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Conditional Use Permit No. 201205 March 21, 2012 Page 2 The store will display the alcohol towards the center of the store to discourage theft by individuals who grab merchandise and run out to the nearest door. Wal-Mart proposes to increase the total display area of alcohol from approximately 319 square feet to approximately 600 square feet, which is 0.45 percent of the store's gross floor area and is less than five percent of the gross floor area of the building. As a result, the amount of storage complies with the standards required by the Planning Division for establishments selling alcoholic beverages. The current hours of operation for the store are 24~hours, seven days a week. The sale of alcohol during the 24-hour operation will continue to comply with all State regulations that prohibit the sale of alcohol between the hours of 2:00 a.m. and 6:00 a.m. (Exhibits 3 and 4}. Proiect Background Wal-Mart is the anchor tenant for the Riverview West Marketplace shopping center and was constructed in 1994. Wal-Mart's "one-stop shopping" approach is intended to provide convenience to its customers, therefore, its inventory includes a wide variety of products not typically found under one roof. The store is comprised of general sales floor, a grocery store, an automotive fire center, optometric office and a seasonal garden center. On April 13, 2009, the City granted Conditional Use Permit No. 2009-06, to allow Wal-Mart to obtain a Type 20 ABC license for the off-premise sale of beer and wine. While the project was not subject to the City's overconcentration standards as defined by Section 41-'132 of the SAMC due to the size of the tenant space, the State of California's Alcohol Beverage Control (ABC} Agency determined that this location was overconcentrated per State's standards due to the numbers of existing ABC licenses in the Census Tract. The State law provides that the ABC Agency shall deny an application for a license that would add to an undue concentration of licenses unless a determination was made by the City that public convenience would be served by the issuance of the license. On April 14, 2009, the City issued a letter of public convenience and necessity (PCN) to give Wal-Mart the ability to provide patrons with the opportunity to purchase beer and wine in addition to other retail goods and services found in Wal-Mart. The applicant has filed an ABC's License Action Request form with the ABC Agency requesting that their current Type 20 ABC license be cancelled upon the issuance of the Type 21 ABC license. The City will be voiding CUP 2009-06, which granted the Type 20 ABC license (Exhibit 5). The purpose of these actions is to create a zero net gain in number of licenses in an area that already has an overconcentration of licenses based on the State's standards. Since no gain in the number of licenses is proposed, the ABC Agency is not requesting a new PCN letter. General Plan and Zoning_Consistency The General Plan land use designation for the site is General Commercial (GC}. General Commercial districts provide highly visible and accessible commercial development along the City's arterial transportation corridors and provide important neighborhood facilities and services, such as this retail establishment. The project site is consistent with this General Plan land use designation.