HomeMy WebLinkAbout09/17/1991, 8 - Sale of Vons to Payless DrugstoreMEETING �� AGENDA
DATE Y/7 Y/ M)A 0
city of san Luis oBispo ,
The essence is on the first two pages; the balance is background
information.
September 17, 1991
MEMORANDUM
To: City Council
From:
Subj ect :
John D v
COPIES TO:
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Sale of 's to Payless Drug Store
This memo has changed several times from what was earlier written.
The latest (4:10 P.M., Tuesday) is that I just got off the phone
with Don Hays, Vice President of Operations for Von's.
Though he was very pleasant, the news was not good based upon the
City's desire of continuing a grocery store at the Johnson -Marsh
location.
The essence of Mr. Hays' comments were:
We have reached an agreement with Payless; escrow is to
close on September 30. It's a done deal; we can't do
anything else without defaulting on our part of the
agreement.
We looked at the possibility of a shuttle bus operation
from this area to our newly- acquired William's Brothers
stores (Broad and Madonna /LOVR). It was expensive and
there were various operational problems. Then we looked
at your excellent bus system. We are willing to sponsor
bus passes to get our existing Von' s customers from their
residences to either of the William's Brothers stores
(see attached grocery bag stuffer).
The three Safeway stores we earlier purchased (San Luis
Obispo,- Paso Robles, Atascadero) were an unsuccessful
group of stores, in part because William's Brothers was
doing a better job in the area than we were. We're
supposed to be in the business of making a profit.
EGE I VED
SEP 17 Icy +
CITY COUNCIL
SAN LUIS OBISPO, CA Q� /
We believe the William's Brothers stores will be very
successful because they have done a good job of adapting
to the local market (and Von's will not change their
operation) and Von's is willing to give them the capital
infusion they need for success.
While the above colors our opportunity "to take a proactive stance"
on this issue I'd like to rescue our idea from an earlier draft,
which was to form a Council Subcommittee/Staff group (with possible
representation from the Chamber) , to work with the Telegram-
Tribune and others on the future reuse (one-and-a-half years) of
the Telegram-Tribune site, after their relocation. In this way the
City would be helping to shape what will happen on this site,
rather than late reacting to what others propose.
Councilmember Rappa has also asked that the City consider taking
a proactive stance on the French Pavilion site; though that
situation will be covered by a separate memo, the Council
Subcommittee/Staff group could also review that situation more
carefully.
JD:mc
Attachments
d/parless
807
ThUstsore will be
closing. September
22nd . We' thank you
for your many years of
patronage .. .
so.
ncerely,
VONS
San Luis Obispo
Transportation information to
the closest Williams Brothers
Market available at the
Service Desk
J3
September 17, 1991
TO:
VIA:
FROM:
SUBJECT:
THE SITUATION
John Dunn, City Administrative Officer
Arnold Jonas, Community Development Department
Terry Sanville, Principal Planner
Reuse of the Von's Supermarket
Von's Markets has purchased Williams Brothers Supermarkets and has sold their three
stores iii San Luis Obispo County to Payless Drug Stores. The Von's market at 1221 Marsh
Street is the only supermarket serving downtown San Luis Obispo. Residents in
surrounding areas are concerned that their grocery shopping needs will not be met if the
Von's market is converted to a drug store.
The following information may assist the City Council in determining whether the City
should respond to the concerns of the residents.
PROPERTY INFORMATION (Also see attached map)
Building Area:
Site Area:
Zoning:
General Plan:
On -Site Parking:
Required Parking:
Total CN Zoning
In Area:
GENERAL PLAN POLICIES
25,600 square feet
125,860 square feet (2.9 acres)
Neighborhood Commercial
Neighborhood Commercial
220 spaces (estimated)
128 spaces
193,360 square feet (4.4 acres which includes the Von's
and Telegram Tribune sites)
The following policies are abstracted from the 1977 Land Use Element:
The city should support the concept of neighborhood convenience centers (2 -5 acres
depending on neighborhood size) whose service area will require shorter automotive trip
distances and will encourage nonvehicular convenience shopping. (Policy 3.a. 1., page
15.)
The city should evaluate the need for and desirability of additions to existing
neighborhood commercial centers as specific development proposals are made. Criteria
for evaluating such proposals are:
(1) Uses are in fact those which will serve nearby residents, not the community as
a whole.
8r
(2) Expansion areas have access from arterial streets.
(3) Expansion areas will reduce the area us4by or designated for offices or service
commercial uses and not areas designat d for or used by residences. (Policy
3.a.3., page 16)
Specialized retail stores, and recreational uses may be established within neighborhood
commercial areas so long as (1) individually, their size would not constitute a major
citywide attraction and (2) cumulatively, they would not displace more general,
convenience uses. (Policy 3.a.8., page 16)
General Plan policies address criteria for establishing or expanding existing neighborhood
centers. The policies do not provide direction as to how existing neighborhood centers
might be internally changed. There are no specific policies that address the location of
grocery stores or drug stores.
ZONING PROVISIONS
A. Allowed /Conditional Uses
Retail sales of groceries are "allowed" in the CN district (Neighborhood Commercial)
district.
Retail sales of general merchandise (drug, hardware, discount, department and variety
stores) where the gross floor area is between 15,001 and 60,000 square feet is a
"conditional" use in the CN Zone. Payless Drug Store will have to apply for a use permit
from the Planning Commission.
B. Use Permit Process
The Zoning Regulations describe the purpose and intent of use permits as follows:
It is intended that use permits allow flexibility in providing for, regulating, or preventing
various uses, so they will be compatible with existing or desired conditions in their
neighborhood. Use permit approval is required for certain uses so that their detrimental
effects can be reduced or avoided and potential conflicts in land use can be prevented.
This is necessary because of the wide variety of uses that are allowed within zone districts
and because of the variety of existing sites and uses found in the community. (Section
1758.010, page 66.)
The Zoning Regulations describe required use permit findings:
In order to grant a use permit, the director or planning commission, or on appeal, the
council, must find that the proposed use will not be detrimental to the health, safety or
welfare of persons working or living at the site or within the vicinity. Tile director,
planning commission or council may deny the proposal or attach conditions as deemed
necessary to secure the purposes of these regulations. Actions on use permits shall be
justified by written findings, based on substantial evidence in view of the whole record.
(Section 1758.040, page 66)
A
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MARKET FACTORS
/ .
From the Planning Staff's contacts with local and out-of-the-area supermarket chains and
discussions with people that provide real estate services to these types of clients, the
following pertains to neighborhood shopping centers.
Land Use Size Range Desired Minimum Minimum Site Area
Freestanding 25-40,000 sq. ft. 30,000 sq. ft. 2.5 acres
Supermarket
Supermarket + 12-21,000 sq. ft. 55,000 sq. ft. 4.0 acres
Drug Store (-, Drug Store) C +bo- N
Market, Drug Store 20-40,000 sq. ft 80,000 sq. ft. 6.0 acres
Store, services, (Add. Are4 CRL%U-M-a)
restaurant, bank fq- ml)-ml�
The Planning Staff has also talked with the Morro Bay Planning Department about the
proposed Williams Brothers shopping center project. Initially the developer had indicated
that a "contemporary size" supermarket should be 45,000 square feet. However, the new
project now earmarks about 38,000 square feet for a supermarket.
The Von's site is at the intersection of two major arterial streets which makes it attractive
for a variety of commercial uses including a neighborhood center.
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VICINITY MAP NORTH
VON'S VICINITY MAP
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