Planning commission approves alcohol sales permit for Montebello Public Market with stepped compliance reviews

The Montebello Planning Commission approved a conditional use permit allowing the Montebello Public Market at 516 West Whittier Boulevard to seek a Type 47 alcohol license for on-site consumption in conjunction with a restaurant. The approval includes quarterly compliance reviews for the first two years after an Alcoholic Beverage Control (ABC) license is issued, then annual compliance reports for the subsequent three years. The commission also found the project categorically exempt from CEQA under Class 1 (existing facilities).

Why it matters: The decision clears a local regulatory step for a multi-kitchen food hall concept seeking to add on-site alcohol sales, while the compliance schedule and enforcement language give the commission an oversight path if operational problems arise. Commissioners and members of the public debated parking availability, operator responsibility and the limits of local authority to grant an alcohol license, since the California ABC ultimately issues the permit.

Staff presentation and project details Grace Hayashi, planning staff, summarized the continued hearing and the changes requested by the commission from a March 4 meeting. The project is proposed for a standalone single-story commercial building approximately 6,450 square feet on a roughly 6,500-square-foot lot at 516 West Whittier Boulevard. The Montebello Public Market is proposed as seven kitchen units with 94 patron seats (20 patio; 74 main/bar seating), a 12-by-6-foot stage for live music and hours of operation of 11 a.m. to 9 p.m. daily. Only on-site consumption was requested in the CUP.

Staff told commissioners the project lies in Census Tract 530.01, which permits five on-sale licenses and three off-sale licenses; the tract currently shows five on-sale licenses and no off-sale licenses. Hayashi reiterated that state ABC rules limit license availability by census tract and that approval by the Planning Commission does not guarantee the applicant will receive a state license.

Parking and CEQA To address earlier commission concerns, staff conducted a five-day mini parking study at three city-owned parking lots near downtown and reported combined off-street capacity of about 256 spaces (Newmark Mall ~135, Parking District 2 ~69, a 52-space lot north of Whittier). Staff reported varying vacancy counts during peak periods and concluded there was sufficient parking between the city lots and on-street spaces; the downtown specific plan also calls for on-street short-term parking with off-street long-term parking. Staff recommended the commission adopt Resolution No. 3-25 and find the project exempt from CEQA per CEQA Guidelines section 15301 (existing facilities).

Public comment and concerns about operator history Applicant Jason (representing owner Yao Pan) said his father owns the property and that the business would proceed with or without alcohol, estimating alcohol would represent roughly 10–15% of sales and that the family intends to refurbish the building and manage the business. A public speaker, Barney Santos, urged caution and said the city records showed “a total of 218 police calls on the 2 properties that the Pan family owns,” plus recent code enforcement issues; he urged the commission to deny a full liquor license until a track record of responsible operation was shown.

Jason responded that he was not aware of the 218 calls and disputed other specific allegations, and staff told commissioners the project location had “less than 10” calls of service and violations from 2020 to 2025 that were not necessarily connected to alcohol or the on-site consumption use.

Enforcement and review mechanisms Commissioners discussed how a conditional use permit provides oversight the city can use later, including annual compliance reviews. Staff explained ABC performs its own vetting for state licensing and that local approval does not guarantee an ABC license. The commission added a condition that the applicant submit compliance reports annually for the first three years after ABC license issuance; commissioners then amended that to require quarterly compliance reviews for the first two years and annual reviews for the following three years, with the director forwarding reports to the commission for review. Staff noted the commission has previously revoked CUPs for noncompliance.

Motion and vote The motion (case PC20240015CUP) to approve the CUP with conditions, including the quarterly/annual compliance schedule and the CEQA finding, passed by roll call: Chairperson Medina — Aye; Vice Chairperson Lomeli — Abstain; Commissioner Morales — Aye; Commissioner Cuevas — Aye. The tally was 3 Aye, 0 No, 1 Abstain; the motion passed.

What the approval does not do Staff and the city attorney reiterated that the approval does not guarantee a state alcohol license. The Department of Alcoholic Beverage Control (ABC) remains the sole licensing and enforcement agency and will determine whether and under what conditions a license is issued. The commission’s compliance condition creates a local oversight mechanism that can be used to bring the CUP back for review or revocation if conditions are violated.

Next steps The applicant may pursue state ABC licensing; the city will require the compliance reports described above to begin after ABC issues a license. Any code-enforcement issues or complaints may also prompt additional local review of the CUP.

Ending note: The commission’s approval clears the local land-use hurdle for on-site alcohol sales but leaves final licensing to state ABC and establishes a multi-year local compliance schedule to monitor operations.