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<br />05/03/2007 OB: 13 IFAX Canon730I@CFGOCOM <br /> <br />.. Marc Drasin <br /> <br />III 002/003 <br /> <br />Marian Handa, City Clerk <br />May 3, 2007 <br />Page 2 <br /> <br />tenns of the Moratorium do not apply to Grocery Outlet's project to complete and use the <br />interior tenant improvements necessary to commence operations on the Property I . <br /> <br />Section 2.A of the Moratorium states that: "The moratorium will not preclude the <br />issuance of business licenses or building permits for projects . . . for which planning entitlement <br />is not required." As you know, the Property is located in the City's Commercial Downtown or <br />''CD'' District Section 2-608 of the City of San Leandro zoning code provides the land use <br />regulations for the CD District. Subsection (A) of section 2--608 states: "The following uses are <br />allowed in the CD District, and a conditional use permit is not required." Included in that list of <br />permitted uses is "neighborhood/specialty food markets.)'l (San Leandro Zoning Code sec. <br />2-608(A)(16).) San Leandro Zonini Code sec. 1-304 contains the definitions applicable to the <br />zoning code. "Neighborhood/specialty food markets" is defined as "'neighborhood grocery <br />stores, and stores specializing in particular or distinctive food items. including but not limited to <br />retailm whose primary business maintains a wide inventory of gourmet, health, or ethnic food <br />items not commonly found in area Supermarkets or Convenience Stores. . . ." <br /> <br />It is beyond question that Grocery Outlet is proposing a "neighborhood grocery store" at <br />the old Albertsons site. Due to its small size (25.000 sq. ft.) vis-a-vis the current industry <br />standard for supemwkets (70,000 square feet), Grocery Outlet is only proposing a store whose <br />vast m~ority of business will come from the surrounding residential area located within an <br />approximately 2-mile radius of the site, making such a use consistent with the General Plan. <br />Grocery Outlet previously provided to the City a market capture study MapInfo Corporation" <br />prepared for the proposed store. Maplnfo prepared a market study for the proposed $ite in 2006 <br />using the 2000 census data, updated by the Maplnfo dcJI1O&l'8.Phics. That study analyzes the <br />origin of the proposed store's market shares (called "mature M.S." in the study). As can be seen <br />from that study. ove, 90% of the stores CllStomers will reside with;" the arulocllted withu. 2.0 <br />miles of the Property. The store will seIVe the needs of that neighborhood by providing a ftesh <br />meat, fish, and produce. as well as a litany of basic sundry items for the convenience of the <br />neighborhood residents. Grocery Outlet will provide basic goods and services within easy access <br />of neighborhood residents. In doing so, Grocery Outlet will enrich both the neighborhood and <br />the City by reducing the drive time necessary for neighborhood residents to obtain both typical <br />and specialty grocery items. This will reduce both the traffic and emissions generated by <br />neighborhood residents who would otherwise have to drive farther to satisfy their grocery needs. <br /> <br />We are awaiting the city decision before commencing the tenant improvement building plans <br />given the substantial cost of plan preparation. We will prepare the necessary plans as soon as we <br />hear from the City. <br />2 MapInfo Corporation is a leader in site selection science for the business community IIIld <br />regularly prepares market analyses and capture studies based on proposed sites. <br />