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<br />08/04/2007 1332 IFAX Canon730I@CFGO COM <br /> <br />.. Jessie Grunner @002/003 <br /> <br />Debbie Poll art, Principal Planner ,-j <br />March 19,2007 <br />Page 2 <br /> <br />.....-", <br /> <br />occurred as a result of the imposition of the Moratoriwn, we request that the City determine <br />that Grocery Outlet's proposal is not subject to the Moratorium within 10 days of receipt of <br />this letter. <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 <br />entitlement is not required." As you know, the Property is located in the City's Commercial <br />Downtown or "CD" District. Section 2-608 of the City of San Leandro zoning code provides <br />the land use regulations for the CD District. Subsection (A) of section 2-608 states: "The <br />following uses are allowed in the CD District, and a conditional use permit is not required." <br />Included in that list of permitted uses is "neighborhood/specialty food markets." (Sa.n <br />Leandro Zoning Code sec. 2-608(A)(16).) San Leandro Zoning Code sec. 1~304 contains the <br />definitions applicable to the zoning code. "Neighborhood/specialty food markets" is defined <br />as "neighborhood grocery stores, and stores specializing in partirular or distinctive food items, <br />including but not limited to retailers whose primary business maintains a wide inventory of <br />gourmet, health, or ethnic food items not commonly found in area Supermarkets or <br />Convenience Stores. . .." San Leandro Zoning Code Sec. 1-302 states: "Unless the context <br />clearly indicates the contrary, the following conjunction shall be interpreted as follows: 1. <br />I And' indicates that all connected words or provisions shall apply." Therefore, both <br />"neighborhood grocery stores" and "stores specializing in particular or distinctive food items" <br />are permitted uses in the CD District. We believe that since such uses are permitted uses and <br />do not require planning entitlements, they are exempt from the Moratorium by the <br />Moratorium's own language. <br /> <br />It is beyond question that Grocery Outlet is proposing a "neighborhood grocery store" <br />at the old Albertsons site. Due to its small size (25,620 sq. ft.) vis-a-vis the current industry <br />standard for supermarkets (70,000 square feet), Grocery Outlet is only proposing a store whose <br />vast majority of business will come from the surrounding residential area located within an <br />approximately 2-mile radius of the site. We have attached the market capture study Maplnfo <br />Corporation2 prepared for the proposed store. MapWo prepared a market study for the <br />proposed site in 2006 using the 2000 census data, updated by the MapInfo demographics. This <br />study analyzes the origin of the proposed store's market shares (called "mature M.s." in the <br />study). As can be seen from that attached study, over 90% of the stores customers will reside <br />within the area located within 2.0 miles of the Property. The store will serve the needs of that <br />neighborhood by providing a fresh meat, fish, and produce, as well as a litany of basic sundry <br />items for the convenience of the neighborhood residents. Grocery Outlet will provide basic <br />goods and services within easy access of neighborhood residents. In doing so, Grocery Outlet <br /> <br />MapInfo Corporation is a leader in site selection science for the business community and regularly <br /> <br />prepares market analyses and capture studies based on proposed sites. <br />Grocery Outlet Inc. General OtlIces <br />2000 Rfttl Street Berkeley, CA 94710-1918 Phone: 510-645-1999 Fax: 51D-644-o15Z <br />www.groceryoutlets.com <br />