Title
PLN26-0006; Consider a Conditional Use Permit to authorize the relocation and expansion of an existing Convenience Store at 1935 Washington Avenue into an adjacent former auto repair bay, increasing the sales area from approximately 365 to approximately 707 square feet. The request includes continued sale of beer and wine for off-site consumption in the relocated Convenience Store; CC(H), Community Commercial; Alameda County Assessor’s Parcel Number 75-73-1-3; A&M Gas Station Two Inc. (Applicant); Dabit Christopher R & Alex R Etal. (Property Owners).
Staffreport
SUMMARY AND RECOMMENDATION
The applicant is requesting a Conditional Use Permit for the relocation and expansion of an existing Convenience Store at 1935 Washington Avenue into an adjacent former auto repair bay, increasing the sales area from approximately 365 to approximately 707 square feet. The request includes continued sale of beer and wine for off-site consumption in the relocated Convenience Store.
Staff recommends that the Planning Commission adopt the attached Resolution approving Conditional Use Permit PLN26-0006, superseding Conditional Use Permit PLN21-0051, subject to the recommended Findings of Fact and Conditions of Approval.
BACKGROUND AND RELATIONSHIP TO SURROUNDING AREA
The subject property is zoned CC(H), Community Commercial with a Housing Overlay, and is located on the southwest corner of Washington Avenue and Castro Street and encompasses approximately 15,657 square feet (0.36 acre). The site contains an existing 1,148-square-foot building, containing a Convenience Store, with one canopy and eight fuel pumps. The Convenience Store sells alcohol, food, beverages, and small convenience items primarily for off-premises consumption.
The gas station was built in 1966. At that time, no Conditional Use Permit was required. On April 26, 2023, the Board of Zoning Adjustments (BZA) approved a Conditional Use Permit (PLN21-0051, Resolution 2023-004) to allow the sale of beer and wine for off-site consumption at the existing 365-square-foot store. Zoning Code Section 4.04.228 requires a Conditional Use Permit for businesses engaged in the concurrent sale of motor vehicle fuel and alcoholic beverages.
The store has since been relocated into a former vehicle repair bay without the required permits, and the original space is now used for storage. The applicant is now seeking a Conditional Use Permit to legalize the unpermitted relocation and expansion of the Convenience Store. A Conditional Use Permit is required for the expansion of the Convenience Store pursuant to Zoning Code Section 2.08.200.B.15.
If approved, this Conditional Use Permit would supersede PLN21-0051 and consolidate all conditions governing the convenience store and the sale of beer and wine on the property into a single approval.
Properties across the street to the north are zoned Downtown Area 2 (DA-2). Properties across Washington Avenue to the east and adjacent to the south share the same CC(H) zoning. Properties to the west are zoned Residential Duplex (RD). Surrounding properties include multifamily residential buildings north across Castro Street and immediately west of the site. Single-family residences are located northeast of the site across Washington Avenue and Castro Street. A self-serve car wash is adjacent to the south. North and south along Washington Avenue is a mix of small commercial buildings, single-family residences, and multifamily buildings.
The site is approximately 200 feet from the Lots of Love Child Care Center at 2000 Washington Avenue. The site is also approximately 1,300 feet from McKinley Elementary School at 2150 East 14th Street, 3,100 feet from City of San Leandro Root Park, 2,400 feet from the San Leandro Public Library at 300 Estudillo Avenue, and 1,500 feet from the Boys and Girls Club swimming pool at 2200 San Leandro Boulevard.
PROJECT PROPOSAL
The Applicant and Property Owner are requesting approval to relocate and expand the existing Convenience Store into the adjacent former auto repair bay, increasing the sales area from approximately 365 to approximately 707 square feet. The request includes continued sale of beer and wine for off-site consumption in the relocated Convenience Store. The relocation and associated minor exterior modifications were completed without the required permits and are proposed to be legalized. The garage door on the side of the former repair bay was removed and replaced with a wall. Of the two single doors at the front of the building, one into the 365-square-foot store and one into the repair bay, the repair bay door was replaced with double doors.
The site holds a Type 20 license from the California Department of Alcoholic Beverage Control (ABC), which authorizes the sale of beer and wine for consumption off the premises where it is sold. Beer and wine would be sold only during the store’s operating hours of 6:00 a.m. to 10:00 p.m.
STAFF ANALYSIS
Alcohol Sales
Zoning Code Section 4.04.228 requires a Conditional Use Permit for the concurrent sale of motor vehicle fuel and alcoholic beverages and establishes the following minimum standards:
1. No alcoholic beverages shall be displayed within five (5) feet of the cash register or the front door of the establishment, unless it is in a permanently affixed cooler.
2. No sale of alcoholic beverages shall be made from a drive-up window.
3. No display of alcoholic beverages shall be made from an ice tub.
4. No alcoholic beverage advertising shall be located on motor fuel islands or otherwise visible from outside the building in which the alcoholic beverage is sold.
Zoning Code Section 2.08.200.B.15 requires a Conditional Use Permit for Convenience Stores and establishes the following minimum standards.
1. Convenience markets shall not be located within 1,000 feet of a site occupied by a public or private school, park, library, or recreational facilities.
2. No exterior vending machines shall be permitted.
3. Convenience markets may be operated only between the hours of 6:00 a.m. and 10:00 p.m. unless longer hours are allowed with the approval of a conditional use permit, with a finding that the extended hours would not have an adverse effect on neighboring uses.
In addition to the minimum standards set forth in the Zoning Code and requirements imposed by ABC, the Planning Commission may impose reasonable and necessary conditions in order to make the required findings. In approving a CUP in 2023 to allow alcohol sales, the BZA imposed conditions of approval, recommended by the San Leandro Police Department, to ensure the use would not be detrimental to public health, safety or welfare. One of the key measures includes a requirement for all employees to complete ABC training classes. Staff is recommending that these existing conditions be carried over to this Conditional Use Permit.
The proposed Convenience Store, as conditioned would comply with all of the requirements noted above. The San Leandro Police Department has reviewed the proposal and has provided no objections. The Police Department has provided recommended Conditions of Approval, which have been incorporated into the attached Resolution.
Tobacco Sales
The existing convenience store has a current Tobacco Retailers License from the City of San Leandro to sell tobacco products. The City’s tobacco retailing regulations in the Zoning Ordinance impose reasonable limitations on tobacco sales, including a maximum 10% of floor area dedicated to display of tobacco products, and a maximum of 15-linear feet of tobacco display area. The floor plans indicate that the proposed operation would be in compliance with these requirements. Staff is recommending a condition of approval requiring compliance with the tobacco retailing requirements in the Municipal Code and the Zoning Code.
Site Improvements
Staff has identified several physical improvements to the property that are needed to comply with code requirements and to keep the appearance of the site in a neat and presentable condition. Staff recommends conditions requiring the Applicant and Property Owner to:
• Install and maintain landscaping. The site has a small landscape area at the intersection, where the signage is located, with a palm tree but no other organized landscaping. Narrow landscape strips along the westerly and southerly property lines and a portion of the Washington Avenue frontage include some trees and shrubs but do not appear to be maintained.
• Replace fence. The slatted chain link fence along the southerly property line is in poor condition.
• Remove exterior vending machine.
• Either remove exterior chest freezer and propane cage or obtain an Outdoor Facilities Permit for the outdoor display.
• Remove noncompliant signage. Unpermitted temporary advertising signage, including a propane sale banner and a landscape banner, is displayed on the site.
Staff is also recommending a condition of approval requiring litter control on the site. Staff has observed litter outside the dumpster area and in landscape strips.
Rationale for Approval
Staff recommends approval. The request does not establish a new use or a new alcohol outlet: beer and wine sales at this station were approved in 2023, no new ABC license is required, and hours would remain 6:00 a.m. to 10:00 p.m. All work is within the existing building, and replacing the auto repair bay with retail is expected to reduce service-related noise and activity next to the adjacent residential district. Approval would also require building permits for the completed work and bring the site into compliance through conditions addressing landscaping, fencing, litter, signage, and the prohibited exterior vending machine. Staff believes the Planning Commission can make the required findings and that, with the recommended Conditions of Approval, the business can be operated and maintained in an orderly manner without being detrimental to the surrounding area.
GENERAL PLAN CONFORMANCE
The property is designated MUC, Corridor Mixed Use, in the General Plan. The MUC designation allows a range of commercial and office uses that serve neighborhood and community needs (General Plan page 3-30). The proposed expanded retail use would be consistent with this designation. In addition, the proposal is consistent with the following General Plan policy:
Policy ED-4.1 Retail Diversity. Encourage a diverse range of commercial uses, offering goods and services that fully meet the needs of San Leandro residents and businesses. The City should recruit new businesses that: (a) fill gaps in the range of goods and services currently available; and (b) act as catalysts for attracting other retailers to the City.
Policy ED-4.4 Business District Improvements. Encourage upgrades to the appearance of businesses and the condition of properties in the city’s business districts.
FINDINGS OF FACT
To approve the proposed Conditional Use Permit, the Planning Commission must make certain Findings of Fact, pursuant to Zoning Code Section 5.08.124. Staff has analyzed the proposal and determined that the following required findings can be made.
1. The proposed location of the Project is in accord with the objectives of the Zoning Code and the purposes of the CC(H) (Community Commercial with Housing Overlay) Zoning District, in which the Property is located.
The subject property is in the CC(H) Zoning District. A convenience store in the proposed location conforms to the purpose of the CC District, which is to provide sites for a wide variety of commercial establishments. Given that the proposed use is accessory in nature to the existing gas station and is conditioned to comply with all City of San Leandro and State laws and regulations, the proposed use will not create adverse effects on adjacent areas and is appropriate to the existing commercial and residential neighborhood.
2. The proposed location of the Project and the proposed conditions under which it would be operated or maintained will be consistent with the General Plan; will not be detrimental to the public health, safety or welfare of persons residing, or working in, or adjacent to, the neighborhood of such use; and will not be detrimental to properties or improvements in the vicinity, or to the general welfare of the City.
The convenience store is consistent with the General Plan and will not be detrimental to nearby residents, employees, or the community at large because it is accessory to-and wholly within-the existing gas station site and is expected to generate minimal additional traffic. The site has a Corridor Mixed Use (MUC) General Plan land use designation, which allows a range of commercial and office uses that serve neighborhood and community needs (General Plan page 3-30). In addition, the proposal is consistent with the General Plan policies ED-4.1 and 4.4, as discussed above.
Compliance with state regulations and Conditions of Approval will further ensure the sale of beer and wine at the convenience store for off-site consumption is not detrimental to nearby residents, employees, or the community at large. The maximum occupancy, hours of operation, required security, loitering and other operational and general maintenance conditions of approval will help reduce potential impacts to adjacent and nearby residents, businesses, and the general vicinity. Therefore, the project, as conditioned, will not create any detrimental effects to public health, safety, welfare, and properties and improvements in the vicinity or the City at large.
3. The proposed Project will comply with the provisions of the Zoning Code, including all requirements for the proposed use in the CC(H) Zoning District in which it would be located.
As conditioned, the convenience store and the sale of beer and wine for off-site consumption will comply with the requirements of the CC(H) District and the minimum standards of Zoning Code Sections 4.04.228 and 2.08.200.B.15. The Department of Alcoholic Beverage Control and the City will require compliance with all regulations and Conditions of Approval.
4. The proposed Project will not create adverse impacts on traffic or create demands exceeding the capacity of public services and facilities, which cannot be mitigated.
The existing property and building are adequately served by streets, utilities and other public facilities without detriment to the surrounding area. The proposal, which is accessory to the established use as a gas station, will not affect the public utilities and facilities already serving the site. The proposed project has been reviewed with respect to its impact on traffic and other facilities and public services. The San Leandro Police Department reviewed the proposal and the Conditional Use Permit approved in 2023 and recommended additional conditions of approval to address security and operations at the property. The convenience store is located in an area served by major transit, including the San Leandro BART station. The expanded space for the operation of the convenience store within the existing building will not create adverse impacts on traffic.
The project, as conditioned, will have adequate trash collection and will be serviced by all utilities and infrastructure necessary for the operation of this commercial use. Therefore, the project will not exceed the demands of public services and facilities.
ENVIRONMENTAL REVIEW
This item is categorically exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15301 (Existing Facilities) because the project involves interior and minor exterior alterations to an existing commercial building, with no expansion of building floor area and negligible expansion of the existing use.
PUBLIC OUTREACH
A notice of the November 5, 2026, public hearing was sent to residents, property owners, and businesses within 500 feet of the subject property. A legal advertisement was published in the East Bay Times Daily Review and the property was posted with a notice 10 days prior to the Planning Commission meeting. As of the date of this report, no public comments have been received.
RECOMMENDATION
The use as proposed conforms both to the City Zoning Code and to the policies contained in the General Plan. Potential issues associated with the application will be addressed through the recommended Conditions of Approval.
Staff recommends that the Planning Commission adopt the attached Resolution:
A. Finding that the project is categorically exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15301 (Existing Facilities); and
B. Approving Conditional Use Permit PLN26-0006, superseding Conditional Use Permit PLN21-0051 (Resolution 2023-004), subject to the recommended Findings of Fact and Conditions of Approval.
ATTACHMENTS
Attachment 1: Planning Commission Resolution 2026-0XX
Exhibit A: Project Plans
Exhibit B: Operational Letter
Attachment 2: Adopted Planning Resolution 23-0004 Approving Conditional Use Permit for Alcohol Sales
Attachment 3: Vicinity Map
PREPARED BY: Anne Wong, AICP, Associate Planner