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Item No. 1.
MEETING DATE: March 9, 2026
TO:	PLANNING COMMISSION
FROM:	SUSAN KIM, DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT By: Ash Syed, Senior Planner
SUBJECT:	A DULY NOTICED PUBLIC HEARING TO CONSIDER MODIFICATION (MOD) 26-0001 TO CONDITIONAL USE PERMIT (CUP) 25-0016 WHICH ALLOWS ALCOHOL BEVERAGE SALES AND SERVICES UNDER A TYPE-48 LICENSE (ON-SALE GENERAL - PUBLIC PREMISES) ISSUED BY THE CALIFORNIA DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL (ABC), TO ALLOW ALCOHOLIC BEVERAGE SALES AND SERVICES UNDER A TYPE-47 LICENSE (ON-SALE GENERAL - EATING PLACE) ISSUED BY ABC, WITHIN AN EXISTING GENERAL RETAIL USE LOCATED AT 1305 WEST WHITTIER BOULEVARD (ASSESSOR'S PARCEL NUMBER: 017-152-17) AND OUTSIDE THE GENERAL RETAIL USE WITHIN AN ADJACENT PATIO AREA LOCATED AT 1439 WEST WHITTIER BOULEVARD (ASSESSOR'S PARCEL NUMBER: 017-143-23)

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This project was reviewed pursuant to the guidelines of the California Environmental Quality Act (CEQA) and determined to be categorically exempt pursuant to Section 15301(e), Class 1: “Existing Facilities” of the CEQA Guidelines. Class 1 consists 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 existing or former use. The project would allow an existing general retail use to continue to provide alcoholic beverage sales and services within the building that contains the general retail use and outside in an adjacent patio, with a change in the type of license issued by the California Department of Alcoholic Beverage Control (ABC). Currently, the Applicant has a Type-48 ABC License (On-Sale General - Public Premises); a Type-47 ABC License (On-Sale General - Eating Place) is proposed. The project includes a minor exterior improvement that involves the fencing-off of a 1,500-square-foot portion of an existing 3,000-square-foot outdoor patio area. The Project involves a negligible expansion of the existing use.

The project is not subject to any of the exceptions for exemption under Section 15300.2 of the CEQA Guidelines. The cumulative impact of this project, and the approval of other projects like it in the vicinity, is not expected to have any significant environmental impact. The project is not located along any state-designated scenic highway nor within any designated hazardous waste site. The project will not cause a substantial adverse change in the significance of any historical resource. Staff does not expect any significant impacts or unusual circumstances related to the approval and construction of the project. Therefore, the project is categorically exempt from CEQA.

RECOMMENDATION:

That the Planning Commission adopt and approve:

RESOLUTION NO. 26-06 – A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, MAKING THE REQUIRED FINDINGS AND APPROVING MODIFICATION 26-0001 (MOD 26-0001) TO AMEND CONDITIONAL USE PERMIT 25-0016 (CUP 25-0016) TO ALLOW ALCOHOLIC BEVERAGE SALES AND SERVICES UNDER A TYPE-47 CALIFORNIA DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL (ABC) LICENSE (ON-SALE GENERAL - EATING PLACE) WITHIN AN EXISTING GENERAL RETAIL USE LOCATED AT 1305 WEST WHITTIER BOULEVARD (ASSESSOR’S PARCEL NUMBER: 017-152-17) AND OUTSIDE THE GENERAL RETAIL USE WITHIN AN ADJACENT PATIO AREA LOCATED AT 1439 WEST WHITTIER BOULEVARD (ASSESSOR’S PARCEL NUMBER: 017-143-23), AS PER THE APPROVED PLANS AND SUBJECT TO CONDITIONS, AND MAKING THE DETERMINATION THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTION 15301, CLASS 1: “EXISTING FACILITIES” OF THE CEQA GUIDELINES

DISCUSSION:

The Applicant, Steve Rawlings, on behalf of the Property Ownership Group, Los Altos XIX, is requesting the approval of a Modification (MOD) (MOD 26-0001) to Conditional Use Permit (CUP) 25-0016, which allows alcoholic beverage sales and services under a Type-48 License (On-Sale General - Public Premises) issued by the California Department of Alcoholic Beverage Control (ABC), to allow alcoholic beverage sales and services under a Type-47 License (On-Sale General - Eating Place) issued by ABC (the "Project"), within an existing general retail use (Northgate Gonzalez Market) located at 1305 West Whittier Boulevard (Assessor's Parcel Number: 017-152-17) and outside the retail use within an adjacent patio area (Paseo Gonzalez) located at 1439 West Whittier Boulevard (Assessor's Parcel Number: 017-143-23). The site where the Applicant is proposing alcoholic beverage sales and services is referred to herein as the "Project Site." ABC issues Type-47 licenses to restaurants for the sale of beer, wine, and distilled spirits for consumption onsite and the sale of beer and wine for consumption offsite. The restaurant must operate and maintain the licensed premises as a bona fide eating place, with suitable kitchen facilities, and must make actual and substantial sales of meals for consumption on the premises. Minors are allowed on the premises. This license type is subject to Responsible Beverage Service (RBS) requirements and requires alcohol servers and managers of alcohol servers to be RBS certified.

The Project Site is located within the northeast portion of the 10-8 acre La Habra Town Center shopping center at the northwest corner of the Whittier Boulevard and Idaho Street intersection. The shopping center comprises six buildings (labeled A-F in Exhibit 1 and Attachment 2) across four parcels (APNs: 017-143-22, 017-143-23 017-152-16, and 017-152-17). These parcels share a reciprocal parking and access agreement with each other as well the La Habra Gateway shopping center to the east, which enables vehicular access from Idaho Street to the east, Whittier Boulevard to the South, and Hacienda Road to the west.

The subject general retail use comprises Building F on the parcel (APN 017-152-17), outlined in blue in Exhibit 1, while the subject outdoor patio area is located between Buildings E and F and straddles the property line between two parcels, APNs: 017-152-17 and 017-143-23, outlined in yellow in Exhibit 1. As further described below, a fence required by ABC will be constructed to divide the existing 3,000-square-foot patio area into two 1,500-square-foot patio areas, following the existing meandering walkway in the area. As a result, a small portion of the fenced-off patio area that is the subject of this request will be in APN: 017-143-23.

Exhibit 1: Vicinity Map

The Project Site is designated by the General Plan for Highway Commercial land use, which is characterized by commercial uses that need a large amount of land area and are primarily related to and dependent on the City’s main arterials for patronage and access (e.g., auto sales and service, motels, restaurants, service stations, and equipment rental). The Project Site is located within the Commercial (C-2) Zone, which implements the General Plan Highway Commercial land use designation. Pursuant to La Habra Municipal Code (LHMC) Chapter 18.06 (Zones Established - Zoning Map Boundaries and Land Uses), restaurants and alcoholic beverage sales and services within the C-2 Zone are subject to the approval of a CUP by the Planning Commission.

The General Plan land use designation, zoning, and existing land use for the Project Site and each of the surrounding properties are summarized in Table 1 below:

Table 1: Project Site and Surrounding Properties

Location	General Plan Designation	Zoning	Existing Land Use
Site:	Commercial Highway	Commercial (C-2) Zone	General Retail (Northgate Gonzalez Market) Outdoor Patio (Paseo Gonzalez)
North:	Low Density Residential	Single Unit Dwelling (R-1b) Zone	Church
East (across Idaho Street):	Residential Multi-Family 1/ Commercial Highway	Multi-Unit Dwelling (R-4) Zone/ Commercial Residential (C-R) Zone/ C-2 Zone	Telecommunications Company/ Multi-Unit Dwellings/ Drive-Through Restaurant
Southeast	Commercial Highway	C-2 Zone	Medical Office Building Drive-Through Restaurant
South (across Whittier Blvd)	Commercial Highway	C-2 Zone Mixed-Use (MX) Overlay	Shopping Center
West:	Commercial Highway	C-2 Zone	Shopping Center

The Project Site is occupied by a general retail use, Northgate Gonzalez Market, a family-owned grocery store chain founded in 1980; and an adjacent patio area that serves both the general retail use and an adjacent tenant space that is currently in the building plan check process for tenant improvements for a restaurant (El Morro Churros). There are more than 40 Northgate Market stores across Southern California, focusing heavily on serving Hispanic communities. La Habra's Northgate Market operates as a "grocerant," which is a hybrid concept that combines grocery retail with a restaurant, offering freshly prepared, ready-to-eat meals within a grocery store setting. On the grocery retail side, Northgate Market features a carnicería with marinated meats, an in-house tortillería, a full-service bakery offering pan dulce and bolillos, a cocina with prepared Mexican dishes, extensive produce, and a seafood section. The patio area, known as Paseo Gonzalez, is an approximately 3,000-square-foot outdoor open space located immediately west of the Northgate Market building between Buildings E and F within the La Habra Town Center shopping center. The patio consists of decorative paving, landscaping, pedestrian walkways, and outdoor tables and chairs intended to function as a shared gathering and dining area for tenants within the center. As shown, Paseo Gonzalez straddles two parcels (APNs 017-152-17 and 017-143-23), both of which are owned by Los Altos XIX as part of the larger La Habra Town Center property.

On December 15, 2016, the Planning Commission approved CUP 16-03 (Attachment 4) for the operation of a 4,000-square-foot restaurant inside the general retail use. In conjunction with CUP 16-03, the Planning Commission approved CUP 16-04, allowing alcoholic beverage sales and services under a Type-21 ABC License (Off-Sale General), which authorizes retail stores to sell beer, wine and distilled spirits for consumption off the premises where these items are sold. Minors are allowed to be on the premises of stores with this type of license.

On February 27, 2017, the Planning Commission approved CUP 17-02 (Attachment 5), allowing alcoholic beverage sales and services under a Type-86 ABC License (Instructional Tasting), which allows for the tasting of beer, wine and/or distilled spirits at off-sale licensed premises. The quantity and number of tastings that may be offered to consumers is limited. This license can only be held in conjunction with a qualified off-sale license. This license type is subject to RBS requirements and requires alcohol servers and managers of alcohol servers to be RBS certified.

On December 8, 2025, the Planning Commission approved MOD 25-0001 to CUP 16-03 (Attachment 6), which amended the plans approved in conjunction with the CUP to remove the self-service deli counters and replace the area with 16 new tables and 64 new chairs and add a new 400-square-foot bar area with 16 seats. The Planning Commission concurrently approved CUP 25-0016 (Attachment 7) to allow alcoholic beverage sales and services, under a Type-48 ABC License (On-Sale General - Public Premises). This type of ABC license is issued to bars and night clubs and authorizes the sale of beer, wine, and distilled spirits for consumption onsite and the sale of beer and wine for consumption offsite. This license prohibits minors from entering and remaining in the area where the liquor is sold, and food service is not required. This license type is subject to RBS requirements and ABC requires alcohol servers and managers of alcohol servers to be RBS certified.

On January 6, 2026, the Applicant submitted an application for MOD 26-0001 to CUP 25-0016 to replace a Type-48 License with a Type-47 License (On-sale General - Eating Place) within the existing general retail use and outside the general retail use within an adjacent patio area. ABC issues Type-47 licenses to restaurants for the sale of beer, wine, and distilled spirits for consumption onsite and the sale of beer and wine for consumption offsite. As explained in the Applicant’s Letter of Business Operations (see Attachment 8), the intent is to provide a cohesive experience where shoppers can purchase and consume traditional Hispanic delicacies and enjoy beer, wine, and spirits, while continuing with their shopping needs. The dynamic environment will enhance the market’s offerings and provide a casual, social space within the grocery store setting, emulating the social experience commonly found in Central American countries and Hispanic culture.

The proposed modification replaces the previously approved Type-48 (On-Sale General – Public Premises) license with a Type-47 (On-Sale General – Eating Place) license, thereby shifting the operation from a bar classification—where food service is not required and minors are prohibited—to a bona fide restaurant model requiring suitable kitchen facilities and substantial meal service. This operational change reduces the intensity of the alcohol-related use by ensuring that alcohol service remains ancillary to food service and aligns the authorization with the restaurant component originally approved under CUP 16-03 and modified under MOD 25-0001. The Type-47 license permits the sale of beer, wine, and distilled spirits for on-site consumption and beer and wine for off-site consumption within the defined licensed premises, which includes the grocery (green), restaurant (red), and proposed patio (purple) areas as shown in Exhibit 2 and Attachment 8. However, customers may not purchase alcoholic beverages from grocery shelves for on-site consumption; therefore, the Applicant will retain the existing Type-21 off-sale license (CUP 16-04) for grocery alcohol sales and the Type-86 license for instructional tastings.

The modification also expands the ABC-licensed premises to include a defined portion of the existing Paseo Gonzalez patio area, which is already developed as an outdoor dining and gathering space within the shopping center. No additional building square footage or site intensification is proposed. As required by ABC and as a condition of approval of MOD 26-0001, the Property Owner will install and maintain a four-foot-tall decorative perimeter fence and controlled access gate, along with “No Alcohol Beyond This Point” signage, to prevent removal of open containers beyond the licensed area. Alcohol service will be limited to 10:00 a.m. to 10:00 p.m. daily, consistent with the approved hours of operation for the subject general retail use. Additional conditions of approval require continued compliance with RBS certification requirements, operation in substantial conformance with the submitted Letter of Business Operations, and prohibition of alcohol service outside the ABC-defined licensed premises. With these safeguards in place, the modification does not expand the scope of the previously approved use but refines it to ensure alcohol service remains subordinate to bona fide meal service and consistent with Type-47 operational requirements.

Exhibit 2: Floor Plan

ABC identifies the subject property as located within Census Tract 11.01, and authorizes the issuance of a maximum of six on-sale licenses within the subject tract. As of February 2026, ABC has issued six licenses that permit the sale of alcohol for onsite consumption, as shown in Table 2 below:

Table 2: On-Sale ABC Licenses issued in Census Tract 11.01

Address	Business Name	Status	Type
1305 West Whittier Blvd	Northgate Market	Active	Type-86 – beer, wine, & spirits sampling
1651 West Whittier Blvd	Ostioneria Colima	Active	Type-41 – beer & wine
1367 West Whittier Blvd	The Crab Shack	Active	Type-41 – beer & wine
2429 West Whittier Blvd	Blackjack Pizzeria	Active	Type-41 – beer & wine
1451 West Whittier Blvd	Higo Sushi	Active	Type-41 – beer & wine
1305 West Whittier Blvd	Northgate Market	Active	Type-48 – beer, wine, & spirits

Because the proposed MOD 26-0001 to CUP 25-0016 would replace a Type-48 License with a Type-47 License, the total number of On-Sale Licenses within the tract will remain at six, and thus, there is no requirement for a finding of Public Convenience or Necessity to be made.

In addition to the Type-47 on-sale license being requested, the Applicant will retain the existing Type-21 license, which allows the sale of beer, wine, and spirits from the grocery store to be consumed offsite. ABC has also issued the following five licenses that permit the sale of alcohol for offsite consumption, referred to as "off-sale", within this census tract, as shown in Table 3 below. These licenses do not affect ABC's recommendation for on-sale licenses:

Table 3: Off-Sale ABC Licenses issued in Census Tract 11.01

Address	Business Name	Status	Type
1387 West Whittier Blvd	CVS Pharmacy	Active	Type-21 – beer, wine, & spirits
545 West Whittier Blvd	Gold 7 Liquor	Active	Type-21 – beer, wine, & spirits
2001 West Whittier Blvd	Grocery Outlet	Active	Type-21 – beer, wine, & spirits
1305 West Whittier Blvd	Northgate Market	Active	Type-21 – beer, wine, & spirits
2051 West Whittier Blvd	EZ Day Liquor & Market	Active	Type-21 – beer, wine, & spirits

Exhibit 3: Census Tract 11.01

The Applicant is aware that they must remain in compliance with the City's Noise Ordinance at all times, even with the addition of the bar, although no alcohol service is proposed beyond the gated bar area inside the restaurant. The City's noise standards, as perceived from adjacent residential properties, pursuant to LHMC Sections 9.32.050 and 9.32.060, are summarized in Tables 5 and 6 below. LHMC 9.32.080 specifies the same noise limits for affected schools, hospitals and churches. The LHMC does not prescribe any limitations on noises that affect non-residential uses, other than schools, hospitals and churches.

Table 4: Noise Standards - Exterior (at any point on the affected residential property)

Maximum Noise Level	Time Period
55 dB	7:00 a.m.—10:00 p.m.
50 dB	10:00 p.m.—7:00 a.m.

Table 5: Noise Standards - Interior (measured within the affected residential unit)

Maximum Noise Level	Time Period
55 dB	7:00 a.m.—10:00 p.m.
45 dB	10:00 p.m.—7:00 a.m.

ANALYSIS:
Modification 26-0001 (to Conditional Use Permit 25-0016)

The Applicant is requesting a Modification (MOD 26-0001) to Conditional Use Permit (CUP) 25-0016 to modify the existing alcoholic sales and service at the restaurant inside the general retail use (Northgate Market) from a Type-48 ABC License (On-Sale General - Public Premises) to a Type-47 ABC License (On-Sale General - Eating Place). The Planning Commission must make the CUP findings pursuant to LHMC Section 18.66.040.B in order to approve the proposed Modification. Staff has provided justification in support of each of the required findings:

1. The proposed use 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.

The subject property is designated by the General Plan for Highway Commercial land use, which anticipates restaurants and commercial establishments serving the traveling public and surrounding community, and located within the Commercial (C-2) Zone, which implements the General Plan Highway Commercial land use designation. The Project modifies an already approved on-sale alcohol authorization and does not increase the number of on-sale licenses within Census Tract 11.01. The total number of on-sale licenses will remain at six, consistent with the maximum number of on-sale licenses permitted by ABC within the tract, and therefore does not create overconcentration. Unlike the previously approved Type-48 license, which permitted operation as a bar or public premises where food service is not required and minors are prohibited, the Type-47 license requires operation as a bona fide eating place with substantial meal service and allows minors on the premises. The modification therefore shifts the operation toward a restaurant model where alcohol service is incidental to food service, reducing potential impacts associated with standalone bar operations. Alcohol service will be limited to the hours of 10:00 a.m. to 10:00 p.m., within the existing hours of operation of the retail use. The outdoor patio area will be secured with a perimeter gate, as required by ABC to prevent the removal of open containers. The Applicant must comply with Responsible Beverage Service (RBS) requirements, and all operations remain subject to the City’s noise standards and other municipal regulations. Given the commercial context of the site, existing reciprocal access and parking agreements, required security measures, and operational limitations, the proposed Modification will not impair the character of the C-2 Zone and will not unreasonably interfere with nearby properties, including residential uses to the north. Therefore, the proposed use 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 C-2 Zone in which it is to be located.

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

The Project is located within an existing 10.8-acre commercial shopping center (La Habra Town Center) with established vehicular access from Whittier Boulevard, Idaho Street, and Hacienda Road through reciprocal parking and access agreements. The site is fully developed with adequate utilities, infrastructure, circulation, and shared parking to accommodate restaurant and retail uses. The proposed Modification does not expand the building footprint and includes a minor exterior improvement that involves the fencing-off of a 1,500-square-foot portion of the existing adjacent outdoor patio area (Paseo Gonzalez), an ABC requirement. The fenced patio area represents a negligible expansion (approximately 1,500 square feet) relative to the existing 4,000-square-foot restaurant space. No grading or significant site disturbance is proposed. The property has historically operated as a grocery store with restaurant and alcohol sales components and is therefore physically capable of accommodating the requested Type-47 license. Therefore, the subject site is physically suitable for the type of land use being proposed.

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

Pursuant to Chapter 18.06 (Zones Established – Zoning Map Boundaries and Land Uses), alcoholic beverage sales and service within the C-2 Zone are subject to the approval of a conditional use permit by the Planning Commission. The Project involves a modification to an already approved CUP authorizing on-sale alcohol service and does not introduce a new land use category. The modification maintains consistency with zoning development standards and does not require variances or deviations from applicable regulations. The Project is subject to Project-specific conditions of approval, in addition to ABC licensing requirements and ongoing code compliance, including noise standards pursuant to LHMC Chapter 9.32. Therefore, the use is conditionally permitted within the C-2 Zone and complies with the intent of all applicable provisions of the Zoning Ordinance.

4. The proposed use is consistent with the comprehensive general plan.

By authorizing alcoholic beverage sales and service under a Type-47 ABC License, the restaurant inside the general retail use (Northgate Gonzalez Market) will further enhance its dining experience by integrating alcohol service into a bona fide eating establishment within the La Habra Town Center. Unlike the previously approved Type-48 license, the Type-47 license requires substantial meal service and operation as a restaurant, thereby reinforcing the site’s identity as a dining-focused destination rather than a bar use. This enhancement strengthens the business’s “grocerant” concept, embraces the practices and experiences commonly found in Hispanic culture, and expands the range of dining amenities available within the City, helping to capture local spending that might otherwise occur in surrounding communities and reinforcing the General Plan’s objective of maintaining strong and competitive commercial corridors. The granting of a modification to a CUP for alcoholic sales and service under a Type-47 ABC License is consistent with the Comprehensive General Plan and implements the following policies:

ED 1.1: Consumer Demand: Explore opportunities to increase the competitive role of the City’s retail sector to serve both the community and the larger base of consumers in surrounding communities.

The sale of alcoholic beverages in conjunction with substantial meal service further enhances the restaurant by providing a more complete dining experience within an established retail anchor. This integrated model responds to evolving consumer preferences for experiential retail and dining environments, strengthening La Habra’s commercial offerings and reducing retail leakage to neighboring cities.

LU 3.2: Uses to Meet Daily Needs: Encourage uses that meet daily needs such as grocery stores, local-serving restaurants, and other businesses and activities within walking distance of residences to reduce the frequency and length of vehicle trips.

The general retail use (Northgate Gonzalez Market) is a well-established regional brand that serves as a cornerstone tenant within the La Habra Town Center. Approval of the Type-47 license for the onsite restaurant further supports the continued investment and long-term viability of this proven operator by allowing the restaurant to function as a full-service dining establishment. Located within the La Habra Town Center shopping plaza, just south of an existing residential area, the addition of beer, wine, and spirits to the food and drink options expands the business’s offerings to these residences within walking distance as well as the greater La Habra area.

Therefore, the proposed use is consistent with the General Plan.

FISCAL IMPACT/SOURCE OF FUNDING:

The Applicant has paid for the processing costs associated with the Modification application, which totals $4,643.00.

NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES):

The Applicant’s 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 no disturbance of soil will occur, the project is exempted by the Water Quality Ordinance from the preparation of a WQMP.

GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:

The project is consistent with the following General Plan policies:

ED 1.1: Consumer Demand: Explore opportunities to increase the competitive role of the City’s retail sector to serve both the community and the larger base of consumers in surrounding communities.

The project is consistent with the following City Council goals and objectives:

Goal 5: Development Activity and Business Assistance

Objective C: Work closely with commercial and residential property owners to improve and maintain the appearance of their properties.
Objective D: Continue to improve the City's business retention and expansion program.
Objective E: Continue to evaluate and improve the City’s development review process and continue to foster a “business-friendly” environment within all City departments.

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