That the Planning Commission approve:

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA MAKING THE APPROPRIATE FINDINGS AND APPROVING MODIFICATION 22-05 TO AMEND CONDITIONAL USE PERMIT 06-27 TO ALLOW THE SALE OF DISTILLED SPIRITS IN ADDITION TO BEER AND WINE FOR OFF-SITE CONSUMPTION UNDER A TYPE 21 LICENSE BY THE DEPARTMENT OF ALCOHOL AND BEVERAGE CONTROL AT AN EXISTING RETAIL DEPARTMENT STORE (TARGET) LOCATED AT 1000 W. IMPERIAL HIGHWAY, AS PER THE APPROVED PLANS AND SUBJECT TO CONDITIONS.
 

The Applicant, Beth Aboulafia, on behalf of Target Corporation, is requesting approval of Modification 22-05 to amend Conditional Use Permit 06-27, which originally allowed the sale of beer and wine under a Type 20 license issued by the Department of Alcoholic Beverage Control (ABC), to now include the sale of distilled spirits for off-site consumption under a Type 21 ABC license at the existing Target retail department store at 1000 W. Imperial Highway.  The store is located at the Imperial Promenade commercial shopping center towards the east end of the site.  The subject property is 16.36 acres in size and is situated at the southeast corner of West Imperial Highway and Idaho Street as shown below in Exhibit 1.

The General Plan designates the subject property as Commercial Shopping Center-1. The site is located in the Community Shopping Center (C2s) Zone, which implements the General Plan Commercial Shopping Center-1 land use designation. There are commercial and multi-family properties, across Imperial Highway, to the north of the subject property. To the east of the subject property, there are two schools; Las Positas Elementary and Imperial Middle School. To the south of the subject property, there are single-family homes. Finally, to the west of the subject property, is the Palm Court shopping center along with additional single-family homes.  The Imperial Promenade commercial shopping center is developed with three commercial buildings and has 21 tenant spaces that consist of retail, fitness centers, medical, service, and restaurant businesses (Big Lots, T-Mobile, Honey Fish Poke, Pearle Visions, Orangetheory Fitness, Massage Envy, Ellen Hair Salon, Elan Dentistry, Reading Town, Chipotle, Round Table Pizza, Finest Nails, Y6 Yoga Six, Twin Dragon, Sport’s Clip, Corner Bakery, Jamba Juice, Pho Fula Pho, Carbon Health Urgent Care Center and one vacant space). 
 

Target has been operating as a general retailer since 2006. The existing store's gross floor area is approximately 136,715 square feet, but a portion of the store is also occupied by three (3) ancillary retailers including Starbucks Coffee, CVS Pharmacy and Ulta Beauty. Over the years, Target’s retail model has changed to include a significant grocery component whereby the stores now feature aisles of pre-packaged food, coolers for produce and dairy, and a designated section for alcoholic beverages. Under Conditional Use Permit 06-27, Target was previously approved to sell beer and wine for off-site consumption under a Type 20 license. The Applicant is requesting to modify CUP 06-27 under Modification 22-05 in order to sell distilled spirits, in addition to beer and wine, and obtain an upgraded Type 21 license issued by the Department of Alcoholic Beverage Control (ABC). It is the Applicant’s desire to offer a wider range of general alcoholic beverages and provide an improved one-stop shopping experience for their customers. Their store hours of operation are 8:00 a.m. to 10:00 p.m., seven days a week and this will remain unchanged.

The applicant is proposing to display new distilled spirits within two existing sale aisles and within a small section of an existing refrigerator, with a combined area of approximately 780 square feet, which encompasses less than 1% of the store’s gross floor area.  A floor plan of the existing retail store is provided as Exhibit 2 with the location of alcoholic beverages highlighted with a yellow box. 

Since the applicant is not proposing any building modifications that would result in added square footage and there will not be any changes proposed to their current business operations, no additional parking spaces will be required. There are currently 808 parking spaces that are shared by all of the businesses in the Imperial Promenade Center.
 

Staff consulted with the La Habra Police Department and confirmed that they did not have any concerns regarding the proposed sale of distilled spirits in addition to beer and wine for off-site consumption. The La Habra Police Department also has not received any complaints or calls for service related to Target’s existing alcohol sales since the store first opened in 2006. It should be noted that Target utilizes a comprehensive security camera system for their entire building and parking areas. They also have a Surveillance Asset Protection team which includes employees assigned to monitor, prevent and report store thefts or any disorderly conduct. There is at least one team member on duty during all hours of operation. In light of this, it is staff’s opinion that the proposed sale of distilled spirits in addition to beer and wine for off-site consumption would enhance the vitality of the existing store and shopping center without presenting a significant adverse impact on public health or safety. This is further supported given that conditions of approval have been added addressing nuisances including noise, loitering and property maintenance, thereby minimizing the potential for adverse effects on the surrounding properties.

The California Department of Alcoholic Beverage Control (ABC) is the controlling State entity with authority to grant, renew and revoke all alcoholic beverage licenses. ABC determines how many on-site and off-sale alcoholic beverage license types should be issued per Census Tract, based upon their populations. Pursuant to Business and Professions Code section 23958, ABC is required to deny an application for a license if issuance of that license would tend to create a law enforcement problem, or if issuance would result in or add to an undue concentration of licenses, subject to certain exceptions provided in Business and Professions Code section 23958.4. Section 23958.4 of the Business and Professions Code defines an “undue concentration” of off-sale alcoholic beverage licenses as the following:

Pursuant to Section 23958.4(b) of the Business and Professions Code, ABC may issue a retail license if the local governing body or its designated subordinate officer or body determines that the public convenience or necessity would be served by issuance of the license.
 

The subject project site is located within Census Tract 17.08, which includes a portion of La Habra and the City of Fullerton. A maximum of two off-site licenses are allowed in the subject census tract. At the time that the applicant submitted their request for a Type 21 ABC license, there were two active off-sale ABC licenses, one of which consisted of Target’s existing Type 20 ABC license. The other license (Type 21) belonged to Distilled Liquor in the City of Fullerton. Target’s existing Type 20 ABC license was not automatically canceled as a result of the new application, since the license holder has the ability to either sell or transfer the license. As such, issuance of the requested Type 21 license to Target would result in three (3) off-sale licenses in the census track, creating an area of undue concentration, and the City’s approval authority is tasked with making a finding of Public Convenience and Necessity (PCN) before the applicant is able to be issued the required Type 21 license from ABC. Since the applicant’s initial submittal to ABC, the ABC license belonging to Distilled Liquor was canceled on March 15, 2022. However, since the PCN determination is based upon number of active licenses at the time of submittal, the PCN finding is still required. Thus, a finding of Public Convenience or Necessity has been added to the draft resolution for the Commission’s consideration as furthered detailed in the analysis below.

Pursuant to La Habra Municipal Code (LHMC) Section 18.06.040.A, Planning Commission approval of a Conditional Use Permit (CUP) is required for the sale of alcoholic beverage sales and services. In this instance, since a CUP 06-27 has already been approved for the sale of beer and wine, the Applicant is requesting a modification (Modification 22-05) to CUP 06-27 to also sell distilled spirits. In order to grant the modification, the Planning Commission must make the findings below, which are the same findings required for a CUP. Following each finding, staff has provided justification to make said finding.
 

1. The granting of Modification 22-05 will not be detrimental to the public welfare and will not unreasonably interfere with the use, possession and enjoyment of surrounding and adjacent properties and will not impair the character of the zone in which it is to be located.
 

Conditional Use Permit 06-27 currently allows the Applicant to offer the sale of beer and wine for off-site consumption subject to certain conditions of approval, which include, but are not limited to, compliance with ABC licensing requirements and standards, a surveillance monitoring system, restrictions on outdoor displays or advertisement, employee training certification, prohibition of on-site consumption, seller age requirement, and Identification Card scanner.The Applicant has demonstrated that the store has been able to fully comply with the conditions of approval required for CUP 06-27 for the past 16 years. No changes are proposed regarding business operations and staff is not proposing to substantially change any of these conditions of approval. The changes that staff is proposing to the previously approved conditions of approval for CUP 06-27 include standardizing the language of existing conditions of approval, add new conditions pertaining to disorderly conduct, noise and loitering prevention, and the removal of restrictive minimum and maximum quantity and container size requirements.  Therefore, with the proposed conditions of approval, it is expected the proposed sale of distilled spirits, in addition to beer and wine, for off-site consumption will not unreasonably interfere with the use, possession and enjoyment of surrounding and adjacent properties and will not impair the character of the zone in which it is to be located.
 

2. The subject site is physically suitable for the type of land use being proposed.
 

The Target retail store was developed as part of the Imperial Promenade on a 16.36 acre site that was designed to accommodate the variety of commercial land uses, including the proposed sale of distilled spirits in addition to beer and wine. The current site design includes sufficient vehicular/pedestrian access, parking and landscaping. There is also sufficient room on-site for trucks that serve the existing retail use. Therefore, the subject site is physically suitable to accommodate the Target retail store and the proposed sale of distilled spirits in addition to beer and wine for off-site consumption. 
 

3. The use is conditionally permitted within the subject zone and complies with the intent of all applicable provisions.
 

The sale of alcoholic beverages for off-site consumption is allowed in the C-2s Zone, subject to a Conditional Use Permit, pursuant to La Habra Municipal Code Section 18.06.040.A. The sale of alcoholic beverages (beer and wine) has been permitted as an ancillary use at the store since 2006. The La Habra Police Department indicated they have not received any calls or complaints about the store regarding the sale of alcoholic beverages. Since the request only consists of adding a wider range of alcohol products, the operation characteristic of the store will remain the same as a retail department store with a variety of retail products and goods. The store has proven to properly manage and monitor the sale of alcoholic beverages for 16 years. Therefore, the minor modification to the existing Conditional Use Permit for the sale of alcoholic beverages for off-site consumption will continue to be compatible, not only with the other businesses at the Imperial Promenade shopping center, but also with the other commercial/residential properties and public schools in the vicinity, and will continue to comply with the intent and all applicable provisions of the La Habra Municipal Code. 
 

4. The granting of the Conditional Use Permit is consistent with the General Plan.
 

The granting of the modification to allow the sale of distilled spirits for off-site consumption under a Type 21 ABC license in addition to the currently permitted sale of beer and wine at the store will be consistent with the La Habra General Plan, specifically with Policy LU 11.1 which promotes "diversity of uses that reduce the need to travel to adjoining communities, and capture a greater share of local spending." By allowing the sale of distilled spirits, the store will add another product selection to further provide a one-stop shopping experience for City residents and customers. The sale of alcoholic beverages is a common ancillary use for retail stores. There are other similar retail stores in the City, such as Walmart, Costco, and Sam’s Club, that have a Type 21 ABC license. The added product will reinforce Target as a principal retail store in the community which is a primary goal of the Commercial Shopping Center land use designation. Therefore, the modification request will be consistent with the General Plan.
 

 5. As outlined above, in addition to the findings required for the modification to the Conditional Use Permit, the Planning Commission must make a finding that the public convenience or necessity would be served by the issuance of a license for the sale of distilled spirits in addition to beer and wine for off-site consumption.

Target offers a wide variety of items including produce, meat, dairy, bakery items, deli items and other household goods and products for everyday uses. Generally, the sale of general alcohol is considered ancillary and sales generated from alcoholic beverage sales are expected to be approximately less than 1% of gross sales for the store. Based on the wide range of products found and provided by Target, staff believes the proposed sale of distilled spirits in addition to beer and wine would provide a public convenience by improving the one-stop shopping experience for the community.

The Applicant has paid for the processing costs associated with the Modification application, which total $3,956.00.

The proposal has been reviewed pursuant to the requirements of the City's National Pollutant Discharge Elimination System (NPDES) Municipal Permit, the Local Implementation Plan (LIP), and the Model Water Quality Management Plan (WQMP), Section 7.2. Since proposal does not consist of any structural or major interior renovation nor any soil disturbance, it is exempted by the Water Quality Ordinance from the preparation of a WQMP.

The proposed project is related to the following General Plan policy:

The proposed project is related to the following City Council Goal and Objective: