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Hollister approves Grocery Outlet’s request to sell distilled spirits with conditions and planned review

Hollister Planning Commission · April 24, 2026

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Summary

The Planning Commission approved a conditional‑use permit allowing Grocery Outlet to expand from beer and wine to distilled spirits under a Type 21 license, while commissioners requested a one‑year review and emphasized police/security conditions because the tract is considered overconcentrated by ABC.

The Hollister Planning Commission voted to approve a conditional‑use permit finding of public convenience and necessity that will allow Grocery Outlet at 550 Tres Pinos Road to replace a Type 20 license with a Type 21 off‑sale general alcohol license and begin selling distilled spirits in addition to beer and wine.

Staff told the commission the census tract was designated by the Alcoholic Beverage Control (ABC) as overconcentrated for alcohol outlets and that the CUP review focused on safety and nuisance mitigations; staff said the police department had recommended additional security cameras and limits on alcohol display. “For ABC to issue this type of license… the jurisdiction, which is us, must issue a determination of public convenience and necessity,” staff said.

Steve Rawlings, a consultant for Grocery Outlet, said the store would not expand its alcohol display area and intends to move an existing Type 20 license out of the census tract to replace it with the Type 21, so there would be no net increase in licenses in the tract. “We will simply be taking shelves… and replace that with distilled spirits,” Rawlings said, adding that independent store operators closely monitor loss prevention and that the store has employee presence near the alcohol displays.

Several commissioners expressed concern about overconcentration, the potential policing burden and the effects on smaller retailers. One commissioner asked whether the commission could deny an otherwise‑qualified application to reduce concentration; staff replied that CUP conditions and police review are the primary tools to address impacts and that CUPs can be revoked for noncompliance with conditions.

Given the policing concerns, commissioners discussed and directed staff to include a condition for a one‑year review of the store’s record, including police responses and loss‑prevention information, and to return the CUP if the store fails to meet conditions. A motion to approve the CUP carried with one commissioner recorded as opposing and at least one abstention noted in the record.

The commission approved the permit with the staff‑recommended conditions and the option to review compliance after one year; staff said revocation is available if conditions are not met.