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services. A wine merchant provides a retail service to the <br />residents and employees of Santa Ana. Further, retail and <br />ancillary uses such as on and off -premises alcohol sales are <br />permitted within the Professional and Administrative Office <br />(PAO) General Plan land use designation. The proposed <br />project is not located in a specific plan area in the City. <br />Further, Policy 2.9 of the Land Use Element supports <br />developments that create a business environment that is safe <br />and attractive. The physical improvement to the building will <br />create an enhancement to the existing center and promote <br />commercial activity in the area. Policy 5.5 of the Land Use <br />Element encourages development that is compatible with and <br />supporting of surrounding land uses. The Wine Exchange <br />retail business is located in a commercial and business park <br />area and is compatible with the surrounding businesses. <br />F. A Public Convenience and Necessity (PCN) letter is required per Business <br />and Professions Code Section 23958.4 as the State has determined that an <br />over -concentration of off -premises ABC licensed establishments within the <br />census tract exists. The State Department of Alcoholic Beverage Control <br />identifies a census tract as over -concentrated if the ratio of off -sale retail <br />licenses to the population of the census tract which the premises is located <br />exceeds the ratio of off -sale retail licenses to the population of the county. <br />Based on this analysis, census tracts in the City are allowed one licensed <br />establishment per 1,650 residents. The Wine Exchange is located in Census <br />Tract No. 740.03, which is allowed one off -sale outlet based on the State's <br />criteria, while six active licenses currently exist. Although the census tract is <br />over -concentrated per State standards, the business model for the Wine <br />Exchange differs from the other licensed establishments as the Wine <br />Exchange sells wine by the bottle or in larger quantities while the other <br />establishments are smaller neighborhood markets that sell both beer and <br />wine. Thus, despite the over -concentration of ABC licenses in the census <br />tract, the issuance of an additional off -sale ABC license at this location is <br />necessary to serve the public convenience, will not create any adverse <br />impacts and will not impact the overall crime rate of the area. <br />G. In accordance with the California Environmental Quality Act (CEQA) and <br />the CEQA Guidelines, the recommended action is exempt from further <br />review per Section 15301. The Class 1 exemption allows the operating, <br />permitting and licensing of existing private structures with negligible or no <br />expansion of the existing use. The proposed application is to approve an <br />alcoholic beverage control license and allow the sale of beer, wine and <br />distilled spirits within an existing commercial building. Categorical <br />Exemption Environmental Review No. 2019-58 will be filed for this project. <br />Section 2. The Applicant shall indemnify, protect, defend and hold the City <br />and/or any of its officials, officers, employees, agents, departments, agencies, <br />Resolution No. 2019-39 <br />Page 3 of 5 <br />