REPORT TO THE PLANNING COMMISSION DECEMBER 19, 2018 FROM: MIKE SANCHEZ, Assistant Director Development Services Division THROUGH: BONIQUE EMERSON, Planning Manager Development Services Division McKENCIE PEREZ, Supervising Planner Development Services Division BY: JARRED OLSEN, Planner II Development Services Division SUBJECT ..Title Consideration of Conditional Use Permit Application No. C-17-028 and Variance Application No. V-17-004, located on the northwest corner of North Cedar and East Ashlan Avenues (Council District 4) - Development and Resource Management Department. Based upon the evaluation contained in this report, staff recommends that the Planning Commission take the following actions: 1. ADOPT Environmental Assessment No. C-17-028 dated December 19, 2018, a determination that the proposed project is exempt from the California Environmental Quality Act (CEQA) through Class 1 and Class 3 Categorical Exemptions. 2. APPROVE Conditional Use Permit Application No. C-17-028 requesting authorization to redevelop the convenience store from a 2,207-square foot building to a 3,309-square foot building, and the associated site work, subject to compliance with the Conditions of Approval dated December 19, 2018. The approval would also allow continuance of the existing Type 20 license subject to compliance with the conditions referenced above. 3. DENY Conditional Use Permit Application No. C-17-028 requesting authorization to upgrade a State of California Alcoholic Beverage Control (ABC) Type 20 (Package Store - sale of beer and wine for consumption off the premises where sold) alcohol license to an ABC Type 21 (Package Store - sale of beer, wine and distilled spirits for consumption off the premises where sold) license for the existing convenience store located on the subject property. 4. APPROVE Variance Application No. V-17-004 requesting authorization to vary service station driveway standards for the subject property. ..Body EXECUTIVE SUMMARY Conditional Use Permit Application No. C-17-028 and Variance Application No. V-17-004 were filed by Hardeep Singh of GHS Brothers, Inc., and pertain to approximately �0.64 acres located on the northwest corner of North Cedar and East Ashlan Avenues. The applicant requests to redevelop the convenience store from a 2,207-square foot building to a 3,309-square foot building and upgrade to an ABC Type 21 (Package Store - sale of beer, wine and distilled spirits for consumption off the premises where sold) alcohol license from a Type 20 (Package Store - sale of beer and wine for consumption off the premises where sold) alcohol license for the existing convenience store. The applicant also requests Variance Application No. V-17-004 for modifications to property development standards to allow for more than two drive approaches for a service station use. Fresno Municipal Code (FMC) Section 15-2754 stipulates that when a site is redeveloped, including when a building is demolished and reconstructed, the site is limited to two (2) drive approaches. Staff recommends denial of the portion of Conditional Use Permit Application No. C-17-028 requesting an alcohol upgrade based on substantial evidence detailed in this staff report that Findings B, C, and D contained in Section 15-5306 of the FMC cannot be made due to documented high crime and over concentration of licenses in the area. BACKGROUND Conditional Use Permit Application No. C-17-028 proposes to expand the premises and upgrade a State of California Alcoholic Beverage Control Type 20 (Package Store - sale of beer and wine for consumption off the premises where sold) license to a Type 21 alcohol license (Package Store - sale of beer, wine and distilled spirits for consumption off the premises where sold) for the existing convenience store. The subject property is zoned CC (Commercial - Community). Per FMC Table 15-1202, alcohol sales are permitted in the CC (Commercial - Community) zone district subject to an approved Conditional Use Permit and additional regulations pursuant to FMC Section 15-2706. Police Department Review Although the sale of alcohol is allowed with a conditional use permit on the subject site, the Fresno Police Department does not support the upgrade of a State of California Alcoholic Beverage Control (ABC) license at this location due to being located within a high crime reporting district and an over concentration of licenses in the area. The typical reporting district experiences an average of 453 criminal offenses per year. The reporting district in which the subject establishment is located has experienced approximately 804 offenses so far this year-approximately 78% higher than average. Therefore, the Fresno Police Department recommends denial of the application as the proposed use would be detrimental to the public health, safety, or welfare of persons and businesses located in the surrounding area. Crime Reporting District Number 1859 Total Number of Reporting Districts 504 Total Number of Offenses in All Reporting Districts 228,678 Average Number of Offenses per District 452.83 120% of Average Number of Offenses 543 Total Number of Offenses in Reporting District 804 Source: California Department of Alcohol and Beverage Control The Fresno Police Department did not provide conditions to be incorporated into the Conditions of Approval dated December 19, 2018 (Exhibit H). However, should the Planning Commission decide to grant approval of the request to expand to a Type 21 ABC license, the Standard Fresno Police Department ABC CUP Conditions contained in the attached Conditions of Approval dated December 19, 2018 (see Exhibit H) shall apply. Standard ABC CUP conditions include compliance with the FMC limiting noise and unlawful nuisance, compliance with ABC rules and employee education, video camera surveillance, limitations on alcohol types and servings, and limitations on on-site alcohol consumption and loitering. Fresno Unified School District (FUSD) Review FUSD provided comments indicating the district did not support this application. The existing convenience store is approximately 2,470 feet from Centennial Elementary School. Alcoholic Beverage Control (ABC) Regulations In addition to obtaining a Conditional Use Permit from the City of Fresno, the applicant is required to obtain a license from the California Department of Alcoholic Beverage Control. Number of Existing and Allowed ABC Licenses Census Tract Number 53.01 Census Tract Population 5,740 Off-Sale Licenses per Census Tract 1,098 Off-Sale Licenses Allowed in Census Tract 5 Off-Sale Licenses Existing in Census Tract 11 Source: California Department of Alcohol and Beverage Control Other Agencies All comments received from the applicable agencies have been incorporated into the conditions of approval for Conditional Use Permit Application No. C-17-028. See Exhibit H for all written agency comments received. Citywide Development Code Alcohol Sales FMC Section 15-2706-D states, "A modification to an existing establishment shall not be approved when a condition exists that has caused or resulted in repeated activities that are harmful to the health, peace, or safety of persons residing or working in the surrounding area." Due to concerns from the school district, crime area statistics, and the Police Department's lack of support for the license upgrade, this requirement cannot be met. However, this conditional use permit shall comply with all other requirements in FMC Section 15-2706. Variance Application No. V-17-004 is requesting authorization to modify property development standards and retain more than two drive approaches at the subject property. The requirement to remove drive approaches is triggered when the service station undergoes redevelopment (i.e. relocating of fuel canopies or buildings). Citywide Development Code Service Stations Fresno Municipal Code Section 15-2755 states, "Should a site be redeveloped (i.e., the existing building and/or fuel canopy is removed and reconstructed), and more than two vehicular points of access exist, they shall be removed per Public Works Standards." Public Works Standard P-6 states "Any driveway approaches on Major Street within 300' of Major Intersections require the approval of the Traffic Engineer. The Traffic Engineer may approve one driveway approach within that entire length. Additional driveway approaches require the review approval of the City Engineer." Staff has conducted research to verify that the Variance request is warranted. During research, Public Works staff found that access without a third drive approach is not feasible. Public Notice and Input Council District Plan Implementation Committee The District 4 Plan Implementation Committee voted to approve the Variance and technically denied (motion failed to approve) the alcohol upgrade on June 12, 2017. Notice of Planning Commission Hearing The Development and Resource Management Department mailed notices of this Planning Commission hearing to surrounding property owners within 1,000 feet of the subject property (Exhibit D). No comments have been received to date. LAND USE PLANS AND POLICIES Fresno General Plan The Fresno General Plan designates the subject property for the Community Commercial planned land use and provides objectives to guide in the development of this project. The Community Commercial planned land use designation is intended for commercial development that primarily serves local needs such as convenience shopping and small offices. Many of the city's current commercial districts fall into this designation. Specific uses allowed include medium-scale retail, office, civic and entertainment uses, supermarkets, drug stores and supporting uses. The focus of district development standards is to ensure structures fit into the surrounding development pattern and architectural or traffic conflicts are minimized. The Fresno General Plan provides goals, objectives, and policies to guide development. The following are applicable goals from the Fresno General Plan. As noted within the Public Utilities and Services section of the Fresno General Plan, the location and prevalence of liquor stores can have a negative effect on neighborhood health. In public meetings held during the development of the General Plan, the following concerns were discussed: * Market saturation. Some neighborhoods feel they have an overabundance of establishments with off-sale licenses to sell alcohol. * Fear of crime. Community members often see a strong relationship between establishments with off-sale licenses to sell liquor and rates of nuisances and crime. * Danger to schools. Residents are concerned when alcohol sales are allowed too close to schools because of the impact on teenage drinking. The existing convenience store promotes increased opportunity, economic development, and business to serve the neighborhood and it preserves and protects resources within the City by not expanding development onto sites where infrastructure and services do not exist. However, the proposed alcohol related use is considered to be substantially adverse to the public health, safety, or general welfare of the community, and detrimental to surrounding properties or improvements. Therefore, it is the opinion of staff that the proposed project is not consistent with respective general plan objectives and policies and may conflict with applicable land use plans, policies or regulation of the City of Fresno. Hoover Community Plan and Fresno Yosemite International Airport Land Use Compatibility Plan Upon reviewing the policies contained in the Hoover Community Plan and Fresno Yosemite International Airport Land Use Compatibility Plan, staff has determined that there are no policies that are applicable or are more restrictive than those contained in the FMC or the Fresno General Plan. FRESNO MUNICIPAL CODE FINDINGS Conditional Use Permit The required findings under Section 15-5306, Conditional Use Permit, of the FMC are as follows: a. The proposed use is allowed within the applicable zoning district and complies with all other applicable provisions of this Code and all other chapters of the Municipal Code; and, b. The proposed use is consistent with the General Plan and any other applicable plan and design guideline the City has adopted; and, c. The proposed use will not be substantially adverse to the public health, safety, or general welfare of the community, nor be detrimental to surrounding properties or improvements; and, d. The design, location, size, and operating characteristics of the proposed activity are compatible with the existing and reasonably foreseeable future land uses in the vicinity; and, e. The site is physically suitable for the type, density, and intensity of use being proposed, including access, emergency access, utilities, and services required. Based upon analysis of the application, staff concludes that the required findings of FMC Section 15-5306 (a, b, & c) cannot be made for the alcohol upgrade. The proposed alcohol upgrade is not supported by the Development Code as a condition exists that has caused or resulted in repeated activities that are harmful to the health, peace, or safety of persons residing or working in the surrounding area. These findings are attached as Exhibit I. If the Planning Commission decides to grant approval of the request to upgrade to a Type 21 ABC license, the Commission must find that there is substantial evidence in the administrative record to make all the findings mentioned above and amend them to include the sale of alcohol. Variance The required findings under Section 15-5506, Variance, of the FMC are as follows: a. There are exceptional or extraordinary circumstances or conditions applicable to the property involved that do not apply generally to property in the vicinity and identical zoning classification, and that the granting of a Variance will not constitute a granting of a special privilege inconsistent with the limitations on the property in the vicinity and identical zone classifications; b. The granting of the application is necessary to prevent a physical hardship which is not of the applicant's own actions or the actions of a predecessor in interest; c. The granting of the application will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience, nor the preservation and conservation of open space lands; and d. The granting of the Variance will be consistent with the general purposes and objectives of this Code, any applicable operative plan, and of the General Plan. Based upon analysis of the application, staff concludes that all required findings of FMC Section 15-5506 can be made. There are several service station locations in the vicinity and within the City of Fresno of similar size that meet the drive approach requirements, however due to placement of underground storage tanks and fuel canopy structures, removing the drive approach would lead to unsafe conditions. Traffic Engineering has verified that access with only two drive approaches is not possible. These findings are attached as Exhibit I. If the Planning Commission decides to grant approval of the request to vary service station development standards, the Commission must find that there is substantial evidence in the administrative record to make all the findings mentioned above and amend them to include the sale of alcohol. ENVIRONMENTAL FINDINGS Section 15301 of the CEQA Guidelines addresses projects involving existing facilities. Projects that fall within Class 1 consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. Section 15303 of the CEQA Guidelines addresses new construction of small structures. Projects that fall within Class 3 consist of a store, motel, office, restaurant or similar structure not involving the use of significant amounts of hazardous substances, and not exceeding 10,000 square feet in floor area on sites zoned for such use if not involving the use of significant amounts of hazardous substances where all necessary public services and facilities are available and the surrounding area is not environmentally sensitive. The proposed project is consistent with the exemptions because the project is requesting authorization to establish licensing for alcoholic beverage sales which is permitted in the existing CC (Commercial - Community) zone district by conditional use permit and is consistent with the Community Commercial planned land use designation applicable to the site. The proposed project is subject to authorization by special permit. No adverse environmental impacts will occur as a result of the proposed project. The site has no value as habitat for endangered, rare, or threatened species and complies with all conditions of the Class 1 Categorical Exemption. The proposed structure is also less than 10,000 square feet, does not use significant amounts of hazardous substances, all necessary public services and facilities are available and the surrounding area is not environmentally sensitive. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. Furthermore, the proposed project is not expected to have a significant effect on the environment. Accordingly, a categorical exemption, as noted above, has been prepared for the project and the area is not environmentally sensitive. CONCLUSION The appropriateness of the proposed project has been examined with respect to its consistency with goals and policies of the Fresno General Plan, the Hoover Community Plan, and the Fresno Yosemite International Airport Land Use Compatibility Plan; compliance with the provisions of the FMC; its compatibility with surrounding existing or proposed uses; and its avoidance or mitigation of potentially significant adverse environmental impacts. These factors have been evaluated as described above. Upon consideration of this evaluation, it can be concluded that approval of the redevelopment of the convenience store from a 2,207-square foot building to a 3,309-square foot building and approval of Variance Application No. V-17-004 is appropriate for the project site, however the approval of the alcohol upgrade of Conditional Use Permit Application No. C-17-028 is not. If the Planning Commission decides to grant approval of the proposed project, the Commission must find that there is substantial evidence in the administrative record that the project can make the required findings of FMC Section 15-5306. Should the Planning Commission make the required findings, approval of the conditional use permit application shall be subject to the applicant's compliance with the Conditions of Approval dated December 19, 2018. Action by the Planning Commission is final unless appealed to City Council in accordance with Section 15-5017 of the FMC. Attachments: Exhibit A - Aerial Photograph of Subject Property Exhibit B - Planned Land Use Map Exhibit C - Zoning Map Exhibit D - Noticing Map Exhibit E - Project Information Tables Exhibit F - Exhibits (Site Plan, Elevations, Floor Plans) Exhibit G - Operational Statement Exhibit H - Conditions of Approval dated December 19, 2018 Exhibit I - Fresno Municipal Code Findings Exhibit J - Categorical Exemption Exhibit K - Fresno Municipal Code Regulations Exhibit L - Master Application