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CUP No. 2025-08 – Costa Azul On-Sale of Beer, Wine, & Distilled Spirits (800 W. Seventeenth Street) May 12, 2025 Page 3 4 9 3 9 As part of the City’s American Rescue Plan (ARPA), which took place from 2021 through 2024, Costa Azul received a grant to revitalize the site and offer outdoor dining opportunities to its customers. The work approved as part of ARPA was finalized in 2021. At this time, the outdoor dining area is not included as part this CUP request and a CUP modification will be required if the applicant seeks to serve alcohol in an outdoor dining area in the future. If this CUP request is approved, the restaurant will offer beer, wine, and distilled spirits for on-premises consumption in the indoor dining area only. In addition to the location at 800 W. Seventeenth Street, the Applicant owns and operates a second Costa Azul restaurant located at 2401 S. Fairview Street. The Fairview Street location currently holds a Type 47 ABC license to serve beer, wine, and distilled spirits, which was approved through CUP No. 2006-05 in May 2006. The Fairview Street location does not have any open Code Enforcement cases and has operated without issues related to the Type 47 ABC license. Project Analysis CUP requests are governed by Section 41-638 of the SAMC. CUPs may be granted when it can be shown that the proposed project will not adversely impact the community. If these findings can be made, then it is appropriate to grant the CUP. Conversely, the inability to make these findings would result in a denial. The purpose of regulating establishments that sell alcoholic beverages is to set forth operating practices and procedures and to minimize impacts to surrounding areas. Staff has reviewed the applicant’s request for the sale and consumption of beer, wine, and distilled spirits and has determined the proposed CUP will not be detrimental to the health, safety, and welfare of the community. Costa Azul provides a unique dining experience to its patrons by offering full services and a menu that is catered to families and individuals. The approval of CUP No. 2025-08 will provide an ancillary service to customers by offering a variety of beer, wine, and distilled spirits with meals. This approval will allow Costa Azul to upgrade its existing Type 41 ABC license to a Type 47 license, enabling the sale of distilled spirits alongside beer and wine for on-premises consumption. The upgrade will help the establishment remain economically viable and compete with nearby full-service establishments offering similar services. Costa Azul has been an established business in Santa Ana for nearly 20 years, and the granting of the CUP will not negatively impact any nearby sensitive land uses. The subject site is not located within immediate proximity to any playgrounds, schools, or religious institutions. The nearest school is Frances E. Willard Intermediate School which is located approximately 800 linear feet (0.15 miles) southeast. Additionally, the nearest religious institution, Saint Peter Evangelical Lutheran Church at 1510 N. Parton Street, is located approximately 520 linear feet (0.1 miles) south. Although the property is near multi-family residences, the building Costa Azul occupies is sited along Seventeenth