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CITY COUNCIL STAFF REPORT
DATE: July 3, 2013 Consent Calendar
SUBJECT: REQUEST BY WALGREENS CO. FOR A RESOLUTION OF PUBLIC
CONVENIENCE OR NECESSITY (CASE: 5.1242-PCN) IN ORDER TO
SELL BEER, WINE AND DISTILLED SPIRITS AT THE WALGREENS
DRUGSTORE LOCATED AT 2465 EAST PALM CANYON DRIVE,
BUILDING 14, ZONE CSC, SECTION 25.
FROM: David H. Ready, City Manager
BY: Margo Wheeler, AICP, Director of Planning Services
SUMMARY
The City Council will consider a request to adopt a Resolution of Public Convenience or
Necessity for the sale of beer, wine and distilled spirits from the existing Walgreens
drugstore located at 2465 East Palm Canyon Drive, Bldg. 14. Pursuant to Section
23958.4 of the California Business and Professions Code, the local governing body
(Palm Springs City Council) must find the public convenience or necessity is served
before an additional Alcoholic Beverage Control (ABC) License is issued within a
census tract that has an undue concentration.
RECOMMENDATION:
Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, ADOPTING A RESOLUTION OF PUBLIC
CONVENIENCE IN ORDER TO SELL BEER, WINE AND DISTILLED SPIRITS AT THE
EXISTING DRUGSTORE LOCATED AT 2465 EAST PALM CANYON DRIVE,
BUILDING 14."
PRIOR ACTIONS:
On April 21, 2010, the City Council approved a Resolution of Public Convenience for a
Type 20 ABC License at the subject Walgreens drugstore.
(City Council Resolution 22701)
Item No. 2. N .
City Council Staff Report July 3, 2013
5.1242-PCN 2465 E. Palm Canyon Drive Page 2 of 3
STAFF ANALYSIS:
The applicant is applying for a Type 21 license through the State of California
Department of Alcoholic Beverage Control (ABC) for the proposed alcohol sales. The
ABC summarizes the "Type 21" license as follows:
OFF SALE GENERAL - (Package Store) Authorizes the sale of beer, wine and
distilled spirits for consumption off the premises where sold. Minors are allowed
on the premises.
The proposed liquor license is located within a Census tract that exceeds the amount of
on-sale licenses normally permitted; this is known as an "undue concentration" and is
specifically defined by Section 23958.4 of the Business and Professions Code:
As to off-sale retail license applications, the ratio of off-sale retail licenses
to population in the census tract or census division in which the applicant
premises are located exceeds the ratio of off-sale retail licenses to
population in the county in which the applicant premises are located.
The subject property is located within census tract #0448.07 (see attached census
map). This tract currently has five active off-sale liquor licenses. No off-sale licenses
are authorized for the tract based on its population. The ABC will only issue the
proposed liquor license if the Council determines that the public convenience or
necessity would be served.
The site is located along a major thoroughfare, East Palm Canyon Drive, which has a
number of businesses that serve resort clientele. According to the CA Department of
ABC, the following properties in this census tract offer alcoholic beverage sales for off-
site consumption:
1. Ralphs, 1733 E. Palm Canyon Drive
2. Cost Plus World Market, 2465 E. Palm Canyon Drive, Building 4
3. Jensen's Finest Foods, 2465 E. Palm Canyon Drive, Building 7
4. Longs Drug Store, 1733 E. Palm Canyon Drive
5. Walgreens, 2465 E. Palm Canyon Drive
A list of the liquor licenses within this tract is attached to this report with the respective
license types and current status.
The subject property is located within the CSC Zone, which permits drug and variety
stores by right. The accessory sale of alcoholic beverages for consumption off-site is
considered incidental to the store. Staff believes that the modification of the off-site
license from beer and wine to beer, wine and distilled spirits will not be detrimental to
the Census Tract or surrounding neighborhood.
The applicant has provided a justification letter as to why the PCN should be approved
(see attached letter). Based on this and the analysis above, staff recommends approval
02
City Council Staff Report July 3, 2013
5.1242-PCN 2465 E. Palm Canyon Drive Page 3 of 3
of the proposal as it serves the public convenience. A draft resolution of approval is
attached to this report.
FISCAL IMPACT: No fiscal impact.
vog:�
Ma o Wheeler, Al P, David H. Ready, ,
Director of Planning Services City Manager
Attachments:
1 . Vicinity Map
2. Draft Resolution
3. List of Authorized License Types in the Subject Census Tract
4. Census Tract Map
5. Letter of Request
03
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Department of Planning Services W E
��4FORN' Vicinity Map
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CITY OF PALM SPRINGS
CASE: 5.1242 PCN DESCRIPTION: A request by Walgreens Co. for a
Resolution of Public Convenience or Necessity for a
APPLICANT: Walgreens Co. Type 21 ABC license in order to sell beer, wine &
distilled spirits at the existing drugstore located at
2465 E. Palm Canyon Drive, Zone CSC, Section 25.
04
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, ADOPTING A RESOLUTION OF
PUBLIC CONVENIENCE IN ORDER TO SELL BEER, WINE AND
DISTILLED SPIRITS AT THE EXISTING DRUGSTORE
LOCATED AT 2465 EAST PALM CANYON DRIVE, BUILDING
14,
WHEREAS, Walgreens Co. ("Applicant') has requested the adoption of a Resolution of
Public Convenience in order to sell beer, wine and distilled spirits at the existing
Walgreens Drugstore located at 2465 East Palm Canyon Drive, Bldg. 14, Zone CSC,
Section 25; and
WHEREAS, the Applicant agrees to sell beer, wine and distilled spirits as part of a
general retail / drugstore store; and
WHEREAS, the City Council „pis being asked to adopt a Resolution of Public
Convenience or Necessity pursuant to the requirements of the Alcoholic Beverage
Control Board and applicant; and
WHEREAS, the City Council has carefully reviewed and considered all of the evidence
presented in connection with the Resolution of Public Convenience, including but not
limited to the staff report; and
WHEREAS, the applicant has applied with the State of California Alcoholic Beverage
Control for a license to sell beer and wine: license number 21 (Off Sale General).
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE
AS FOLLOWS:
SECTION 1. The City Council finds that a Type 21 liquor license (Off Sale General) at
2465 East Palm Canyon Drive, Bldg. 14, serves the Public Convenience.
ADOPTED THIS 3'd day of July, 2013.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
05
Resolution No.
Page 2
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
06
California ABC - License Query System - Data Portal Page i of 2
California Department of Alcoholic Beverage Control
For the County of RIVERSIDE - (Off-Sale Licenses)
and Census Tract= 448.07
Report as of 6/24/2013
Primary
Licens License Orig. Iss. Expir Owner and Business Mailing Geo
Numbs Status Type Date Date Premises Name Address Code
1) 407436 ACTIVE 21 1/6/2004 /30/2013 RALPHS RALPHS 181 PO BOX 54143 3310
GROCERY LOSANGELES,
COMPANY CA 90054-0143
1733 E PALM
CANYON DR
PALM
SPRINGS, CA
kHHH 2264
Census Tract:
0448.07
60873 ACTIVE 20 /29/2008 /30/2013 COST PLUS COST PLUS 200 4TH ST, 3310
INC WORLD TTN: RHODA
465 E PALM MARKET REGALADO
CANYON DR, DAKLAND, CA
BLDG 4 4607-4312
PALM
SPRINGS, CA
92264
"H ensus Tract:
448.07
64249 ACTIVE 21 11/12/2008 2/28/2014 JENSENS JENSENS 2465 E PALM 3310
COMPLETE FINEST ANYON DR,
SHOPPING FOODS 3LDG 7
INC DALM SPRINGS,
465 E PALM A 92264-7004
CANYON DR,
BLDG 7
ILLL L
PALM
SPRINGS, CA
2264-7004
ensus Tract:
448.07
77497 SUREND 21 612212009 5/31/2014 GARFIELD LONGS DRUG 1 CVS DR, MAIL 3310
BEACH CVS STORE9806 DROP23062A
LLC WOONSOCKET,
1785 E PALM RI02895-6146
CANYON DR
PALM
SPRINGS, CA
92264-1630
07
littp://www.abe.ca.gov/datport/AHCountyRep.asp 6/25/2013
California ABC - License Query System - Data Portal Page 2 of 2
Census
uuL�u��l�0448.07Tract: I II II
8519 ACTIVE 20 /7/2010 /30/2013 WALGREEN WALGREENS DO BOX 901, 3310
14:34 PM CO 09885 TTN: LIQUOR
465 E PALM iENEWALS
CANYON DR DEERFIELD, IL
PALM 30015
SPRINGS, CA
92264-7000
Census Tract:
L-110448.07
- - - End of Report- - -
For a definition of codes, view our glossarv,
08
http://www.abc.ca.gov/datport/AHCountyRep.asp 6/25/2013
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SOTS Information
Strer Address 2465 E PALM
CANYON DR Legend
City Name PALM SPGS
Sraze Abby cA Highway
Zip Code Ir 92 664 Tract
MSAm+Dcode aol4a Street
stare code 06
CouvryCode 065
Tract Code U4YX.U]
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446.0 9412.00
414.0 0445.05
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0451.24
2012 Ioformsiion
Snea Address IF-2465 E PALM
CANYON DR Legend
Cary Name PALMSPGS = Highway
Stae Abl r CA I
Zip Cade 92264 Tract
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WAND Code 40140 Street
State Code 06
Cowry Code 065
Tract Cale 0448.0]
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Alcoholic Beverage(onsulting Service 0,2 0 - °7
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April 23, 2013
Via UPSG
Mr. Glenn Mlaker, AICP
Assistant Planner
City of Palm Springs �lJ1V �
3200 E Tahquitz Canyon Way
Palm Springs, CA 92262 AbR 2 4 2013
Re: Walgreen Co. PtANNINGSERViCES
DBA Walgreens 9885 nonsta"Wwr
2465 E. Palm Canyon Drive, Bldg. 14
Palm Springs, CA 92264
Re: Finding of Public Convenience or Necessity, regarding Off-Sale
Alcoholic Beverage License
Dear Mr. Mlaker,
Our firm represents Walgreen Co. ("Walgreens") in the above-referenced
application to upgrade the current Type 20 Beer and Wine off-sale ABC license
to a Type 21 Beer, Wine and Distilled Spirits ABC license, and for a
determination of Public Convenience or Necessity ("PC or N"). This letter is sent
to formally request that the City of Palm Springs make the finding of PC or N
regarding Walgreens application to sell beer, wine and distilled spirits at their
location at 2465 E. Palm Canyon Drive, Bldg. 14. This open store has been
licensed to sell beer and wine license since July 2010.
Background
The Department of Alcoholic Beverage Control has determined that the
Walgreens store is located within Census Tract 448.07. Pursuant to §23958.4 of
the California Business and Professions Code, the Department determined that
Census Tract 448.07 is currently over-concentrated, with 5 (five) licenses
currently existing; this includes the current beer and wine license for this
Walgreens store. Therefore, in order for Walgreens to obtain a Type 21 off-sale
liquor license, the City of Palm Springs must make a finding that the proposed
use would be a public convenience or necessity. If the Type 21 is approved,
Walgreens intends to surrender the existing Type 20 license, and move it outside
of the City of Palm Springs, to another store in Riverside County; thus, there will
atroatee wRh License Locos 0 4 1ne. & c,i ii
26023 Jefferson Ave,Suite D,Murrieta,CA 92562
95"98-6868/Fax:951-600-2726/s .mfabc.com
i
ultimately be no increase in the census tract with the approval of the Type 21
license.
Overview and Project Description
Walgreens drug/variety store and pharmacy encompasses 14,820 square feet,
with 90 square feet allotted for the alcohol sales area. The store is located at
2465 E. Palm Canyon Drive, in the Smoke Tree Commons shopping center, near
the corner of E. Palm Canyon Drive and Barona Rd. This store operates daily
between the hours of 7:00 a.m. and 12:00 a.m. Alcohol sales are estimated to
make up approximately 5% of total sales.
Public Convenience or Necessity
First, it is important to emphasize that Business & Professional Code § 23958.4
require a positive finding of public convenience "or"necessity in order for an on-
site ABC application to be approved. Thus it is legally sufficient if Walgreens
shows either public convenience or public necessity. It is not legally necessary
to show both.
Second, it is only necessary to show public convenience or necessity where
there is an "undue concentration" of licensees in the census tract. The term
"undue concentration" (also referred to as "over concentration") is specifically
defined in Business and Professional Code § 23958.4 as simply a ratio of the
number of licenses in a census tract compared to the average number of
licenses in a County, as a whole. It does not mean that a particular census
tract necessarily has too many licenses for the needs of convenience of residents
in that tract.
"Over Concentration" also does not mean that the State, or anyone else, has
previously looked at this census tract and determined that it has suffered any
deleterious effects from the actual number of licenses existing; or that it will suffer
if a new license is issued. It merely provides a guideline for making such a
determination, in the form of determining whether in a particular situation, the
ABC license would serve the "public convenience or necessity".
Thus the fact that the census tract in which the Walgreens site is located is
statutorily "over concentrated" does not mean that selling a small amount of
alcoholic beverages at a drug/variety store will have adverse impacts. Rather, it
simply means that either public convenience or public necessity will be served by
the sale of alcoholic beverages at this site.
It should also be noted that there has been no citizen opposition to Walgreen's
request to upgrade the current alcohol license.
2 12
Basis For Supporting Off-Site Alcoholic Beverage Sales
As An Integral Part Of The Store
Company Overview
Founded in 1901, Walgreens provides the most convenient access to consumer
good and services, and pharmacy, health and wellness services in America. The
company has recorded 36 consecutive years of record sales.
Walgreens is continually taking steps to ensure the company's continued
success in the fact of a weakening economy, by transforming into a more
efficient and customer-focused company. Walgreens has expanded its private
brand product offerings, which provide greater value to customers. Walgreens
offers competitively priced consumables, whose sales have been very strong,
particularly for fast, easy, midweek fill-in needs in conveniently located retail
stores.
Walgreens is consistently recognized as a leader in the industry. Fortune
magazine ranked Walgreens fourth among food and drugstore companies in
March 2011, as one of the worlds most admired companies. In May, 2011,
Fortune again ranked Walgreens 32nd among the 500 largest U.S.-based
companies overall, and 3 among food and drugstores.
The Walgreens name is very well known, not only in the Palm Springs
community, but nationally and world-wide. Its customers rely on Walgreens to
provide the goods and services they need, with the convenience that Walgreens
is known for.
A Good Neighbor:
Since Walgreens was founded in 1901, the company and its employees have
recognized the connection between strong communities and good business. To
help keep the Walgreens retail network connected to the neighborhoods it
serves, the company created a Community Leader position in 2009. These 1,300
Community Leaders now identify and create local events each year. From toy
and winter coat drives to fundraising walks and informing neighbors about flu
protection, Walgreens is building upon its long-standing tradition of community
pharmacy.
Walgreens also understands that they serve their customers best when the
workforce reflects the diversity of the community. Walgreens recruits service-
oriented, skilled and diverse individuals so that customers find the experience
they expect in each Walgreens store.
3 13
i
Security and Control:
Walgreens is committed to taking all feasible steps to address any law
enforcement concerns about the site. In addition, Walgreens has an extensive
employee-training program and is a responsible retailer of alcoholic beverages.
Walgreen Co. is a large corporate retailer with international presence and
experience. It certainly has the resources to be a responsible retailer of all types
of goods and especially of alcoholic beverages. Moreover, the sale of alcoholic
beverages is not the primary purpose.
Walgreens stores are designed to provide a safe environment for patrons and
employees. Some of the design elements of the store that facilitate a safe and
pleasurable shopping experience include adequate lighting levels both on the
interior and exterior of the store, employee supervision of the facility, closed
circuit video monitoring system with cameras located strategically throughout the
property, and careful window signage and landscaping placement to avoid
obstruction of visibility into and out of the facility.
Walgreens understands the importance of maintaining the appearance of a store
to both expand their customer base and prevent criminal activity. Walgreens is
committed to a store that allows for safe family oriented shopping.
In addition, Walgreens recognizes the seriousness of loitering, delinquency,
crime, and underage drinking. Walgreens has developed stringent operational
standards and training programs for employees involved with selling of alcoholic
beverages. Walgreens is open to operating conditions that the police department
considers appropriate to ameliorate any concerns that do exist.
The site will not result in an adverse impact on public health safety, or
welfare:
Walgreens operation of this store has a positive impact on public health, safety,
and welfare. In fact, by providing a safe and convenient location to purchase
consumer goods and services, and pharmacy, health and wellness services,
public welfare is advanced by this site. The addition of selling distilled spirits will
not change this.
Walgreens realizes that a healthy community translates to healthy business, and
is willing to consider any conditions the City of Palm Springs deems necessary in
order to ensure that the public health, safety, and welfare are protected. In short,
Walgreens is committed to protecting the public health, safety, and welfare of the
community, and takes appropriate steps to do so. The sale of alcoholic
beverages on the site, specifically the addition of distilled spirits does not
threaten these important concerns.
4 14
? t'
Conclusion
Walgreens Company has been a responsible retailer of alcoholic beverages
nationwide for many years. Permitting the addition of distilled spirits at this store
will not change this, but will 'round-out' the shopping experience for Walgreens
patrons. Walgreens, by reason of its location, character, manner, and method of
operation, merchandise, and devoted clientele, has served the community of
Stockton well. We respectfully request an approved finding of Public
Convenience or Necessity for this store.
Enclosed is a check in the amount of$1,749.00 for the PC or N processing fee,
the ABC-245 form and the required 400' resident mailing labels.
If there is any additional information you need to process this request, please
contact me at (951) 698.6868, or via email, at Rhonda@Calabc.com.
Thank you for your consideration of our request.
Since[
honda Kindle
Icoholic Beverage Consulting, for Walgreens Company
5 15