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41FORN%4' CITY COUNCIL STAFF REPORT
DATE: June 7, 2006 Consent Calendar
SUBJECT: REQUEST BY MEHUL SHAH FOR THE ADOPTION OF A RESOLUTION
OF PUBLIC CONVENIENCE OR NECESSITY IN ORDER TO SELL
WINE AT FAME TOBACCONIST LOCATED AT 155 SOUTH PALM
CANYON DRIVE, ZONE CBD, SECTION 15.
CASE: 5.1102 - PCN
FROM: David H. Ready, City Manager
BY: Director of Planning Services
SUMMARY
Staff is requesting that the Council adopt a Resolution of Public Convenience or
Necessity to allow the sale of wine at Fame Tobacconist located at 155 South Palm
Canyon Drive,
RECOMMENDATION:
Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, ADOPTING A RESOLUTION OF PUBLIC
CONVENIENCE OR NECESSITY IN ORDER TO SELL WINE AT FAME
TOBACCONIST LOCATED AT 155 SOUTH PALM CANYON DRIVE, ZONE CBD,
SECTION 15."
BACKGROUND:
The applicant has applied for a liquor license through the Department of Alcoholic
Beverage Control for an existing building at 155 South Palm Canyon Drive within the
Mercado Plaza. The license is a "Type 20" license authorizing the sale of beer and
wine for off-site consumption. The State Department of Alcoholic Beverage Control will
not issue the license unless the City Council adopts a resolution pursuant to state law,
indicating that the premises will provide for the public convenience or necessity.
Item No. 2 . ^ .
City Council Staff Report June 7, 2006
5.1102-PCN Page 2 of 3
DISCUSSION:
The applicant is applying for a new liquor license at the location (for beer and wine
only). The Department of Alcoholic Beverage Control is requiring a resolution from the
City Council to approve an "undue concentration" of such licenses.
In accordance with Section 23958.4 of the Business and Professions Code which took
effect on January 1, 1995, "undue concentration" means a property that is located in a
census tract (or division) where the ratio of on-sale retail licenses to the population in
that tract (or division) exceeds the ratio of licenses to the population in the subject
county. When an undue concentration is determined to exist, the State Department of
Alcoholic Beverage Control will not issue a license for the sale of alcohol without a letter
or resolution from the City Council which indicates the premises will provide for the
public convenience or necessity.
Currently the State Department of Alcoholic Beverage Control considers the City of
Palm Springs as having an "undue concentration" of liquor licenses — that is, more liquor
licenses per capita in Palm Springs than throughout Riverside County. For the subject
property, Census Tract #0446.01 has eighty-six on-sale licenses with eight more
pending and thirteen off-sale with four more pending. The tract has the population to
allow six on-sale and four off-sale licenses. State law was enacted to allow local
government the opportunity to regulate the number and location of such uses. By
making a finding of "Public Convenience or Necessity', the City Council may determine
that the subject premises will provide for the convenient patronage of the public
whereby the convenience does not already exist in the immediate area.
The subject property is in a commercial area. Abutting uses are detailed on Table 1 as
follows:
Table 1: Surrounding Land Uses and Zoning
GP I Zone Description....
North CBD CBD Desert Hatter (Mercado Plaza retail)
South CBD CBD Peppertree Books (Mercado Plaza retail)
East CBD CBD Retail Commercial
West CBD CBD Mercado Plaza Parking
The approximate floor area of the proposed business is approximately 1,580 square
feet and the area to be devoted to the off-site sale of wine would be approximately ten
square feet of actual display area or approximately .006 percent of the total floor area.
The display rack will be located in the existing humidor area of the store.
City Council Staff Report June 7, 2006
5.1102-PCN Page 3 of 3
ANALYSIS:
Wine shops are permitted by right-of-zone within the Central Business District and they
do not require any additional land use authorization. The proposed display area is
limited to a two foot by five foot rack inside an existing primary use and is only intended
as an accessory use. The proposed accessory use represents less than one percent of
the total floor area of the retail space. Therefore, the type and intensity of the retail sale
of wine is not likely to negatively impact the public safety or welfare.
CONCLUSION:
Staff is recommending approval of Case 5.1102-PCN and adoption of a Resolution of
Public Convenience for the Fame Tobacconist store to allow issuance of a Type 20
Liquor License and the off-site sale of wine located at 155 South Palm Canyon Drive.
FISCAL IMPACT: No fiscal impact.
aid Ai�ving, P, Thomas W. Wi on,
Director of PI nin Services Assistant City Manager
100
or
David H. Ready, City 1Gl nager,
,Attachments:
1. Letter of Request
2. Draft Resolution
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, ADOPTING A
RESOLUTION OF PUBLIC CONVENIENCE IN
ORDER TO SELL WINE AT FAME TOBACCONIST
LOCATED AT 155 SOUTH PALM CANYON DRIVE,
ZONE CBD, SECTION '15.
WHEREAS, Mehul Shah ("applicant') has requested the adoption of a Resolution
of Public Convenience or Necessity in order to sell alcohol at Fame Tobacconist
located at 155 South Palm Canyon Drive, Zone CBD, Section 15; and
WHEREAS, Mehul Shah ("applicant") agrees to sell wine as part of a tobacconist
use and that retail alcohol sales will be approximately .006 percent of the floor
area of the use; and
WHEREAS, the City Council is being asked to adopt a Resolution of Public
Convenience 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 alcohol: license number 20 (Off-site Beer
and Wine).
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. The City Council finds that a Type 20 liquor license (Sale Off-site —
Beer and Wine) at 155 South Palm Canyon Drive serves the Public
Convenience.
ADOPTED THIS day of , 2006.
David H. Ready, City Manager
Resolution No.
Page 2
ATTEST:
James Thompson, City Clerk
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
Fame Tobacconist
Mr Mehul Shah
155 S. Palm Canyon Dr.
Palm Springs, Ca 92262
Gentlemen;
I ant the owner of Fame Tobacconist located in downtown Palm Springs. I would like to
sell closed bottles of wine in our retail store for customers to purchase with their cigars.
The area that this display would occupy in the store is ten square feet as specified by the
Riverside Cotmty Health Department. The type of license I have applied for with the
Alcohol Beverage Commission is a type-twenty. I realize that this is for sale of sealed
bottles to be consumed off-site only. I believe this would work well in this area as there
are no other wine shops on Palm Canyon Drive. Our neighboring businesses include a
bookstore, A hat shop, Gift stores, an art gallery and an assortment of restaurants.(please
see enclosure) As you requested also,the census tract number for this area is 0446.01. I
would appreciate your consideration in this matter at your earliest convenience
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MAR - 1 2006
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VI'TENTION: A; 'UY S01,1NIERS
SP„r'ELLO COMMERCIAL
SAX 4- (760)322-600i
f OF PAGES: I Page(Inddg cover page) .
DATE: JA_NVARY 20, 2005 (12.30 P.M.) ;
FROM: GENE WILLIAMS I WVSSMAN DEVELOPMENT
[2FFERENCE. MERCADO PLAZA NA-3(TOBACCO SHOP) 1580 SQ. FT. .W
118 INCH SCALE PLAN
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