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Home My WebLink About7.4 SB343 Tobacco Retailers Ord (2) 4-17 -12 58 343 Senate Bill 343 mandates supplemental materials that have been received by the City Clerk's office that relate to an agenda item after the agenda packets have been distributed to the City Council be available to the public. The attached document was received in the City Clerk's office after distribution of the April 17, 2012 City Council meeting agenda packet. Item 7.4 Discount Cigarettes 7986 Amador Valley Blvd Dublin, CA 94568 (925) 560-0671 RECEJVEl) APR 1 6 ZO\Z ern '~Jt= OUBUN City MANAGER'S OFFICE April 16, 2012 Mayor and Council Members City of Dublin 100 Civil Plaza Dublin, CA 94568 Dear Mayor Sbranti and Council Members Hart, Biddle, Swalwell and Hildenbrand: I Edress Muhtezebsade am a resident and tobacco business owner in the City of Dublin located in the address listed above. I received a notice indicating that the City council is looking to pass a law that will limit tobacco retailers in Dublin. I would like to address my concerns, my wife and I recently opened one of the few tobacco shops in the city. It has taken a significant investment on our part to own and operate this business. This store has taken all of our savings and it is how we plan to put our children through school and hopefully be worth enough to retire on too. I am a responsible tobacco retailer who offers tobacco products to adults for a discounted price with age verification as it can be verified with the Dublin police department with its under age tobacco sale prevention program. We went through the city's process and was approved to pursue my entrepreneur dream not that many months ago and now you want to put me out of business? Why did you approve my store in the first place? Even if you tell me my store is exempt today, who is going to buy my store later? Our store will be worthless today or in 20 years if you pass this law. Any amendment that would result in closure of my business would have devastating financial consequences for me and my family. If you should have any questions or concerns, please do not hesitate to contact me at your earliest convenience. fl" Edress Muhtezebsade April 16, 2012 Mayor Tim Sbranti City of Dublin 100 Civic Plaza Dublin CA 94568 Re: Tobacco Retailers Ordinance - OPPOSE Mayor Sbranti: I have managed or owned/operated Dublin Chevron at the corner of San Ramon Road and Dublin Blvd. since December 1981. Before my time, this business sold tobacco products at this location which was here many years prior to the residential area across the street. In 2003 I was able to negoate the purchase of the land and improvements from Chevron USA for approximately 1.6M and part of that purchase price of which I still owe a large amount of money on, was store sales. I have already had a huge set back when Safeway granted approval to sell fuel at its downtown location which decreased approximately 30% of my gas sales. There is a Shell Gas Station located across the street from me and I am surrounded on both sides by vacant lots. If the Council adopts an ordinance to regulate tobacco retailers, my business will be severely impacted. As I understand it, the ordinance the Council is considering would prohibit the sale of tobacco within 1,000 feet of sensitive uses (schools, playgrounds, libraries, etc), prohibit the sale of tobacco within 1,000 feet of residential, limit the density of tobacco retailers and prohibit the grandfathering of existing tobacco retailers. The residential that is My business is likely within 1,000 feet of a residential area, it is definitely 1,000 from another tobacco retailer which is the Shell gas station across the street. In the future, it could likely be located within 1,000 feet of a so-called sensitive use due to the 2 empty lots that surround my station. At my site in 2011 Tobacco sales comprise of 42 percent of my inside revenue. Customers that come into my store to buy tobacco often purchase additional items. . If I lose the ability to sell tobacco, I estimate my total inside sales (excluding gas) will drop between 25-30% and gasoline 10-15%. Even if the City decides to grandfather existing tobacco retailers allowing us to continue to sell tobacco, this will not protect my business investment when I eventually sell my business or transfer to my son or daughter, who may have a different last name. Unless you grandfather all existing tobacco retailers in perpetuity, our businesses will be less valuable due to the inability of the new owner to sell tobacco. Is the city prepared to compensate me for this loss when I sell my business? Also is the city willing to go to the bank that holds my note and negotiate a 25 to 30 % reduction? A couple of years ago I received an award for 20 years one ofthe top 10 sales tax earners for the city of Dublin. I would never have received that award without Tobacco and Gas. I do not think the city has done its homework on the impact of dollars it receives from sales tax dollars. Not only will you lose dollars on tobacco, but also related products like coffee, doughnuts and other store products and yes even gas sales. The sales tax dollars on Tobacco and Gas are the biggest. I do not mind paying for a city tobacco license as long as the fee is not too high. The other provisions included in this proposed ordinance go too far and I urge you to reject them. The proposed ordinance will impact 25 businesses in this city. I hope that you will make the effort to reach out to these businesses before moving forward with this ordinance. Thank you for your consideration. Sincerely, Tim Johnson Owner SMOKER'S GIFT SHOP 7209 Regional Street Dublin, CA 94568 (925) 551-0767 Dublin City Council 100 Civic Plaza Dublin, CA 94568 Dear Mayor and Council: I am confused why the city allowed me to open a smoke shop less than a year ago, almost immediately after allowed another smoke shop to open up across the street from me without giving me any notice and then turn around and ban tobacco sales. I am not sure if the city council understands what it takes to start a business, adhere to all of the existing laws on tobacco, pay taxes, make payroll and compete for business. Now you tell me that you don't like tobacco sales but I follow the rules and don't sell tobacco to minors. What have I done wrong to warrant losing my business? I respectfully ask that you look for ways to enforce existing laws that protect our kids from tobacco. SM~~ Hamed Akbarzadeh Owner Smoker Friendly April 16, 2012 City Council City of Dublin 100 Civic Plaza Dublin, CA Re: Tobacco Ordinance Dear Mayor and City Council: I have many concerns about the proposed tobacco ordinance. City staff has correctly identified some of the flaws that will be costly to the city and ultimately the taxpayers of Dublin. I encourage city council to abandon an ordinance that includes any distance limits on retailers who sell tobacco. Although I am already required to have a tobacco license from the state; I don't disagree with the concept of the city having more local control over any retailers that repeatedly sell to minors. The part that concerns me is the cost of the license. I fail to see how 25 retailers could begin to cover all of the costs of a city tobacco license program. The cost of doing business is already high and another license is like another tax. You should look for other sources of revenue to cover the costs to license city retailers. Thank you for your time and I hope you consider my perspective since I am a long time local business owner. Regards, " Ghafar Quyum 7135 Amador Plaza Road, Dublin, CA 94568 925/829-9615 C Mini Mart 6000 Dougherty Road Dublin CA 94568 925.828.0696 April 16, 2012 Mayor Tim Sbranti City of Dublin 100 Civic Plaza Dublin CA 94568 Mayor Sbranti: I hope that you will oppose the tobacco retail license ordinance recently discussed by the City Council. Since 2002, I have owned the Mini Mart Subway on Dougherty Road. Our store is close to other businesses that sell cigarettes as well as apartment buildings that were built after I purchased my store. I have been told that the City wants to pass a new law that would prohibit me from selling cigarettes because of my proximity to other tobacco retailers and residential neighborhoods. This is not fair. I do not sell tobacco to minors but I am being treated as I have repeatedly broken the law. What is next, a ban on selling soda and chips to fat people? Tobacco sales are an important part of my business. If the city council intends to take away my ability to sell tobacco, I hope that are prepared to compensate me and other retailers for the loss in revenue we will experience if this ban is passed. ~est regards, ~s~ Sandeep Singh Manager