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HomeMy WebLinkAboutPRE 2026-0029; CITY PLANNER DETERMINATION FOR BEER - BEER & BOOTS; Admin Decision LetterJune 3, 2026 Stephen Jamieson Solomon Saltsman & Jamieson 426 Culver Boulevard Playa Del Rey, CA 90293 {city of Carlsbad VIA MAIL AND EMAIL SUBJECT: DETERMINATION OF THE CITY PLANNER THAT ANCILLARY SINGLE-BEER SERVICE TO A RETAIL STORE IS A PERMITTED USE IN THE GENERAL COMMERCIAL ZONE {C-2) Dear Mr. Jamieson: The Community Development (CD) Department is in receipt of your application for a City Planner Determination dated April 16, 2026, included as Attachment 1, requesting a written determination regarding zoning consistency of a proposed "Retail Store with Limited Beer Service" with zoning regulations for a property at 1911 Calle Barcelona, Suite 157, Carlsbad, CA 92008. The intent of the City Planning determination process is to outline ambiguities and uses where there is clear evidence that a proposed use is similar enough to be consistent with a proposed use. If the evidence does not exist, there is no option to deny the request. This determination takes no position if this is an appropriate use; as that would need to be determined as a policy decision by the legislative body through amendments to the Carlsbad Municipal Code. Please find responses and a conclusion to the "Application for City Planner Determination" letter below: Background The site and requested use are subject to the following regulations: General Plan The property is designated as R, General Commercial, intended to include shopping centers with anchor and secondary tenants that are region-serving, as well as mixed-use. In accordance with Table 2-4, Characteristics of Commercial Land Uses, anchor tenants shall include "Full-line department stores (2 or more), factory outlet center, "power center" of several high-volume retail uses, including general merchandise, automobile sales, apparel, furniture, home furnishings, etc.", while secondary tenants shall consist of "Full range of specialty retail, restaurants, entertainment, convenience stores, service facilities, business and professional offices." There are no specific descriptions, goals or policies in the General Plan that speak to the questions raised in this determination. Carlsbad Municipal Code The property is designated as P-C, Planned Community. The intent and purpose of the P-C zone, as stated in §21.38.010, is to support the "implementation of the general plan and any applicable specific plans," including the Green Valley Master Plan, which governs the subject site. Green Valley Master Plan, Planning Area 2 Community Development Department Planning Division I 1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 442-339-2600 PRE2026-0029 June 3, 2026 Pa e 2 While the General Plan and Zoning Ordinance establish overarching regulations, a Specific Plan or Master Plan may impose more restrictive standards on the uses permitted within a particular land use or zoning designation. The Green Valley Master Plan (MP 92-01) implements the General Commercial (C-2) zone for uses, with Conditional Uses subject to Section 21.42 of the Carlsbad Municipal Code. In accordance with the C-2 zone, the following uses are permitted: • Bars or cocktail lounges: Meaning any establishment serving an alcoholic beverage, not meeting the requirements of a bona fide public eating establishment, are permitted through a Conditional Use Permit (CUP) approved by City Council, subject to specific requirements CMC § 21.42.140(8)(20). • Retail, wholesale or service businesses catering directly to the consumer: Retail sales directly to the customer are a permitted use. • Liquor Store: Means any store designed and operated for the selling of alcoholic beverages with the selling of any other merchandise being incidental to the primary operation of selling liquor • Delicatessen (must meet the definition of 'Bona fide public eating establishment' to sell alcohol)*: Meaning a type of restaurant, totaling less than one thousand six hundred square feet in total floor area, selling ready-to-eat food and canned or bottled beverages to the public. Food is pre-cooked or prepared at another location and only heated or toasted on the site. No stoves or ovens for the cooking or preparation of food nor tableware or dishwashing facilities (other than a standard sink) are permitted. No waiters or waitresses are employed on the premises. Delicatessens are a permitted use. • Restaurant (must meet the definition of 'Bona fide public eating establishment' to sell alcohol)*: Any establishment at which the primary business is the preparation, service and retail sale of meals comprising a varied selection of foods and nonalcoholic beverages prepared, served and consumed on the premises. *To be classified as a bona fide public eating establishment, an establishment which engages in the sale of beer, wine or distilled spirits for consumption on the premises shall meet the following requirements, pursuant to CMC § 21.04.056: 1. Be designed and operated in such a way that the sale of alcoholic beverages is 'incidental to the primary restaurant operation; 2. On any day the restaurant is open to the public for business and engaged in the incidental sale of alcoholic beverages, restaurant services shall be available to the public for the evening meal for a period of not less than five hours, or for not less than four hours, if the morning or noon meal is also served to the public for a period of not less than two hours; 3. Restaurant service shall include, but not be limited to, an offering of a varied menu of foods or not less than five main courses with appropriate nonalcoholic beverages, desserts, salads and other attendant dishes; 4. The sale of any food prepared for consumption off the premises shall be occasional only and clearly incidental and subordinate to the on-premises restaurant operation; Community Development Department Planning Division I 1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 442-339-2600 PRE2026-0029 June 3, 2026 Pa e 3 Responses 5. No more than twenty-five percent of the interior area of the restau rant shall be designed, arranged or devoted to a use commonly associated with a bar or other establishment primarily engaged in the on-premises sale of alcoholic beverages. The interior area shall include only those portions of the establishment devoted to regular use by the public; 6. A minimum of twenty percent of the gross floor area of the establishment shall be used solely for food storage, preparation, maintenance and storage of eating utensils, dishes and glassware and shall include refrigeration, cooking, warming and dishwashing equipment, and any other equipment necessary for a fully equipped restaurant kitchen; 7. During the above-specified minimum hours for restaurant services, there shall be not less than one employee per two hundred and fifty square feet of floor area devoted to food service use. Said employee or employees shall be on the job during the specified minimum hours for the restaurant service as described in subsection (2) of this section. Below are responses to the states provided in the "Application for City Planner Determination" letter. The first item is introductory and includes the main basis of the determination. The remaining items are responded to in order to provide a response to the complete set of evidence reviewed by the City Planner in making this determination. I. Response: "Proposed 'Retail Store With Limited Beer Service' Use Requires A City Planner Determination Pursuant to Carlsbad Municipal Code Section 21.28.0lO(C)" The proposal letter asserts that the ancillary sale of beer within a retail store is not a specifically described use under Carlsbad Municipal Code § 21.28.010. It further states that the code "does not define 'retail"' and does not provide a classification for a "retail use with limited beer service." This letter reviews those claims, the evidence within the land use regulations pertaining to the site, and provides a determination. There is no definition of "retail use with limited beer service", but there are multiple locations where the provision of alcohol is reviewed. It is within these definitions that Community Development determines how to respond to requests from Alcohol and Beverage Control, or whether a proposed use requires discretionary action. Within the C-2 zone, the following uses are allowed that would enable the provision of alcohol. • Bar or Cocktail Lounge: This use requires a Conditional Use Permit (CUP) to be approved by the City Council. CMC § 21.04.041 defines a Bar or Cocktail Lounge as " ... any establishment serving an alcoholic beverage, not meeting the requirements of a bona fide public eating establishment as defined in Section 21.04.056." • Liquor Store: This use can be permitted through a Conditional Use Permit (CUP) approved by the City Planner. The proposed use cannot be considered a liquor store because the sale of alcohol through a license for off-site consumption is not included in this project. Community Development Department Planning Division I 1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 442-339-2600 PRE2026-0029 June 3, 2026 Pa e 4 • Delicatessen and Restaurant: Both uses are allowed by-right if the business meets the above-listed definition of a bona fide public eating establishment, which requires food to be served with alcohol. An ABC permit would be separately required if meeting the requirements of CMC, and could contain additional conditions from Carlsbad Police. The project description states that the proposed retail operation will be " ... focused on a product mix of western apparel, footwear, bags, and accessories," and that Boots & Beer will " ... sell a single beer to a patron, which will generally be paid for by Tecovas and, on occasion, by the customer." By this description, it is clear that the proposed operation will not operate as a bona fide eating establishment as defined above in CMC Section 21.04.056, because it neither serves food nor operates as a restaurant in any capacity. Additionally, the response indicates that the requested ABC license type is a Part 40 License. Part 40 licenses are defined by ABC as being "Issued to bars and taverns. Authorizes the sale of beer for consumption on or off the premises where sold . No wine or distilled spirits may be on the premises. Full meals are not required; however, sandwiches or snacks must be available."1 Based on the ABC definition and the established use in the code, the evidence provided is not adequate to support that the sale of beer for consumption can be permitted as an accessory use to retail sales, and it would not be reasonable to conclude that any Part 40 license could be obtained without first obtaining a Conditional Use Permit for the "Bar or Cocktail Lounge" use. Therefore, if conclusive evidence were provided that the sale of alcohol could be incidental to retail sales, it still could not be determined that a Part 40 license may be permitted without a Conditional Use Permit. Additionally, it is important to note that the provision of snacks is not mentioned in the definition of the proposed operation but is listed as required under the Part 40 license by ABC. Therefore, it is determined that the project description is substantially similar to a bar or cocktail lounge due to it being an establishment serving an alcoholic beverage, which does not meet the requirements of a bona fide public eating establishment, and that the appropriate permitting pathway for the respective use is a CUP approved by the City Council, after recommendation by the Planning Commission. II. "Retail Service with Limited Beer Service" Is Consistent with the Intent and Purpose of the P-C Zone Under the Green Valley Master Plan and the C-2 Zone" A. P-C and C-2 Zones Support Tecovas' Core Retail Use, And The Incidental Sale of Beer Does Not Alter That Primary Use The application letter details that the intent of the "R" Regional Commercial General Plan Designation, P-C zone, and C-2 zone are to allow for commercial activity such as retail. Additionally, the letter states that, "A retail store is a typical neighborhood commercial use that 1 https ://www.abc.ca .gov /Ii censi ng/1 icense-types/ Community Development Department Planning Division I 1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 442-339-2600 PRE2026-0029 June 3, 2026 Pa e 5 supports residents of the planned community. The incidental service of beer does not and will not change the principal and fundamental retail nature of the business." This assertion is consistent in depicting commercial uses as the intent of both the General Plan's Regional Commercial designation and the P-C zone, under which the Green Valley Plan identifies the C-2 zone as governing permitted uses. Although retail stores are permitted within the C-2 zoning, the Municipal Code § 21.28.010 does not identify or authorize a retail use that includes beer service, absent being separately permitted as a restaurant or bar/cocktail lounge. Staff finds that characterizing the beer service as "incidental" or "ancillary" does not change the restrictions and policy direction that sale of alcohol can, and should, have restrictions, based on potential impacts. While it is purported that only one beer a day would be allowed, purchased by the separate entity and given to a customer, if this were to be considered allowed as a by-right "accessory" to retail sales, there is no mechanism for establishing conditions or enforcing this limitation. The consistent provisions in the CMC for Bars and Restaurants, Bona Fide Public Eating Establishments, Liquor Stores, and Breweries contain municipal code conditions that must be abided by, and/or that a specific discretionary action is needed to make findings under CMC § 21.42.140 {8)(20) and CMC § 21.42.030 to limit impacts. There are no policies in the master plan that support the claim that the sales are accessory to the retail use. B. Sale of Beer Provides an Incidental, Complementary Addition to Tecovas' Overall Product Mix, Supporting Community Retail and Service Needs While Remaining Ancillary to the Core Retail Use All listed restaurants, which are located within Area 2 of the Green Valley Master Plan, Casa de Bandini, Urban Plates, and the Henry, are all considered bona fide public eating establishments and thus allowed to serve alcohol {aside from the Parakeet Cafe, which does not seem to serve any alcohol). They meet the separate regulations under Carlsbad Municipal Code, which this proposed use does not. The section titled "Limited Floor Space" and the related site plan describe that beer products occupy only 12 square feet of floor space. However, the gross floor area associated with alcoholic beverage use, such as that within the previously referenced restaurants, is not limited solely to areas where alcohol is stored. Rather, as provided in CMC Section 21.04.056{5), it also includes areas " ... designed, arranged, or devoted to a use commonly associated with a bar or other establishment primarily engaged in the on-premises sale of alcoholic beverages." Therefore, all areas where service and consumption occur would likely need to be included in this calculation. The letter also states that apparel units consist of roughly 760 SKUs, while beer is limited to 3 SKUs. It further notes that the average retail apparel transaction is approximately $525, while the average purchase price of alcohol is $3. The project description mentioned earlier in the letter states that Boots & Beer LLC, a separate company from Tecovas, will provide the beer for the customer to consume, and Tecovas will pay for it on the customer's behalf. Staff does not find the statistics described under "Minor SKU Presence" and "Minimal Impact on Transactions" to reflect an applicable portrayal of ancillary alcohol sales or presence, as the business model presented does not involve the direct sale of the beer to customers. Furthermore, alcohol and apparel Community Development Department Planning Division I 1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 442-339-2600 PRE2026-0029 June 3, 2026 Pa e 6 purchase prices and SKU quantities cannot be directly compared because the products are not available/purchased in the same fashion. Therefore, these statistics do not hold relevance to the determination. Staff also does not find the proposed model to be permitted under an Alcoholic Beverage Control Type 40 license, as the customer is not engaging in the retail purchase of alcohol from the licensee. Business and Professions Code sections 25600 states, "No licensee shall, directly or indirectly, give any premium, gift, free goods, or other thing of value in connection with the sale, distribution, or sale and distribution of alcoholic beverages, and no retailer shall, directly or indirectly, receive any premium, gift, free goods or other thing of value from a supplier of alcoholic beverages ... "2 ABC also stated in a recent article that, "Business and Professions Code sections 25500 and 25502 prohibit all suppliers from holding an ownership interest, directly or indirectly, in any retail license. These sections also prohibit suppliers from furnishing, giving, or lending money to a retailer. In addition to money, they prohibit suppliers from furnishing, giving or lending a thing of value directly or indirectly to retailers."3 It is not clear how the proposed financial arrangement is made and how it complies with these requirements. Additionally, as aforementioned, ABC requires a Type 40 license to have sandwiches or snacks available. Therefore, given the proposed business model, in which alcohol is indirectly given away for free without the required snack provisions, there is not sufficient evidence to indicate that a Type 40 license would be supported here. However, if that is the intent of the appointed Planning Commission and then the legislative body for allowance of ABC licenses, direction could be provided through an appeal to those entities of this determination. There is a statement that the sale of alcohol permits an inclusive environment, with no evidence. That is not understood or substantiated by how it applies but is not a main factor in this determination. Ill. "Retail Store with Limited Beer Service" is Substantially Similar to Allowed Uses A. Proposed Use Is Substantially Similar to "Retail, wholesale or service businesses catering directly to the consumer" and "Delicatessens" The letter states that "ready-to-offer snacks and sandwiches" may be a proposed part of the use. Please note that food offerings likely require review and permitting from DEHQ. The site plan and description provided do not indicate details such as where food would be stored, what kind of food, the quantity of food offered, when/how it would be served, etc. Therefore, without further detail/elaboration provided, the comparison to a delicatessen cannot be made. Furthermore, a delicatessen is required to meet the definition of a bona fide public eating establishment to serve alcohol, which is not similar to the proposed Boots & Beer model. There is not sufficient evidence provided to suggest that the proposed use is able to meet the bona fide public eating establishment criteria.B. Proposed Use Is Not Substantially Similar to Bars, Cocktail Lounges, Liquor Stores, or Breweries Staff agrees that the proposal is not similar to a liquor store, since on-site consumption is part of the proposal. The proposed use also cannot be defined as a brewery; however, there is some correlation between how alcohol consumption is treated as an accessory use, as it relates to 2 https://leginfo.legislature.ca.gov/faces/codes displaySection.xhtml?lawCode=BPC&sectionNum=25600 3 https ://www.abe.ca .gov /tied-house-reminder-payments-between-retailers-and-suppliers/ Community Development Department Planning Division I 1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 442-339-2600 PRE2026-0029 June 3, 2026 Pa e 7 breweries. City Council Ordinance CS-225 amended the Zoning Code in 2009 and determined that breweries are eligible for an accessory tasting room use through a City Council CUP4. This is akin to bars and cocktail lounges, which similarly require City Council CUPs. Our code clearly relates the by-right sale of alcohol as an accessory to a bona fide eating establishment and requires that all other alcohol sales, including breweries, liquor stores, and bar/cocktail lounges, be permitted only through a Conditional Use Permit. Ultimately, this use is most similar in definition to a bar/cocktail lounge, as it is an establishment providing alcohol and not meeting the definition of a bona fide public eating establishment. As City Planner Determinations are precedent setting and therefore cannot be concluded that alcohol is accessory to a retail use. Ill. Limited Beer Service May Also Be Considered A Permitted Accessory Use to "Retail, Wholesale or Service Business Catering Directly to The Consumer" Regardless of the primary function being retail or how ancillary alcohol sales may be, staff is unable to find sufficient evidence that there is provision of food and that the use operates similar to that of a bona fide public eating establishment, where by-right alcohol consumption is permitted. CONCLUSION The City Planner has determined that the proposed "Retail Store with Limited Beer Service" is not a permitted by-right use within the applicable General Commercial (C-2) zoning regulations and the Green Valley Master Plan governing the subject site. While retail sales are permitted within the zone, the on-site service and consumption of alcoholic beverages is regulated by the Carlsbad Municipal Code and is permitted only where the use qualifies as a bona fide public eating establishment or where discretionary approval is obtained through a Conditional Use Permit. Based on the project description provided, the proposed operation does not meet the requirements of a bona fide public eating establishment. Furthermore, the requested Type 40 ABC license classification is associated with establishments serving beer for on-site consumption that do not operate as bona fide public eating establishments. Therefore, the proposed use is most consistent with the definitions of a bar or cocktail lounge, which requires approval of a Conditional Use Permit pursuant to CMC § 21.42.140(8)(20). Accordingly, the City Planner determines that the proposed use cannot be permitted by right as an accessory retail use and would require discretionary approval through the City's Conditional Use Permit process or an amendment to the Carlsbad Municipal Code and Local Coastal Program to explicitly allow for the use. This determination maybe appealed to the Planning Commission pursuant to CMC §21.54.140 within ten (10) days of the date of this letter. Appeals must be submitted in writing to the Community Development Department; attention City Planner at 1635 Faraday Avenue, Carlsbad, 92008 along with a payment of $900. Please be advised that the filing of such appeal within such time limit does not stay any requirements, agreements, deadlines, or enforcement that may otherwise apply to this project or property. 4 https://records.carlsbadca.gov/Weblink/DocView.aspx?id=4836609&dbid=0&repo=CityofCarlsbad Community Development Department Planning Division I 1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 442-339-2600 PRE2026-0029 June 3, 2026 Pa e 8 If you have any questions regarding this matter, please feel free to contact me at (442) 339-5301 or by email at eric.lardy@carlsbadca.gov. Sincerely, ERIC LARDY Community Development Assistant Director/City Planner Attachments: A -Application for a City Planner Determination dated June 3, 2026 cc: Mackenzie VanZyverden, Assistant Planner Laserfiche/File Copy Data Entry Community Development Department Planning Division I 1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 442-339-2600