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RED MOUNTAIN Retail Group May 3, 2007 Ms. Marian Handa City Clerk City of San Leandro 835 E. 14th Street San Leandro, CA 94577 Re: Appeal of Zoning Enforcement Official Detennination; Proposed Grocery Outlet Neighborhood Grocery Store; 1550 E. 14th Street Dear Ms. Handa: Grocery Outlet proposes to establish its neighborhood grocery store within the Albertsons building located at 1550 E. 14th Street in the City of San Leandro (the "Property"). In doing so, Grocery Outlet proposes no exterior modifications to the 25,000 square foot building. Rather, only interior modifications will be necessary for Grocery Outlet to open its neighborhood grocery store within the existing building. We filed an appeal on April 25,2007, of Planning Manager Debbie Pollart's April 16th decision which deemed the Grocery Outlet proposal to be subject to the moratorium in effect for projects requiring discretionary approvals. She asserted that the proposed Grocery Outlet is a "Supermarket" and thus covered by the interim urgency ordinance prohibiting consideration and approval of use permits, variances, and other planning entitlements on property which includes the former grocery store at 1550 E. 14th Street (the "Moratorium"), rather than a ''Neighborhood Grocery Store" which is not so covered. (Attached) In a letter dated May 1,2007, the Zoning Enforcement Official (ZEO), William Schock supported her detennination. (Attached) We have reviewed Article 28 of the San Leandro Municipal Code Section and note that it provides for an appeal of a Zoning Enforcement Official determination to the Board of Zoning Adjustment for further review. By way of this letter and the application to which it is attached, we hereby appeal the decision of the ZEO on May 1, 2007, to the Board of Zoning Adjustments. We have enclosed recent City correspondence for your consideration in addition to the required Appeal Filing Fee. We are aware that on November 6,2007, the City Council extended the Moratorium. We believe the Moratorium, by its own terms, exempts Grocery Outlet's interior tenant improvements, and, therefore does not prohibit the City from issuing to Grocery Outlet the building permits to undertake those interior tenant improvements necessary to commence operation of the neighborhood grocery store. We previously met with the City to discuss this issue. Pursuant to the City's direction, we provided the following information in support of Grocery Outlet's position. In so doing, Grocery Outlet requested that the City determine that the 01 .05/03/07