Report Prepared by: Matt Livingston, Assistant Planner, Development Services Department
Title
SUBJECT: Land Use Determination #25-03 - Finding of Public Convenience or Necessity for Sair Lara, for Alcohol Sales for On- and Off-Site Consumption for Valley Public House at 521 West Main Street
REPORT IN BRIEF
This report provides options for the City Council to consider making a Finding of Public Convenience or Necessity (PCN), as required by the Department of Alcoholic Beverage Control (ABC) to issue a Type 42 alcohol license (allowing the sale of beer for on-site or off-site consumption) for a new bar called Valley Public House located at 521 West Main Street. This alcohol license allows for the sale of beer and wine, and prohibits minors from entering the premises, as allowed by the State Department of Alcoholic Control. This license type does not require that the business provide any kind of food for its customers.
RECOMMENDATION
City Council - Adopt a motion approving the Finding of Public Convenience or Necessity to allow Valley Public House, located at 521 West Main Street to obtain a Type 42 license, allowing the sale of beer for on-site and off-site consumption (Option #1 as shown in the “Council Action” section of this Administrative Report).
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to modifications as conditioned by Council; or,
3. Deny the request completely; or,
4. Refer back to staff for reconsideration of specific items as requested by Council; or,
5. Continue item to a future City Council meeting (date and time to be specified in City Council motion).
AUTHORITY
Business and Professions Code Section 23958 and 23958.4.
CITY COUNCIL PRIORITIES
Not applicable.
DISCUSSION
State law mandates that ABC deny the issuance of a license to sell alcohol if the Census Tract in which the license will be issued is considered to have an “undue concentration” of existing alcohol licenses. The exception to this rule is that ABC may issue the license if the local jurisdiction makes a finding of “Public Convenience or Necessity” in support of the issuance of an additional license. However, the phrase “public convenience or necessity” is not defined in either the Alcoholic Beverage Control Act or in ABC’s Implementing Regulations, nor are specific guidelines provided. This determination must be made within 90 days of the date the local jurisdiction is notified of an application. See Attachment 1 - “Provisions for Undue Concentration” for more information regarding “undue concentration.”
Prior case law indicates that the Legislature’s intent for making a finding of public convenience or necessity was to apply different criteria than those used to determine “undue concentration.” Therefore “public convenience or necessity” means something other than the number and location of the licensed alcohol premises which are already covered by the factors used to determine undue concentration. The subject site is located within Census Tract 13.02. In checking with the State of California Alcoholic Beverage Control, this census tract is over concentrated with businesses selling alcohol as 2 licenses are allowed outright, but there are currently 28 active sites. The City Council will need to approve a Finding of Public Convenience or Necessity for this use.
The State’s ABC Mapping System is currently unable to generate a map identifying the 28 active licenses, but the number of active licenses were confirmed with ABC staff. Factors that may be used to determine a Finding of “public convenience or necessity” are found at Attachment 2. Staff, including the Police Department, have reviewed this request, and are recommending approval.
The City Council may also deny the Finding of Public Convenience or Necessity but should make one or more specific findings to support the denial. Such findings might be based on the fact that there are too many existing businesses within the area already serving alcohol, the number of crimes in the area, the proximity to residential uses, the type of business or operation, or other factors the City Council determines would make the issuance of an ABC license detrimental to the community. Guidance for making these findings can be taken from the “Provisions of Undue Concentration” found at Attachment 1.
Valley Public House at 521 West Main Street
This new taproom is requesting approval to sell beer and wine for onsite and offsite consumption (Type 42 Alcoholic Beverage Control License) at 521 West Main Street. The subject location is part of what is known as the Merced Lofts where commercial tenant space is located on the bottom floor and multi-family units on the following two floors.
The floor plan at Attachment 6 shows the proposed layout for the site which includes a lobby with tables and a bar seating area. The interior also has 2 restrooms, and in the front of the site is a proposed enclosed outdoor patio area. The proposed floor plan shows 48 total seats. There will also be a food truck parked in the private parking lot behind the site.
The subject site is located in Downtown Merced and is surrounded by a variety of commercial and entertainment businesses. Entertainment businesses are common throughout the surrounding area with businesses such as the Merced Theater, The Mainzer, The Cue Spot Billiards, 17th Street Public House (pub), Regal Hollywood (movie theatre), The Partisan (pub), O’Ryleigh’s (pub), Casino Merced, Playhouse Merced (live theatre), Joysitq, Hi-Fi Wine Bar, and El Palacio Night Club, all located throughout Downtown. Given the concentration of entertainment businesses and alcohol sales in the area, staff does not anticipate that the approval of this bar would create any unusual circumstances for the neighborhood.
In fact, this business concept would be a unique addition to the downtown as the owner has indicated his plan to develop the space with an Irish theme and design, that focuses primarily on the sale and consumption of beers and wine from regional creators. In addition, this space will also serve as a place where members of the public can watch a wide range of sporting events. The owner has also expressed interest in potentially partnering with other local downtown restaurants and will allow patrons to bring in food from other establishments into the bar.
Sensitive Uses
The proximity of a business to residential uses, schools, churches, hospitals, or other “sensitive uses” may also be cause for ABC to deny the issuance of a license. The nearest low-density residential zone is located approximately 1,600 feet northeast of the subject site near the southwest corner of West 21st Street and Martin Luther King Jr Way. In addition, there are some multi-family apartments within the Central Commercial (C-C) Zone, such as the Tioga Apartments and the Merced Lofts, and a High Density Residential (R-4) Zone at the northeast corner of Martin Luther King Jr. Way and 18th Street. The nearest school (Yosemite Independence High School) is located roughly 2,600 feet northwest of the subject site, with the nearest classrooms being 2,800 feet away from the subject site near the northeast corner of G Street and East 18th Street. The nearest park (Bob Hart Square) is located approximately 100 feet away from the subject site across the street.
Information of Fact
In order for the City Council to make their decision regarding a Finding of Public Convenience or Necessity, staff is providing information of fact for the City Council to consider. Based on the information provided in Attachment 5, staff is recommending approval of this request. Approval of this request would authorize the Director of Development Services to notify ABC of this determination.
According to the Merced Police Department, this general area had a very high concentration of incidents between 06/24/2024 and 06/23/2025. Within this time period, there were 1,091 incidents within 500 feet of the subject site (Attachment 8). Typically, particular attention is given to incidents involving public drunkenness, the illegal sale of narcotics, disturbing the peace, and disorderly conduct are reviewed when considering the issuance of an alcohol license. Below is a breakdown of similar types of calls within 500 feet of the site during 6/24/2024 and 06/23/2025.
• Disturbances - 94 incidents
• Assaults - 12 incidents
• Public Intoxication - 3 incidents
• Narcotics - 2 incidents
• Municipal Code Violations - 47 incidents
The total call volume City-wide for the same time period was over 69,000 calls. The calls within 500 feet of the subject site equate to approximately 1.58% of the total call volume within the City of Merced for that time period. As previously mentioned, the number of incidents within the surrounding area is considered “Very High” by Merced Police Department standards. However, the Police Department supports this request for a Finding of Public Convenience or Necessity.
Applicant’s Reason to Support Public Convenience or Necessity
Sair Lara has provided information regarding reasons for supporting a Finding of Public Convenience or Necessity. They cite several reasons to support the issuance of a Type 42 license, including their intent on allowing local breweries and wineries to showcase their product by serving local products, and creating an Irish-themed bar. The applicant also noted that they will be the ones working in the taproom, and that they hope to build genuine relationships with their customers. More detailed information supporting this request can be found in the letter at Attachment 5.
Council Action:
Option #1
After considering all the facts provided and the factors that may be considered for determining public convenience or necessity, if the City Council finds the public convenience or necessity would be served by the issuance of an on-sale license to sell beer and wine, the City Council should authorize the Director of Development Service, or their designee, to draft a letter of support to ABC for the issuance of a Type 42 License based on the reasons described in Attachment 5.
Option #2
If the City Council determines that public convenience or necessity would not be served by the issuance of a Type 42 license at this location, the City Council should direct staff, to draft a letter opposing the license. The City Council’s motion should include this determination along with specific supporting findings explaining why public convenience or necessity would not be served.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed.
ATTACHMENTS
1. Provisions of Undue Concentration
2. Factors in Determining Public Convenience or Necessity
3. Location Map
4. ABC License Type and Privileges
5. Letter from Applicant
6. Floor Plan
7. City-Wide Incident Map
8. Density of Incidents within 500 feet of Subject Site
9. Distance from Sensitive Uses
10. Resolution #4160 for CUP #25-0011
11. Presentation