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Appeal of the Board of Zoning Adjustments Denial 2 PLN2007 -00029 July 9, 2007 BACKGROUND The subject property is the closed Albertsons site, and is one of the opportunity sites identified in the Downtown Transit-Oriented Development (TOO) Strategy. Albertsons closed at this location on September 8, 2005. Norcal AI, LLC submitted a plan for a mixed-use project built around the grocery store in February of 2006. This application was withdrawn on May 10, 2006. An application for a Grocery Outlet was submitted on July 11, 2006. Prior to this application being deemed complete, an urgency ordinance was passed which placed a moratorium on discretionary actions for any opportunity site within the Downtown TOO Strategy Area. The moratorium is in effect until November 6, 2007, or when the Strategy has been adopted and new zoning and general plan amendments are in place, whichever occurs first. On March 19, 2007, Grocery Outlet submitted a letter to the Planning Manager, stating their Grocery Outlet application should be considered a neighborhood grocery store, not a supermarket. On April 16, 2007, Planning Manager Debbie Pollart responded that the City has consistently treated stores similar in size and product mix to the Project as supermarkets, rather than as neighborhood stores. On April 24, 2007, Red Mountain Retail Group appealed the detennination of Planning Manager Pollart. On May 1, 2007, Zoning Enforcement Official William Shock confirmed Planning Manager Pollart's determination that Grocery Outlet would be considered a supermarket. On May 3, 2007, Grocery Outlet and Norcal AI, LLC filed an appeal of the administrative decision of the Zoning Enforcement Official. Appeals of the Zoning Enforcement Official, under Article 28, may be referred to either the Planning Commission or the Board of Zoning Adjustments. As the Board of Zoning Adjustments would hold a public hearing on a Conditional Use Permit application, it was determined that the Board of Zoning Adjustments would be the appropriate body to hear the appeal. On June 7, 2007, the Board of Zoning Adjustments heard the appeal. Staff, including the Zoning Enforcement Official, presented information supporting interpretation of Grocery Outlet as a Supermarket, not a Neighborhood Grocery Store or a Neighborhood/Specialty Food Market. The applicants presented their proposal and rationale. Five speakers were heard; three in favor of the appeal and two in favor of the denial. At the conclusion of the public hearing the Board of Zoning Adjustments denied the appeal. The Zoning Code, in Article 3, Definitions, provides the following definitions for Supermarket and Neighborhood/Specialty Food Market: . Supermarkets. Stores selling a wide variety 0.[ food and household items with a community- wide market area. . Neighborhood/Specialty Food Markets. Neighborhood grocery stores, and stores specializing in particular or distinctive food items, including but not limited to retailers whose primary business maintains a wide inventory of gourmet, health, or ethnic food items not commonly found in area Supermarkets or Convenience Stores. This classification also includes delicatessens, confectioneries, full service bakeries, butcher, fish and poultry shops, and produce markets, and may also include a sandwich shop as an accessory use. Also see "Convenience Stores. "