75A - PH KARA GRANT APPEAL - Laserfiche WebLink

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The number of employees is especially minuscule in comparison to the number of employees that would be hired by the numerous retail stores and the drive-thru restaurant currently approved for the site as part of the Russell Fischer Retail/Restaurant Project. Moreover, typical wages paid at the Car Wash Project would not increase the City's overall median incomes. The Russell Fischer Car Wash Project therefore would not bolster employee densities in commercial and industrial zones or increase the per capita median income of the community. If the Council allows the continued establishment of car washes, by approving the Russell Fischer Car Wash Project, it will result in the immediate loss of potential income to City residents and drastically reduce potential employment opportunities in the neighborhood and throughout the City. Moreover, permitting the continued oversaturation of car washes by approving the Russell Fischer Car Wash Project will be detrimental to existing Santa Ana business, such as other car washes in the City. It is well accepted in the car wash industry that a successful car wash draws from approximately five miles, with a concentration of 2-miles. Industry literature recommends that a new car wash should not be established within 3 miles or less of another car wash because the competition will hurt both businesses. Attached as Exhibit B are articles by car wash industry consultants explaining this recommendation: "Competing car washes in a three mile radius must be seriously considered as threat or deterrent to your proposed site." (Motor City Wash Works, Site Selection — Road -Map to Success, pp. 3-4.) One consultant explains that opening a car wash within 3 miles of an existing car wash will lead to one of three possible scenarios: "(1) they put you out of business because they are more well-known; (2) you put them out of business because you're shiny, new and ready to impress; or (3) both you and your competitor limp along with mediocre, stagnated business." (Exhibit B, "Respecting the 3-Mile Rule When Starting a Car Wash".) As discussed above, the Russell Fischer Car Wash Project is located only 1.2 miles from Speedie Wash. Although the Project currently has a gas station car wash operating on the Project site, small car washes that are part of gas stations are not considered direct competitors of express and fall service model car washes. Thus the expansion to an express wash proposed by the Project will impose direct negative impacts on Speedie Wash not imposed by the currently operated gas station car wash. The sheer capacity of large-scale express car washes versus gas station car washes illustrates how the proposed Project only 1.2 miles from Speedie Wash will have a direct, detrimental impact on its business. Express car washes wash between 600-700 cars on a typical weekday, and between 800-1,000 cars on a typical weekend day. An express car wash will typically do 20,000 car washes in a single month. It is not uncommon for a busy express car wash to do up to 30,000 car washes in a single month. In contrast, smaller gas station model car washes like the car wash currently operated on the Project site, will typically average about 3,000 car washes monthly, or 100 car washes per day. Moreover, a gas station model car wash generally has at least three profit centers: (1) gas sales, (2) convenience store sales, and (3) car wash sales. In contrast, express car washes have only a single profit center — washing cars. 75A-17