area. Furthermore, the City has historically prevented new off-sale ABC Licenses that would increase the ability for residents and visitors to purchase and consume alcohol on the public beach and public areas of the City. Staff believes the findings for approval cannot be made to support the proposed project and the factors for consideration are presented in the draft Resolution (Attachment No. PC 1). The following alternative is available to the Planning Commission should they feel the facts are not in evidence to uphold and affirm the Zoning Administrator’s decision for denial: 1. The Planning Commission may suggest specific conditions of approval or operational changes that are necessary to alleviate concerns. The item should be continued to a future meeting to allow a revised draft Resolution with appropriate conditions of approval for the project. Environmental Review A project which a public agency rejects or disapproves is statutorily exempt and not subject to review under the California Environmental Quality Act (CEQA) pursuant to 12 Tanar’s Tobacco Appeal (PA2023-0032) Planning Commission, August 22, 2024 Page 11 Article 18, Section 15270 (Projects Which Are Disapproved) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3. Public Notice Notice of this hearing was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights-of-way and waterways) including the applicant, and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the city website. Prepared by: _________________________ Jenny Tran Associate Planner Submitted by: LAW/jt ATTACHMENTS PC 1 Draft Resolution No. PC2024-018 PC 2 Appeal Application dated June 11, 2024 PC 3 Applicant Justification for Appeal dated July 23, 2024 PC 4 Resolution No. ZA2024-033 adopted on May 30, 2024 PC 5 Minutes of Zoning Administrator Hearing from May 30, 2024 PC 6 Zoning Administrator Staff Report from May 30, 2024 PC 7 Police Department Memorandum dated October 10, 2023 PC 8 Police Department Memorandum dated May 14, 2023 PC 9 Police Department Memorandum Response to Appeal dated August 5, 2024 13 IN T E N T I O N A L L Y B L A N K P A G E 14 Attachment No. PC 1 Draft Resolution No. PC2024-018 15 IN T E N T I O N A L L Y B L A N K P A G E 16 RESOLUTION NO. PC2024-018 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH UPHOLDING THE ZONING ADMINISTRATOR’S DENIAL OF A MINOR USE PERMIT FOR A TYPE 20 (OFF-SALE BEER & WINE) ALCOHOLIC BEVERAGE CONTROL (ABC) LICENSE FOR AN EXISTING TOBACCO RETAIL STORE LOCATED AT 2233 WEST BALBOA BOULEVARD (PA2023-0032) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Glocal 4T INC. dba Tanar’s Tobacco (“Applicant”), with respect to property located at 2233 West Balboa Boulevard, and legally described as Parcel 1 of Parcel Map No. 2007-146 (“Property”). 2. The Applicant requests a minor use permit to allow a Type 20 (Off-Sale Beer & Wine) Alcoholic Beverage Control (“ABC”) license at an existing tobacco retail store. The Type 20 (Off-Sale Beer & Wine) ABC license would allow the existing retail business to sell beer and wine for off-site consumption. No other changes to the operation are requested and no construction is proposed. No on-site consumption of alcohol is proposed as part of the project (“Project”). 3. The Property is categorized as Mixed-Use Water 2 (MU-W2) by the General Plan Land Use Element and is located within the Mixed-Use Water 2 (MU-W2) Zoning District. 4. The Property is located within the coastal zone. The Coastal Land Use Plan category is Mixed-Use Water Related (MU-W) and it is located within the Mixed-Use Water (MU-W2) Coastal Zone District. The Project does not represent an intensification of use from the existing tobacco shop (i.e. retail use) and is not considered “development;” therefore, a coastal development permit is not required. 5. A public hearing before the Zoning Administrator was held on May 30, 2024. A notice of the time, place, and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. (“Ralph M. Brown Act”) and Chapters 20.62 (Public Hearings) of the Newport Beach Municipal Code (“NBMC”). Evidence, both written and oral, was presented to, and considered by, the Zoning Administrator at this hearing. 6. The Zoning Administrator adopted Resolution No. ZA2024-033 denying PA2023-0032 to allow a minor use permit for a Type 20 (Off-Sale Beer & Wine) ABC License. 7. On June 11, 2024, the Applicant filed a timely appeal of the Zoning Administrator’s decision citing six factors: misinterpretation of crime statistics, overemphasis on 17 Planning Commission Resolution No. PC2024-018 Page 2 of 6 10-18-21 saturation of ABC licenses, inconsistency with similar approvals, community support, limited availability of off-sale licenses, and mitigating measures to address concerns. 8. A public hearing was held by the Planning Commission on August 22, 2024, in the City Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. A project which a public agency rejects or disapproves is statutorily exempt and not subject to review under the California Environmental Quality Act (“CEQA”) pursuant to Article 18, Section 15270 (Projects Which Are Disapproved) of the California Code of Regulations, Title 14, Division 6, Chapter 3 (“CEQA Guidelines”). SECTION 3. REQUIRED FINDINGS. In reviewing a request for a minor use permit for an establishment to obtain an ABC license, the review authority must make the findings in Section 20.52.020 (F) (Conditional Use Permits and Minor Use Permits – Findings and Decision) and Section 20.48.030(C)(3) (Alcohol Sales – Required Findings) of the NBMC. In this case, the Planning Commission’s decision shall be based on consideration of the following findings, all of which are required for an approval: Minor Use Permit Findings: 1. The use is consistent with the General Plan and any applicable specific plan; 2. The use is allowed within the applicable zoning district and complies with all other applicable provisions of this Zoning Code and the Municipal Code; 3. The design, location, size, and operating characteristics of the use are compatible with the allowed uses in the vicinity; 4. The site is physically suitable in terms of design, location, shape, size, operating characteristics, and the provision of public and emergency vehicle (e.g., fire and medical) access and public services and utilities; and 5. Operation of the use at the location proposed would not be detrimental to the harmonious and orderly growth of the City, nor endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. 18 Planning Commission Resolution No. PC2024-018 Page 3 of 6 10-18-21 Alcohol Sales 6. The use is consistent with the purpose and intent of Section 20.48.030 (Alcohol Sales) of the Zoning Code; i. The crime rate in the reporting district and adjacent reporting districts as compared to other areas in the City. ii. The number of alcohol-related calls for service, crimes, or arrests in the reporting district and in adjacent reporting districts. iii. The proximity of the establishment to residential zoning districts, day care centers, hospitals, park and recreation facilities, place of worship, schools, other similar uses, and any uses that attract minors. iv. The proximity to other establishments selling alcoholic beverages for either off- site or on-site consumption. v. Whether or not the proposed amendment will resolve any current objectionable conditions. Facts in Support of Findings: In considering the above required findings, specifically whether the Type 20 (Off-Sale Beer & Wine) ABC license is compatible with the allowed uses in the vicinity and whether the Project is consistent with the purpose and intent of Section 20.48.030 (Alcohol Sales) of the NBMC, the Planning Commission is unable to make all required findings to approve the Project. The Planning Commission’s decision is based on the following facts: 1. The Property is located on the peninsula within the McFadden Square area in the Mixed- Use Water 2 (MU-W2) Zoning District of the NBMC and is designated MU-W2 in the Land Use Element of the General Plan. This area is developed with mixed-used development with surrounding land uses that include eating and drinking establishments, visitor serving retail and accommodations, and residential uses. The Property has an existing retail business that is located within a small shopping center developed with several commercial uses including a tattoo shop, a bicycle rental shop, and restaurants. The area is a popular location for both residents and visitors to the city within 270 feet from the public beach and in close proximity to the Newport Pier. 2. In making the findings for alcohol sales pursuant to Section 20.48.030 (Alcohol Sales) of the NBMC, the Newport Beach Police Department (“NBPD”) provides statistics related to crime rates, proximity to residential zoning districts and other uses that attract minors, and proximity to other establishments selling alcoholic beverages. The NBPD reviewed the Project on October 10, 2023, and does not support the request due to the high crime rate and concentration of existing ABC licenses in this area. 19 Planning Commission Resolution No. PC2024-018 Page 4 of 6 10-18-21 3. Per the Applicant’s request, the NBPD reviewed the Project again on May 14, 2024, to reevaluate the business after they made significant positive changes. For example, during the Applicant’s ABC Licensing process, ABC Agents discovered the Applicant was selling items considered to be drug paraphernalia under Section 24200.6 (Suspension and Revocation of Licenses) of the California Business & Profession Code. However, during a recent site visit, the business was compliant with all laws and all drug paraphernalia had been removed. Although the Applicant addressed certain objectionable conditions of the business, the NBPD continues to oppose the Project due to the location’s concentration of on-sale and off-sale alcohol licenses and the type of ABC License being requested. 4. The Property is located in the NBPD Reporting District 15 (RD 15), which is the highest crime area in Newport Beach with significant quality of life concerns for the residents, as well as the Police Department. The NBPD is required to report offenses of criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny, theft, and motor vehicle theft, combined with all arrests for other crimes, both felonies and misdemeanors (except traffic citations) to ABC. RD 15’s ABC crime count is 914, which is 805% over the citywide average crime count of 118. When an area has at least a 20% greater number of reported crimes than the citywide average number of reported crimes, the area is found to have an undue concentration of criminal activity. In comparison, nearby RD 13 is 226% above the citywide average, RD 16 is 94% above, and RD 25 is 111% above. 5. The Property is located within census tract 0635.00 which has five Type 20 (Off-Sale Beer & Wine) ABC licenses and a per capita ratio of one off-sale license for every 823 residents. Per the California Business and Professions Code, this ratio must be compared to the per capita ratio of Orange County of one off-sale license for every 1,730 residents. Since the area’s ratio exceeds the ratio of retail licenses to population in the county, the area is deemed to have an undue concentration of off-sale alcohol licenses. 6. The Applicant stated that the denial is inconsistent with approvals of similar licenses in the City. Conversely, the NBPD has consistently recommended a decrease in the number of off-sale alcohol licenses within RD 15, especially within this area of RD 15 (i.e. McFadden Square). The City has historically approved requests in the area for on- sale licenses, typically in conjunction with eating and drinking establishments such as restaurants, that do not allow for patrons to take alcoholic beverages off the premises and onto the beach or surrounding areas. However, the City has not approved any new off-sale licenses within RD 15 since 2021 for a retail wine shop on a property that is approximately 1,400 feet from the public beach separated by Newport Boulevard, Balboa Boulevard, and several blocks of residential and mixed-use development. Additionally, in 2022, this off-sale license was removed and replaced with a Type 41 (On-Sale Beer & Wine – Eating Place) and Type 58 (Caterer’s Permit) ABC License for a restaurant in place of the retail wine shop. This effort to limit off-sale licenses thereby reduces opportunities for alcohol to be purchased and consumed on the public beaches and other public areas on the peninsula. 20 Planning Commission Resolution No. PC2024-018 Page 5 of 6 10-18-21 7. The Applicant stated that there are only five off-sale ABC licenses in the subject census tract. However, two of the off-sale licenses belong to national retail chains and one to an online-only store. One of these retail chains is Pavillions, which sells alcohol as an accessory sale use which is permitted when the display area for alcoholic beverages does not exceed 30% of the net floor area. The other retail chain is 7-Eleven which has held an existing Type 20 (Off-Sale Beer & Wine) ABC licenses since 1988, and any upgrades to this ABC License will require approval of a minor use permit. Four of the five off-sale licenses noted by the Applicant were issued between 1984 and 1992 which further points to the trend of the NBPD preventing new off-sale ABC licenses within this census tract. The fifth off-sale ABC license was issued in 2020 to a business that operates online with a wholesaler’s license and does not require a use permit to operate. This business does not directly contribute to the ability and opportunity to purchase alcoholic beverages and consume it on public beaches or other public areas on the peninsula. 8. There are only five existing off-sale ABC licenses in the subject census tract. As previously stated in Fact in Support of Finding No. 6, although there has been a decrease of one off-sale ABC license, this does not create a precedent for a new off- sale ABC license to take its place as the NBPD continues to make efforts to prevent new (and reduce existing) off-sale licenses within this area. 9. The Project would increase the burden on police resources and exacerbate current quality of life challenges for residents, visitors, and businesses, and would generate additional public safety concerns in RD 15. 10. Due to the type of ABC license requested and the concentration of existing ABC Licenses in the subject census tract, the NBPD would be required by the ABC to submit a determination of Public Convenience or Necessity (“PCN”) to demonstrate that the business operation will provide a benefit to the surrounding community. Approval of a minor use permit would indicate that the City deems this business as a benefit to the community and, therefore, serves as a PCN. 11. The Property is adjacent to residential uses across 23rd Street and the West Oceanfront alley. Additionally, the Property is located approximately 270 feet from the beach. Due to the adjacent residential developments, proximity to the beach, and over concentration of off-sale alcohol licenses in the area, the request to add a Type 20 (Off-Sale Beer & Wine) ABC license to the tobacco store would be detrimental to the harmonious and orderly growth of the City, and would endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. 21 Planning Commission Resolution No. PC2024-018 Page 6 of 6 10-18-21 SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby finds this Project is statutorily exempt from CEQA pursuant to Section 15270 of the CEQA Guidelines because the Project has been denied. 2. The Planning Commission of the City of Newport Beach hereby upholds and affirms the Zoning Administrator’s denial of a Minor Use Permit filed as PA2023-0032. 3. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal or call for review is filed with the Community Development Director in accordance with the provisions of Title 20 (Planning and Zoning), of the Newport Beach Municipal Code. PASSED, APPROVED, AND ADOPTED THIS 22ND DAY OF AUGUST, 2024. AYES: NOES: ABSTAIN: ABSENT: BY:_________________________ ____________, Chair BY:_________________________ ___________, Secretary 22 Attachment No. PC 2 Appeal Application dated June 11, 2024 23 IN T E N T I O N A L L Y B L A N K P A G E 24 25 26 27 IN T E N T I O N A L L Y B L A N K P A G E 28 Attachment No. PC 3 Applicant Justification for Appeal dated July 23, 2024 29 IN T E N T I O N A L L Y B L A N K P A G E 30 Appeal Application Appeal Reason: The Applicant, Glocal 4T, Inc. (dba Tanar’s Tobacco), is appealing the decision made by the Zoning Administrator on May 30, 2024, regarding the denial of the Minor Use Permit (PA2023-0032) for a Type 20 (Off-Sale Beer & Wine) Alcoholic Beverage Control (ABC) license for Tanar’s Tobacco. The Applicant believes the denial was not warranted based on the following reasons: 1.Inconsistency with Similar Approvals:There may be inconsistencies in the approval process for similar licenses within the same and/or comparable districts. Since 2021, City of Newport Beach approved, at least, four new alcohol licenses including Type 20’s and Type 47’s in the same Reporting District, RD 15, and census track, 0.635.00. Prior resolutions acknowledge that RD 15 historically has been a district with overconcentration of licenses and high crime rates due to the high concentration of commercial land uses, however, this has not been a deterrent for the City in the past. Prior projects were granted similar permits despite the fact that similar findings applied. For example, in 2021, according to the Resolution ZA2021-014, the Zoning Administrator approved Minor Use Permit No. UP2021-003 for a boutique retail wine shop with a Type 20 ABC license (off-sale beer and wine) in the same reporting district (RD 15) as the Applicant. Despite similar crime statistics and area characteristics, the Applicant’s permit has been denied. The approval of the Minor Use Permit No. UP2021-003 permit, despite high crime statistics in the reporting district, contradicts the denial of our permit under similar conditions. Additionally, in 2021, the Planning Commission approved Minor Use Permit No. UP2021-029 for eating and drinking establishment with a Type 47 in the same reporting district (RD 15) as the Applicant. Despite similar crime statistics and area characteristics, the Applicant’s permit has been denied. The approval of Minor Use Permit No. UP2021-029 permit indicates that the crime statistics alone were not a determining factor. The City stated “while the area does have a high concentration of alcohol licenses, the findings can be made despite higher concentrations of crimes'', according to the Resolution No PC2021-033. Further, the City acknowledged the higher crime rates but proceeded with approval due to the operational scope and conditions of approval, including the Newport Beach Police Department's (NBPD) assessment that they did not “anticipate an increase in crime or alcohol-related incidents with the approval of this application”. This is contradictory to the NBPD’s statement in their Memorandum issued to the Applicant stating the addition of the Type 20 license would “increase the burden on police resources and exacerbate current quality-of-life challenges for residents, visitors, and businesses, and would generate additional public safety concerns in RD 15”. Similarly, the Applicant’s proposed project includes stringent operational conditions to mitigate potential impacts reinforcing the argument that the anticipated impact on crime should be similar and manageable. 31 The denial of this permit, given the approval of similar licenses in the same or similar districts, may be viewed as unjust in light of these precedents and raises concerns about consistency and fairness in the decision-making process. Highlighting these points, aims to underscore the need for a consistent and equitable approach in the evaluation and approval of permits, ensuring that similar applications are treated with the same criteria and fairness. The approval of similar permits in the same reporting district, despite similar statistical concerns, should set a precedent for the approval of our permit as well. The assertion that the area is oversaturated with ABC licenses does not inherently mean that the Applicant’s business would contribute negatively to the community. The Applicant’s business model and operational conditions are designed to serve a niche market responsibly. Denying the Applicant’s permit based on saturation alone overlooks the potential for the business to operate without exacerbating existing conditions. 2.Misrepresentation of Crime Statistics: As stated in the NBPD report, there are 65 on-sale licenses which make up 93% of the ABC licenses in RD 15; there are 6 off-sale licenses (as of July 15, 2024, there are only 5 off-sale licenses) which make up 7% of the ABC licenses in RD 15. Given this proportionality in the license types, the crime statistics rely heavily on the activity generated by the on-sale licenses. The assumption that the 7% of the license-holders are the root-cause of crime in RD 15 is an unfair assumption. It is unjust to deny the permit based on broader crime data without specific evidence that existing off-sale alcohol establishments are contributing to these statistics. The Applicant believes a more nuanced analysis is required to accurately demonstrate that the addition of the Type 20 license would “increase the burden on police resources and exacerbate current quality-of-life challenges for residents, visitors, and businesses, and would generate additional public safety concerns in RD 15” as claimed by the NBPD in their report. Further, the Zoning Administrator's decision cited crime statistics for RD 15 without directly linking these statistics to the sale of alcohol at the Applicant’s location. In fact, NBPD’s 2023 Crime and Alcohol-related Statistics report, incorrectly state that the Applicant’s business has 1 active on-sale license. There are no active ABC licenses associated with the Applicant’s property and therefore, the three ABC related-crimes can not be attributed to the Applicant’s business, unless proven otherwise. The Balboa Peninsula is generally characterized by a high number of visitors and is considered one of the most significant tourist areas of the City. It also contains a large commercial center known as The Landing at 32nd Street and Lido Marina Village which were designed to accommodate multiple restaurants, bars and retail establishments. The higher crime rate in RD 15 is largely due to the number of visitors to the Balboa Peninsula, the high concentration of restaurants, and the high ratio of non-residential to residential uses. While the license-to-resident ratio is higher than average, these businesses uphold the local economy in this area. The Applicant's business is a tobacco store that has been operating at this location for over a decade. The business is subject to stringent regulations due to the nature of the tobacco industry, yet has not been in 32 violation of their license to date nor has it materially contributed to the crime statistics of this area. Coupled with its operational characteristics and early closing hours, it can be anticipated that it will not materially contribute to the crime statistics. 3.Limited Availability of Off-Sale Licenses: There are currently only five off-sale licenses in the area, two of which belong to national chains and one to an online-only store. In the current state, there is limited competition against the national chains in the area. Furthermore, the existing off-sale license holders are not subject to any operating conditions which places new applicants at a significant disadvantage. It is an unfair ask to not impose any operating conditions on the legacy license holders yet place the burden of crime statistics on the new businesses as an obstacle. This burden is further exacerbated by the presence of 65 on-sale license holders in the area that contribute significantly to the crime statistics. License #License Type Premises Address Business Name Census Tract Original Issue Date Distance from Premises Operating Conditions 501652 21-Off Sale General 3100 W Balboa Blvd, Newport Beach, CA 92663 Vons 3005 635.00 11/27/1984 0.4 miles None 650375 21-Off Sale General 2615 Newport Blvd, Newport Beach, CA 92663 Sportsman Liquor 635.00 12/11/1992 0.2 miles None 655909 21-Off Sale General 4521 W Coast Hwy, Newport Beach, CA 92663 Balport Liquor 635.00 12/21/1989 1.1 miles None 656565 20-Off Sale Beer & Wine 1920 W Balboa, Newport Beach, CA 92663 7 Eleven Store 177334C 635.00 07/01/1988 0.2 miles None 616983 20-Off Sale Beer & Wine 2912 Lafayette Ave, Newport Beach, CA 92663 Roadtrip Wines 635.00 7/31/2020 0.4 miles Internet sales only to be held in conjunction with wholesaler license 33 4.Mitigating Measures:The addition of the Type 20 License will enable the Applicant to offer complementary products to its customers. This license is intended to be an ancillary addition to the existing tobacco license, helping to recuperate losses caused by recent tobacco regulations limiting the sale of certain products in the state of California. The addition of the Type 20 License does not indicate a shift in the Applicant’s business model but rather an expansion. The business will continue to operate primarily as a tobacco retail store, with approximately 20% of its square footage dedicated to the sale of wine and beer. The designated square footage is not designed to carry significant volumes, especially compared to the two national chains cited above, which results in controlled sale of wine and beer. Furthermore, the Applicant will not provide any entertainment or space for lounging, ensuring that its primary function remains retail. The business hours are from 9:00 AM to 9:00 PM, Monday through Sunday, which limits any potential for nighttime disturbances. These hours are consistent with, if not earlier than, the closing times of other alcohol license holders in the area. To address security concerns, the Applicant has taken significant steps to upgrade its security system, ensuring a safe environment for both customers and the surrounding community. Additionally, the Applicant has committed to implementing the recommended conditions of approval provided by the NBPD and is open to adopting further mitigating measures within reason, as needed. This proactive approach demonstrates the Applicant’s commitment to operating responsibly and addressing any potential issues preemptively. In conclusion, the addition of the Type 20 License will allow the Applicant to expand its product offerings without altering its core operation as a tobacco retail store. The Applicant’s existing positive track record and adherence to stringent regulations, upgraded security measures, and willingness to implement additional conditions underscore a dedication to community safety and regulatory compliance. 5.Community Support: Notably, no community members contested the permit at the public hearing, indicating community support or at least a lack of opposition. This community acceptance should be a significant consideration in the permit approval process. 34 Attachment No. PC 4 Resolution No. ZA2024-033 adopted on May 30, 2024 35 IN T E N T I O N A L L Y B L A N K P A G E 36 RESOLUTION NO. ZA2024-033 A RESOLUTION OF THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH DENYING A MINOR USE PERMIT FOR A TYPE 20 (OFF-SALE BEER & WINE) ALCOHOLIC BEVERAGE CONTROL (ABC) LICENSE FOR A TOBACCO RETAIL STORE LOCATED AT 2233 WEST BALBOA BLVD (PA2023-0032) THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Glocal 4T, INC. dba Tanar’s Tobacco, with respect to property located at 2233 West Balboa Boulevard, and legally described as Parcel 1 of Parcel Map No. 2007-146, requesting approval of a minor use permit. 2. The applicant requests a minor use permit to allow a Type 20 (Off-Sale Beer & Wine) Alcoholic Beverage Control (ABC) license at an existing tobacco retail store. The Type 20 (Off-Sale Beer & Wine) ABC license would allow the existing retail business to sell beer and wine for off-site consumption. No other changes to the operation are requested and no construction is proposed. No on-site consumption of alcohol is proposed as part of the project. 3. The subject property is designated Mixed-Use Water 2 (MU-W2) by the General Plan Land Use Element and is located within the Mixed-Use Water (MU-W2) Zoning District. 4. The subject property is located within the coastal zone. The Coastal Land Use Plan category is Mixed-Use Water Related (MU-W) and it is located within the Mixed-Use Water (Mixed-Use Water) Coastal Zone District. The project does not represent an intensification of use from the existing tobacco shop and is not considered “development”, therefore, a coastal development permit is not required. 5. A public hearing was held on May 30, 2024, online via Zoom. A notice of time, place and purpose of the hearing was given in accordance with the Newport Beach Municipal Code (NBMC). Evidence, both written and oral, was presented to, and considered by, the Zoning Administrator at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. A project which a public agency rejects or disapproves is statutorily exempt and not subject to review under the California Environmental Quality Act (CEQA) pursuant to Article 18, Section 15270 (Projects Which Are Disapproved) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3. 37 Zoning Administrator Resolution No. ZA2024-033 Page 2 of 3 10-18-21 SECTION 3. REQUIRED FINDINGS. In reviewing a request for a minor use permit for an establishment that sells alcohol, the review authority must make the findings in Section 20.52.020 (F) (Conditional Use Permits and Minor Use Permits – Findings and Decision) and Section 20.48.030(C)(3) (Alcohol Sales – Required Findings) of the NBMC. In this case, the Zoning Administrator has determined the request cannot be granted for the following reasons: 1. The property is located on the peninsula within the McFadden Square area in the Mixed-Use Water 2 (MU-W2) Zoning District of the NBMC and is designated MU-W2 of the Land Use Element of the General Plan. The surrounding properties are developed with both commercial and residential uses. There are 19 establishments with on-sale ABC licenses within the McFadden Square area which is considered an area that is significantly oversaturated with ABC licenses. 2. The Newport Beach Police Department (NBPD) reviewed the proposed application on October 10, 2023, and does not support the request due to the high concentration of existing ABC Licenses in this area. 3. The NBPD reviewed the proposed application again on May 14, 2024, to reevaluate the business after they made significant positive changes. For example, during the applicant’s ABC License process, ABC Agents discovered the applicant was selling items considered to be drug paraphernalia under Section 24200.6 of the Business & Profession Code. Whereas, during a recent site visit, the business was compliant with all laws and all drug paraphernalia had been removed. Although the applicant addressed an objectionable condition of the business, the NBPD continues to not support the project due to the location’s undue concentration pertaining to on-sale and off-sale alcohol licenses. 4. The property is located in the NBPD Reporting District 15 (RD 15), which is the highest crime area in Newport Beach with significant quality-of-life concerns for the residents, as well as the Police Department. The NBPD is required to report offenses of criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny, theft, and motor vehicle theft, combined with all arrests for other crimes, both felonies and misdemeanors (except traffic citations) to the Department of ABC. These figures make up the “Crime Count.” RD 15’s ABC crime count is 914, which is 805% over the Citywide average crime count of 118. Since this area has at least a 20% greater number of reported crimes than the citywide average number of reported crimes, the area is found to have undue concentration. In comparison, nearby RD 13 is 226% above the citywide average, RD 16 is 94% above, and RD 25 is 111% above. 5. The property is located within census tract 0635.00 that has six off-sale licenses and a per capita ratio of one off-sale license for every 823 residents. Per the Business and Professions code, this ratio must be compared to the per capita ratio of Orange County of one off-sale license for every 1,730 residents. Since the area’s ratio exceeds the ratio of retail licenses to population in the county, the area is deemed to have an undue concentration of off-sale alcohol licenses. 38 Zoning Administrator Resolution No. ZA2024-033 Page 3 of 3 10-18-21 6. The project would increase the burden on police resources and exacerbate current quality-of-life challenges for residents, visitors, and businesses, and would generate additional public safety concerns in RD 15. 7. Due to the type of ABC license requested, the NBPD would be required to submit a determination of Public Convenience or Necessity (PCN) to demonstrate that the business operation will provide a benefit to the surrounding community. Approval of a minor use permit would indicate that the City deems this business as a benefit to the community and, therefore, serves as a PCN. 8. The property is adjacent to residential uses across the street along 23rd Street and the West Oceanfront alley. Additionally, the property is located approximately 270-feet from the beach and the addition of a Type 20 ABC license would not be appropriate within proximity to these uses. 9. Due to the adjacent residential developments, proximity to the beach, and over concentration of off-sale alcohol licenses in the area, the request to add a Type 20 ABC License to the tobacco store would be detrimental to the harmonious and orderly growth of the City, and would endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. NOW, THEREFORE, BE IT RESOLVED: 1. The Zoning Administrator of the City of Newport Beach hereby finds this project is statutorily exempt from CEQA under Article 18, Section 15270 (Projects Which Are Disapproved) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3. 2. The Zoning Administrator of the City of Newport Beach hereby denies the Minor Use Permit filed as PA2023-0032. 3. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal or call for review is filed with the Community Development Director in accordance with the provisions of Title 20 (Planning and Zoning), of the Newport Beach Municipal Code. PASSED, APPROVED, AND ADOPTED THIS 30TH DAY OF MAY 2024. 39 IN T E N T I O N A L L Y B L A N K P A G E 40 Attachment No. PC 5 Minutes of Zoning Administrator Hearing from May 30, 2024 41 IN T E N T I O N A L L Y B L A N K P A G E 42 Page 1 of 3 NEWPORT BEACH ZONING ADMINISTRATOR MINUTES 100 CIVIC CENTER DRIVE, NEWPORT BEACH ZOOM THURSDAY, MAY 30, 2024 REGULAR MEETING – 10:00 A.M. I. CALL TO ORDER – The meeting was called to order at 10:00 a.m. Staff Present (Remote): Benjamin M. Zdeba, AICP, Zoning Administrator Jenny Tran, Assistant Planner II. REQUEST FOR CONTINUANCES None. III. APPROVAL OF MINUTES ITEM NO. 1 MINUTES OF MAY 16, 2024 Zoning Administrator Zdeba noted that written comments had been provided by Jim Mosher suggesting several small changes to the minutes. He agreed with all suggestions with exception of one, which appeared to introduce a typo into the record. Action: Approved as amended IV. PUBLIC HEARING ITEMS ITEM NO. 2 Tanar’s Tobacco Minor Use Permit (PA2023-0032) Site Location: 2233 West Balboa Boulevard Council District 1 Jenny Tran, Assistant Planner, provided a brief description stating that the project is a request to establish a Type 20 (Off-Sale Beer and Wine) Alcoholic Beverage Control (ABC) License at an existing retail tobacco store. Assistant Planner Tran explained that, to approve the project, the facts in support of finding must be made for the Minor Use Permit, as well as the findings required for alcohol sales which relies on recommendations from the Newport Beach Police Department (NBPD). Assistant Planner Tran indicated that the NBPD was not in support of the project and, due to the location and high concentration of alcohol licenses and crime count, staff was unable to make the findings needed for approval and therefore recommended denial of the application. Zoning Administrator Zdeba opened the public hearing. Mike Ayaz of Blake & Ayaz, on behalf of the Owner, provided a presentation. He shared some background on the Owner and discussed some of the past alcohol licenses that the City has approved both in the subject property’s census tract and in the City as a whole. Mr. Ayaz also indicated that the Owner had been operating the business for over 13 years and should not be penalized by the alcohol and crime statistics provided by the NBPD and felt the recommendation for denial was not the appropriate decision. He noted that the on-sale establishments are part of the problem and that it is not necessarily the off-sale establishments. Lastly, he questioned the crime statistics used by the NBPD in evaluating the request. Mila Tanar, a family member of the Owner, provided personal background of the business and further indicated that the changes in tobacco policies in California have made it difficult for the business to continue and the alcohol license would provide an additional service for the business. 43 MINUTES OF THE MEETING OF THE NEWPORT BEACH ZONING ADMINISTRATOR 05/30/2024 Page 2 of 3 Jim Mosher, a member of the public, appreciated staff’s recommendation and thought the City should be more mindful of the alcohol licenses. Zoning Administrator Zdeba closed the public hearing. Zoning Administrator Zdeba asked Wendy Joe, a Civilian Investigator with the NBPD, to provide additional information on the recommendation. Civilian Investigator Joe indicated that the Chief of Police is concerned with additional alcohol licenses not only within this Reporting District and census tract, but also within this specific neighborhood. The NBPD is working to lessen the amount of off-sale alcohol licenses in Newport Beach and to further prevent the ability to take alcohol onto the public beach. In response to Zoning Administrator Zdeba’s inquiry, Civilian Investigator Joe discussed the use of crime statistics in evaluating alcohol-related requests and confirmed that the process for the NBPD’s review has been consistent for many years. In response to Zoning Administrator Zdeba’s inquiry, Assistant Planner Tran confirmed that both NBPD memos that were provided were sent to the applicant after they were received in October 2023, and again in May 2024. The crime statistics were included and the lack of support from the NBPD was communicated both times. Zoning Administrator Zdeba expressed surprise that the crime statistics were only being called into question now at the hearing and that they were not explored earlier on in the application process prior to the matter coming forward to the Zoning Administrator. Seeing that Mr. Ayaz wished to speak again, Zoning Administrator Zdeba reopened the public hearing. Mr. Ayaz indicated he was only recently retained by the Owner. He was curious as to why new off-sale licenses had historically not been approved in this area, but new on-sale licenses are continuously being approved. He felt these decisions were not appropriate and, once again, expressed that his client is being singled-out for a more widespread problem. Zoning Administrator Zdeba closed the public hearing. Zoning Administrator Zdeba stated his appreciation for the applicant’s efforts to provide a draft approval resolution for consideration. However, he indicated that the example resolutions brought forward along with the draft approval resolution were fundamentally different, as they were related to existing restaurants and were also for different areas within the City that were not as impacted as the subject neighborhood. He further clarified that the decision is not based on whether the Owner is a good business owner or not, rather the decision is tied to the land. He informed Mr. Ayaz and the Owner that the Zoning Administrator’s decision is appealable to the Planning Commission within 14 calendar days of the decision. Action: Denied V. PUBLIC COMMENTS ON NON-AGENDA ITEMS One member of the public, Jim Mosher appreciated the Zoning Administrator’s attention to his written comments on the draft minutes of May 16, 2024. He noted the first edit made was an error on his part, as he did not intentionally mean to add the “s” before “Industrial”. VI. ADJOURNMENT The hearing was adjourned at 10:55 a.m. 44 MINUTES OF THE MEETING OF THE NEWPORT BEACH ZONING ADMINISTRATOR 05/30/2024 Page 3 of 3 The agenda for the Zoning Administrator Hearing was posted on May 23, 2024, at 1:50 p.m. on the digital display board located inside the vestibule of the Council Chambers at 100 Civic Center Drive and on the City’s website on May 23, 2024, at 1:49 p.m. 45 IN T E N T I O N A L L Y B L A N K P A G E 46 Attachment No. PC 6 Zoning Administrator Staff Report from May 30, 2024 47 IN T E N T I O N A L L Y B L A N K P A G E 48 CITY OF NEWPORT BEACH ZONING ADMINISTRATOR STAFF REPORT May 30, 2024 Agenda Item No. 2 SUBJECT: Tanar’s Tobacco (PA2023-0032) ▪ Minor Use Permit SITE LOCATION: 2233 West Balboa Boulevard APPLICANT: Glocal 4T Inc OWNER: Glocal 4T Inc PLANNER: Jenny Tran, Assistant Planner 949-644-3212 or jtran@newportbeachca.gov LAND USE AND ZONING • General Plan Land Use Plan Category: Mixed-Use Water 2 (MU-W2) • Zoning District: Mixed-Use Water (MU-W2) • Coastal Land Use Plan Category: Mixed-Use Water Related (MU-W) • Coastal Zoning District: Mixed-Use Water (MU-W2) PROJECT SUMMARY A minor use permit to allow a Type 20 (Off-Sale Beer & Wine) Alcoholic Beverage Control (ABC) license at an existing tobacco retail store. The Type 20 (Off-Sale Beer & Wine) ABC license would allow the existing retail business to sell beer and wine for off-site consumption. No other changes to the operation are requested and no construction is proposed. No on-site consumption of alcohol is proposed as part of the project. RECOMMENDATION 1) Conduct a public hearing; 2) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Article 18, Section 15270 (Projects Which Are Disapproved) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 because a project which a public agency rejects or disapproves is statutorily exempt and not subject to review under CEQA; and 3) Adopt Draft Zoning Administrator Resolution No. _ denying the Minor Use Permit filed as PA2023-0032 (Attachment No. ZA 1). 49 Tanar’s Tobacco (PA2023-0032) Zoning Administrator, May 30, 2024 Page 2 Tmplt: 01/18/23 DISCUSSION • The property is located on the peninsula on the southern corner of West Balboa Boulevard and 23rd Street near McFadden Square. The existing retail business is located within a small shopping center that is developed with several commercial uses including a tattoo shop, a bicycle rental, and restaurants. The surrounding properties are developed with commercial uses as well as residential uses across 23rd Street and the West Oceanfront alley. The property is approximately 270-feet from the public beach. • The property consists of an existing retail sales land use (i.e., tobacco store) and the Applicant is proposing to add a Type 20 (Off-Sale Beer & Wine) Alcoholic Beverage Control (ABC) License. No construction is proposed as part of the project. • The existing tobacco store has one employee, and the business currently operates between the hours of 9:00 a.m. and 9:00 p.m., daily. No changes to the hours of operation are proposed. • The Land Use Element of the General Plan designates the project site as Mixed- Use Water 2 (MU-W2) and located within the MU-W2 Zoning District, which is applied to waterfront locations in which marine-related uses may be intermixed with buildings that provide residential on the upper floors. The existing tobacco store is a general commercial use that serves visitors, residents, and employees in the City. The proposed addition of alcohol sales requires the approval of a minor use permit. • The property is within the coastal zone. However, the proposed project does not change the intensity of use and, therefore, does not require a coastal development permit. • The Newport Beach Police Department (NBPD) reviewed the proposed application on October 10, 2023, and does not support the request due to the high concentration of ABC Licenses in this area and number of alcohol related crimes in the reporting district. The NBPD’s memorandum, crime and alcohol- related statistics, and reporting district map are included in Attachment No. ZA 3. • The NBPD reviewed the proposed application again on May 14, 2024, to reevaluate the business after they made significant positive changes. For example, during the applicant’s ABC License process, ABC Agents discovered the applicant was selling items considered to be drug paraphernalia under Section 24200.6 of the Business & Profession Code. Whereas, during a recent site visit, the business was compliant with all laws and all drug paraphernalia had been removed. However, the NBPD continues to not support the project due to 50 Tanar’s Tobacco (PA2023-0032) Zoning Administrator, May 30, 2024 Page 3 Tmplt: 01/18/23 the location’s undue concentration pertaining to on-sale and off-sale alcohol licenses. The updated NBPD’s memorandum are included in Attachment No. ZA 4. The Police Department’s recommendation has not changed and a draft Resolution of denial for the application is included as Attachment No. ZA 1. • Due to the adjacent residential developments, proximity to the beach, and over concentration of off-sale alcohol licenses in the area, the request to add a Type 20 ABC License to the tobacco store would be detrimental to the harmonious and orderly growth of the City, and would endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. ENVIRONMENTAL REVIEW A project which a public agency rejects or disapproves is statutorily exempt and not subject to review under the California Environmental Quality Act (CEQA) pursuant to Article 18, Section 15270 (Projects Which Are Disapproved) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3. PUBLIC NOTICE Notice of this application was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights-of- way and waterways), including the applicant, and posted on the subject property at least 10 days before the scheduled hearing, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. APPEAL PERIOD: An appeal or call for review may be filed with the Director of Community Development within 14 days following the date of the action. For additional information on filing an appeal, contact the Planning Division at 949-644-3200. Prepared by: ____________________________ Jenny Tran Assistant Planner LAW/jt 51 Tanar’s Tobacco (PA2023-0032) Zoning Administrator, May 30, 2024 Page 4 Tmplt: 01/18/23 Attachments: ZA 1 Draft Resolution ZA 2 Vicinity Map ZA 3 Police Department Memorandum dated October 10, 2023 ZA 4 Police Department Memorandum dated May 14, 2023 ZA 5 Floor Plan 52 Attachment No. PC 7 Police Department Memorandum dated October 10, 2023 53 IN T E N T I O N A L L Y B L A N K P A G E 54 NEWPORT BEACH POLICE DEPARTMENT DETECTIVE DIVISION MEMORANDUM TO: Jenny Tran, Assistant Planner FROM: Wendy Joe, Police Civilian Investigator DATE: October 10, 2023 SUBJECT: Tanars Tobacco 2233 West Balboa Blvd. PA2023-0032 At your request, the Police Department has reviewed the project application for Tanars Tobacco, located at 2233 West Balboa Blvd, Newport Beach. Per the project description, the applicant is seeking a minor use permit to add a Type 20 (Off-Sale Beer & Wine) Alcohol Beverage Control License. No changes are proposed to the current operating hours of 9 a.m. to 9 p.m., daily Statistical Data and Public Convenience or Necessity Attached is a summary report which provides detailed statistical information related to alcohol establishments in and around the applicant’s proposed place of business at 2233 West Balboa Blvd. Business and Professions Code §23958.4 finds “undue concentration” for an applicant premises in two ways: 20% higher crime (with an alcohol nexus) in a Reporting District as compared to the City-wide average, or an over-saturation of alcohol licenses in a census tract compared to the county. Crime Statistics in and around Reporting District 15: The Police Department divides the City into areas referred to as Reporting Districts. This allows the Police Department to compile statistical data, as well as better communicate officer locations while policing. The proposed applicant location is within Reporting District (RD) 15 which stretches from 20th Street to 37th Street along the Newport Beach Peninsula. Per Business and Professions Code §23958.4, the Police Department is required to report offenses of criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny, theft, and motor vehicle theft, combined with all arrests for other crimes, both felonies and misdemeanors (except traffic citations) to the Department of Alcoholic Beverage Control (ABC). These figures make up the “Crime Count” which is indicated on the attached statistical data form. RD 15 is our highest crime area in Newport Beach with significant quality-of-life concerns for the residents, as well as the Police Department. The Reporting District’s ABC Crime Count is 914, 805% over the City-wide Crime Count average of 118. Since this area has a 20% greater number of reported crimes than the average number of reported crimes as determined from all crime Reporting Districts within the City, the area is found to have undue concentration. In comparison, 55 Tanars Tobacco PA2023-0032 2 neighboring RD 13 (9th Street to 20th Street) is 226% higher than the City-wide average, RD 16 (37th Street to 54th Street) is 94% higher, and RD 25 (North of West Coast Hwy between Newport Blvd. and Irvine Ave.) is 111% higher. Of 38 Reporting Districts in Newport Beach, we reported 12 to ABC as high-crime areas. The highest volume crime in this area is aggravated assault. The highest volume arrest in the area is Disorderly Conduct. In this Reporting District, 37% of all arrests are directly attributed to alcohol use: Public Intoxication, DUI, or liquor law violations. In comparison, that figure is 23% in RD 13, 19% in RD 16, and 25% in RD 25. This location meets the legal criteria for undue concentration pertaining to crime (B&P §23958.4) with a nexus to alcohol. Alcohol License Statistics in and around Census Tract 0635.00: The applicant premise is located within census tract 0635.00. This census tract has an approximate population of 4,938 residents with 65 active on-sale alcohol licenses. That is a per capita ratio of 1 on-sale license for every 76 residents making this area heavily saturated with on-sale alcohol establishments. In comparison, the per capita ratio in Orange County is 1 on- sale license for every 822 residents. This application requests an off-sale license. This census tract has 6 off-sale licenses and a per capita ratio of 1 off-sale license for every 823 residents. Per the Business and Professions code, we must compare this per capita ratio to Orange County’s off-sale per capita ratio of 1 license for every 1,730, residents. Since the area’s ratio exceeds the ratio of retail licenses to population in the county, the area is deemed to have an undue concentration of off-sale alcohol licenses. This location meets the legal criteria for undue concentration pertaining to on-sale and off-sale alcohol licenses (B&P §23958.4). Discussion and Recommendations It is the Police Department’s opinion that this project would increase the burden on police resources in RD 15. Added access to alcohol in the immediate area would increase current quality of life challenges for the residents, visitors, and businesses, and would generate additional public safety concerns in this already impacted Reporting District. Those public safety concerns include crimes typically associated with alcohol consumption: vandalism, assault, public intoxication, driving under the influence, urinating in public, fighting, noise violations and sexual assault. This particular neighborhood of RD 15 is significantly over-saturated with ABC establishments. There are currently 19 on-sale ABC Establishments within the McFadden Square area from the Newport Pier to 23rd Street. There are four off-sale establishments that service the citizens in the immediate area:  Pavilions at 32nd and Newport Blvd.  Sportsman Liquor at 26th and Newport Blvd.  7-Eleven at 20th and Balboa Blvd. 56 Tanars Tobacco PA2023-0032 3  Fry’s Market at 15th and Balboa Blvd. Due to the type of ABC license being requested and the presence of undue concentration, ABC will require the Police Department to submit a determination of Public Convenience or Necessity (PCN) prior to approval of the ABC license. PCN is demonstrated when the business operation provides some kind of benefit to the surrounding community. Approval of a use permit will indicate that the City of Newport Beach deems this business as a benefit to the community and therefore serves as a Public Convenience or Necessity. The Chief of Police will submit written documentation of that determination. During the applicant’s ABC license process, ABC Agents discovered the applicant was selling items considered to be drug paraphernalia under Section 24200.6 of the Business & Professions Code. Those items include but are not limited to bongs and pipes. The business was notified of the law and is required to remove such items. RECOMMENDED CONDITIONS OF APPROVAL The Police Department does not support this application. However, should this application be approved, the Police Department requests the following conditions be imposed. 1. The Alcoholic Beverage Control License shall be limited to a Type 20 (Off-Sale Beer and Wine). Any substantial change in the ABC license type shall require subsequent review and potential amendment of the Use Permit. 2. The applicant shall comply with all federal, state, and local laws, and all conditions of the Alcoholic Beverage License. Material violation of any of those laws or conditions in connection with the use is a violation and may be cause for revocation of the use permit. 3. All owners, managers and employees selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for selling alcoholic beverages within 60 days of hire. This training must be updated every 3 years regardless of certificate expiration date. The certified program must meet the standards of the certifying/licensing body designated by the State of California. The establishment shall comply with the requirements of this section within 60 days of approval. Records of each owner’s manager’s and employee’s successful completion of the required certified training program shall be maintained on the premises and shall be presented upon request by a representative of the City of Newport Beach. 4. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee. 5. No alcoholic beverages shall be sold between the hours of 9:00 p.m. and 9:00 a.m. 6. Patrons shall be required to show valid identification to verify age at the point of sale for alcohol. 7. Open container beer or wine sales are prohibited. 8. No person under the age of 21 shall sell or deliver alcoholic beverages. 57 Tanars Tobacco PA2023-0032 4 9. The exterior of the business shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter, and debris from the premises and on all abutting sidewalks within 20 feet of the premises. Graffiti shall be removed within 48 hours of written notice from the City. 10. The applicant shall post and maintain a professional quality sign facing the premise’s parking lot that reads: NO LOITERING, NO LITTERING, NO DRINKING OF ALCOHOL BEVERAGES VIOLATORS ARE SUBJECT TO ARREST 11. The operator of the facility shall be responsible for the control of noise generated by the subject facility. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements of the Newport Beach Municipal Code. 12. The applicant shall maintain a security recording system with a 30-day retention and make those recording available to police upon request. 13. The applicant must not retain or sell any items considered to be drug paraphernalia under Section 24200.6 of the Business & Professions Code. If you have any questions as to the content of this memorandum, please contact Investigator Wendy Joe at (949)644-3705 or wjoe@nbpd.org. Wendy Joe Police Civilian Investigator, Special Investigations Unit 58 CITATIONS GROUP A OFFENSES GROUP B OFFENSES CRIME RATE HIGHEST VOLUME ALL ARRESTS DUI ALCOHOL PUBLIC INTOXICATION LIQUOR LAW HIGHEST VOLUME ALCOHOL RELATED 2233 W. Balboa Blvd. Suite 108 19 3 0 N/A N/A 0 0 0 0 N/A 0 Subject RD: RD15 8,707 547 275 19,591.69 AGGRAVATED ASSAULT 453 53 113 1 DISORDERLY CONDUCT 102 Adjacent RD: RD13 4,674 246 74 14,918.13 THEFT/LARCENY 167 5 32 1 NARCOTICS 36 Adjacent RD: RD16 3,198 155 46 6,551.14 THEFT/LARCENY 94 4 14 0 NARCOTICS 47 Adjacent RD: RD25 3,390 174 58 6,194.38 THEFT/LARCENY 83 14 7 0 NARCOTICS 6 Newport Beach 101,169 5,103 1,434 5,886.22 THEFT/LARCENY 2,732 291 339 7 NARCOTICS 312 Subject:Population ON-SALE Licenses ON-SALE License Per Capita OFF-SALE Licenses OFF-SALE License Per Capita TOTAL RETAIL LICENSES TOTAL RETAIL LICENSES PER CAPITA Subject: CRIME COUNT DIFF FROM AVG %DIFF FROM AVG 2233 W. Balboa Blvd. Suite 108 N/A 1 N/A 0 N/A 1 N/A 2233 W. Balboa Blvd. Suite 108 3 N/A N/A Subject Census Tract: 635 4,938 65 76 6 823 71 70 Subject RD: RD15 914 +796 +675% Adjacent Census Tract: 628 3,806 26 146 5 761 31 123 Adjacent RD: RD13 385 +267 +226% Adjacent Census Tract: 636.03 6,450 6 1,075 5 1,290 11 586 Adjacent RD: RD16 229 +111 +94% Adjacent Census Tract: 634 4,776 17 281 0 0 17 281 Adjacent RD: RD25 249 +131 +111% Newport Beach 86,694 279 311 66 1,314 345 251 Newport Beach 4,484 Orange County 3,186,989 3,876 822 1,842 1,730 5,718 557 All Population figurs taken from 2020 US Census. Per BP 23958.4, the "ABC Crime Count" includes offenses of criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny, theft, and motor vehicle theft, combined with all arrests for other crimes, both felonies and misdemeanors (except traffic citations). Summary for Tanars Tobacco at 2233 W. Balboa Blvd. Suite 108 (RD15) Subject: DISPATCH EVENTS ACTIVE RETAIL ABC LICENSES ARRESTS This report reflects City of Newport Beach data for 2022. The NIBRS Group A Offense category is made up of 49 offenses used to report crimes committed within a law enforcement agency's jurisdiction. NIBRS Group B Offenses are less serious offenses that require an arrest to be reportable. Crime Rate refers to the number of Group A Crimes per 100,000 people. RD Average = 118 ABC CRIME COUNT REPORTED CRIMES CHIEF JOSEPHL. CARTWRIGHT Newport Beach Police Department 2023 Crime and Alcohol-Related Statistics as of 07/18/2023 59 INTENTIONALLY BLANK PAGE 60 Attachment No. PC 8 Police Department Memorandum dated May 13, 2023 61 IN T E N T I O N A L L Y B L A N K P A G E 62 NEWPORT BEACH POLICE DEPARTMENT DETECTIVE DIVISION MEMORANDUM TO: Jenny Tran, Assistant Planner FROM: Wendy Joe, Police Civilian Investigator DATE: May 13, 2024 SUBJECT: Tanars Tobacco 2233 West Balboa Blvd. PA2023-0032 At your request, the Police Department has reviewed the project application for Tanars Tobacco, located at 2233 West Balboa Blvd, Newport Beach. Per the project description, the applicant is seeking a minor use permit to add a Type 20 (Off-Sale Beer & Wine) Alcohol Beverage Control License. No changes are proposed to the current operating hours of 9 a.m. to 9 p.m., daily Statistical Data and Public Convenience or Necessity Attached is a summary report which provides detailed statistical information related to alcohol establishments in and around the applicant’s proposed place of business at 2233 West Balboa Blvd. Business and Professions Code §23958.4 finds “undue concentration” for an applicant premises in two ways: 20% higher crime (with an alcohol nexus) in a Reporting District as compared to the City-wide average, or an over-saturation of alcohol licenses in a census tract compared to the county. Crime Statistics in and around Reporting District 15: The Police Department divides the City into areas referred to as Reporting Districts. This allows the Police Department to compile statistical data, as well as better communicate officer locations while policing. The proposed applicant location is within Reporting District (RD) 15 which stretches from 20th Street to 37th Street along the Newport Beach Peninsula. Per Business and Professions Code §23958.4, the Police Department is required to report offenses of criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny, theft, and motor vehicle theft, combined with all arrests for other crimes, both felonies and misdemeanors (except traffic citations) to the Department of Alcoholic Beverage Control (ABC). These figures make up the “Crime Count” which is indicated on the attached statistical data form. RD 15 is our highest crime area in Newport Beach with significant quality-of-life concerns for the residents, as well as the Police Department. The Reporting District’s ABC Crime Count is 914, 805% over the City-wide Crime Count average of 118. Since this area has a 20% greater number of reported crimes than the average number of reported crimes as determined from all crime Reporting Districts within the City, the area is found to have undue concentration. In comparison, 63 Tanars Tobacco PA2023-0032 2 neighboring RD 13 (9th Street to 20th Street) is 226% higher than the City-wide average, RD 16 (37th Street to 54th Street) is 94% higher, and RD 25 (North of West Coast Hwy between Newport Blvd. and Irvine Ave.) is 111% higher. Of 38 Reporting Districts in Newport Beach, we reported 12 to ABC as high-crime areas. The highest volume crime in this area is aggravated assault. The highest volume arrest in the area is Disorderly Conduct. In this Reporting District, 37% of all arrests are directly attributed to alcohol use: Public Intoxication, DUI, or liquor law violations. In comparison, that figure is 23% in RD 13, 19% in RD 16, and 25% in RD 25. This location meets the legal criteria for undue concentration pertaining to crime (B&P §23958.4) with a nexus to alcohol. Alcohol License Statistics in and around Census Tract 0635.00: The applicant premise is located within census tract 0635.00. This census tract has an approximate population of 4,938 residents with 65 active on-sale alcohol licenses. That is a per capita ratio of 1 on-sale license for every 76 residents making this area heavily saturated with on-sale alcohol establishments. In comparison, the per capita ratio in Orange County is 1 on- sale license for every 822 residents. This application requests an off-sale license. This census tract has 6 off-sale licenses and a per capita ratio of 1 off-sale license for every 823 residents. Per the Business and Professions code, we must compare this per capita ratio to Orange County’s off-sale per capita ratio of 1 license for every 1,730, residents. Since the area’s ratio exceeds the ratio of retail licenses to population in the county, the area is deemed to have an undue concentration of off-sale alcohol licenses. This location meets the legal criteria for undue concentration pertaining to on-sale and off-sale alcohol licenses (B&P §23958.4). Discussion and Recommendations The PD does not support this project due to the location’s undue concentration. However, it is important to acknowledge that since the original application, the business has made significant positive changes. For example, during the applicant’s ABC license process, ABC Agents discovered the applicant was selling items considered to be drug paraphernalia under Section 24200.6 of the Business & Professions Code. Those items included but are not limited to bongs and pipes. During a recent site visit, the business was compliant with all laws and all drug paraphernalia had been removed. It is the Police Department’s opinion that this project would increase the burden on police resources in RD 15. Added access to alcohol in the immediate area would increase current quality of life challenges for the residents, visitors, and businesses, and would generate additional public safety concerns in this already impacted Reporting District. Those public safety concerns include crimes typically associated with alcohol consumption: vandalism, assault, public intoxication, driving under the influence, urinating in public, fighting, noise violations and sexual assault. 64 Tanars Tobacco PA2023-0032 3 This particular neighborhood of RD 15 is significantly over-saturated with ABC establishments. There are currently 19 on-sale ABC Establishments within the McFadden Square area from the Newport Pier to 23rd Street. There are four off-sale establishments that service the citizens in the immediate area:  Pavilions at 32nd and Newport Blvd.  Sportsman Liquor at 26th and Newport Blvd.  7-Eleven at 20th and Balboa Blvd.  Fry’s Market at 15th and Balboa Blvd. Due to the type of ABC license being requested and the presence of undue concentration, ABC will require the Police Department to submit a determination of Public Convenience or Necessity (PCN) prior to approval of the ABC license. PCN is demonstrated when the business operation provides some kind of benefit to the surrounding community. Approval of a use permit will indicate that the City of Newport Beach deems this business as a benefit to the community and therefore serves as a Public Convenience or Necessity. The Chief of Police will submit written documentation of that determination. RECOMMENDED CONDITIONS OF APPROVAL Should this application be approved, the Police Department requests the following conditions be imposed. 1. The Alcoholic Beverage Control License shall be limited to a Type 20 (Off-Sale Beer and Wine). Any substantial change in the ABC license type shall require subsequent review and potential amendment of the Use Permit. 2. The applicant shall comply with all federal, state, and local laws, and all conditions of the Alcoholic Beverage License. Material violation of any of those laws or conditions in connection with the use is a violation and may be cause for revocation of the use permit. 3. All owners, managers and employees selling alcoholic beverages shall undergo and successfully complete a certified training program in responsible methods and skills for selling alcoholic beverages within 60 days of hire. This training must be updated every 3 years regardless of certificate expiration date. The certified program must meet the standards of the certifying/licensing body designated by the State of California. The establishment shall comply with the requirements of this section within 60 days of approval. Records of each owner’s manager’s and employee’s successful completion of the required certified training program shall be maintained on the premises and shall be presented upon request by a representative of the City of Newport Beach. 4. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee. 5. No alcoholic beverages shall be sold between the hours of 9:00 p.m. and 9:00 a.m. 65 Tanars Tobacco PA2023-0032 4 6. Patrons shall be required to show valid identification to verify age at the point of sale for alcohol. 7. Open container beer or wine sales are prohibited. 8. No person under the age of 21 shall sell or deliver alcoholic beverages. 9. The exterior of the business shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter, and debris from the premises and on all abutting sidewalks within 20 feet of the premises. Graffiti shall be removed within 48 hours of written notice from the City. 10. The applicant shall post and maintain a professional quality sign facing the premise’s parking lot that reads: NO LOITERING, NO LITTERING, NO DRINKING OF ALCOHOL BEVERAGES VIOLATORS ARE SUBJECT TO ARREST 11. The operator of the facility shall be responsible for the control of noise generated by the subject facility. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements of the Newport Beach Municipal Code. 12. The applicant shall maintain a security recording system with a 30-day retention and make those recording available to police upon request. 13. The applicant must not retain or sell any items considered to be drug paraphernalia under Section 24200.6 of the Business & Professions Code. If you have any questions as to the content of this memorandum, please contact Investigator Wendy Joe at (949)644-3705 or wjoe@nbpd.org. Wendy Joe Police Civilian Investigator, Special Investigations Unit 66 Attachment No. PC 9 Police Department Memorandum Response to Appeal dated August 5, 2024 67 IN T E N T I O N A L L Y B L A N K P A G E 68 NEWPORT BEACH POLICE DEPARTMENT DETECTIVE DIVISION MEMORANDUM TO: Jenny Tran, Assistant Planner FROM: Wendy Joe, Police Civilian Investigator DATE: August 5, 2024 SUBJECT: Tanars Tobacco Appeal 2233 West Balboa Blvd. PA2023-0032 Below are responses to the applicant’s appeal: 1) Applicant states there are inconsistencies with the approval process. The Police Department evaluates each application individually. We take into consideration characteristics which include Reporting District, Neighborhood, Undue Concentration, Crime with a Nexus to Alcohol, and proposed business operations. Neighborhood location was a primary factor when reviewing the Tanar’s application as it is close to the beach, pier, and public restrooms. In response to the applicant’s comparison of their project to ZA2021-014, the Police Department took into consideration their unique neighborhoods when rendering support, lack thereof, or appropriate conditions for each project. This location is in a residential neighborhood with little foot traffic. The location was intended to be a small satellite shop of a neighboring restaurant. This location no longer holds an off-sale license. In response to the applicant’s comparison of their project to UP2021-029, the Police Department took into consideration their unique neighborhoods when rendering support, lack thereof, or appropriate conditions for each project. This application was for a family restaurant in Lido Marina Village, a business complex with 24/7 security guards. 2) Applicant states there is a misrepresentation of crime statistics. The applicant is correct in their assessment that there are currently 5 off-sale retail locations in RD 15. The sixth location which was at 4555 W. Coast Hwy. has since closed. The license listed at the application location is a clerical error. In Reporting District 15, 37% of all arrests are directly attributed to alcohol use: Public Intoxication, DUI, or liquor law violations. In comparison, that figure is 23% in RD 13, 19% in RD 16, and 25% in RD 25. The highest volume crime is aggravated assault and the highest volume arrest is Disorderly Conduct. These figures and facts show a correlation to alcohol overconsumption in this area. 69 Tanars Tobacco Appeal PA2023-0032 2 RD 15 is our highest crime area in Newport Beach with significant quality-of-life concerns for the residents, as well as the Police Department. These concerns are exacerbated in the applicant’s neighborhood given its proximity to the beach and pier. Please see the below table for Calls for Service for each off-sale location in Census Tract 635. DBA Location Lic. Type 2022 Calls For Service 2023 Calls For Service Pavilions 3100 Balboa Blvd. 21 140 113 Road Trip Wines 2912 La Fayette 20 1 2 Sportsman Liquor 2615 Newport Blvd. 21 46 37 Balport Liquor 4521 W. Coast Hwy. 21 25 24 7-Eleven 1920 W. Balboa Blvd. 20 164 115 Tanar’s Tobacco* 2233 W. Balboa Blvd. None 19 17 * Application location is for all suites at 2233 W. Balboa Blvd. A breakdown of the calls for service to the applicant’s address are below. Based on our experience, the Police Department is of the opinion that adding alcohol to this location will likely increase the calls for service, thus increasing the burden on police services. Calls for Service to 2233 W Balboa Blvd. 01/01/2022 – 12/31/2023: 02/14/2022 Grand Theft Report 03/08/2022 Burglary Alarm 03/19/2022 Open Door 04/15/2022 Suspicious Person 04/26/2022 Burglary Alarm 05/10/2022 Petty Theft Report 05/22/2022 Suspicious Circumstances 06/14/2022 Burglary Alarm 06/15/2022 Keep the Peace 06/19/2022 Medical Aid 06/21/2022 Disturbance 06/23/2022 Found Property 06/25/2022 Citizen Assist 07/27/2022 Theft 8/04/2022 Officer Flagged Down 08/27/2022 Suspicious Circumstances 10/10/2022 Burglary Alarm 10/26/2022 Officer Flagged Down 12/24/2022 Overdose 01/03/2023 Drunk in Parked Vehicle 02/17/2023 Disturbance 02/22/2023 Disturbance Drunk 03/12/2023 Attempt to Locate 03/17/2023 Vehicle Stop 04/07/2023 Suspicious Person 04/25/2023 Vehicle Storage 70 Tanars Tobacco Appeal PA2023-0032 3 05/31/2023 Burglary Alarm 07/24/2023 Burglary Alarm 08/19/2023 Vehicle Stop 09/29/2023 Illegal Parking 10/19/2023 Suspicious Person 10/25/2023 Disturbance 10/28/2023 Medical Aid 11/01/2023 Disturbance 12/21/2023 Disturbance 12/31/2023 Physical Fight 3) Applicant states there is a limited availability off off-sale licenses. The Police Department is of the opinion that added access to alcohol in the immediate area would increase current quality of life challenges for the residents, visitors, and businesses, and would generate additional public safety concerns in this already impacted Reporting District. Those public safety concerns include crimes typically associated with alcohol consumption: vandalism, assault, public intoxication, driving under the influence, urinating in public, fighting, noise violations and sexual assault. 4) Mitigating Measures offered by applicant. The Police Department proposed conditions on our Project Review Response dated May 13, 2024 to attempt to mitigate concerns should the application be approved. 5) The applicant states there has been no opposition to the application. If you have any questions as to the content of this memorandum, please contact Investigator Wendy Joe at (949)644-3705 or wjoe@nbpd.org. Wendy Joe Police Civilian Investigator, Special Investigations Unit 71 IN T E N T I O N A L L Y B L A N K P A G E 72 TANAR’S TOBACCO APPEAL 2233 W BALBOA BLVD(PA2023-0032) Jenny Tran, Associate Planner 949-644-3212, jtran@newportbeachca.gov Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) PROJECT DESCRIPTION 2 •Minor Use Permit •Add a Type 20 (Off-Sale Beer & Wine) ABC License to an existing tobacco retail store Tanar’s Tobacco Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) 3 VICINITY MAP Tanar’s Tobacco Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) 4 VICINITY MAP Tanar’s Tobacco Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) POLICE DEPARTMENT REVIEW 5 •Police Department is unsupportive of the request •Property located in Reporting District 15; highest crime area •Located next to public beach, pier, and McFadden Square •Access to alcohol in this area would increase burden on police resources Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) ZONING ADMINISTRATOR ACTION 6 •Zoning Administrator Hearing on May 30, 2024 •Denied Minor Use Permit •Adopted Resolution No. ZA2024-033 Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) APPEAL 7 •Appeal filed on June 11, 2024, for the following reasons: •Inconsistency with similar approvals •Misrepresentation of crime statistics •Limited availability of off-sale license •Community Support •Mitigating Measures •Additional justification provided detailing their appeal Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) INCONSISTENCY WITH SIMILAR APPROVALS 8 •On-Sale ABC Licenses •Typically approved for a restaurant •Alcohol consumed on the premise, not taken in public areas •Off-Sale ABC Licenses are not historically approved •For consumption off-site Business Name Address License Type Original Issue Date Pavillions 3100 West Balboa Boulevard Type 21 November 27, 1984 7-Eleven 1920 West Balboa Boulevard Type 20 July 1, 1988 Bal-Port Liquors 4521 West Coast Highway Type 21 December 21, 1989 Sportsman’s Liquor 2615 Newport Boulevard Type 21 December 11, 1992 Road Trip Wines (Internet Sales Only) 2912 Lafayette Avenue Type 20 July 31, 2020 Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) MISREPRESENTATION OF CRIME STATISTICS 9 •RD 15’s ABC crime count is 675% over the citywide average •Alcohol related crimes are exacerbated by proximity to beach and pier Business Name Address 2022 Calls for Service 2023 Calls for Service Tanar’s Tobacco (Subject Property)1 2233 West Balboa Boulevard 19 17 Pavillions 3100 West Balboa Boulevard 140 113 7-Eleven 1920 West Balboa Boulevard 164 115 Bal-Port Liquors 4521 West Coast Highway 25 24 Sportsman’s Liquor 2615 Newport Boulevard 46 37 Road Trip Wines (Internet Sales Only)2912 Lafayette Avenue 1 2 1 Calls for Services are for all suites at 2233 West Balboa Boulevard. Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) LIMITED AVAILABILITY OF OFF-SALE LICENSES 10 •Limitation of off-sale licenses is part of the NBPD’s ongoing effort to reduce alcohol related crime in the area •Prevent consumption of alcohol on public beaches or public areas on peninsula •4 of the 5 current off-sale licenses in RD 15 were issued between 1984-1992 •1 of the 5 is for online sales only Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) COMMUNITY SUPPORT 11 •No public correspondence received either in support or opposition •During the Zoning Administrator hearing, a member of the public thought the city should be more mindful of ABC licenses allowed in the city Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) MITIGATING MEASURES 12 •Applicant has offered additional measures to limit alcohol sales such as limited volume of sales, limited hours, and increased security •Police Department has also included conditions of approvals should the minor use permit be approved •PD still does not recommend approval Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) REDLINE TO RESOLUTION 13 Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) RECOMMENDATION 14 •Conduct a de novo public hearing; •Find this project exempt from CEQA under Article 18, Section 15270 (Projects Which are Disapproved); and •Adopt Resolution No. PC2024-018 affirming the decision of the Zoning Administrator’s denial for a Minor Use Permit. Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) 15 Jenny Tran, Assistant Planner 949-644-3212, jtran@newportbeachca.gov QUESTIONS AND DISCUSSION Planning Commission - August 22, 2024 Item No. 5a - Additional Materials Presented at the Meeting by Staff Tanar's Tobacco Appeal (PA2023-0032) TANAR'S TOBACCO PA2023-0032 Minor Use Permit Applicant Glocal 4T, Inc. | 2233 W Balboa Blvd, Suite 108 | August 22, 2024 Planning Commission - August 22, 2024 Item No. 5b - Additonal Materials Presented at the Meeting by Applicant Tanar's Tobacco Appeal (PA2023-0032) Background •Glocal 4T, Inc. began its operations at its current location on the Balboa Peninsula in June 2012 •The company is a licensed retail tobacco business, wholly owned and operated by Yalcin Tanar •The core business focuses on the sale of tobacco products including robust selection of cigars catered to specialty and recreational cigar smokers 2 Planning Commission - August 22, 2024 Item No. 5b - Additonal Materials Presented at the Meeting by Applicant Tanar's Tobacco Appeal (PA2023-0032) Proposed Addition of Type 20 License •An ancillary addition to the existing tobacco license to help recuperate losses caused by recent tobacco regulations limiting the sale of certain products in the state of California •The addition of the Type 20 License does not indicate a shift in the Applicant’s business model but rather an expansion to enable the business to offer complementary products to its customers •The business will continue to operate primarily as a tobacco retail store, with ~ 25% of its square footage dedicated to the sale of wine and beer 3 Planning Commission - August 22, 2024 Item No. 5b - Additonal Materials Presented at the Meeting by Applicant Tanar's Tobacco Appeal (PA2023-0032) Appeal Reasons 1)Inconsistencies with the approval process •Prior resolutions acknowledge that RD 15 historically has been a district with overconcentration of licenses and high crime rates due to the high concentration of commercial land uses, however, this has not been a deterrent for the City in the past •Each application is given unique considerations based on various factors including RD, Neighborhood, business operations, etc. •Neighborhood location was cited as the primary factor when reviewing the Tanar’s application as it is close to the beach, pier, and public restrooms 4 Planning Commission - August 22, 2024 Item No. 5b - Additonal Materials Presented at the Meeting by Applicant Tanar's Tobacco Appeal (PA2023-0032) •By design RD 15, is a beachfront district inclusive of 1 of 2 piers in the City. It also has a higher commercial use compared to the adjacent districts •The district design consequently makes almost every license holder close to the beach (at least 8 bars /restaurants are located on or around the beachfront) •The Applicant’s business model and operational conditions are designed to serve a niche market responsibly 5 Planning Commission - August 22, 2024 Item No. 5b - Additonal Materials Presented at the Meeting by Applicant Tanar's Tobacco Appeal (PA2023-0032) Appeal Reasons 6 2) Misinterpretation / Overemphasis on Crime Statistics •There are 65 on-sale licenses (93%) compared to 5 off-sale licenses (7%) in RD 15 and census track 635 •Given this disproportionality in the license types, the crime statistics rely heavily on the activity generated by the on-sale licenses •Efforts to reduce crime, however, off-sale license holders are not a major contributor the overall statistics Planning Commission - August 22, 2024 Item No. 5b - Additonal Materials Presented at the Meeting by Applicant Tanar's Tobacco Appeal (PA2023-0032) Total = 291 Total dispatch originating from Off-sale = 3% Planning Commission - August 22, 2024 Item No. 5b - Additonal Materials Presented at the Meeting by Applicant Tanar's Tobacco Appeal (PA2023-0032) Conclusion •Type 20 license is an ancillary addition to the business with limited square footage designated for the sale of wine & beer •The issuance of an additional license to a small, locally-owned business will not have the same impact as issuing a license to a large chain or a business with high foot traffic •The Applicant has demonstrated a commitment to operating a responsible and compliant business which will not “exasperate” the existing conditions of the area 8 Planning Commission - August 22, 2024 Item No. 5b - Additonal Materials Presented at the Meeting by Applicant Tanar's Tobacco Appeal (PA2023-0032) Thank you Planning Commission - August 22, 2024 Item No. 5b - Additonal Materials Presented at the Meeting by Applicant Tanar's Tobacco Appeal (PA2023-0032)