2A Public Hearing 2007 0709 - Laserfiche WebLink

Home

Excerpt from the Board of Zoning Adjustments Meeting Minutes June 7, 2007 Minute No. 2007-11 Page 3 of8 Peter Blied, Red Mountain Retail Group, 1234 East 17th Street, Santa Ana, stated they were the property owners who acquired it in 2005. They specialized in retail redevelopment of existing retail centers. This property was occupied by the first Lucky Store in the 1930s and became Albertson's. No one wanted a vacant store, surrounded by chain link and barbed wire, sitting in the middle of downtown. It was a great site for a mixed use opportunity. However, the residential market was not as strong as it should be for a development of approximately 120 condominium units. They originally had a Rite Aid signed for this property, but they were told that a grocery store, such as a Trader Joe's or Andronico's, was preferred for this site. Now, they have a grocery store that is interested in the property and wanted to be in the middle of downtown. After they had submitted an application for a CUP, another moratorium was instituted. The property cost them approximately $40,000 per month, which was difficult because they were not a large company. They had offered to enter into a development agreement where mixed use could occur on this property when appropriate in the future, but staff showed no interest. A small survey was done on line by a local person and 87 of the 100 people who responded were in favor of Grocery Outlet locating on this property. He introduced their attorney, Jeff Goldfarb. Jeff Goldfarb, attorney, 611 Anton Boulevard, Costa Mesa, stated that staffs conclusion in the report was at odds with key requirements in the city's zoning ordinance. A supermarket was defined as selling a wide variety of food and household items with a community-wide market area. Grocery Outlet would not have a community-wide market area, as a market analysis prepared by a division of Pitney Bowes confirmed, which was attached to a letter provided to the Board Members. The study showed that the "trade area" (market area) encompassed a two-mile radius within the proposed store's site. "Overall sales beyond the trade area are projected to be just ten percent." This meant that a full 90 percent of the sales would be within the two-mile trade area (or market area). The Grocery Outlet did not have a community-wide market area and should not be classified as a supermarket under the City's own definition. The City's General Plan stated that "those uses primarily served the surrounding residential area, usually within a radius of a mile or two." Since the Grocery Outlet was a neighborhood grocery store, as defined in the city code, it was a permitted use. As a permitted use, it was exempt from the TOD moratorium, which was the second moratorium placed on the property. The two stores, mentioned by staff that were deemed supermarkets, must have a community-wide market area, which was the only way, under the city's code, they could be considered supermarkets. Member Daly asked where the closest Grocery Outlet was located. How many outlets were there in the Bay Area? Mr. Goldfarb replied that the closest Grocery Outlet was located in Oakland. Chuck Moore, Vice President for Construction and Planning, 300 Romay Court, Danville, stated that he was with Lucky Stores for 25 years and had actually worked in the building on the property under consideration. The corporation was located in Berkeley and three of the stores were owned by the store. All others were operated by individuals, usually a husband and wife team. Company stores were in Oakland and Berkeley and owner-operated stores were located in San Pablo and Vallejo. They operated in six western states.