Item #
DATE ISSUED:
April 2, 2015
ATTENTION:
Civic San Diego Hearing Officer
Meeting of April 9, 2015
SUBJECT:
Rite Aid Little Italy (1411 Kettner Boulevard) – Consideration of an
Amendment to Conditional Use Permit No. 2005-32 – Little Italy
Neighborhood of the Downtown Community Plan Area – Public Hearing
STAFF CONTACT: James Alexander, Assistant Planner
REQUESTED ACTION: That the Civic San Diego (“CivicSD”) Hearing Officer considers an
amendment to Conditional Use Permit (CUP) No. 2005-32 to extend the hours of off-site alcohol
beverage sales (“Project”) for the Rite Aid retail store located at 1411 Kettner Boulevard in the
Little Italy neighborhood of the Downtown Community Plan (DCP) area.
STAFF RECOMMENDATION: That the CivicSD Hearing Officer denies the requested
amendment to CUP No. 2005-32.
SUMMARY: Thrifty Payless, Inc. (“Applicant”) is requesting approval of an amendment to
CUP No. 2005-32 to allow extended hours of off-site alcohol beverage sales from 10:00 a.m. to
12:00 a.m. (midnight) for the Rite Aid located at 1411 Kettner Boulevard in the Little Italy
neighborhood of the DCP.
DOWNTOWN COMMUNITY PLANNING COUNCIL: On March 18, 2015, the Downtown
Community Planning Council voted [INSERT VOTE HERE] to recommend that the CivicSD
Hearing Officer [INSERT APPROVE/DISAPPROVE] CUP No. 2005-32, extending the off-site
sale of alcohol beverage sales at the subject property.
BACKGROUND
On June 28, 2005, CUP 2005-32 (Attachment A) was granted to Rite Aid allowing off-site
alcohol beverage sales at 1411 Kettner Boulevard in the Little Italy neighborhood. The store
opened on September 5, 2005 and operates with an Alcoholic Beverage Control (ABC) Type 21,
Off-Sale General (Package Store) license. One of the key conditions of the CUP required that no
alcoholic beverages shall be sold or delivered except between the hours of 10:00 a.m. and 10:00
p.m. each day of the week, as is standard for most off-site alcohol beverage sales Downtown.
Under the Centre City Planned District Ordinance (CCPDO), establishments engaged in off-site
alcohol beverage sales are required to obtain approval of a CUP. The CUP procedure establishes
a review process for the development of uses that may be desirable under appropriate
Civic San Diego Hearing Officer
Meeting of April 9, 2015
Page 2
circumstances, but are not permitted by right. The intent of these procedures is to review these
uses on a case-by-case basis to determine whether and under what conditions such a use may be
approved at a given site. A CUP is a Process Three decision made by the CivicSD Hearing
Officer at a noticed public hearing. The CivicSD Hearing Officer’s decision is appealable to the
CivicSD Board of Directors. Establishments seeking to make a modification to a condition of
approval in a previously approved permit are required to go through the same review process.
DEVELOPMENT TEAM
ROLE
Applicant
FIRM/CONTACT
Thrify Payless, Inc.
Tina Macier
Property Owner
Allegro Towers, L.P.
Steve Donlon
OWNERSHIP
Michael Podgurski, Vice President and
Corporate Officer (See Attachment F)
(Privately Owned)
Leo R. Fry, owner
(Privately Owned)
DISCUSSION
Neighborhood Context
The Little Italy neighborhood is an evolving and growing neighborhood. Redevelopment has
yielded mixed housing types throughout the area. Redevelopment efforts will underscore the
neighborhood’s historic and contemporary qualities with strategic intensification to accomplish
population goals and increase neighborhood vitality. It is planned for residential development to
intensify in the southern portion near the Civic/Core district, while the prevalence of lower-scale
buildings and wide mix of uses will continue to the north.
Applicable DCP Goals and Policies
The following are some of the key DCP Goals and Policies for the Little Italy neighborhood:
3.1-G-2
3.1-G-3
6.4-G-1
6.4-G-2
Provide for an overall balance of uses – employment, residential, cultural,
government, and destination – as well as a full compendium of amenities and
services.
Allow service and support commercial uses—such as small hospitals, produce
markets that serve restaurants, and repair shops—in specific locations to ensure
availability of essential services within downtown.
Facilitate Little Italy’s continued evolution as a cohesive, mixed use waterfront
neighborhood.
Reinforce the India Street business district as the heart of the neighborhood.
Expand neighborhood-serving retail and services as well as access to open spaces
to serve the growing population.
Civic San Diego Hearing Officer
Meeting of April 9, 2015
Page 3
SITE DESCRIPTION
Rite Aid is currently located within an 8,819 square foot (sq. ft.) tenant space at the northeast
corner of Kettner Boulevard and West Ash on the ground level of the 29-story Allegro Towers
apartment project in Little Italy. Other uses on the ground level of the building include a dry
cleaning and alterations business, residential and restaurant. Surrounding land uses:
• North: Mid-rise residential/mixed-use
• West: High-rise residential and office
• South: Surface parking lot
• East: High-rise commercial office/retail
Existing alcohol beverage outlets with CUPs in the vicinity include:
• Unwine at 1471 Kettner Boulevard
• 7-11 at 1670 Kettner Boulevard
• The Market by Buon Appetito at 1605 India Street
• Stone Company Store at 1202 Kettner Boulevard
Maps showing surrounding land uses and a map showing existing alcohol beverage outlets in the
vicinity are included as Attachments B and C, respectively.
The land use district for this project site, as designated in the CCPDO, is
Employment/Residential Mixed-Use (ER). The ER district provides synergies between
educational institutions and residential neighborhoods, or transition between the Core (C)
District and residential neighborhoods. A variety of uses are permitted in this district, including
office, residential, hotel, research and development, educational, and medical facilities.
PROJECT DESCRIPTION
Rite Aid is a large retail chain that provides thousands of convenience items, an in-store
pharmacy, as well as carries a variety of alcoholic beverages for off-site consumption. Rite Aid’s
current hours of operation are 7:00 a.m. to 12:00 a.m. with off-site alcohol beverage sales
available between the hours of 10:00 a.m. to 10:00 p.m. seven days a week. Based on customer
demand, Rite Aid is proposing to extend their hours of off-site alcohol beverage sales to 10:00
a.m. to 12:00 a.m. (midnight). A project narrative, plans, and site photographs have been
included as Attachment E to this report.
CONDITIONAL USE PERMIT
The CUP procedures establish a review process for the development of uses that may be
desirable under appropriate circumstances, but are not permitted by right. The intent of these
procedures is to review these uses, on a case-by-case basis, to determine whether the proposed
use may be appropriate at a given site.
Civic San Diego Hearing Officer
Meeting of April 9, 2015
Page 4
Off-Site Alcohol Beverage Sales
Under the CCPDO, establishments engaged in the sale of alcoholic beverages for off-site
consumption are subject to approval of a CUP and the following minimum conditions:
A. No wine or distilled spirits shall be sold in containers of less than 750 milliliters;
B. No malt beverage or beer products shall be sold in quantities of less than a six-pack of
12-ounce bottles or other containers totaling a minimum of 64 ounces;
C. No alcoholic beverages shall be sold except between the hours of 10:00 a.m. and 10:00
p.m. of each day of the week.
Under the provisions of the CCPDO, applicants may seek exceptions to condition C listed above
subject to the Hearing Officer making the following findings:
•
The request for an exception was provided in the public notice for the hearing; and,
•
The proposed use and operations are compatible with existing and planned
surrounding land uses.
As previously stated, Rite Aid currently operates under CUP 2005-32 which limits the hours of
off-site alcohol beverage sales to 10:00 a.m. to 10:00 p.m. The Applicant is seeking an exception
to Condition C, and is requesting an amendment to Condition No. 6 of the CUP to allow off-site
alcohol beverage sales to occur between the hours of 10:00 a.m. to 12:00 a.m.. Staff has
reviewed the Applicant’s proposal and does not recommend approval of the proposed exception
related to the hours of off-site alcohol beverage sales. In recent years, alcohol beverage outlets in
the neighborhood have been limited to the standard 10:00 a.m. to 10:00 p.m., based on
community input. Historically, staff has not recommended approval of exceptions to the hours of
off-site alcohol sales due to concerns that allowing alcohol sales to occur beyond the prescribed
limits in the CCPDO will contribute to alcohol related problems in the surrounding
neighborhoods. However, exceptions have been granted primarily for larger grocery stores
(15,000 square feet or more) and for unique circumstances. Recently approved exceptions
include Albertson's in the East Village neighborhood, and Jimbo’s Grocery store and CVS in
Horton Plaza. Staff considers it important to be consistent with similar establishments
throughout downtown that have obtained a CUP and that exceptions be granted only when there
are extraordinary circumstances. In this particular case, there are no extraordinary circumstances
that would warrant support to sell alcohol for off-premise consumption past 10:00 p.m.
CUP Findings:
Pursuant to Section 126.0305 of the San Diego Municipal Code, four findings must be made to
approve a CUP. Staff has considered the findings listed below and has determined that requisite
findings for approval cannot be made.
Civic San Diego Hearing Officer
Meeting of April 9, 2015
Page 5
1.
The proposed use or development will not adversely affect the applicable land use plan;
While the sale of off-site alcoholic beverages adheres to the CCPDO and is consistent
with the goals and policies of the DCP, the proposed amendment is not justified in this
land use district or under the current circumstances. The CCPDO establishes regulations
to regulate such uses, including the limitation on hours of alcohol sales. These were
created in accordance with the wishes of the community and the process allows for public
input. As such, the community has expressed opposition to the Project and staff has
concluded that there are no outstanding circumstances that warrant an exception to the
established hours of alcohol sales that do not adversely affect the application land use
plan.
2.
The proposed use or development will not be detrimental to the public health, safety and
welfare;
The proposed off-site alcohol beverage sales has the potential to be detrimental to the
public health, safety and welfare of the community if the alcohol sales hours are
extended. The restrictions regarding the time limitation for off-site alcohol beverage
sales were put in place to reduce the impacts resulting from public inebriation, easy
access to inexpensive liquor for the large downtown homeless population, and other
occurrences of alcohol-related incidents. There is no unique circumstance for this
particular alcohol beverage outlet that would merit the suspension of this restriction for
the Applicant.
3.
The proposed use or development will comply to the maximum extent feasible with the
regulations of the Land Development Code; and
The proposed amendment is not consistent with the CCPDO and the DCP. The use will
be required to comply with all applicable regulations, conditions of approval of the
existing CUP, and the requirements of the ABC and the SDPD.
4.
The proposed use is appropriate at the proposed location.
This activity will not add any benefits in the Little Italy neighborhood besides extended
opportunities to purchase alcoholic beverages for off-site consumption at later-thannormal hours. Both the Little Italy Association and the Little Italy Residents Association,
two prominent community groups in the neighborhood, have stated that they do not feel
the extended hours are appropriate at the proposed location.
Staff requested input from the San Diego Police Department (SDPD) regarding this application
and the request to extend off-site alcohol beverage sale hours and has not received a
recommendation as of the date of this report. Staff has received public correspondence from the
Little Italy Association and Little Italy Residents Association stating opposition to extended off-
Civic San Diego Hearing Officer
Meeting of April 9, 2015
Page 6
site alcoholic beverage sales hours (Attachment F). No additional correspondence from the
public has been received.
ENVIRONMENTAL IMPACT
Development within the Downtown Community Planning area is covered under the Final
Environmental Impact Report (FEIR) for the San Diego DCP, CCPDO, and 10th Amendment to
the Centre City Redevelopment Plan, certified by the former Redevelopment Agency (“Former
Agency”) and the City Council on March 14, 2006 (Resolutions R-04001 and R-301265,
respectively) and subsequent addenda to the FEIR certified by the Former Agency on August 3,
2007 (Former Agency Resolution R-04193), April 21, 2010 (Former Agency Resolution R04510), and August 3, 2010 (Former Agency Resolution R-04544), and certified by the City
Council on February 12, 2014 (City Council Resolution R-308724) and July 14, 2014 (City
Council Resolution R-309115). The FEIR is a “Program EIR” prepared in compliance with
California Environmental Quality Act (CEQA) Guidelines Section 15168. The project is within
the scope of the development program described in the FEIR; therefore, no further environmental
documentation is required under CEQA.
CONCLUSION
Staff is recommending that the CivicSD Hearing Officer deny the proposed amendment to CUP
No. 2005-32.
Respectfully submitted:
Concurred by:
James Alexander
Assistant Planner
Brad Richter
Assistant Vice President, Planning
Attachments: A – CUP No. 2005-32 / Draft Resolution
B – Vicinity Map of Adjacent Land Uses
C – List and Map Showing Alcohol Beverage Outlets
D – Narrative, Plans, and Site Photos
E – Ownership Disclosure
F – Public Correspondence
S:\Alexander\Permit Reviews\Process 3\2005-32A CUP (Rite Aid Little Italy OSS)\2005-32A_StaffReport_DRAFT.docx
ATTACHMENT A
CIVIC SAN DIEGO
HEARING OFFICER
RESOLUTION NO. 2015-04
CONDITIONAL USE PERMIT NO. 2005-32A
RITE AID LITTLE ITALY
WHEREAS, on May 17, 2005, Thrifty Payless Corporation (dba Rite Aid), filed
an application for a conditional use permit (CUP) to operate a 9,004 square foot alcohol
beverage outlet at 1411 Kettner Boulevard. The site, described as Lots 1 through 6 in
Block 18, of Middletown, in the City of San Diego, County of San Diego, State of
California, according to Partition Map thereof made by J.E. Jackson on file in the office
of the Clerk of Said San Diego County, is located in the Commercial/Office Land Use
District of the Centre City Community Plan Area; and,
WHEREAS, on June 28, 2005, the Designated Hearing Officer of the Centre City
Development Corporation (CCDC) held a duly noticed public hearing and considered
Conditional Use Permit No. 2005-32, including a staff report and recommendation and
public testimony, pursuant to Sections 126.0304, 126.0305, 103.1904, 103.1919 and
103.1925 of the Municipal Code of the City of San Diego.
WHEREAS, on November 21, 2014, Tina Macier, on behalf of Thrifty Payless,
Inc., filed an application for an amendment to conditional use permit (CUP) No. 2005-32
to extend the hours of off-site alcohol beverage sales at the Rite Aid located at 1411
Kettner Boulevard; and,
WHEREAS, on April 9, 2015, the Designated Hearing Officer of Civic San Diego
(CivicSD) held a duly noticed public hearing and considered Conditional Use Permit No.
2005-32A, including a staff report and recommendation and public testimony, pursuant to
Sections 126.0304, 126.0305, 103.1904, 103.1919 and 103.925 of the Municipal Code of
the City of San Diego; and,
WHEAREAS, Development within the Downtown Community Planning area is
covered under the Final Environmental Impact Report (FEIR) for the San Diego DCP,
CCPDO, and 10th Amendment to the Centre City Redevelopment Plan, certified by the
former Redevelopment Agency (“Former Agency”) and the City Council on March 14,
2006 (Resolutions R-04001 and R-301265, respectively) and subsequent addenda to the
FEIR certified by the Former Agency on August 3, 2007 (Former Agency Resolution R04193), April 21, 2010 (Former Agency Resolution R-04510), and August 3, 2010
(Former Agency Resolution R-04544), and certified by the City Council on February 12,
2014 (City Council Resolution R-308724) and July 14, 2014 (City Council Resolution R309115). The FEIR is a “Program EIR” prepared in compliance with California
Environmental Quality Act (CEQA) Guidelines Section 15168. The project is within the
scope of the development program described in the FEIR; therefore, no further
environmental documentation is required under CEQA.
BE IT RESOLVED, by the CivicSD Hearing Officer as follows:
That the CivicSD Hearing Officer considered the findings listed below and has
determined that requisite findings for approval cannot be made.
RESOLUTION NO. 2015-04
CUP NO. 2005-32A
1411 KETTNER BOULEVARD
FINDINGS:
1.
The proposed use or development will not adversely affect the applicable land use
plan;
While the sale of off-site alcoholic beverages adheres to the CCPDO and is
consistent with the goals and policies of the DCP, the proposed amendment is not
justified in this land use district or under the current circumstances. The CCPDO
establishes regulations to regulate such uses, including the limitation on hours of
alcohol sales. These were created in accordance with the wishes of the
community and the process allows for public input. As such, the community has
expressed opposition to the Project and staff has concluded that there are no
outstanding circumstances that warrant an exception to the established hours of
alcohol sales that do not adversely affect the application land use plan.
2.
The proposed use or development will not be detrimental to the public health,
safety and welfare;
The proposed off-site alcohol beverage sales has the potential to be detrimental to
the public health, safety and welfare of the community if the alcohol sales hours
are extended. The restrictions regarding the time limitation for off-site alcohol
beverage sales were put in place to reduce the impacts resulting from public
inebriation, easy access to inexpensive liquor for the large downtown homeless
population, and other occurrences of alcohol-related incidents. There is no unique
circumstance for this particular alcohol beverage outlet that would merit the
suspension of this restriction for the Applicant.
3.
The proposed use or development will comply to the maximum extent feasible with
the regulations of the Land Development Code; and
The proposed amendment is not consistent with the CCPDO and the DCP. The
use will be required to comply with all applicable regulations, conditions of
approval of the existing CUP, and the requirements of the ABC and the SDPD.
4.
The proposed use is appropriate at the proposed location.
This activity will not add any benefits in the Little Italy neighborhood besides
extended opportunities to purchase alcoholic beverages for off-site consumption
at later-than-normal hours. Both the Little Italy Association and the Little Italy
Residents Association, two prominent community groups in the neighborhood,
have left comments with Staff stating that they do not feel this use is appropriate
at the proposed location.
BE IT FURTHER RESOLVED that an amendment to CUP No. 2005-32 is
hereby DENIED by the CivicSD Hearing Officer to the referenced Owner/Permittee.
2
RESOLUTION NO. 2015-04
CUP NO. 2005-32A
1411 KETTNER BOULEVARD
____________________________
James Alexander
Date
Assistant Planner
DENIED by the Hearing Officer on April 9, 2015.
S:\Alexander\Permit Reviews\Process 3\2005-32A CUP (Rite Aid Little Italy OSS)\2005-32A_Reso_DRAFT.doc
3
ATTACHMENT B
CVS East Village
Alcohol Outlets Vicinity List
Permit No.
Business Name
Location
Hours Restriction
CUP 98-1118
Vantaggio Deli
1736 State Street
10:00AM – 8:30PM
CUP 2003-14
Stone Company Store
1202 Kettner Boulevard
10:00AM – 10:00PM
CUP 2003-20
7-11
1670 Kettner Boulevard
10:00AM – 10:00 PM
CUP 2008-10
Unwine
1471 Kettner Boulevard
10:00AM – 10:00 PM
CUP 2010-35
The Market
1605 India Street
10:00AM – 10:00 PM
ATTACHMENT C
Rite Aid Little Italy
Alcohol Outlets Vicinity Map
Vantaggio Deli
CUP 98-1118
7-11
CUP 2003-20
The Market
CUP 2010-35
Unwine
CUP 2008-10
Rite Aid Little Italy
Stone Company Store
CUP 2003-14
ATTACHMENT D
ATTACHMENT E
LIRA
Little Italy
Residents
Association
Date: March 6, 2015
To: Mr. James Anderson
From: Anne MacMillan Eichman
Re: Rite Aid Process Three Conditional Use Permit Request
Dear Mr. Anderson:
On behalf of the Little Italy Residents Association Board of Directors and Members,
I submit our opposition to Rite Aid’s request to extend its sale hours of alcohol.
Moreover, LIRA opposes granting a Process Three Conditional Use Permit to any
Rite Aid, CVS, 7-11, Walgereen and independent neighborhood markets in our
Downtown.
Over 37,000 Residents call Downtown their home. These tax-paying stake holders
have a vested interest in preserving their quality of life as homeowners.
Our organization, LIRA, has over 250 Members. It was formed to help preserve and
foster the quality of life for those of us in Little Italy and Core/Columbia as well as for
the people who work here and who visit our Neighborhood. Extending the sale hours
of alcoholic beverages would negatively compromise the reasonable “quality of life”
standards we have set for our Community and that define Little Italy, Core/Columbia
it as a preeminent address in Downtown San Diego.
We are counting on you to stand up for the rights of Residents and deny the Rite Aid
at 1411 Kettner Boulevard its request for a Process Three Conditional Use Permit.
Thank you.
Respectfully,
Anne MacMillan Eichman , LIRA President
.
395 WEST CEDAR STREET, SAN DIEGO CA 92101
ATTACHMENT F