Page APPLICATION FOR DETERMINATION OF PUBLIC...

APPLICATION FOR DETERMINATION OF "PUBLIC CONVENIENCE OR NECESSITY"

ALCOHOL SALES

Pursuant to Section 23958 and 23858.4 California Business and Professions Code

TO BE SUBMITTED TO CITY CLERK'S OFFICE ROOM 395, CITY HALL .

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COUNCIL FILE NO.--=--------

BACKGROUND INFORMATION TIME LIMIT FILE:---------

As part of the application, the applicant must submit the names and addresses of property owners of all property adjacent (including across the street/alley) to the subject property on gummed labels. Applicant must also submit the following information: 1) notarized signature, 2) a site plan prepared by a map maker {see Planning Department for map maker's Jist), 3) one 4- by 6-inch picture of the property from each side of the site, and 4) a copy of all previous building permits for the site (Room 400, 201 North Figueroa Street). When you meet with ABC to get the crime and license concentration information for your site, you must bring back the ABC information (on the ABC form) to the City Clerk.

Project Name Gourmet Wine and Spirits

Address 300 South Grand Avenue, Suite Lf?-11 0, Los Angeles, CA 90071

Type of Business Gourmet wine and spirit retailer with tasting room. On-site tasting of beer and wine only

Maguire Properties - One Cal Plaza, LLC Applicant Name

11755 Wilshire Boulevard, #1770, Los Angeles, CA 90025 Address

Property OWner

Phone Number/Fax Number

Same as applicant.

Name

Address

Phon.e Number/Fax Number

Representative Kate Bartolo and Associates (Attn: Kate Bartolo)

Name · 8990 Lloyd Place, West Hollywood, CA 90069

Address (310) 497-4424 [Phone] I (213) 402-3735 [Fax]

Phone Number/Fax Number

A. PROJECT DETAILS

THE FOLLOWING QUESTIONS ARE TO BE ANSWERED BY ALL APPLICANTS:

1.

2.

Has the,.City previously approved a conditional use permit for alcoholic beverage sales at this site? Yes ".£ No _ If Yes, what is the City case number(s) ZA-2014-1907(CUB) ;

Have you recently filed for a new conditional use permit? Yes_ No.~. If Yes, provide the City

case number(s) __,N-'"/"-A"--------------------------

• .

3.

4.

5.

6.

7.

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Has a previous ABC license been issued? Yes_ No~ If Yes, when and what type of license A

Type of Alcohol Sales Requested {on- or off-site, beer and wine, full alcohol, etc.): Full-line for off-site and beer and wine only for on-site

Size of Business 1,972 SF interior and 453 outdoor patio within private property

% of floor space devoted to alcoholic beverages -'3"'--'---1 °_,_,Yo"-----------------

Hours of Operation:

a. What are the proposed hours of operation and which days of the week will the establishment be open? 9:06 AM to 9:00 PM, seven days a week

b. What are the proposed hours of alcohol sales? Same as hours of operation

8. Parking: Exact number unknown but there are

a. Is parking available on the site? {If so, how many spaces?) 6 levels of subterranean parking.

b. If spaces are not available on the site, have arrangements been made for off-site parking by lease or covenant? N/A ·

c. Where? N/A -------------------------------------------------------d. How many off-site spaces? _N_IA _________________________ _

9. Has the owner or lessee of the subject property been suspended from the sale of alcoholic beverages on the subject property or fined by the Alcoholic Beverage Control Department (ABC) in the last 365 days and if so, for what reasons? Provide ABC case number and a copy of final ABC action. The lessee of the subject property has not been suspended.

10. · Will video game machines or pool or billiard tables be avaDable for use on the subject property and if so, how many? No ·

11. Will you have signs visible on the outside which advertise the availability of alcohol? Only the name of the tenant I business.

12. How many employees will you have on the site at any given time? ___,2.,__ _________ _

13. Will all employees who sell alcohol attend the local State ABC training class on how to properly sell alcohol? _Y.:...e""s"---------------------.---------------------------------------

14. What securitY measures will be taken including:

a. Posting of rules and regulations on the premises to prevent such problems as gambling, loltertng, theft, vandalism and truancy.

b. Will security guards be provided and if so, when and how many?

N/A for premises; 24 hour landlord-provide<;J security, 5 staff

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15. Will there be minimum age requirements for patrons? If so, how will this be enforced?

All employees. will be trained to enforce laws and regulations governing the sale and dispensing of alcoholic

beverages and will be trained to determine acceptable forms ?f identification to enforce age limits.

16. Are there any other alcoholic beverage outlets within a 600-foot radius of the site? Provide names and address of such business and type of business.

Please see attached list.

17. Are there any schools (public or private and including nursery schools) churches or parks within 1,000 feet of your proposed business? Where? {Give Address)

Please see attached list.

18. Will. the exterior of the site be fenced and locked when not in use?

The exterior of the tenant space will be locked when not in use. The plaza has 24-hour security.

19. Will the exterior of the site be Illuminated with .security lighting bright enough to see patrons from

thestreet?~Y~e~s----------------------------~------------------~---------

. B. . THE FOLLOWING QUESTIONS ARE TO BE ANSWERED WHERE ONLY THE OFF-SITE SALE OF ALCOHOLIC BEVERAGES IS SOUGHT: ·.

1. ·Will the gross sale of alcohol exceed the gross sale of food items on a quarterly basis? Yes

2. Will cups, glasses or other similar containers be sold which might be used for the consumption of liquor on the premises? Containers will be provided only to the extent to allow tastings.

3. Will beer and wine coolers be sold in single cans or will wine be sold in containers less than 1 liter (750 mi)?_Y...,..,e_s __________________________ _

4. Will "fortified" wine (greater than 16% alcohol) be sold? ....:Y...:::e:;;:s ___ .:.._ ________ _

C. THE FOLLOWING QUESTIONS ARE TO BE ANSWERED WHERE ONLY THE ON-SITE SALE OF ALCOHOLIC BEVERAGES IS SOUGHT:

1. What is the occupancy load as determined by the Fire Department (number of patrons)? Occupant load per 2013 LABC is 37, consisting of 23 interior and 14 within patio.

2. What is the proposed seating in all areas? 5 seats at bar counter and 14 seats in patio (19 total).

3. Is there to be entertainment such as a plano bar, juke box, dancing, Jive entertainment, movies, etc.? (Specify?) There will be no entertainm.ent.

4. If a cocktail lounge is to be maintained incidental to a restaurant, the required floor plans must show details of the cocktail lounge and the separation between the dining and lounge facilities.

N/A

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5. Food Service

a. Will alcohol be sold without a food order? ~Y::;es:!..-..,:-:-~-:------=~-:--;-:---:--;--:-::::--;-;:;: b. Will there be a kitchen on the site as defined in the Los Angeles Municipal Code?

No

6. Will discount alcoholic drinks or a "Happy Hour" be offered at any time?

Provide a copy of the proposed menu if food is to be served.

D. PUBLIC CONVENIENCE AND NECESSITY EVALUATION

The City of Los Angeles is very concerned if a new request to sell alconol is subject to one of the conditions below. There is a strong likelihood that the City will deny your "public convenience or necessity" application if one of the above listed conditions apply to your site. (It is strongly suggested that you contact your Council Office and discuss your project. If the Council Office does not oppose your project, you should then check with your local area police vice unit as well as the Planning Department Public Counter at (213) 977-6083 for the determination of whether the proposed site is within a Specific Plan area, and the Community Redevelopment Agency (CRA) project staff at {,213) 977-1682 or 977-1665, to determine if your site Is in a CRA Project Area. If any of the five conditions listed below apply to your site, you should carefully consider if you want to tile for a Public Convenience or Necessity finding. ·

1 . The proposed site is In an area with a long-term level of undue concentration of alcoholic beverage outlets.

2. The geographic area is the target of special law enforcement activity, i.e., police task force is working on reducing vice In the area, or eliminating juvenne crime (such as cruising or graffiti) or gang activity.

3. The proposed site is in close proximity to sensitive uses, including schools, parks, churches, youth actiVities, homeless shelters, mental health or alcohol or drug treatment centers.

4. The geographic area has elevated levels of alcohol-related crimes, including but not limited to: public intoxication, driving under the influence, assault, vandalism, prostitution. drug violations, loitering.

5. The proposed site is located in a Specific Plan or Community Redevelopment Agency Project area which specifically includes a policy to control future alcoholic beverage sales.

E. If the project site is not subject to one of the above criteria, your project will be evaluated by the City Council with consideration given to the following possible benefits and detriments to the community:

1. Possible Benefits

Would the business:

a. Employ local residents (how many} b. Generate taxes (provide estimate) c. Provide unique goods and services (which ones) d. Result In an aesthetic upgrade to the neighborhood (In what exact way) e. Contribute to the long tenn economic development (how) f. Provide a beneficial cultural/entertainment outlet (specify)

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2. Possible Detrimental Impacts

Is the immediate area in which the license is sought subject to: (Check with your local Police Department area "Senior Lead Officer")

a. Excessive calls to the Police Department · b. Police resources being already strained

c. High rates of alcoholism, homelessness, etc. d. Large ·~youth" (under 21) population

3. With regard to the operation of the proposed business explain:

a. The method of business operation: (large volume of alcohol to food sales, "late" hours (after midnight), high % unskilled (no ABC training class) staff, high % of underage (under 21) staff, etc.)

b. Would the business duplicate a nearby business already in existence?

c. Other non-alcohol sales business options available so alcohol does not have to be sold, e.g., more specialty products, broader range of items like fresh meats or fruits and vegetables, etc.

The City Council will evaluate these factors and make a decision on the overall merits of your request. Therefore, you should answer below as to why you believe any of these above listed beneficial or detrimentat·conditions apply to your project and provide any documented proof to support your belief:**

Please see Attachment

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F. APPLICANT'S AFFIDAVIT

Under penalty of perjury the following declarations are made:

a. The undersigned is the owner or lessee if entire site is leased, or authgri.?:ed agent of the owner with power of attorney or officers of a corporation (submit proof). .· , ·

b.

Date Signature of property owner if tenant or lessee is filling application

... * * * ·* * * * * *

personally known to me {or proved to me on the basis of satisfactory evidence) to be the person,{-S) whose name~sj is/aFe subscribed to the within instrument and acknowledged . to me that he/st-le/they executed the same in his/her.Jtheir authorized capacityfies ), and that by his/her-/their signature{s") on the instrument the person~. or the entity upon behalf of which the person(!;') acted, executed the instrument.

WITN~SS my hand and official seal.

·~~1!4.~ . u Slgnalure of Notarr ~

* The Planning Department has a list of private map makers who will prepare the names and addresses for you. This list is available at the public counter, Room 300, Counter N, 201 North Figueroa Street or 6251 Van Nuys Boulevard, Van Nuys. Alternatively, you may obtain a list of such adjoining owners from the City Cierk's Office (Room 730, _201 North Figueroa Street) or from a title company and prepare the labels yourself.

**You may add additional pages to your response if needed. Please utilize numbering system of this form to assist in the review of the responses.

CP-7612 (10/22/01) P:\WORDPROC\CPFORMS\CP7000\7612.wpd

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OVERVIEW

Property Description

Public Convenience or Necessity Application Gourmet Wines and Spirits 300 South Grand Avenue

The tenant, Gourmet Wine and Spirits ("Applicant"), proposes a wine and distilled spirits retail store with an accessory tasting room. The 2,425 square-foot space--consisting of 1,972 square feet of interior space and a 453 square-foot patio within private property--is part of the existing California Plaza ("Cal Plaza") mixed-use development in the Bunker Hill neighborhood of Downtown Los Angeles. Cal Plaza, as originally developed, is comprised of two iconic high-rise office towers called One California Plaza and Two California Plaza, two levels of retail, a 1.5-acre water court, six levels of subterranean parking, and is home to the Museum of Contemporary Art (MOCA), the Omni Hotel, and the Museum Tower Apartments.

The subject space is located on the lower plaza level, in Suite LP-110--within the One Cal Plaza portion. Toward the rear of the lower plaza, access is available via the adjacent elevators or through the stairs through the main plaza level and Grand A venue. The careful selection of the subject space, where it is not visible from the street-level, reinforces that Gourmet Wine and Spirits is a destination for individuals seeking a carefully-curated selection of products and not a quick path to intoxication.

Project Description

Gourmet Wine and Spirits has been a purveyor of fine wines, liquors, and beers and, a fixture in Downtown Los Angeles, for over 32 years. Previously, Gourmet Wine and Spirits operated at what is now known as City National Plaza and most recently at the 626 Wilshire Boulevard building, which was once the headquarters of State Mutual Savings and Loan.

The Applicant's product selection and price points are distinct and markedly different from the typical "liquor store." This includes their selection of fine wines--which, at their lowest price are $15- $20 and at the high end, several thousand dollars. Wines make up approximately 60% of the Applicant's inventory while 40% is comprised of about 70 brands of beer and distilled spirits-including champagne splits, individual cans and bottles of gourmet craft beer, and miniatures of distilled spirits for patrons to taste prior to committing to a larger bottle. For its distinct selection, Gourmet Wine and Spirits was recognized in 2012 by LA Weekly as among the top ten alcohol retailers in Los Angeles.

While there will be no on-site kitchen in conjunction with the tasting room, food will be available at all times during which on-site tastings will be available, including meats, pates, crackers, shrimp, gourmet cheeses, biscuits, breads, chips, fruits and deli sandwiches and salads. Additionally, the retail store component will offer foods typically expected of such businesses

and will be available for purchase, including packaged and fresh foods consisting of sandwiches, gourmet cheeses, breads, crackers, chocolates, candies, gum, chips and an assortment of nuts.

Hours of operation will be from 9:00AM to 9:00 PM during which time on-site tasting of beer and wine only will be available from 2:00 PM to 9:00 PM. The request for the sale of and dispensing of alcoholic beverages has been approved under ZA-2014-1907(CUB).

PUBLIC CONVENIENCE OR NECESSITY

California's Caldera Bill, codified in Business and Professions Code§§ 23958 and 23958.4, requires a finding of public convenience or necessity in order for an on- and off-site application to the Department of Alcoholic Beverage Control (ABC) to be approved and where there is an "undue concentration" of licenses in the census tract.

"Undue concentration" is defined in Business and Professions Code§ 23958.4 as the ratio of the number of licenses in a census tract compared to the average number of licenses in a County as a whole. The Department of Alcoholic Beverage Control ("ABC") uses a statistical formula, based upon the ratio of retail licenses to population, as a guide for determining whether an "undue concentration" of licenses exists. It must be emphasized that it is a guideline, not a prohibition.

The definition of "undue concentration" does not mean that a particular Census Tract has too many licenses to serve the needs or convenience of the residents in the tract. The statistical formula was devised as a one-size-fits-all standard, generalized to apply to areas throughout California. It does not take into account the unique characteristics of individual Census Tracts, particularly those within highly-urbanized, sophisticated urban centers. Furthermore, the definition does not mean that the Department of Alcoholic Beverage Control, or any other agency, analyzed a particular Census Tract and determined that it experienced harmful effects from the licenses already existing or that will result in harmful effects at the issuance of a new license. Instead, "undue concentration" serves as a guideline for ABC, together with the unique characteristics of each census tract and premises, in determining whether issuance of the license would serve the "public convenience or necessity."

Using its statistical formula, ABC has allocated two on-sale and one off-sale licenses are within the subject Census Tract (2075.02) where there are presently 22 on-sale licenses and three offsale licenses.1 While the Applicant's site is located in a Census Tract that meets the letterdefinition of the "over concentration guidelines," the addition of the an ABC license for the Applicant's proposed operation will not have adverse impacts on the surrounding community. In fact, permitting the sale of alcoholic beverages at this site will better serve the public convenience and as such, the application should be granted.

1 See enclosed ABC license query report, dated 2/7/2015.

Evaluation

1. The proposed site is in an area with a long-term level of undue concentration of alcoholic beverage outlets.

The site is not in an area with a long-term level of undue concentration. State regulations provide "undue concentration" as a guide for local agencies to determine whether the addition of an ABC license will serve the public convenience or necessity. As we will demonstrate in this application, approval of the Applicant's request will certainly serve the public convenience.

2. The geographic area is the target of special law enforcement activity, i.e., police task force is working on reducing vice in the area, or eliminating juvenile crime (such as cruising or graffiti) or gang activity.

There is no indication that the geographic area is the target of special law enforcement activity. Within LAPD's Central Bureau, the subject site is not subject to a gang injunction2 and observation of the Bunker Hill neighborhood reveals that the signs typically associated with gang activity such as graffiti, are not present.

3. The proposed site is in close proximity to sensitive uses, including schools, parks, churches, youth activities, homeless shelters, mental health or. alcohol or drug treatment centers.

The proposed site is not adjacent to any sensitive uses. Furthermore, its location is not visible from the street and instead, caters to the Applicant's loyal customer base as well as Bunker Hill's office workers and residents who seek out its unique selection of beverages and food.

4. The geographic area has elevated levels of alcohol-related crimes, including but not limited to: public intoxication, driving under the influence, assault, vandalism, prostitution, drug violations, loitering.

There is no indication that the area is experiencing elevated level of alcohol-related crimes. Please refer to enclosed LAPD crime, trend, and COMPSTA T reports.

5. The proposed site is located in a Specific Plan or Community Redevelopment Agency Project area which specifically includes a policy to control future alcoholic beverage sales.

2 LAPD Operations Central Bureau Gang Injunctions, retrieved 2111/2015

The Bunker Hill Specific Plan, Bunker Hill Redevelopment Project Plan, and the Central City Community Plan do not specifically include policies to control future alcoholic beverage sales. In fact, the project is consistent with the general intent and goals of these plans, including:

Bunker Hill Specific Plan

Expand the economic base of the City by providing additional employment opportunities and additional revenues to the region (goal).

The project will create temporary and permanent jobs during construction, training, and daily operation, providing sales and income tax revenue as well as income to the regions workers.

Bunker Hill Redevelopment Project Plan

The Plan designates the site as part of the Upper Hill Commercial Plaza area and dictates that the predominant intended use is for large office buildings. Facilities for parking, retail shopping; dining, entertainment, cultural, recreational, transient residential, and other similar facilities are also intended for this principal area [Section H,2-b(1)].

Located within the existing California Plaza, this project is consistent with this regulatoin.

Central City Community Plan

Retain the existing retail base in the Central City (Objective 2.2).

Relocation of this project from the 626 Wilshire Boulevard Building permits the Applicant to retain its existing retail use within the Central City area.

To increase specialty and ethnic markets in order to foster a diverse range of retail and commercial uses in Central City (Objective 2-5).

The Applicant's unique selection of high-quality beverages and food and its tasting room are unmatched in Downtown Los Angeles and approval of its request for an ABC license will permit it to continue contributing to Downtown's diverse range of retail uses.

Benefits to the Community

Provide unique goods and services.

Gourmet Wine and Spirits has been a fixture in Downtown Los Angeles for over 32 years, providing the workforce population-and increasingly, the residential population-with a

carefully-curated selection of fine beverages and foods. In its proposed location at California Plaza, Gourmet Wine and Spirits will continue to cater to Downtown's office population, including those that occupy the 936,860 square-foot One California Plaza and the 1.4 million square-foot Two California Plaza office high-rises. Its selection of fine wine- which, starts at $15 - $20 to several thousand dollars-is of the caliber expected by a sophisticated urban population. In, fact, almost 30% of the population residing in the subject Census tract earns more $75,000 or more, annually.3 The Applicant decided to locate in Bunker Hill precisely because the preponderance of its customer base were located in offices there.

Generate taxes.

The store will be completely re-designed and improved, generating design and construction phase purchases that will generate sales tax revenue directly to the City. The store is headquartered in Los Angeles and as such will pay its share of City Gross Receipts Tax. It engages in retail sales on a national and international basis as mail orders and local sales from the physical retail store. The restaurant portion of the space will additionally generate sales tax revenues. Sales and restaurant wait staff will be hired and generate more in income taxes. It is expected that the project will generate approximately _ annually in taxable sales, further providing the City of Los Angeles much-need tax revenue to support vital services.

Contribute to long-term economic development.

Suite LP-11 0 was previously a static commercial use, once a sundry shop, then a general office use, but more recently and, for longer duration, storage space. The off-site and on-site sales provides for a higher and better use of the property of this low visibility, under-utilized commercial space. Approval of the Applicant's request for an ABC license permits the applicant to continue its 32-plus years of contributing to the economic development of Downtown Los Angeles through provision of goods and services that make downtown a major employment center, a residential community and international mecca for tourism and business visitation.

Possible Detrimental Impacts

Large "youth" (under 21) population.

There is no large youth population. Less than 11% of the population within the subject Census tract is less than 25 years old.4 Census data are available for age groups, including 20 to 24 years. The space is located in a non-visible location which is therefore not suited to impulse purchases in general. The location, combined with the high price points, assures that the alcohol use will not serve as a draw for the under-age population.

Strain of police resources.

3 U.S. Census Bureau 2009-2013 American Community Survey 5-Year Estimates: Selected Economic Characteristics, retrieved

2/9/2015. 4

U.S. Census Bureau 2009-2013 American Community Survey 5-Year Estimates: Age and Sex, retrieved 2/10/2015.

The Applicant has more than 32 years of experience as a model business owner and operator in Downtown Los Angeles and will continue this tradition in its new location. The combination of its specialized beverage and food selection, its policies regarding employee training, its limited hours of operation, its floor plan and layout, and track record has and will continue to ensure that it is not a strain on police resources. Additionally, operators of the existing three off-sale ABC licenses within the Census Tract have no disciplinary history. Therefore, it is not expected that an additional ABC off-sale license will create a law enforcement problem that will strain police resources.

Business Operations

Method of operation.

In accordance with all applicable state and local regulations, all employees shall meet the minimum age requirement. Additionally, all personnel acting in the capacity of a manager and all employees who serve alcoholic beverages shall complete LAPD-sponsored STAR training (Standardized Training for Alcohol Retailers). Additionally, all employees who complete such training shall attend follow-up training classes every 24 months. And lastly, newly-hired employees will attend STAR training within two months of their employment.

In catering to the neighborhood's workforce and residents, hours of operation are from 9:00 AM to 9:00PM. These hours of operation are ideal to allow the neighborhood's workers to purchase items such as corporate gift baskets and meat, cheese and fruit plates, to be enjoyed at lunch time, as a mid-afternoon snack or after work hours. Additionally, the hours of operation are convenient for the neighborhood's residents to purchase high-quality foods and beverages that can be enjoyed in the comfort of their home after work without the additional costs associated with a sit-down restaurant meal. The limited hours for the tasting room--from 2:00 PM to 9:00 PM--provides for controlled access while providing Downtown with a unique amenity and reinforces that the amenity is solely to "try before they buy."

Non-alcohol products.

Product selection is not limited to alcoholic beverages. In addition to non-alcoholic beverages, the wide selection of high-quality foods make Gourmet Wine and Spirits a sought-after, convenient, and pedestrian-friendly destination that compliments a grocery store.

Duplication.

The Applicant's business model is markedly unique than the three existing off-sale ABC licenses in the Census Tract; it does not duplicate any nearby businesses already in existence. Referring to the enclosed map entitled, "Existing Off-Sale Licenses," French Kitchen is located 0.26 miles from the subject site and within the Westin Bonaventure Hotel. Another license, for Trimana Express, is located 0.20 miles from the subject site and within the US Bank Tower.

Lastly, "Famima!!" is located 0.08 miles from the subject space, in Two Cal Plaza. Unlike typical off-sale retailers, the applicant offers a very carefully-curated selection of unique wine and spirits that is unmatched in the neighborhood, garnering them the recognition from LA Weekly as a top-ten alcohol retailer and a long-time customer base.

CONCLUSION

"Undue Concentration" merely provides a guide for decision-makers in making such a determination in the form of evaluating whether the addition of an ABC license will be serve the public convenience or necessity. Furthermore, "over concentration" does not mean that any agency has analyzed a particular Census Tract and determined that the Census Tract has suffered harm from existing ABC licenses or that it will suffer harm from an additional license.

With merely three off-sale licenses in the subject Census Tract, there is no indication of a law enforcement problem associated with the operation of the businesses which hold these licenses. In fact, a review of the ABC's License Query System revealed that these licensees have no disciplinary history. The Applicant's 32-plus years of experience with the same business model in Downtown Los Angeles has not been a law enforcement problem and in fact, as provided many benefits to the Downtown community.

The Applicant's product selection and its existing customer base make it an appropriate use for the Bunker Hill neighborhood. Its selection of corporate gift baskets and high-quality beverage and food selections reinforce the idea that its store has never been and will never be a destination for a quick path to intoxication. Instead, it is a neighborhood- and pedestrian-friendly amenity for the office workers and residents of Bunker Hill's sophisticated population. It is unlike any other establishment in the Bunker Hill neighborhood.

For these reasons, we respectfully submit that a finding of public convenience has been made.

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