Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: John D. Nibbelin, County Attorney
Subject: Public Convenience or Necessity Determination for Application for Alcoholic Beverage License by AU Energy LLC
RECOMMENDATION:
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Adopt a resolution determining that the public convenience or necessity would be served by the issuance of an off-sale beer and wine license to AU Energy LLC, for the premises located at 3201 El Camino Real, Atherton.
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BACKGROUND:
This request relates to the alcoholic beverage license application submitted by AU Energy LLC in connection with a proposal to conduct off-sale of beer and wine at the premises located at 3201 El Camino Real in the unincorporated North Fair Oaks area, adjacent to Atherton. The location currently operates as an existing convenience store (“Loop Neighborhood Market”) collocated with an existing gas station.
State law requires that the County make a finding of whether the public convenience or necessity would be served by the issuance of an alcoholic beverage license if the establishment seeking the license is in a location with an “undue concentration” of establishments selling alcoholic beverages. The California Department of Alcoholic Beverage Control (“ABC”) has determined that an undue concentration of such establishments exists in the census tract at issue in this case and has requested that the County consider whether the public convenience or necessity (“PCN”) will be served by issuance of the requested license.
The Board has established a process for consideration of such requests that requires that they be referred to the Sheriff and to the affected community advisory council for a recommendation regarding whether the requested PCN determination should be granted. The established process was followed here.
DISCUSSION:
AU Energy LLC initially submitted an application for an alcoholic beverage license to allow the sale of beer, wine, and liquor (a “Type 21” license). The application request was forwarded to the Sheriff’s Office for its consideration and the Sheriff’s Office indicated that it does not have a position on the application.
The application request was also forwarded to the North Fair Oaks Community Council (the affected community advisory council) for its consideration and a recommendation to the Board. The Council considered the matter at its regular public meeting on May 23, 2024, where, after hearing presentations by the County Attorney’s Office and a representative of AU Energy LLC, the Council was not able to garner majority support for or against approval of AU Energy LLC’s application. Subsequent to the Council meeting, AU Energy LLC withdrew its Type 21 license application, and submitted a new application for an alcoholic beverage license to allow the sale of beer and wine only (a “Type 20” license). The Council was informed of the change in application at its meeting on August 22, 2024.
The requested license would allow an existing gas station and convenience store to expand its offerings to include beer and wine only, while continuing to prohibit the sale of liquor. Issuance of the license would further the public convenience or necessity by increasing the range of goods available for purchase to customers of the existing facility.
Based on the foregoing, staff recommends that the Board approve AU Energy LLC’s request and find that the public convenience or necessity would be served by the issuance of an off-sale beer and wine license for the premises located at 3201 El Camino Real, Atherton.
FISCAL IMPACT:
There is no fiscal impact associated with this item.
ATTACHMENTS:
AU Energy LLC PCN application