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Home My WebLink About04 ALCOHOLIC BEVERAGE SALES WORKSHOP AGENDA REPORT tTEM #4 r MEETING DATE: SEPTEMBER 12, 2017 TO: PLANNING COMMISSION FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: ALCOHOLIC BEVERAGE SALES WORKSHOP Staff has prepared the following report to provide an overview of alcoholic beverage sales and consumption regulations within the City. Business owners have expressed interest in opening alcoholic beverage sales establishments within Tustin; however, Tustin City Code distancing requirements are frequently preventative for new alcoholic beverage sales establishments. This report will examine existing regulatory policies and review how other cities within Orange County are regulating alcoholic beverage sales. It will also explore opportunities to modify alcoholic beverage sales regulations based on feedback received from the Joint City Council/Planning Commission Workshop held on February 21, 2017. BACKGROUND: City Regulations Tustin has a long history of regulating alcoholic beverages. Since 1984, several ordinances have been adopted to address alcoholic beverage sales establishments and policy direction from the Planning Commission and City Council (Table 1). Table 1. History of Alcohol Regulation -fl e- ; 'ka �s7R1° "iwiair 1984 The City Council removed off-sale liquor stores as a permitted use and established a temporary moratorium upon the issuance of permits for off-sale liquor stores. Later that year, the Council adopted code provisions that required a conditional use permit for all on- and off-site alcoholic beverage sales establishments. 1987 The Council added provisions to establish distance separation requirements between various land uses and any off-site alcoholic beverage sales establishment (100-feet to residential, 300- feet to other off-site, 600-feet to sensitive uses). At the time, the Council also allowed an exemption for supermarkets that sell alcoholic beverages for off-site consumption. Many supermarkets are located immediately adjacent to or in close proximity to residential uses or within 300-feet of another existing off-site sales establishment such as a liquor store. Therefore, the exemption was established for supermarkets and retail stores that are at least 15,000 square feet and devote less than 10 percent of their gross floor area towards alcoholic beverage sales. ABC Workshop Planning Commission September 12, 2017 Page 2 ( 1$96 } Tfie Cfty Council updated the alcahol.sales establishment distance separation requirements. Off-site ;300-feet from:residential 500=feet tq other off site and:600-feet to existing on- site sales establ sliki'is except restaurants and d.;other sensitive uses I • On-srte 1',000 feet from residential, other off-site and on site sale establishments(except restaurants)and'other.sensihve uses:' E ' rest include churches, places Qf worship; public or pnvate schools, parks, playgrounds; clinics, hospitals;,.healthcare fatalities and convalescent homes t 2000 The City Council established alcohol sales establishment distance separation requirements within Planned Community, Planned Community Industrial and Specific Plan areas; and enabled the Alcoholic Beverage Sales Establishment Guidelines to be applied citywide. 2001 The City Council`updated the'Alcoholic Beverage Sales 1=stablishment Gwdelines to include a,! z definition for specialty stores"in commercial and industrEal zones, ,and exempteo_ specialty stores from the distance separation rgwremcnts for off s%te alcoholic beverage sales. 2007 The Planning Commission held a workshop on Alcoholic Beverage Control in response to many requests that the City was receiving to extend hours for on- and off-site alcoholic beverage sales establishments. After deliberation, the Planning Commission at the time decided to maintain the status quo since the Commission felt that the current regulations sufficiently addressed the community concerns. However, the Planning Commission did establish standardized hours of operation until 11:00 p.m. weekdays and 12:00/midnight on weekends for staff approval; and midnight to 2:00 a.m. requiring Planning Commission approval. 201'1 Walgreens requested a Code'Arnendment o allow the-'sale of alcoholic bevdrages 'from their' 12;000 square foot store without meeting the distancing requirements Tustin City Code, 'only, s allows arr exemption to the off,`"sate tl stancing requirements rF th&Lstore is 15,U00 square feet or,z mare �n size and the alcoholic beverage sales area constitutes less than:l0 percent of:the gross..E # floor area.;,The request;was denied 2013 The City Council adopted a Code Amendment to allow wine tasting rooms and microwineries in the Cultural Resources District(Old Town)not subject to distancing requirements. 2014 ` The ,Zornng Administrator approved Condatiorral Use Permit 201-4402,4o allow a microwinerywith tasting room aod;;ancillary brewery in conjunction with an �at�ng establishment located rnnttun the Cultural Resources District i 2017 The City Council and Planning Commission held a joint workshop to discuss issues and potential amendments to City requirements and policies which were agreed to be too restrictive. staff briefed the:City Council and Planrnng Gommssion subc4mrnrttee;:on the proposed Code amendment coneept,wl1.ch is ben tirought forwardto Piani�mg.CommissEon for'considieration Historically, the City has had a conservative approach regarding alcoholic beverage sales establishments. A conditional use permit is typically required for new on- and off- site alcoholic beverage sales establishments and non-restaurants are subject to distance separation requirements. The distance separation requirements are sanctioned by specific provisions in Tustin City Code (TCC) Section 9217dd for alcoholic beverage sales establishment and include minimum separation distances from other alcoholic beverage sales establishments, schools, churches, hospitals and clinics (Attachment A). ABC Workshop Planning Commission September 12, 2017 Page 3 In order for a business to be considered a restaurant, the gross annual sales of food must exceed the gross annual sales of alcoholic beverages in an area devoted to an ancillary use. Thus, many new businesses that sell alcoholic beverages must be conscious of their projected annual sales or must comply with City-required distance separation requirements. In conjunction with the conditional use permit, City staff considers the City of Tustin Alcoholic Beverage Sales Establishment Guidelines to promote and protect the public health, safety and general welfare, and preserve and protect and enhance the quality of the City relating to establishments selling alcoholic beverages for on- and off-site consumption (Attachment B). California Department of Alcoholic Beverage Control(ABC) The California Department of Alcoholic Beverage Control (ABC) is responsible for regulating alcoholic beverages within the State of California. ABC is involved in the licensing and compliance of activities related to the production, sale and consumption of alcoholic beverages. In general, there are two (2) broad types of licenses available for retail sales that are distinguished by whether or not the alcoholic beverages are sold for consumption on the premises or to consume off the premises. On-Sale License -- Authorizes the sale of beverages for consumption on the premises where sold. A number of on-sale licenses also have off-sale privileges. Typical uses include restaurants, bars, clubs, cocktail lounges, and tasting rooms. Off-Sale License — Authorizes the sale of alcoholic beverages for consumption off the premises where sold. Typical uses include liquor stores, convenience markets, alcoholic beverage superstores, and grocery stores. Further, there are two (2) general distinctions in the type of alcoholic beverages sold under the retail licenses. Beer and wine license — As implied these licenses only allow for the sale of beer and wine and not distilled spirits. General license—Allows for the sale of distilled spirits in addition to beer and wine. It is not uncommon for a single location to have multiple ABC Licenses depending on the activities at that location. The most common types of ABC Licenses within the City are shown in Table 2 and the quantity of each. ABC Workshop Planning Commission September 12, 2017 Page 4 Table 2. ABC Licenses in City of Tustin (812017) 2 Winegrower 1 17 Beer and Wine Wholesaler 2 18 Distilled Spirit Wholesaler 2 20 Off-Sale Beer and Wine 22 21 Off-Sale General 27 23 Small Beer Manufacturing (allows sale to consumer) 3 40 On-Sale Beer 1 41 On-Sale Beer &Wine (bona fide eating place) 69 42 On-Sale Beer &Wine (public premises) 4 47 On-Sale General (bona fide eating place) 41 48 On-Sale General (public premises) 5 70 On-Sale General Restrictive Services 2 86 Instructional Tasting License (addition to Type 20121} 3 TOTAL 182 Generally, restaurants, bars and retail establishments require City authorization prior to obtaining a license from the ABC for on- and off-site alcoholic beverage sales. New alcoholic beverage sales establishments are permitted outright, conditionally permitted or not permitted per City regulations depending on location. Commonly, new alcoholic beverage sales establishments are conditionally permitted, which provides cities the opportunity to establish conditions to ensure compatibility with the surrounding area. In addition to conditions and/or established operational standards mandated by the corresponding jurisdiction, licenses are bound by ABC regulations including prohibiting of the sale of alcohol between 2:00 a.m. and 6:00 a.m. and overconcentration requirements. The State regulates the overconcentration of ABC licenses by using a ratio of one (1 ) license for each 2,500 residents within a census tract. Additional license can be issued only if the location is not a high crime area (20 percent higher than average citywide crimes), not too many outlets (ratio of licenses to population is above county ratio), and city determines public convenience or necessity exist within the census tract. ABC provides the base regulations for alcoholic beverage sales and cities may adopt regulations based on specific characteristics of the community. The Tustin Police ABC Workshop Planning Commission September 12, 2017 Page 5 Department (TPD) also works closely with the ABC in requiring compliance of existing facilities and in approving temporary licenses typically involved with special events. UNCONVENTIONAL AND EVOLVING USES: Changing market trends, aided by the "buy-local movement", are encouraging a more favorable market environment for small-scale manufacturers. "Buy-local" is a market trend to purchase goods and services locally to support small-business owners and keep currency locally. Stemming from this movement is the small-scale alcohol manufacturers, such as brewpubs and microproducers. In addition to satisfying demand for locally produced beer, wine and spirits, microproducers often distribute their product regionally or nationally, bringing in revenues into their host communities. Furthermore, successful brewpubs and microproducers can help revitalize commercial and mixed-use districts. Some of the general characteristics of microbreweries/microwineries, which are different than the typical establishments such as bars, taverns and clubs or lounges, are that the hours of operation tend to be reduced for microbrewerieslmicrowineries and that they have a primary use of beer/wine production, not direct retail sales of alcoholic beverages. Many microbreweries are not open daily to the public as they spend most of their time brewing. Tasting rooms for patrons to sample the selections are often open i after work hours from around 3:00.p.m. to 9:00 p.m. Even on weekends microbreweries tend to close no later than 10:00 p.m. Many microbreweries/microwineries specifically try to capitalize on a clientele that is looking to have a drink before or after dinner. An important requisite identified by some small-scale alcoholic beverage sales establishments is proximity to good food. For example, microbrewers' clientele tend to appreciate the uniqueness of individually owned and operated restaurants. Many microbrewers acknowledge that their long-term goals are to eventually incorporate a food component to their business; however, they often lack the expertise in the food industry and the risk factor is extremely high in venturing into that market. This risk is particularly why they seek to locate themselves near exceptional food establishments. City staff believes that there are many fine dining establishments within the City and in particular Old Town that would meet this criterion. Other types of businesses that tend to be less prevalent than the aforementioned, but which are subject to the same distancing requirements, include: wine shops, neighborhood markets and drug stores (under 15,000 square feet), alcoholic beverage superstores (BevMo, Total Wine & More, Wine Club), and recreational uses (art class studios, comedy clubs, theaters, etc.). The City is approached by many of these less common uses and these uses are not permitted to serve due to the distancing requirements. Neighborhood markets and specialty stores create more foot traffic that creates a neighborhood feel. These types of businesses could create interest and attract other small businesses to Old Town, thus increasing walkability. Increasing foot ABC Workshop Planning Commission September 12, 2017 Page 6 traffic to commercial and mixed-use districts may have a positive effect in attracting clientele and creating a vibrant downtown. DISCUSSION: Restaurants, bars, and retail establishments require City authorization prior to obtaining a license from ABC for on and/or off-site alcoholic beverage sales. City authorization is often provided through the approval of a Conditional Use Permit (CUP). This section will discuss several factors, situations and requirements that influence where, how and if alcoholic beverage sales establishments are approved by the City. Moreover, this section will examine how City policies are preventative for new and evolving issues, as previously discussed. Distancing requirements, business hours, economic opportunities and industrial zones all influence approval or disapproval of alcoholic beverage establishments. Distancing Requirements Aside from restaurants, the current TCC requirement for alcoholic beverage sales distancing requirements restricts the establishment of new alcoholic beverage sales businesses such as bars, taverns, liquor stores, and convenience stores in close proximity to residential or sensitive uses within the City. Sensitive uses include any place of worship, public or private school, park, playground, clinic, hospital, health care facility or convalescent home. ' According to TCC Section 9277, new off-site alcoholic beverage sales less than 15,000 square feet of gross floor area, and permitted businesses with more than 15,000 square feet of gross floor area where the off-site alcoholic beverage sales area within the building occupies more than ten (10) percent of the gross floor area must be 300-feet away from residentially zoned or used property, 600-feet from sensitive uses and 500- feet away from other existing off-site sales establishments. Specifically, new off-site sales establishments less than 15,000 square feet, such as neighborhood markets or drug stores, are subject to distance separation requirements and cannot establish near residentially zoned or used areas, which is the purpose of these community-oriented stores. New on-site alcoholic beverage sales establishments have more intensive distance separation requirements. They must be 1,000-feet away from residentially zoned or used property, from sensitive uses and any other existing on-site sales establishments, except for restaurant establishments or off-site sales establishments. Attachment C illustrates an example of a 1,000-foot radius of a central location in Old Town Tustin. Within this 1,000-foot radius, there are numerous uses that prevent new on- or off-site alcoholic beverage sales establishments, except restaurants, from opening. Notwithstanding of all the benefits that may be realized if the City is to relax the distancing requirement, the distancing requirements were established to prevent the overconcentration of these types of uses. In addition to overconcentration, protecting ABC Workshop Planning Commission September 12, 2017 Page 7 sensitive uses from close proximity to new establishments is also important. These regulations were intended to meticulously protect the community from excessive noise, loitering and other secondary negative conditions. While ABC provides base distancing requirements for new alcoholic beverage sales establishments, the City has placed more intensive distancing requirements. Overly restrictive distancing requirements are conservative in protecting community interests that could be negatively impacted by an overconcentration of these uses. However, they also restrict new businesses that are trying to find an appropriate location in the City. Accordingly, it is important for a community to find a balanced approach in drafting its Ordinance. Business Hours ABC. restricts all on- and off-site alcoholic beverage sales to close at 2:00 a.m. Consistent with Planning Commission policy, businesses proposing to close any time prior to 11:00 p.m. weekdays, 12:00 a.m. weekends, are conditioned to be closed by those times. Businesses proposing to close any time after 11:00 p.m. weekdays, 12:00 a.m. weekends are considered by the Planning Commission. The Planning Commission may approve, conditionally approve, or deny any requested alcoholic beverage establishment closing time; however, no business may operate later than the 2:00 a.m. limitation established by ABC. Recently, the City has been approached by establishments wanting to open later than the midnight closing time. Many have indicated that their restaurants or establishments mostly cater to patrons that frequent their establishments after 9 p.m. To date, requests to serve alcohol later than 11:00 p.m. during weekdays, and until 12:00 a.m. on weekends, are carefully considered since late night operations can sometimes pose concerns to adjoining property owners, and other commercial tenants near the establishment. Input from TPD and other operating agencies are also considered. Economic Opportunities The Economic Development Department of the City Manager's office has researched microbreweries and the economic opportunities that they can bring to the City. In particular, there is interest specifically in Old Town Tustin to increase foot traffic to the area and create a synergy between the clientele that a craft beer tasting room attracts and the existing restaurants and shops in Old Town. City staff has been reaching out to numerous microbreweries to obtain feedback on how they operate and their specific needs in opening new locations. The relationships created with local craft brewers have provided staff with opportunities to hold a craft beer tasting event at the annual Tiller Days festival (Figure 1). Tasting events are becoming very popular and offer a great opportunity for local craft brewers to showcase their products. These events could also be an initial step in attracting microbreweries to the City if desired. San Diego has a well-established craft brewing ABC Workshop Planning Commission September 12, 2017 Page 8 industry and has been seen as the trendsetter in the market by those in the industry for a number of years. Cities within Los Angeles County are also starting to follow suit and relax restrictions on microbreweries. City staff has been informed by numerous craft brewers that there is an interest in Orange County, but the regulatory environment is not yet receptive to their use. The hurdles or lack of allowable zoning districts have prohibited expansion of many of these uses into the Orange County market. The Economic Development Department views this as an opportunity to attract a viable type of destination business that will in turn increase tourism to the City while at the same time providing an amenity to residents and the business community. Figure 4. Backyard Brewfest at Tiller Days Festival P r. ,a ui 0Q DMCATED r r _ :ig. Industrial Zoning District Industrial zones provide for the manufacturing industry, the storage and distribution of goods and associated uses. While breweries, wineries and distilleries are permitted in industrial zones, TCC does not list the on-site sale of alcoholic beverages as a permitted or conditionally permitted use. This conflicts with a rising trend of tasting rooms in conjunction with alcoholic beverage manufacturers. Elsewhere, many of these manufacturers are not open daily to the public and these tasting rooms are open during off-peak industrial work hours. This operating characteristic allows a wider range of use in industrial areas that does not conflict with established industrial businesses. When in industrial districts, many alcoholic beverage manufacturers with tasting rooms often partner with food trucks to bring in a food component for their clientele. ABC Workshop Planning Commission September 12, 2017 Page 9 JOINT CITY COUNCIUPLANNING COMMISSION WORKSHOP On February 21, 2017, the Tustin City Council and the Planning Commission discussed alcoholic beverage sales and consumption regulations within the City. This workshop opened the discussion for exploring potential amendments to City requirements and policies. One of the largest hurdles in permitting both on- and off-site sales establishments are the distancing requirements to residentially zoned or used properties. There are few commercial property locations within the City that can meet the distance separation requirements. The Council and Commission collectively agreed that the City's current regulations were overly restrictive and provided staff with direction to work on an ordinance lessening the restrictions for new on- and off-site sales establishments. POLICE DEPARTMENT: Following the Joint City Council and Planning Commission workshop, City staff met with various internal departments to discuss options in drafting a Code Amendment for alcoholic beverage sales establishments. City staff and the TPD have shared concerns regarding the relaxation of alcoholic beverage sales regulations. There may be issues that can arise pertaining to public safety with over concentration and the inappropriate consumption of alcoholic beverages. Fortunately, there are many examples of how other cities have successfully addressed alcoholic beverage regulations. The TPD in consultation with other Police Departments in Orange County found that working directly with management to these types of facilities appear to reduce public safety issues. One (1) option that is supported by staff and the TPD is that a CUP should remain a requirement for the sale of on- and off-site alcoholic beverages. This will allow for the evaluation of each particular business on a case by case basis. Additionally, requiring food to be served/available at all times at on-site sales establishments would further aid in creating an enjoyable, safe environment and provide a food option for patrons consuming alcoholic beverages. Further, it will allow for specific conditions of approval to be placed on the operation of the business. Should the business not comply with the conditions of approval then a revocation of the CUP and business license could occur. OTHER CITIES' APPROACH: Alcoholic beverage sales establishments are regulated by local jurisdictions as well as ABC, Within a community, alcoholic beverage sales establishments are permitted by right or through discretionary or ministerial approval. Upon review of nearby jurisdictions, many cities regulate these uses through a discretionary use permit. The cities that allow alcohol sales by right or with ministerial approval are specified within a given area or district. Staff has compiled a survey on the regulatory practices of nearby jurisdictions for on- and off-site alcoholic beverage sales (Attachment D). ABC Workshop Planning Commission September 12, 2017 Page 10 The City of Anaheim recently amended its City Code to provide specific standards for alcoholic beverage manufacturers within commercial and industrial zones. The manufacturing of alcoholic beverages is a permitted use in two (2) commercial districts and the industrial district as long as the business meets certain standards in the municipal code. Businesses that operate late would be subject to additional regulations and review. The Mayor of Anaheim proclaimed a Brew City initiative to attract craft brewers to the City and facilitate a quick process with less red tape. Similar to the City of Anaheim, the City of Fullerton had relaxed its regulations for new alcoholic beverage sales establishment and this resulted in a concentrated area of bars in the downtown area. For years, the city has struggled to control patrons in its downtown. At least 4,000 partyers, many from outside Orange County, routinely converge on approximately twenty (20) downtown establishments after 10:00 p.m. Following these issues, the City of Fullerton has tightened regulatory restraints on new alcohol related businesses and has worked extensively with the management of these facilities. The City of Irvine's zoning code allows bars, restaurants, markets, etc. as permitted uses in Commercial and mixed-use zones. No CUP is required for on- or off-site alcoholic beverages sales establishments, and Irvine has no sensitive use distance or hours of operation requirements for ABC uses. Irvine is a planned community that has deferred is alcoholic beverages sales hours and distancing concerns to the ABC and the private property owner/manager(mostly The Irvine Company). Largely, cities utilize state regulations enforced by ABC to determine separation requirements for alcoholic beverage sales establishments. Additional regulations are determined on a case-by-case basis through the discretionary permit process. For many of these cities the alcohol related issues stem around concentration and hours of operation. There is a balance to be obtained when trying to create an entertainment district that will attract people and mitigate the potential for negative impacts. RECOMMENDATION: Based upon input from the Joint City Council and Planning Commission workshop, analysis from current ABC and City requirements, review of new and evolving alcoholic beverage sales establishments, and input from City Council/Planning Commission subcommittee and internal departments, staff has prepared the following proposed code amendment concept: Proposed Code Amendment Concept • Require a CUP for on or off-site sales establishments; • Designate the Zoning Administrator as the designated approval authority for CUPS for new on- or off-site sales establishments, unless differed or appealed; ABC Workshop Planning Commission September 12, 2017 Page 11 • Require food to be served or provided at all times at on-site sales establishments, except bonafide eating establishments; • Reduce the square footage requirement from 15,000 square feet to 10,000 square feet for off-site alcoholic beverage sales to establish without a CUP; • Update the distance separation requirements as follows; o Exempt restaurants, microproducers, and ancillary tasting rooms from all distance separation requirements; o Remove required distance separations for new on or off-site sales establishments from other existing on or off-site sales establishments, residentially used or zoned properties, places of worship, private schools, parks, playgrounds, clinics, hospitals, health care facilities or convalescent homes; o Maintain required distance separation for new off-site sales establishments 600 feet away from public schools (K-12). Private schools would be excluded from this requirement; and/or o Maintain required distance separation for new on-site sales establishments, 1,000 feet away from public schools (K-12). Private schools would be excluded from this requirement. • Allow establishments to open until 2:00 a.m. with conditions that allow for reduced hours if noise or security complaints are received; • Allow recreational uses to serve alcohol in conjunction with an approved use; and/or • Allow alcoholic beverage manufacturers to have ancillary tasting rooms. With direction from the Planning Commission, staff can begin proposing amendments to the TCC that will implement the vision desired for the type of environment created for alcoholic beverage availability and consumption within the City. At a future date, staff would return to the Planning Commission with an Ordinance for the Commission's consideration for recommendation to the Tustin City Council. Public Notice and Outreach Notice of the subsequent Planning Commission meeting for a Draft Ordinance lessening restrictions on new alcoholic beverage sales establishments will be conducted in accordance to State Law. At minimum this will include a 1/8 page publication in the Tustin News and noticing posted in three (3) public places. I In addition to meeting the minimum requirements for adhering to State Law, the ` Planning Commission can direct staff to further notice the proposal. Options for conducting further noticing and outreach could include but are not limited to the following: Posting on the City's website and Facebook; and/or • Direct mailing to the Chamber of Commerce (to be forwarded to its business membership); and/or ABC Workshop P#anning Commission September 12, 2017 Page 12 • Direct mailing to all residents within 300 feet from all commercially zoned properties or direct mailing to all residents in the City (approximately 27,000 housing units); and/or • Direct mailing to all non-residential (approximately 1,000 parcels). ssica Aguilar Elizabeth A. Binsack Assistant Planner Community Development Director Attachments: A. TCC Section 9271dd -- Alcoholic Beverage Sales Establishments B. City of Tustin Alcoholic Beverage Sales Establishment Guidelines C. On-site Alcoholic Beverage Sales Establishment Distancing Requirements D. Survey of Orange County Cities' Regulations for Alcohol Establishments ATTACHMENT A TCC Section 9271dd -- Alcoholic Beverage Sales Establishments (Existing Code Requirements) i 1 9271-SPECIFIC PROVISIONS dd Alcoholic beverage sales establishments Subject to the Planning Commission's Guidelines for Alcoholic Beverage Sales Establishments and the following criteria: (1) Off-site -located in a building and permitted business with less than 15,000 square feet of gross floor area, and permitted businesses with more than 15,000 square feet of gross floor area where the off-site alcoholic beverage sales area within the building occupies more than 10 percent of the gross floor area, subject to the following minimum distance regulations: (a) 300 feet from any residentially zoned or used property; and 500 feet from any other existing off-site sales establishment; and 600 feet from any place of worship, public or private school, park, playground, clinic, hospital, health care facility or convalescent home; and 600 feet from any existing on-site sales establishments, except restaurant establishments. (b) Minimum distances between off-site sales establishments and residentially zoned or used property, places of worship, public or private schools, parks, playgrounds, clinics, hospitals, health care facilities and convalescent homes shall be computed by measuring the distance from the closest entry/exit provided for public/customer access of the off-site sales establishment to the property line of any of the above uses (whether inside or outside the City boundaries). (c) Minimum distances between off-site sales establishment and another off-site or on-site sales establishment, except for restaurant establishments, (whether inside or outside the City boundaries) shall be computed by measuring the distance between the closest exterior structural walls of each use. (d) Specialty stores as defined in Section 9297 of the Tustin City Code shall be exempt from minimum distance regulations. (2) On-site - subject to the following minimum distance regulations (except for restaurant establishments): (a) 1,000 feet from any residentially zoned or used property; and 1,000 feet from any other existing on-site sales establishments, except for restaurant establishments or off-site sales establishments; and 1,000 feet from any place of worship, public or private school, park, playground, clinic, hospital, health care facility or convalescent home. (b) Minimum distances between on-site sales establishments, except for restaurant establishments, and residentially zoned or used property, places of worship, public or private schools, parks, playgrounds, clinics, hospitals, health care facilities and convalescent homes shall be computed by measuring the distance from the closest exterior wall of the on-site establishment to the property line of any of the above uses (whether inside or outside the City boundaries). (c) Minimum distances between on-site sales establishments and another off-site or on-site sales establishment, except for restaurant establishments, (whether inside or outside the City boundaries) shall be computed by measuring the distance between the closest exterior structural walls of each use. (Ord. No. 1429, Sec. 1I.44, 5-21-13) i t Page 1 ATTACHMENT B City of Tustin Alcoholic Beverage Sales Establishment Guidelines CITY OF TUSTIN ALCOHOLIC BEVERAGE SALES ESTABLISHMENT GUIDELINES PURPOSE AND INTENT: The purpose of these guidelines is to set forth guidelines to be considered in conjunction with the conditional use permit process to promote and protect the public health, safety and general welfare, and preserve and enhance the quality of the City relating to establishments selling alcoholic beverages for on- and off-site consumption. To fulfill this purpose, it is the intent of these guidelines is to: 1. Establish reasonable guidelines to promote orderly development; 2. Identify operational guidelines to minimize the impacts on adjacent properties and neighborhoods; and, 3. Ensure implementation of certain regulations necessary to protect public safety. POLICY: The guidelines together with the Tustin City Code shall be considered by the Community Development Department and the Planning Commission in conjunction with applications for conditional use permits. The guidelines define on- and off-site alcoholic beverage sales establishments, identify desirable project characteristics, and set forth recommended findings and conditions of approval. The provisions contained herein shall be considered guidelines. The Zoning Administrator or Planning Commission may consider deviations when all the required findings can be made. Amendments to these guidelines shall be considered by the Planning Commission, AIcoholic Beverage Sales Establishment Guidelines Page 1 USING THE GUIDELINES I. Aft- ORGANIZATION The guidelines are organized into four sections: 1. Definitions: The definitions delineate on--site or off-site sales i establishments and supplement uses described and regulated by the Tustin City Code and adopted Use Determinations. i 2. Permit Process: The permit process identifies processing procedures for obtaining approval for on- and off-site alcoholic beverage sales establishments, 3. . Findings: Findings are provided to be considered for incorporation into j project resolutions as adopted by the Zoning Administrator or Planning Commission, i i 4. Development Guidelines and Standard Conditions of Approval: The j development guidelines are conditions of approval that are to be incorporated into project resolutions adopted by the Zoning Administrator or Planning Commission. The development guidelines/conditions of approval provide minimum standards for operational characteristics of specific types of uses. i II. DEFINITIONS The follouring definitions supplement uses described and regulated by the Tustin City Code and adopted Use Determinations and are to be used in determining whether a use is an on-site or off-site sales establishment. If there is a discrepancy with the following definitions, the Zoning Code shall prevail. Alcohol Beverage Sales Establishments: Alcohol beverage sales establishments are comprised of on-site and off-site establishments. Alcohol is either sold for consumption on the premises (on-site) or sold for consumption off the premises (off-site). The following definitions are grouped under on-site or off-site sales establishments and incorporate the regulations regarding sale of alcohol and types of uses defined by the Tustin City Code and adopted Use Determinations. •.* On-Site Sales Establishment. An on-site sales establishment provides for the sale of alcoholic beverages for consumption on the premises. On-site sales establishments, such as amusement resorts or clubs, are subject to the following minimum distance regulations measured from the closest exterior wall of the on-site establishment to the property line of any of the Alcoholic Beverage Sales Establishment Guidelines Page 2 i I . i • I I following sensitive uses. Restaurant establishments, as defined in these guidelines, are excluded from the distance regulations. i L 1.,000 feet from any residentially zoned or used property. 2. 1.,000 feet from any other existing off-site sales establishment or on- site sales establishments except for a restaurant. 3. 1.,000 feet from any church, place of worship, public or private school, park, playground, clinic, hospital, health care facility or convalescent home. I Definitions of On-Site Sales Establishments: � + Amusement Resorts: include arcades, theaters, auditoriums, social halls and indoor/outdoor recreation facilities, including billiard/pool halls and bowling alleys. Facilities that serve beer, wine or other alcoholic beverages and are not ancillary to a full- service restaurant on the premises, or that utilize more than 50 percent of the total gross floor area of the establishment, shall be subject to the distance requirements for on-site sales establishments. ✓ Arcade: An establishment that has more than five coin or token operated video, pinball, electronically interactive games, virtual reality games, or any other machines which provide games and/or show movies or videotapes for entertainment purposes. ✓ BilliardJPool Halt: An establishment with signing or advertising of billards and/or accommodating three i (3) or more billard, pool, or similar games of skill. ✓ Bowling Alley, An indoor facility providing lanes and services for the purpose of bowling. These facilities may include ancillary retail'sales of bowling merchandise,food and beverages. ✓ Tndoor/Outdoor Recreation Facilities: An establishment designating more than 50 percent of the total square footage including indoor and outdoor areas to amusement/entertainment services, sports and types of recreation where a fee or admission is +..................................................................... containing coin or token operated amusements and/or electronic games; battingcages, go-cart and miniature auto race tracks; Alcoholic Beverage Sales Establishment Guidelines Page 3 golf driving ranges separate from golf courses; miniature golf; swim and tennis clubs; bowling alleys; children's entertainment centers; pool and billiard rooms; skating and hockey rinks and parks, virtual reality establishments, etc. This does not include card rooms; or dance clubs, halls and ballrooms, which are included in the definition of"Bars". ✓ Theaters, Auditoriums, Social .malls: An indoor facility for public assembly and group entertainment including public and semi-public auditoriums, exhibition and social and convention halls, civic theaters, meeting halls, country clubs and facilities for "live" theatrical entertainment, musical concerts, motion pictures, video taped presentations, or slide photographs, and offers food and drink that is not ancillary to a full-service restaurant within the premises. These facilities are for use or rent by the general public. • Clubs: An establishment with table and bar seating that serves beer, wine and other alcoholic beverages to patrons for on-site consumption, which is not an ancillary use to a full-service restaurant. If food service is offered, the gross receipts of alcohol sales exceed the gross receipts of food sales, ✓ Bar/Nightclub: A bar or nightclub establishment typically stays open late at night and can offer a combination of live performers, a piano bar, musical groups with acoustical instruments, amplified music, facilities for patron dancing, comedy or magic acts, and/or food and drink that is not ancillary to a full- service restaurant, and the gross annual sale of alcohol may exceed the gross annual sale of food. A bar or nightclub can also be referred to as a cocktail bar or alcoholic beverage drinking place. ✓ Membership Organizations: Permanent, headquarters, and meeting facilities for organizations operating on a membership basis for the promotion of the interests of the members, including facilities for: business associations; professional membership Aft organizations; labor unions and similar organizations; civic, social and fraternal organizations; political Alcoholic Beverage Sales Establishment Guidelines Page 4 organizations and other membership organizations, May include meeting facilities, and food preparation and dining facilities available to members only. However, this does not include country clubs, which is defined under "Theaters, Auditoriums and Social Halls" above. ✓ Microbrewery: A tasting facility or bar ancillary to the production of beer and where the production of beer is not ancillary to a full-service restaurant within the facility. Restaurant. A retail establishment that sells food and beverages prepared on the site, where customers are served for on-site consumption. At least 80 percent of the premises seating shall be designed and used for and must possess the necessary utensils, table service, and condiment dispensers with which to serve meals to the public. The gross annual sales of food shall exceed the sale of alcohol, A restaurant may have ancillary uses such as a lounge, microbrewery, billiard/pool tables, video q,.games, public dancing, and live entertainment, ancillary to the regtaurant use. In the area devoted to the ancillary use, the gross annual sales of food shaII exceed the gross annual sales of alcohol. i ✓ Lounge (Cocktail Lounge): A designated area with table and bar seating within a full service restaurant where alcoholic beverages are served for`"` on-site consumption. The gross receipts of food sales must exceed the gross receipts of alcohol sales. The area of the lounge shall be less than 50 percent of the total dining area of the restaurant. ✓ Microbrewery: If the production of beer is ancillary to a full-service restaurant within the facility providing food and drink including the microbrew produced on-site, the microbrewery can be considered a restaurant. Off-Site Sales Establishment. The sale of alcoholic beverages for consumption off the premises. Off-site sales in an establishment less than 15,000 square feet and in establishments greater than 15,000 square feet where the alcohol beverage sales area occupies more than 10 percent of the gross floor area are subject to the following minimum distance regulations. AIcoholic Beverage Sales Establishment Guidelines page 5 1. 300 feet from any residentially zoned or used property. 2. 500 feet from any other existing off-site sales establishment. 3. 600 feet from any church, place of worship, public or private school, park, playground, clinic, hospital, health care facility or convalescent home. 4, 600 feet from existing on-site sales establishments, except restaurant establishments. Definitions of Off Site Establishments • Convenience Store: A retail establishment that is under 15,000 square feet in size where food, beverage, magazines and auto related items, or any combination thereof, are sold for off-site consumption. Alcoholic beverage sales are considered a primary use when they occur within a i retail business that is less than 15,000 square feet in gross floor area, or where the total area of sales is more than 10 percent of the total gross floor area. • Food Market Store: A retail establishment where food, beverage, household and personal items, or any combination thereof, are sold for off-site consumption. Alcoholic beverage sales are considered an, accessory use when included as part of another retail business that occupies at least 15,000 square feet of gross floor area, and where the totai area devoted to alcoholic beverage sales occupies no more than 10 percent of the total gross floor area and are exempt from distance requirements. Alcoholic beverage sales are considered a primary use when they occur within a retail business where the total area of sales is more than 10 percent of the total gross floor area and would be defined as a convenience store. • Microbrewery. An establishment that includes beverage production of beer and may include a tasting facility and sales of beer produced on the premises, The establishment shall not include the sale of alcoholic beverages for on-site consumption with the exception of sampling the product within a tasting facility. • Restaurant (Take-Out): A retail establishment that sells food prepared on the premises and beverages solely for off-site consumption. _. _....._._._? � ._.x € z', Wiz• ` ;-'s.. _= _•_ _ `4 _��; :se�xe�•-.xu�::si��s:�x..x�::r9�•u:k::��g»� x iu•x1•x:�:'�:�i°=�'��:i..: - .. :ice �:a°a.==rsxxes:�►4»�s�.i '•-s••:'•»e' i.•sx'�'•."»_''•�° a Y•" E•.��s `�•x:x4W '�.... •sd �sxe..°.'•Yv-6s"»xs-• Fa' .�•�w..x••"s"Ss . :x••:•xk... ...•JS-,•x::a: :Y........ •sesxs• --�� ..: .'cs_..... ...... ...7e:::e:erc�;f,.�:.�..s.-•.�M:ec-.�.3�:..x_.;x:•;.;mss:••••y:. ..:::�1 .. .. �•::i�rxzxsxx»— .. _ _ .. _;..»x...�.4. _ ....m:x»......::::::«xa::x:_.r •x:e xu. ... sxe..» .....a .. »....x:................:.r •' : y�:::c.z•�m»:.x�.?»� 'E .,"»6—�,'•.'". .:..�uy; z...C,:�',Ycxm.• s;•lx':i�• s... �.'-.e:,�••�e-•=; i°: ''»• •x�.•�i: c�•xw?- :xx�.six::::::ax:xs:xx:x:.�i��:::xx::•a:.::x:_:�::::•a::::x .�xx».�.s::•s:e:x.•x::�::x:x�:s:.��'».•x::se:: _. ........». 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PERMIT PROCESS Applicants requesting approval for the on- or off-site sale and/or consumption of alcoholic beverages shall obtain a conditional use permit issued by the Zoning Administrator or Planning Commission, Projects Subject to the Guidelines The sale of alcoholic beverages for on-site or off-site consumption at new or existing establishments, as regulated by theS ing e, P,,annecl CQm hW9f r { District letor �ar Sp l'l , shall coilpy`with these guidelines. IV. REQUIRED FINDINGS In considering applications for alcoholic beverage sales establishments, the Zoning Administrator and/or the Planning Commission shall find the following; 1. That the establishment, maintenance and operation of selling alcoholic beverages for on, or off-site consumption or ancillary uses related thereto will not be detrimental to the health, safety, morals, comfort, or general welfare of the persons residing or working in the neighborhood, nor be injurious or detrimental to the property and improvements in the neighborhood of the subject property, or to the general welfare of the City of Tustin, as evidenced by specified findings. 2. That the operational characteristics and features of the facility such as the hours of operation, outdoor dining, live entertainment, coin operated video games, and billiard/pool tables,are appropriate for the location and type of use proposed in relation to surrounding residential areas, sensitive uses such as places of worship, parks, schools, hospitals, clinics, convalescent homes, and other similar uses selling or serving alcoholic beverages. 3. That the development or modification of an establishment selling alcoholic beverages shall be consistent with the General Plan and Zoning Code. Alcoholic Beverage Sales Establishment Guidelines page 7 V. DEVELOPMENT GUIDELINES AND CONDITIONS OF APPROVAL The following guidelines are set forth as recommended conditions of approval to identify desirable project characteristics and operating conditions for specified uses and ensure compliance through incorporation into approval resolutions. i i Alcoholic Beverage Sales Establishment Guidelines Page 8 ' 1. All Sales Establishments (On-Site and Off-Site SaIes): a. Applicants shall obtain the appropriate license from the State Department of Alcoholic Beverage Control for the type of alcoholic sales authorized for the site. A copy shall provided to the City. b. Approved uses shall operate within all applicable State, County .and the Tustin City Code. Any violations of the regulations of the Department of Alcoholic Beverage Control as they pertain to the subject location, or of the City of Tustin, as they relate to the sale of alcoholic beverages, may result in the revocation of the subject Conditional Use Permit, as provided for the Tustin City Code. C No loitering signs shall be placed near the entrance on the outside of the premises or in. other specified locations where alcoholic beverages are sold. d. All litter shall be removed from the exterior areas around the premises including adjacent public sidewalk areas, and parking areas, no less frequently than once each day that the business is open. e. Public telephones inside and adjacent to the establishment shall be modified to prevent incoming calls. f. No sexually oriented businesses shall be conducted on the premises without approval by the City in accordance with the Tustin City Code. g. Business operations shall be in a manner which does not create a public or private nuisance. Any such nuisance must be abated immediately upon notice by the City of Tustin. h. The applicant shall sign and return an "Agreement to Conditions Imposed" form provided by the Community Development Director which states that the property owner, applicant, and/or tenant agrees to comply with all conditions imposed by the City, Failure to comply with the conditions of approval shall be grounds for revocation of the conditional use permit. Alcoholic Beverage Sales Establishment Guidelines Page 9 2. All On-Site Sales Establishments: a. All alcohol shall be consumed on-site with the exception of the provisions stated in the Business and Professions Code Section 23396.5 and 23407. b, Authorization for on-site sales of alcohol in conjunction with the proposed use is contingent upon the use remaining at the subject site. At such time the use is discontinued or no longer the primary use of the site, the use permit shall be deemed null and void. C. Ambient noise of the on-site sales facility shall not exceed the standards of the City of Tustin Noise Ordinance. 2.1 Amusement Resorts &Clubs: a. All persons serving alcoholic beverages within an establishment other than a restaurant must be 21 years of age or older. b. No outdoor seating is allowed at the site without approvals in accordance with the Tustin City Code. 40 I c. Operating hours shall be determined by the Planning ' Commission. d. The gross annual sales receipts shall be provided to the Community Development Department annually, 2.2 Restaurants: a. The restaurant menu shall consist of foods that are prepared on the premises. b.' No outdoor seating is allowed at the site without approvals in accordance with the Tustin City Code. C. All persons serving alcoholic beverages within a restaurant establishment must be 18 years of age or older and supervised by someone 21 years of age or older. The supervisor shall be present in the same area as point of sale. Alcoholic Beverage Sales Establishnen.t Guidelines Page 10 d. The sale of alcoholic beverages within a restaurant establishment shall be limited to the hours when food is available. Service of food menu items shall be during all business hours. e. Any cocktail lounge or bar area within a restaurant shall function as a food and beverage service bar. f. One billiard or pool table shall be permitted for every 2,000 square feet of total gross floor area of the restaurant up to a maximum of two (2) tables. g. A maximum of five coin operated video arcade games, virtual reality games or coin operated games may be located on the premises. h. Operating hours shall not exceed the hours of other similar businesses within the adjacent vicinity. i. The gross annual sales receipts shall be provided to the Community Development Department annually. j. To verify that the gross annual sales of food exceeds the gross annual sales of alcohol in an area devoted to an ancillary use, an audited financial statement shall be provided for review and approved by the Community Development Director quarterly and/or annually, as deemed necessary. If the audited financial statement demonstrates that the sales of alcohol exceeds the sales of food in the area devoted to the ancillary use, the ancillary use(s) shall cease immediately until it can be determined whether the ancillary use is operating as a primary use that would be subject to distance separation requirements. 3. Off-Site Sales: a. All persons selling alcoholic beverages for off-site consumption shall be 21 years of age or older. b. No alcoholic beverages shall be consumed on the property or any adjacent property to the licensed premises, Alcoholic Beverage Sales Establishment Guidelines page 22 C. Refrigerated single serving beverage containers shall be located in an enclosed refrigeration unit no less than 10 feet from the point of sale and a minimum of five feet from the entrance to the premises. d. No display, sale or distribution of alcoholic beverages shall be made from an ice tub, barrel or similar container. * e. For establishments selling alcoholic beverages and gasoline, no signs advertising alcoholic beverages may be visible from the exterior of the building or on gasoline pumps or islands. f. Display of alcoholic beverages for sale shall be located at least 25 feet from the location of any video arcade game, virtual reality or coin/token operated games. I Ja� ! IBM "y."�iZ>�, 'lx��,r •.°E. - .mss. �� '�� .4'R"y`v -? �'Y' Yre��.'Sil I Alcoholic Beverage Sales Establishment Guidelines Page 12 ATTACHMENT C On-site Alcoholic Beverage Sales Establishment Distancing Requirements i i I i On-site Alcoholic Beverage Establishment Distancing Requirements (1 ,000-foot radius from EI Camino Real and Main Street) Legend MOUNTAIN VI Evd L7 N �._ �Il�tsr srl�EEr Non-restaurant Alcoholic 1'0 Beverage Establishments Residential use or zoned properties 4.1 + + Sensitive use Ems.OND C._ SECOND I L.t SAL fi DEI'ARTMENT Ctry HALL It-TON VILLk'NCi.!MIrlUNIIY CENIER A [ I �It:�.ti"•�E W :U C `' I'LIBLI'.: LIBRARY I LIQ C IN BRANCH 9 TT t r i i f IU!�CIN PLAZA SIXTH �, a ■ EL CAMINO ro PLAZAA3p ■ 'r`1 � I $ GOO rim rr N sv�, k t 0 f 14ft i ATTACHMENT D Survey of Orange County Cities' Regulations for Alcohol Establishments i ATTACHMENT D. Survey of Orange County Cities Regulations for Alcohol Establishments 14 - 4 City of Irvine Bars, taverns and cocktail lounges and. Defers alcohol beverage sales hours and off-site beverage sales establishments distancing concerns to ABC and the permitted by right or Conditional Use property owner/manager Permit (CUP) required dependent on zone. CUP required for new type 47 restaurants City of Santa CUP required for ABC license and for Operational standards for on- and off-sale Ana after-hours operations dependent on establishments in addition to restrictions for zone separation and operating hours Off-sale: 1,000-foot separation requirement, businesses operating outside of hours of 7:00 a.m, to 12:00/midnight require after- hours CUP On-sale: shall be maintained as a bona-fide eating establishment and have suitable kitchen facilities, sales of alcohol outside of hours of 8:00 a.m. to 12:00/midnight require after-hours CUP City of On- and off-site alcoholic beverage Defers alcohol beverage sales hours and Orange sales establishments CUP required distancing concerns to ABC and the property owner/manager City of On- and off-site alcoholic beverage The manufacturing of alcoholic beverages is Anaheim sales establishments permitted by right a permitted use in two commercial districts or CUP required depending on zone (less than 6,000-square feet) and the industrial district so long as the business meets certain standards as established in the municipal code City of Costa Permitted by right, or Minor CUP or Defers alcohol beverage sales hours and Mesa CUP required distancing concerns to ABC and the property owner/manager City of On- and off-site alcoholic beverage Defers alcohol beverage sales hours and Huntington sales establishments CUP required distancing concerns to ABC and the Beach property owner/manager City of Dependent on zone, Administrative Eating and drinking establishment serving Fullerton Restaurant Use Permit (ARUP) or CUP alcohol with no or limited food items sales required for on- and off-site alcoholic after 10:00 PM require CUP beverage sales establishments