HomeMy WebLinkAboutPlanning Commission 2015-10-27 #2~ .e::.ClTYO~./ W -:'1ffWt:'Vfi~ ·
Community Development Department -Planning Division
P. O. Box 151560, San Rafael, CA 94915-1560
PHONE: (415) 485-3085/FAX: (415) 485-3184
Meeting Date:
Agenda Item:
Case Numbers:
Project Planner:
October 27,2015
2
UP15-032, peN 15-004 ~ jtl()1
Lorraine Weiss (415) 987-3057
RE PORT TO PLANNING COMMISSION
SUBJECT: 1099 Fourth Street, Suite F (Incavo) -Request for a Use Permit and Determination of
Public Convenience or Necessity associated with the issuance of a Type 42 (On and
Off-Sale) Alcoholic Beverage Control (ABC) license to allow a new business, Incavo, to
sell beer and wine and offer wine tasting; APN: 011-263-20; Fourth Street Retail Core
(4SRC) Zoning District; Vicki Barrios, owner, Ben Barrios, applicant; File Nos: UP15-
032, PCN15-004.
EXECUTIVE SUMMARY
The project requests a Use Permit and a Determination of Public Convenience or Necessity (PCN)
associated with the issuance of a Type 42 (On and Off-Sale) Alcoholic Beverage Control (ABC) license
to allow a new business, Incavo, to sell beer and wine and offer wine tasting within an existing
commercial tenant space on Fourth Street, in Downtown San Rafael. The Use Permit requires Planning
Commission (PC) approval given that the primary activity is for on-site consumption of alcoholic
beverages without food service. The PCN, which requires approval by the Community Development
Director, has been elevated for PC level review given that it must be requested concurrent with the Use
Permit.
The project proposes no physical exterior improvements to the building or site; which is in a sub-grade
tenant space located at the corner of Fourth and A Street. An interior remodel is proposed for the new
tenant space, which has been vacant for a number of years. No land use issues have been identified
with the project. As proposed and with the recommended conditions of approval, the use would be
consistent with the applicable standards, ordinances, and policies.
PCN determinations are required where the State Department of ABC has concluded the total number of
licenses for alcoholic beverage sales exceeds the number established as appropriate for the subject
census tract area. The PCN process helps mitigate proliferation of licenses or an undesirable over-
concentration of a single type of establishment in an area.
RECOMMENDATION
It is recommended that the Planning Commission adopt two resolutions: 1) approving the requested Use
Permit; and 2) approving the requested Public Convenience or Necessity.
PROPERTY FACTS
I Address/Location: I 1099 Fourth Street, Suite F I Parcel Number(s): I 011-263-20
Downtown
REPORT TO PLANNING COMMISSION -Case No's: UP15-032, PCN15-004 Page 2
Site Characteristics
General Plan Designation Zoning Designation I Existing Land-Use
Project Site: Fourth Street Retail Corridor 4SRC Commercial
North:1050-4'" St. Fourth Street Retail Corridor P/OS Commercial
South: 1 030-3" st. SecondlThird Mixed CSMU Commercial
East: 1 017-4 St. Fourth Street Retail Corridor 4SRC Commercial
West: 11 01-4'" St. Fourth Street Retail Corridor 4SRC Commercial
Site Description/Setting:
The project site is a flat developed approximately 14,810 square foot (0.33-acre) parcel containing one
four-story 33,322 square foot commercial building constructed in 1964, with seventeen commercial
spaces. The subject tenant space is approximately 1,800 square feet in size located at the northwest
corner of the building on the sub-grade level.
The project site is currently zoned a 4SRC, Fourth Street Retail Core. The majority of the properties
surrounding this site are zoned 4SRC, Fourth Street Retail Core. The site is located in the Downtown
neighborhood at the corner Fourth Street and 'A' Street.
BACKGROUND/PROJECT DESCRIPTION
The project consists of a request for a Use Permit and Determination of Public Convenience or Necessity
(PCN) associated with the issuance of a Type 42 (On-Sale Beer & Wine -Public Premises) Alcoholic
Beverage Control (ABC) license to allow a new business, Incavo, to sell beer and wine and offer wine
and beer tasting. The ABC license would also permit customers to purchase beer and wine sold on
premises for consumption off-site (i.e., off-sale). The use permit approval is required at the Planning
CommiSSion level pursuant to Table 14.05.022 and Chapter 14.22.020 (Authority) of the San Rafael
Municipal Code. A PCN determination must be made by the decision-making authority, in compliance
with the procedures established by the City Council (by adoption of Resolution 10299).
The approximately 1,800 square foot tenant space is a ground level space (partially below-grade) at the
northwest corner of the building (facing Fourth and A Streets), within a multi-tenant commercial building
in the 4SRC zoning district. The floor plan is provided with Exhibit 3. The use proposes to operate from
11 :00 A.M. to 8:00 P.M. The use, and Type 42 license, would permit a "BarlTavern" use, allowing sale of
beer and wine for consumption on or off the premises where sold. No distilled spirits may be on the
premises. Minors are not allowed to enter and remain (except for musicians). Food service is not
required by the ABC for this license type, which requires a use permit for the primary use as alcoholic
beverage sales.
ANALYSIS
San Rafael General Plan 2020 Consistency :
Staff has evaluated the project and found it to be consistent with the following applicable General Plan
2020 Policies and Programs:
• Policy LU-23 (Land Use Map): The project site has a Land Use Designation of Mixed Use in the
Fourth Street Retail Core. This designation encourages a mixture of retail, service , entertainment,
cultural, office, residential and love/work uses. On Fourth Street, first floor street frontage uses
which encourage an active and healthy retail center are characterized by all of the following:
high customer turnover,
large volume of pedestrian traffic,
windows, storefront displays and signs, and
REPORT TO PLANNING COMMISSION -Case No's: UP15-032, PCN15-004 Page 3
merchandise or service likely to be obtained in a multiple stop trip, or similar activity which
draws large number of people Downtown.
• Policy NH -34c. (Fourth Street Retail Core -"Alive-atter-five"): Maintain a mix of businesses
active at different times of the day and the week, especially to keep Fourth Street active and busy
later 5PM; by encouraging existing businesses to remain open in the evenings; and by attracting
new businesses, that are open later in the day.
Zoning Ordinance Consistency:
Applicable chapters of the Zoning Ordinance are discussed below:
The proposed project is in conformance with the Zoning Ordinance provisions of Chapter 14.06
consisting of the following:
• The subject property is located within the Fourth Street Retail Core (4SRC) Zoning District.
• Section 14.05.022 permits cocktail lounges (without food service) with a Conditional Use Permit.
• Chapter 14.05.032 stipulates property development standards for the Fourth Street Retail Core
(4SRC) designation. As there are no physical changes proposed to the subject site, only interior
remodeling to serve the new tenant, no development standards are proposed to be changed.
The subject wine bar and tasting use would add an activity that is not currently found in the area. While
visibility to the subject location is limited, the space has been vacant for a long period of time, and has
direct access via stairways directly from the Fourth Street and A Street frontages.
Typically, restaurants and bars with an ABC license can serve alcoholic beverages until 2AM. The Use
Permit application currently does not propose hours of operation past 8PM. However, given policies in
the General Plan 2020 that encourage opportunities for nightlife and activities in the downtown, staff is
not recommending limiting business hours beyond those established by ABC that prohibits alcohol
service past 2PM. No unique issues or concerns have been identified by other departments with the
subject use and location. Based on review of Chapter 14.24 (Use Permits), staff has concluded that the
findings required for approval may be satisfied. Detailed Use Permit findings and conditions of approval
are contained in the draft Use Permit Resolution of Approval (Exhibit 2).
Public Convenience or Necessity:
City Council Resolution 10299 was adopted on August 17, 1998, implementing State regulations
allowing the City to provide its determination whether a Public Convenience or Necessity (PCN) would be
served by issuance of a license where the ABC has determined there is undue concentration of such
licenses. Resolution 10299 establishes the procedure and seven (7) specific criteria to be used for
considering a PCN determination. All of the criteria are not required to be met, but shall be considered in
determining whether to grant the PCN.
The project was referred to Police, Fire, building and Economic Development for review and comment as
well as the Downtown Business Improvement District. The subject space has remained vacant and
tenancy with a new commercial use such as this is supported. The draft PCN Resolution includes
findings for each of the seven criteria considered for review of the subject Type 42 license at this
location.
ENVIRONMENTAL DETERMINATION
The project is categorically exempt from the provIsions of the California Environmental Quality Act
(CEQA) under Section 15301(a), Existing Facilities (interior alterations).
R EPORT TO PLANNING COMMISSION -Case No's: UP1S-032, PCN1S-004 Page 4
NOTICING I CORRESPONDENCE
Notice of hearing for the project was conducted in accordance with noticing requirements contained in
Chapter 29 of the Zoning Ordinance. A Notice of Public Hearing was mailed to all property owners and
residents within a 300-foot radius of the subject site and all interested parties, including the Downtown
Business Improvement District, 15 calendar days prior to this hearing. To date, staff has received no
comments.
OPTIONS
The Planning Commission has the following options:
1. Approval of the applications as presented (staff recommendation)
2. Approval of the applications with certain modifications, changes or additional conditions of
approval.
3. Continue the applications to allow the applicant to address any of the Commission's comments or
concerns
4. Deny the applications and direct staff to return with appropriate Resolutions.
EXHIBITS
1. Vicinity/Location Map
2. Draft Resolutions (Use Permit and PCN)
3. Applicant's Statement/Information & Project Floor Plan
Exhibit 1 -Vicinity Map (1099 Fourth Street / Incavo Use)
Exhibit 2.1 (Use Permit)
RESOLUTION NO. 15-
RESOLUTION OF THE SAN RAFAEL PLANNlNG COMMISSION APPROVlNG A USE
PERMIT (UPI5-032) FOR A BEER AND WlNE BAR AND TASTlNG LOUNGE (lNCA VO),
LOCATED AT 1099 FOURTH STREET, SUITE F, SAN RAFAEL, CA
APN: 011-263-20
WHEREAS, on August 17, 2015, Vicki and Ben Barrios, applicant, submitted a Use
Permit application and Determination of Public Conveneience or Necessity for the issuance of a
Type 42 (On-Sale Beer and Wine -Public Premises, and Off-Sale) State Department of
Alcoholic Beverage Control (ABC) license to allow a new business, Incavo, to sell beer and
wine and offer wine tasting at 1099 Fourth Street, Suite F in the Fourth Street Retail Core
(4SRC) Zoning District; and
WHEREAS, on October 27, 2015, the Planning Commission held a properly noticed
public hearing to review the Use Permit and Determination of Public Convenience or Necessity
applications associated with the issuance of a Type 42 (On and Off-Sale) Alcoholic Beverage
Control (ABC) license to allow the subject new business, Incavo, to sell beer and wine and offer
wine tasting at ; and
WHEREAS, the Planning Commission has considered issuance of a Public Convenience
or Necessity (PCN) determination, as required by the ABC and City Council Resolution 10299,
by adoption of a separate resolution; and
WHEREAS, upon review of the application, the project has been determined to be
exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to
Section l530l(a) of the CEQA Guidelines which exempts interior alterations for existing
facilities; and
WHEREAS, on October 27, 2015, the San Rafael Planning Commission held a duly
noticed public hearing on the proposed Use Permit (UP15-032) accepting all oral and written
public testimony and the written report ofthe Community Development Department staff.
NOW THEREFORE BE IT RESOLVED, the Planning Commission makes the following
findings relating to the Use Permit:
Findings (UP15-032)
A. The wine and beer tasting and sales (wine and beer lounge) use is in accord with the General
Plan 2020, the Zoning Code and the 4SRC Zoning District in which the site is located given
that the use is designated as a conditionally permitted land use in the district and as proposed
and conditioned, the use would not create unanticipated nuisance or land use compatibility
impacts.
B. The proposed use together with the conditions will not be detrimental to the public health,
safety or welfare, or materially injurious to property or improvements in the vicinity, or the
general welfare of the City given that the commercial use is proposed within an existing
commercial building and the Police Department has reviewed the proposed use.
C. The use complies with each applicable provision of the zoning code in that, i) the use is
compatible with the mix of existing retail and commercial tenants in the subject building and
surrounding sites; ii) the wine and beer sales tasting (wine and beer lounge) use has been
subject to review by the San Rafael Police Department to assure the activity would not result
in negative impacts on the existing business or surrounding area.
BE IT FURTHER RESOLVED, that the Planning Commission of the City of San Rafael
approves the Use Permit subject to the following conditions:
Conditions of Approval (UP15-032)
Community Development Department, Planning Division
I. This use permit approval is granted for wine and beer sales and tasting (cocktail lounge) use
located in an approximately 1,800 square foot tenant space at 1099 Fourth Street, Suite F.
2. The business hours for the permitted beer and wine lounge, sales and tasting use are proposed
between IIAM and 8PM. However, the owner may operate the use until 2AM, if desired and
the extended hours do not result in nuisance issues or public disturbance. The following
requirements shall apply to the business hours of operations:
a. The business shall remain closed after 2AM and until 8AM, unless a modification of
hours is requested and authorized by the Planning Division.
b. If the business is operated between 8PM and 2AM, and an increase in calls for Police
service to the location is experienced, due to public disturbance or other nuisance issues,
the Community Development Director may require business closure to return to 8PM (or
an alternate closure time between 8PM and 2AM hours, as determined by the City). The
owner of the business shall adhere to any such further restricted operating hours
immediately upon issuance of written notification of this change by the Planning
Division.
3. A Building Permit is required for all exterior and interior tenant improvements, or change in
occupancy, as determined by the Building Department.
4. Storefront glazing shall not be eliminated or obscured in order to retain existing visibility into
the establishment. Final tenant improvement and any exterior changes shall be subject to
prior review and approval by the Planning Division to ensure compliance with the project
approvals and 4SRC zoning standards.
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5. If live entertainment is proposed, a Use Permit amendment would be required consistent with
the provisions of the 4SRC zoning district.
6. Any change to the proposed wine and beer sales and tasting (wine and beer lounge) use
would be subject to an amendment to the Use Permit, as determined by the Community
Development Director.
7. Signage is subject to a separate Sign Permit review and approval.
Fire Department
8. Based on Uniform Building Code or Fire Code requirements, an automatic fire sprinkler
system shall be installed throughout conforming to NFPA Std.13D.
9. A permit application shall be submitted to the Fire Prevention Bureau with two sets of plans
for review prior to the installation of all automatic and fixed fire extinguishing and detection
systems. Specification sheets for each type of device shall also be submitted for review.
The foregoing Resolution was adopted at the regular City of San Rafael Planning Commission
meeting held on the 27th day of October, 2015.
Moved by Commissioner ______ and seconded by Commissioner ______ _
AYES: COMMISSIONERS
NOES: COMMISSIONERS
ABSENT: COMMISSIONERS
SAN RAFAEL PLANNING COMMISSION
ATTEST: __________________ _ BY: __________ __
Paul A Jensen, Secretary Barrett Schaefer, Chair
- 3 -
Exhibit 2.2 (PCN)
RESOLUTION NO. 15-
RESOLUTION OF THE SAN RAFAEL PLANNING COMMISSION APPROVING A
DETERMINATION OF PUBLIC CONVENIENCE OR NECESSITY (PCNI5-004), FOR
ISSUANCE OF A TYPE 42 LICENSE FOR INCA VO (BEER AND WINE BAR, AND
TASTING USE), LOCATED AT 1099 FOURTH STREET, SUITE F
APN: 011-263-20
WHEREAS, on August 17, 2015, Vicki and Ben Barrios, applicant, submitted a Use
Permit application and Determination of Public Conveneience or Necessity for the issuance of a
Type 42 (On and Off-Sale) Alcoholic Beverage Control (ABC) license to allow a new business,
Incavo, to sell beer and wine and offer wine tasting at 1099 Fourth Street, Suite F in the Fourth
Street Retail Core (4SRC) Zoning District; and
WHEREAS, on October 27, 2015, the Planning Commission held a properly notice
public hearing to review the Use Permit and the related Determination of Public Convenience or
Necessity applications associated with the issuance of a Type 42 (On and Off-Sale) Alcoholic
Beverage Control (ABC) license to allow a new business, Incavo, to sell beer and wine and offer
wine tasting; and
WHEREAS, the Planning Commission has granted approval of Use Permit UPI5-032, as
required for the subject use, by adoption of a separate resolution; and
WHEREAS, City Council Resolution 10299 establishes the procedure and prescribes
seven criteria for review and consideration of a PCN determination, and the Planning
Commission has reviewed and considered these criteria for the subject use; and
WHEREAS, upon review of the application, the project has been determined to be
exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to
Section 15301(a) of the CEQA Guidelines which exempts interior alterations; and
WHEREAS, on October 27, 2015, the San Rafael Planning Commission held a duly
noticed public hearing on the proposed Public Convenience or Necessity (PCNI5-004) accepting
all oral and written public testimony and the written report of the Community Development
Department staff.
NOW THEREFORE BE IT RESOLVED, the Planning Commission makes the following
findings relating to the PCN determination:
Findings (PCN15-004)
The following findings have been made with respect to the PCN criteria listed in City Council
Resolution 10299. The intent of the following review criteria is to consider the specific request
for a PCN, determine whether would be a public convenience or necessity served by the issuance
of that specific liquor license for the census tract where the site located, and consider the request
in light ofthe review criteria. All seven criteria are not mandatory.
A. Criteria 1:
Whether the issuance involves an existing business with a license which is being
transferred to a new location, and which will not result in an increase in the total
number of off-sale retail liquor licenses or on-sale retail licenses in the City or in the
census tract in which the business would be located.
Finding: Incavo is a new business which is requesting a Type 42 (On and Off-Sale)
Alcoholic Beverage Control (ABC) license to allow beer and wine sales and wine and beer
tasting on the premises at 1099 Fourth Street, Suite F.
B. Criteria 2:
Whether the business, by reason of its location, character, manner or method of
operation, merchandise, or potential clientele, will serve a segment of the City's
business or residents not presently being served.
Finding: The applicant, Incavo, will sell beer and wine on-site for off-site consumption and
offer wine and beer tasting on site. By providing wine and beer at this location, the
consumer will not have to drive to other locations to purchase this type of liquor. No other
establishment in the Fourth Street Retail Corridor offers a wine and beer tasting at the same
location in which the same products are sold.
C. Criteria 3:
Whether the business will be located within 1,000 feet of incompatible facilities such as
public and private schools, day care centers, churches, parks, homeless shelters, and
alcoholic rehabilitation centers, and facilities designed and operated to serve minors.
Finding: Incavo would not be located within 1,000 square feet of 'incompatible facilities',
as defined above. Staff did not receive any letters of opposition to granting the Public
Convenience or Necessity permit. The Public Convenience or Necessity application
(PCNI5-004) was noticed to all property owners and occupants within a 300-foot radius of
Incavo to which staff has received no comments opposition to granting the PCN from the
public.
Given the effort by Incavo, including preparation of detailed floor plans to create a
responsible, safe environment for the sale and tasting of wine and beer, the Planning
Commission has determined that the location of the business will not have a negative impact
on the uses within 1,000 feet ofthe site. Based on project review, site visits by City officials,
and public input, the Planning Commission has determined that any issues that could arise as
a result of any property management concerns related to the use, could adequately be
resolved with more coordination between tenants, landlords and the San Rafael Police
Department. Furthermore, the use is subject to a Use Permit which would apply a greater
level of control over business operations.
-2 -
D. Criteria 4:
Whether the location of the license will be in a crime date area covered by Police
Department statistics, which has a twenty percent (20%) greater number of reported
crimes than the average number of "reported crimes" for all crime data areas in the
City, over previous year. For this purpose, "reported crimes" means reported offenses
of criminal homicide, forcible rape, robbery, aggravated assault, burglary, larceny
theft, and motor vehicle theft, combined with all arrests for other misdemeanor or
felony crimes, except for traffic citations.
Finding: Lt. Dan Fink of the San Rafael Police Department (SRPD) has reviewed the PCN
application (PCNlS-004) and, after reviewing crime trends in the immediate proximity of
Incavo, has indicated that the SRPD has no issue with the proposed Type 42 liquor license.
E. Criteria 5:
Whether the issuance of the license involves an existing business, which has been
located at a site which has had three or more reported crimes, defined in (4) above
within the previous one-year period.
Finding: Incavo is a new business in the City of San Rafael and a new tenant at the subject
location. No significant crimes have been reported at this location within the past one-year
period.
F. Criteria 6:
Whether the issuance of the license will promote the goals and policies of the City's
adopted General Plan, any applicable specific plan, or any similar policies that have
been formally adopted by the City Council.
Finding: The proposed Incavo business is in accordance with Policy LU-23 (Land Use
Map) in that the project site has a Land Use Designation of Mixed Use in the Fourth Street
Retail Core. This designation encourages a mixture of retail, service, entertainment, cultural,
office, residential and love/work uses. On Fourth Street, first floor street frontage uses which
encourage an active and healthy retail center are characterized by all of the following: 1)
high customer turnover, 2) large volume of pedestrian traffic, 3) windows, storefront
displays and signs, and 4) merchandise or service likely to be obtained in a multiple stop
trip, or similar activity which draws large number of people Downtown. In addition, the
business would be consistent with Policy NH-34c. (Fourth Street Retail Core -"Alive-after-
five"): To maintain a mix of businesses active at different times of the day and the week,
especially to keep Fourth Street active and busy later SPM; by encouraging existing
businesses to remain open in the evenings; and by attracting new businesses, that are open
later in the day.
G. Criteria 7:
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Whether any other information supplied by the applicant, or other competent evidence
shows that public or necessity will be served by issuance of the license.
Finding: The applicant has demonstrated that a public convenience would be served since
wine and beer customers would be able to come to Incavo and experience "one-stop"
shopping as they can taste these first and purchase the same wine and beer at the same
location.
BE IT FURTHER RESOLVED, that the Planning Commission of the City of San Rafael
approves the Public Convenience or Necessity Permit for a Type 42 ABC license at this location.
The foregoing Resolution was adopted at the regular City of San Rafael Planning Commission
meeting held on the 27th day of October, 2015.
Moved by Commissioner ______ and seconded by Commissioner ______ _
AYES: COMMISSIONERS
NOES: COMMISSIONERS
ABSENT: COMMISSIONERS
SAN RAFAEL PLANNING COMMISSION
ATTEST: _________ _
Paul A Jensen, Secretary
BY: ___ ~~~~~ __
Barrett Schaefer, Chair
-4-
Exhibit 3
"Incavo" Use Permit and peN
Project Description, Information & Floor Plan
INCAVO
PROPOSED LOCATION
1099 4TH STREET SUITE F
SAN RAFAEL CA 94901
(06/30/15)
1
1.0 Executive Summary
·1 CA 0 ( tin or ve wi! e un ue th in la in 0 to S R ae By ro' in
em lar fri" dl se 'ce a iq a d p pr" tar sel cti n of Boutique Award Winning
. Wines in a relaxed "Sub-Terrain" comfortable setting. INCAVO will be the premier Wine Tasting
Room that 'the 'Iocals ' go to In Downtown of San Rafae 1 an WI be nown "T S rt t t
ne au ry.
The success of the Tasting Room is in its owners -with collectively 70+ years experience In the
Retail I Consumer Industry. They are committed to ma mg t is opera ion a 5 cce fu n.
p ye ha b n n el te n ha t sa e w as e n,t t i ke pin
e c to er p as re ep at sin 55.
CA 0 ilea ng ,8 sq ar ee 1, 0 ea e) ta sp ~ i th S ry et / fic
ild g.
The following business plan summanzes 1 NCAVO, and Its future plans for grow h .
. 1 B in O· ec 've
mCA VO will be a new Wine Tasting Room located m San Rafael, Cahfom1a. The Wine
Ta tig 00 w c. er 0 ce or rs d uri s d in the ay an at gh Th
Wi sti R am will cat r t 10 al trons comin home from work for some
relaxation and purchaslllg of\\!llle for eIlJoyment III their homes or fine mingo
The Wine Tastin Room will hold itself apart from competition as a true neighborhood
Wine Tasting Room a.lld lounge, 0 ering a unique a.u.d p op tary se ti 0 a qu
Aw d "in ng -vin a . b pr id' gael 'ng nv' on ent es'-ue to co ag
local patrons to return .
. 2 M! sio St em nt
INCA VO w1ll provide a comfortable place for locals to come an gat er or relaxa io ,
Jri .~np" .0 __ L_ \\ ___ e ast g a of ho e' th D fit wn ei bo 00 an
suburban l\A:arin: County INCAVO will be known as the "Shortcut to Wine Country" - .
where everybody wows your name a.ad e busine s 11 th by. pr idi a ela d
a a he en ur in pa ns a u wi --ec' ca y t get" g ofe io Is b ru' n
the ages of 30 and 65 making $50,000+ annually. INCAVO IS based on the guidmg
prmc pes at fe to e oy an thi s fie d its ele io f1 ne
1,3 Guiding Principles
The INCAVO philosophy -is simple: enjoy life and treat others as you'd want to be treated.
These sound principles apply to all life's situations; both personal and professional. At
INCA VO, these principles are applied to management, employees, customers and
suppliers alike.
Life is to be enjoyed! INCA va employees love their jobs and their customers! This is not
only reflected in the outstanding service -it is because management personally trains and
mentors each employee putting them in the position that is ideally suited for them.
Integrity -In the spirit of all great Wine Educators, treat each customer with utmost
respect and professionalism. INCAVO Wine. Educators and·wait staff are trained to act
professionally in all situations. If a regwar patron happens to become disorderly say after
a particnlarly stressful day, the INCAVO's staff is trained to ProlIl;ptly and discreetly order
a cab for these individuals. No one wants to work with drunken and disorderly itldividuals
and the patrons do not want to be known as such either. .
1.4 Keys to Success
The INCA VO key to success will be based on:
• Outstanding customer services -the INCA VO goal is be the place "where
everyone knows your name". All team members are hand selected and love what
they what do. .
• Customer Satisfaction -By providing a quiet and relaxed environment, where
friends can meet and unwind and relax.
• Varietx -Provide a vast offering of unique and proprietary Boutique Wines.
Catering to the public's increased curiosity requirement for sophistication ill
alcoholic beverages.
2.0 Company Description
INCAVO will occupy a 1,800 square foot facility located in a Downtown Retail / Office center
known as 1099 4th ~treet, San Rafael. .'
INCAVO will provide a quiet sub-terrain environment for its patrons. The furnishings are
comprised of leather appoint!;!d chairs, small booths and lounge sofa's throughout Wine Tasting
Room. ·These items will be obtained at various local Furniture, Restaurant and Office supply
storesr and will lend an eclectic look to the lounge area. The walls will be adorned with large
. wine related photography, natural rock and wine barrel/stave acc:ents.
. 2.1 Ownership
INCA va is Sole-Propri~torship, owned by Vicki Barrios .
. 3
2.2 ,Location and Facilities
The location was a',key component for INCAVO. The,owners specifically sought this
location because'the demographics aligned with their target customer. ' ,
The' 1,800 square foot tasting room will be located at 1099 4th Street Suite F in San Rafael,
California. Located on the southeast comer of 4th Street and A Street, the 4 story plaza is
,anchored by Retail, a Bank and Offi.c;es. The area surrounding INCAVO'is'considered the
San Rafael Downtown. Residents live in this neighborhood and surrounding " area
The Wine Tasting Room location spycifically meets the needs of the owner's patron profile
-that is, professionals between the ages of 30-65 with incomes greater than $50,000. The
following table briefly summarizes the Population, Median In~ome and Consumption 9f
wine in the.1, 3 and 5 mile radius:
,; DemogratJics I Stat,istlcs, lo.~~' f, 4th Street SanRafael.~~~901
. .....
i7013Totai Population: Adult
:~i"if~rri'i~, c;;~;~'~pii~~ (liter~)
; (,Business: Insider) ,
,Population Consumption (liters)
:Avg co"st'p~r Iit~i(uS;B~reau ~f
:l-Mile
193,32.8
; ~abor ~tatistlcs} : :$, , 11.41
Total COmmerce' $ 212.2816g.2.~
......... ',. . .... , .~, ..... .
:~O,~;T:~~a.t ~~~~~~~~', ," , ,
'~alifomla Consumption {liters}
~,B.~~j,!]~~,~, ~~:~~~e~l"
;~,<?P~~~,~~~~,~O~,~~c.!\p.tiO!! (~~~e!.~)
),vg Cost per Itter {US Bureau of
is-Mile
69.462
14:
972.,468"
........ ~ ,'_ .
14.
1~5?5,406
$ , '11.41 ~ $ 11.41 .
$11,095,859.88 ; $ ~1.91~~~.~
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:l,a~,~~~~,~~} , $ 11.41, ~".. 11.41., $ ,.. ~:I.41
Tata1 Commerce $ 2,,'56 .. 249.10 ~ 10!S~,II0:t:9~ $12,99f,091.M
;~~ !~a.~.~~~f!-l,~~f)l~,l~~on
Califor~ia Consumption {liters}
,(BusineSSlnsid~~) , '"
.Pop~!~ti~n .to~s~m~ti~n (Ii~e~s)
. : Avg Cost per lit~ (US Bureau of
28,943'
14'
33~!202,
113,632: 16i1671
14 14
1,~!1't~~~, 2,:2;53139.4
"labor Stati~lcs} $. ' '11.41 ~ '11.41,' $ ~1:41
Total Commerce $ 3,824s 654.82 $18 .. iSl.S75.68, $ is,S2S.U5.S4
4
3.0 Products
3.1 Products/Services Descriptions
Art:
INCA VO will have wine related fine art including paintings by Blake Jordan ..
Limousine:
INCA VO owns a 10 passenger Limousine that will be used for local courtesy shuttle and
member excursions to the estates of INC AVO's boutique wineries.
Wine Club:
Special selections, monthly shipments and wine discounts will aggressively marketed.
Members Lounge:
A Members lounge will be available for Tastings, Meetings and Private parties.
Online Orders:
Convenient online ordering will be available.
Delivery:
Local immediate delivery and shipping will be available.
Happy Hom:
From 3:00 PM till 6:00 PM Happy hour will be available to Club Members.
3.2 Competitive Comparison
Within a five mile radius ofthe subject is only one comparable:
Mountain View Wines
1040 Court St, San Rafael, CA 94901
3.3 Product/Service Sourcing
The key Wine suppliers for the business will be:
Renteria Wines httD://www.renteriawjnes.com!.
Mark Harold Wines http://www.markheroldwines.com!
Uvaggio Wines http://www.wagglo.com!
BelloWines http://www.bellofamilyvjneyards.com!
Twenty Ro ws Wine · https://www.twentyrows.com/
5
3.4 Future Products/Services
The owners of INCA VO realize the customer is the key to the success of the business and
will work continually to improve/enhance .the patron experience. Comment cards will be
available throughout Wine Tasting Room and management will keenly review these
comments, making adjustmenfs as needed.
4.0 Market Analysis
4.1 Industry Analysis
The Wine industry generates around $38 billion in U.S. economic activity annually.
Total retail value 'ofw;ne sales In the ·Unfte.d States from 2060 to ·20~4 (in billion ~.s.
doll~rs)*
Th is stattstlcdeplcts the tot,,1 retail valu e o1wln ~ sales in the United states' from 2.000 to 2014. In 2004. tile total retail
vafue of wine Si~!les in the United States amounted to al:iout,24 billion U,S. dollars.
so _._._ ... _ ._ .. ~.~_ .• ",N' __ •.•••• --_ ••• "--•..••.•• _ •• -._, .• -"'.' •.• '--•. --.'
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• 2000 2COT i002 2003 2064 2'000; :2:0015 2007 2008 2009 20io 2611 20\2 201S: 201':
Personal income and entertainment needs drive demand. The profitability of individual
companies depends on the ability to drive traffic and develop aIoyat clientele. Large
companies can offer a wide variety of food, drinks, and entertainment, and have scale
advantages in purchasing, financing, and marketing. Small companies can compete
effectively by serving a local market, offering unique products or entertainment, or
providing superior customer service. The i~dustry is labor~intensive: average annual
revenue per worker is about $60,000. (First Research)
4.1.1 Market Segments
• Middle class, 'white collar' office workers on their way home from work.
These are the patrons that wilI'become INCAVO's 'regulars', patronizing
6
Wine Tasting Room on their way home from. work and stopping for a glass
of wine and unwinding prior to heading home.
e Tourists and workers on their lunch hour -Wine Tasting Room is centrally
located in the Sail Rafael Downtown area making it an ideal location for
both tourists and workers alike.
The ·owners of INCAVO are targeting the following individuals for their target
. market:
e Household income of$50,OOO+
e Between the ages of 30 and 65 .
• Gender Demographic (75% Male, 25% Female)
• Lives within a 5 miles radius of the subject loc~tion.
4.2 Market Tests
The oWners specifically targeted this location because of the lack of similar business in the
area. The selected wiil.eries that INCA VO will buy from support this business venture as
well and based on the area demographics and are anxious tap into this lucrative area.
4.3 Target Market Segment Strategy
INCAVO ~pecifically targets. individuals in. the IQcal market with incomes greater than
$50,000 desiring a quiet ~ine Tasting lounge to relax and unwind.
Our wines are not available in other retail locations.
This target group was selected primarily because of
• the location of Wine Tasting ROQm
• the setting is designed to appeal to this target market
• the 'current target market does not have any venues comparable '
4.3.1 Market Trends
•. A greater emphasis on technology (paS) ;;tnd training '("Wine Educators")
resulting in increased productivity and earnings.
• Upgrades in improvements and interior decor -the days of the dimly lit and
dark smoky bar rooms are a thing of the past.
INCAva is designed to embrace these trends. The owners will rely on pas system
for orders, inventory control, accounting functions, time management and other
. functions. All Wine Educators will be hand selected and trained to cross sell on
higher mar-gin items. INCAVO'.s 'eclectic' interior is designed be a comfortable,
sociable and enjoyable.
4.3.2 Market Growth
Wine Tasting, Room industry overall is de'monstrating improving trends. Refer to
section 4.1.
7
· '
5 .. 0 Marketing Strategy and Implementation
INCAVO will position itself as Wine Tasting Room of choice by providing. top notch service and
offering complementary products and services, providing both traditional bar fare as well as
daily specials
5.1.1 Opportunities
II . Opportunity ~o obtain a share of a $25 million market
5.1.2 Threats
.. Another new entrant would be considered healthy competition and not as a
threat.'
5.2 Strategy Pyramid
Strategy: Be the neighborhood wine tasting room of choice .
Tactics: Provide exceptional customer service in a relaxed and inviting
environment encouraging patrons to return again
Programs: Extensive and ongoing employee training. Employees will be rewarded
financially for providing impeccable service with ,opportunities to benefit
in profit sharing.
All staff are hand selected and share the same core beliefs of the owners;
everyene will be trained to be keenly aware of patrons and anticipate their
needs before the customer does, for example always offering to promptly
show th~m to theIr table, graciously asking to hang their coats, and bring
them their drinks expediently.
5.3 Uniqne Selling Proposition (USP)
INCA VO will be the alternative to its louder more raucous competitors. Although bars' are
located in downtown San Rafael, INCA VO is specifically designed to fill the void in the
area.
5.4 Competitive Edge
INCA VO specifically caters to its target market and is truly a unique local experience.
The Wine Tasting Room differs in its decor. and wine offerings, INCA VO patrons cannot
get this experience in any other bar within a 5 mile radius.
According to the Bob Johnson with Beverage Management Institute in Clearwater, South
Carolina, the only cost-effective way to advertise a wine tasting room is word-af-mouth.
"When you don't have word-of-mouth working for you, you are in serious trouble. It's not
necessarily terminal. There are still ways to get some advertising and marketing out there
without spending a ton of money. But anytime you reach into your own pocket ta buy
advertising for a wine tasting room, it's not good.
8,
, .
"Word-of-mouth advertising is priceless," he continues. "It means everything is right.
Everything is happening. The Wine Tasting Room is alive. Your employees love working
there. They are talking and saying great things about the place, and that is passed on to
your customers. The customers love being there, and they tell other' customers. If you can
get to that point, it's just priteless."
5.4.1 Pricing Strategy
The INCAVO'sprice points per 750ml bottle will range from a '''Value Priced" $10-
$15 to special occasion wines that will demand $100+ per bottle.
5.5 Legal
The Wine Tasting Room is cUrrently in the process of obtaining the following licenses:
ABC Type 421icense.
5.6 Milestones
The following milestones will g!lide INCAVO to meet its goals:
Table 5.8 Milestones '
I MilestoDe
Secure fipace and negotiate lease terms
Complete Retrofit and Build-Out
Obtain and meet necessary licensing requirements
Purchase inventory, kltchen equipment and POS system
Interview and hire employees
Grand Opening
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Date
Aug 2015
Oct2015
Sept2015
OCt2015
Oct 2015
Nov 2015
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