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that is compatible with and supporting of surrounding land uses. The Best Wines retail business will be located in a commercial and business park area and will be compatible with the surrounding businesses. E. A PCN letter is required per Business and Professions Code Section 23958.4 as the State has determined that an overconcentration of off - premise ABC licensed establishments within the census tract exists. The State Department of Alcoholic Beverage Control identifies a census tract as overconcentrated if the ratio of off -sale retail licenses to the population of the census tract which the premises is located exceeds the ratio of off -sale retail licenses to the population of the county. Based on this analysis, census tracts in the City are allowed one licensed establishment per 1,650 residents. Best Wines is located in Census Tract No. 740.03, which is allowed one off -sale outlet based on the State's criteria, while five active licenses currently exist. Although the census tract is overconcentrated per State standards, the business model for Best Wines differs from the other off - premise establishments as Best Wines sells wine by the bottle or in larger quantities while the other establishments are smaller neighborhood markets that sell both beer and wine. Thus, despite the overconcentration of ABC licenses in the census tract, the issuance of an additional off -sale ABC license at this location is necessary to serve the public convenience, will not create any adverse impacts and will not impact the overall crime rate of the area. F. In accordance with the California Environmental Quality Act the recommended action is exempt for further review per Section 15301. The Class 1 exemption allows the operating, permitting and licensing of existing private structures with negligible or no expansion of the existing use. The proposed application is to approve an alcoholic beverage control license and allow the sale of beer and wine within an existing commercial building. Categorical Exemption Environmental Review No. 2014 -60 will be filed for this project. Section 2. The Planning Commission of the City of Santa Ana after conducting the public hearing hereby approves Conditional Use Permit No. 2014 -28. In addition, the Planning Commission authorizes the issuance of a Public Convenience and Necessity (PCN) Letter for the project. These decisions are based upon the evidence submitted at the abovesaid hearing, which includes, but is not limited to: the Request for Planning Commission Action dated July 28, 2014, and exhibits attached thereto; and the public testimony, all of which are incorporated herein by this reference. Resolution No. 2014 -26 Page 3 of 4 31 D -21