HomeMy WebLinkAbout04/07/1992, 1 - APPEAL OF PLANNING COMMISSION'S ACTION TO DENY USE PERMIT U 1551, A REQUEST TO ALLOW A 26,655 SQUARE-FOOT DRUG STORE ON A SITE LOCATED ON THE SOUTHEAST CORNER OF MARSH STREET AND JOHNSON AVENUE (1221 MARSH STREET). Q��H������WIIIIIIIIIIirlUlll f MEETING DATE.
cityo san ai s OBISPO
COUNCIL AGENDA REPORT ITEM NUMBER:
FROM: Arnold B. Jonas, Community Development Director;
By: Pam Ricci, Associate Planner ; ';•
SUBJECT:
Appeal of Planning Commission's action to deny Use Permit U 1551, a
request to allow a 26, 655 square-foot drug store on a site located on the
southeast corner of Marsh Street and Johnson Avenue (1221 Marsh Street) .
CAO RECOMMENDATION:
Adopt the Draft Resolution labeled Exhibit A. denying the appeal, and
upholding the Planning 'Commission's action to deny Use Permit U 1551 to
allow a 26, 655 square-foot drug store at 1221 Marsh Street.
DISCUSSION
Situation/Previous Review
Pay Less Drug Stores, Inc. has purchased the building and has applied for
a use permit to operate it as a drug store. The proposed drug store is
classified under the category of retail sales of general merchandise in
the City's zoning regulations. The zoning regulations stipulate that
general merchandise stores with a gross floor area between 15, 001 and
60, 000 square feet require approval of a Planning Commission use permit
in the C-N zone.
On February 12, 1992, the Planning Commission considered the use permit
and denied it. Findings for denial focussed on the store's size in
excess of 15,000 square feet being a community-wide draw inconsistent
with the purpose of the C-N zone to provide neighborhood services (see
attached Planning Commission Resolution No. 5085-92 and minutes) . There
were about 50 people in the audience for the public hearing, many of whom
provided testimony. Almost everyone who spoke indicated that they would
prefer a grocery store at this location and that there was a need for a
grocery store near the downtown. Copies of various petitions received
opposing the Payless store are available for review in the project file.
Staff had recommended that the Planning Commission approve the use permit
based on the use being compatible with the neighborhood and consistent
with the purpose of the C-N zone. Staff cited the Longs Drug Store at
Laguna Village Center and the Thrifty Drug Store at Foothill Plaza as
examples of similar types of general merchandise drug stores on other
sites in the city zoned C-N. However, these two stores are both smaller
than the proposed PayLess -- Longs has 15, 129 square feet of floor area
and Thrifty has 18, 036 square feet. The issue then becomes whether or
not the additional square footage of the proposed PayLess makes it more
of a community-wide draw than these two other stores.
On February 21, 1992, an appeal was filed by the applicant's
representative Marshall Ochylski. The Planning Commission report
prepared for the February 12, 1992 hearing is attached. The report
provides background information and describes staff's assessment of
compatibility issues and potential impacts. '..
������►�uiiullllllllll�► �I�III city of San IL.S OBISpo
COUNCIL AGENDA REPORT
Use Permit U 1551
Page 2
ALTERNATIVES
1. Adopt the draft resolution labeled Exhibit B. upholding the appeal and
approving the use permit based on findings and subject to conditions.
2. Continue with direction to the staff and appellant.
Attached: Draft Resolutions
Appeal to City Council received 2-21-92
Planning Commission Resolution No. 5085-92
Memo from Richard Schmidt dated 2-12-92
2-12-92 Planning Commission minutes
2-12-92 Planning Commission report and attachments
i
I
1
Exhibit A
RESOLUTION NO. (1992 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
DENYING AN APPEAL AND UPHOLDING THE PLANNING COMMISSION'S ACTION
TO DENY A REQUEST FOR A USE PERMIT TO ALLOW A
DRUG STORE AT 1221 MARSH STREET
BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. That this council, after
consideration of the Planning Commission's action, public
testimony, the applicant's appeal, staff recommendations and
reports thereon, makes the following findings:
1. The proposed drug store use will adversely affect the
health, safety and welfare of persons living at the site
or in the vicinity.
2. The proposed drug store use is not appropriate at the
proposed location and will not be compatible with
surrounding land uses because a drug store that exceeds
15, 000 square feet would create a draw community-wide and
does not comply with the intent of the C-N zone for
providing neighborhood services.
3 . The proposed drug store use does not conform to the general
plan and does not meet zoning ordinance requirements.
SECTION 2. The request for approval of the use permit to
allow a 26, 655 square-foot drug store is hereby denied.
On motion of
seconded by , and on the following roll
call vote:
AYES:
NOES:
ABSENT:
I eV
Resolution No. (1992 Series)
Page 2
the foregoing resolution was passed and adopted this day
of , 1992.
Mayor
ATTEST:
City Clerk
APPROVED:
<Z!
iinistrative Officer
/ItAtt
Lt-A
Community Deve opment Director
i` 4
Exhibit B
RESOLUTION NO. (1992 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
UPHOLDING AN APPEAL OF THE PLANNING
COMMISSION'S ACTION TO DENY A REQUEST
TO ALLOW A 26, 655 SQUARE-FOOT DRUG STORE
AT 1221 MARSH STREET
BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. That this council, after
consideration of the Planning Commission's action, public
testimony, the applicant's appeal, staff recommendations and
reports thereon, makes the following findings:
1. The proposed drug store use will not adversely affect the
health, safety and welfare of persons living at the site
or in the vicinity.
2 . The drug store use is appropriate at the proposed location
and will be compatible with surrounding land uses.
3 . The proposed drug store use conforms to the general plan
and meets zoning ordinance requirements by providing for
the surrounding residential neighborhood and carrying a
variety of merchandise.
4. The Community Development Director has determined that the
project is categorically exempt from environmental review.
SECTION 2. Conditions. The proposed use permit for a
26, 655 square-foot drug store at 1221 Marsh Street, U 1551, is
hereby approved, subject to the following conditions:
1. For the convenience of surrounding residential areas, the
applicant shall make reasonable efforts to include in the
store inventory food items and household goods similar to
those listed in the attached letter of 1-2-92 labeled
Exhibit A.
I—�
Resolution No. (1992 Series)
Page 2
2 . Hours of delivery, loading and trash compaction shall be
limited to the hours of 7: 00 a.m. through 9: 00 p.m. daily.
3 . Trash pick-up shall be limited to the hours of 7 a.m. to
10 a.m.
4. The applicant shall manage the use of the site in a manner
which prohibits the parking of vehicles for sale.
5. The site shall be maintained in a neat and orderly manner.
All plant materials shall be maintained and replaced as
necessary.
On motion of ,
seconded by , and on the following roll call
vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was passed and adopted this day
of , 1992.
Mayor
ATTEST:
City Clerk
Resolution No. (1992 Series)
Page 3
APPROVED:
City A nistrative Officer
C' o ey
Community Dev to went Director
l- 7
Drug Stores
REGIONAL REAL ESTATE AND CONSTRUCTION OFFICE
2706 Harbor Blvd. Suite 201B • Costo Mesa.Confomlo 92626 • Phone (714)540.1201
January 2, 1992
.john Dunn, City Administrative Officer
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, California 93403-8100
RE: Proposed Pay Less Drug Store
1221 Marsh Street
San Luis Obispo, CA
Dear I,ir. Dunn:
79;ar,k you for the input on suggested merchandise to be carried in our San
Luis Obispo store. we have reviewed your suggestions with our me-*cnandis-
ing department and they have o me up with the following list of items that
we can expect to see in the store:
A. Dry Grocery: Bread, juices, canned vegetables, canned meals,
soups, canned fruits, cereals, coffee, tea, condiments (i.e. , salad
dressings, mayonnaise, sandwich spread) , jams, jelly, peanut butter,
spaghetti sauces, noodles, spices, crackers, Jello, pudding, canned
seafood ( i.e. , tuna, salmon, oysters) , sugar and salt.
B. Refrigerated Products: Milk, butter, yogurt, cottage cheese,
lunch meats and bacon. .
C. Frozen Foods: Juices, 7V dinners, ice, ice cream, etc.
In addition to- the foregoing, we will be carrying the following items that
are typical to a Pay Less Drug Store:
Cookies, bottled water, soda pop, beer, candy, nuts, chips, gum and
mints.
we will also be carrying such convenience iters as dish soaps, laundry
detergents, household cleansers, bar soaps, bath tissue, towels, napkins
and paper plates.
we have developed this list of convenience items that we believe will be
of service to the cannmity. It will, obviously, be subject to further
change and refinement, particularly once we are open and see how well we
do with the various categories. As you can see, we have made a concerted
effort to develop a selection unique to the needs of San Luis Obispo.
We will be purchasing these items through a local grocery wholesaler. Q
/-S
Mr. .lulus Dunn
JanuaLy 2, 1992
Nage Two
'11,e selection of this merchandise will make our store much more "neighbor-
luxxi friendly" in terns of its impact upon the residences in the vicinity.
Nay Less has a lot to offer and I hope we can count on your support in
iwiving forward with this exciting project.
VCL-y trul I yours,
k enlrPayne
kcal Lstate Manager
Southern Region
ltN:i g
cc: Bill Roa]man, vice-Mayor
Penny Rappa, Councilmenber
bcc: Jim Gaube
Karen Sheridan
l-�
IPAc� o san l�uis OBISW
990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403-8100
APPEAL TO CITY COUNCIL
In accordance with the aPPeals procedure as authorized by Title 1, Chapter 1.20 of the San Luis Obispo
Munidpal Code,the undersigned herebyappealsfrom the dec ision of
rendered on which decision consisted of the following (l.e. set forth factual
situation and the grounds for submitting this appeal. Use additional sheets as needed):
See. c4��ehe
The undersigned discussed the.decision being appealed with:
on '
DATE A TIME APPEAL RFrEVEn- Appellant
` I 1R(-4je-as Dr- t� rte`•
S tG c�ttt✓1C11 e� ame e
RepresentativeAdd
rew
544- 4540
9
Original to City Clerk
Calerxiared for. City Attorney
Copy to Administrative Officer
i Copy to the-following department(s):
Iden �rL1c� ,Ilan tea
1-1®
DP S
LANDSCAPE ARCHITECTURE
LA.ND;SITE PLANNING
75 Higuera Street, Suite 200
San Luis Obispo, California 93401
(805) 544-4546
FAX (805) 544-4594
Marshall E. Ochylski, C1862
Principal
February 21, 1992
City of San Luis Obispo
City Clerk's Office
990 Palm Street
P. O. Box 8100
San Luis Obispo,CA 93403-8100
Attention: Pam Voges,
City Clerk
Subject: Payless Drug Stores Use Permit
San Luis Obispo, California
Payless Drug Stores is filing an appeal of the Planning Commission denial on
February 12, 1992 of Use Permit U1551, a request to allow a 26,655 square-foot
drug store located on the southeast corner of Marsh Street and Johnson
Avenue (1221 Marsh Street).
We understand that this item will be scheduled for the April 7, 1992 City Council
meeting, the earliest possible date.
Sincerely,
Marshall E. Ochylski, C1862
Principal
RECEIVED
FEB 2 2 .1992
CITY COUNCIL
SAN LUIS OBISPO,.OA
3:ZpPM.
HI
SAN LUIS OBISPO PLANNING COMMISSION
RESOLUTION NO. 5085-92
WHEREAS, the Planning Commission of the City of San Luis Obispo did
conduct a public hearing in the City Council Chamber of the San Luis Obispo City Hall,
San Luis Obispo, California, on February 12, 1992, pursuant.to a proceeding instituted
under application No. U1551 by Payless Drugs, applicant
USE PERMIT REQUESTED:
To allow a 25,800 square foot drug (general merchandise) store.
PROPERTY DESCRIPTION:
On file in the office of Community Development, City Hall.
GENERAL LOCATION:
1221 Marsh Street.
EXISTING GENERAL PLAN LAND USE ELEMENT:
Neighborhood-Commercial.
PRESENT ZONING:
C-N.
WHEREAS, said commission as a result of its inspections, investigations, and
studies made by itself, and in behalf and of testimonies offered at said hearing, has
established existence of the following circumstances:
1. The proposed drug store use will adversely affect the health, safety, and welfare
of persons living at the site or in the vicinity.
2. The proposed drug store use is not appropriate at the proposed location and will
not be compatible with surrounding land uses because a drug store that exceeds
15,000 square feet would create a draw community wide and does not comply
with the intent of the C-N zone for providing neighborhood services.
-t a
Resolution No. 5085-92
Use Permit U1551
Page 2
3. The proposed drug store use does not conform to the general plan and does not
meet zoning ordinance requirements.
NOW, THEREFORE, BE TT RESOLVED that application No. U1551 be
denied
The foregoing resolution was adopted by the Planning Commission of the City of
San Luis Obispo upon the motion of Commr. Schmidt, seconded by Commr. Kourakis,
and upon the following roll call vote:
AYES: Commrs. Schmidt, Kourakis, Peterson, Karleskint, .and Hoffman
NOES: Comm . Williams
ABSENT: Comm .. Gurnee
Arnold B. Jonas, Secretary
Planning Commission
DATED: February 12, 1992
IIID
To Fellow Planning Commissioners
From Richard Schmidt
2-12-92
Re Payless Store
I had specifically requested that staff analysis contain an evaluation of the PayLess
proposal in light of zoning code and land use element policy statements. Since that was
not done, I provide this listing of what I feel are pertinent policy statements, and plan to
comment on these during discussion.
Zoning Code
17.38.010 The C-N zone is intended to provide retain sales and personal services
,orimarilyfor the convenience of surrounding residential areas.
17.40.010 The C-R zone is Intended to provide for a wide range of retail sales... Uses in
this zone will generally be those serving community-wide and regional markets, as well
as tourists and travelers.
17.42.010 The C-C zone is intended to provide for a wide range of retail sales and
services meeting community-wide and regional market demands.
Land Use Element
Page S. "Convenience Commercial Centers -- The principal function of this commercial
classification is to serve neighborhood and community convenience shopping demands to
meet the essential needs of local residents."
Page 6. "Retail Commercial -- This commercial classification includes community and
regional comparison shopping facilities... intended to serve customers-and clients from
the entire city and county trade area..
Page 14. Neighborhood Convenience Commercial Policies
"1. The city should support the concept of neighborhood convenience centers... whose
service area will require shorter automotive trip distances and will encourage
nonvehicular convenience shopping."
"3. 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 communityas
a whole... "
"8. 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."
P. C. Minutes
February 12 , 1992
Page 7
Commr . Karleskint moved to continue Items 4 and 5 to the next
available meeting , with Item 4 scheduled at the beginning of the
agenda .
Commr . Williams seconded the motion.
\%OTING: YES - Commrs . Karleskint . Williams . Kourakis , Peterson .
Schmidt , and Hoffman.
'DOES - None .
ABSENT - Commr . Gurnee .
The motion passed .
--------------------------------------------------------------------
Item 2 . Use Permit U1551 . Request to allow a 25 . 800 square foot
drug (general merchandise) store : 1221 Marsh Street : C-X
zone : Payless Drugs . applicant .
--------------------------------------------------------------------
Pam Ricci presented the staff report and explained the general
merchandise stores with more than 15 , 000 square feet are required to
obtain a use permit in the C-N zone . She said Payless has agreed to
stock more food and household items than it normally stocks . and staff
is recommending a condition requiring items to be carried on a regular
basis to serve the neighborhood . She said the city could enforce the
condition if complaints are received that a major range of products
are not being stocked by Payless . She said the Commission should
determine whether or not the proposed use is consistent. with the
purpose of the C-'; use and if it will be compatible with surrounding
uses . She recommended the Commission approve the use permit subject
to findings and conditions .
In answer to a question by Commr . Kourakis , Pam Ricci said a public
hearing on the use permit would be held if a complete range of food
products was no longer offered . but not if a single item was not being
carried .
Commr . Kourakis expressed concern that it was mostlya good faith
condition. and questioned its enforceability .
Terry Sanville said a condition requiring items to be stocked is nes•
to the city and he did not know if the city would be successful in
enforcing that condition.
Cindy Clemens said she could not find case law addressing this type of
condition. She said she was concerned. about requiring a retailer to
stock a specific product because it might be beyond city purview . She
said she felt comfortable with the condition . but agreed there may be
concerns with its enforceability .
Chairman Hoffman opened the public hearing .
Marshall Ochylski , 75 Higuera Street . applicant ' s representative .
said Payless agreed to the conditions in the staff report and he said
there has been a good faith effort by Payless to stock food goods . He
P. C. Minutes
February 12 , 1992
Page 8
gave the Commission a copy of a list of food items by brand names that
Payless is willing to carry . He said bread and dairy products would
be determined at a later date . He said Payless wants to be a good
neighbor and has been working with representatives of the community .
He said Payless is entitled to open a 15 , 000 square foot store . He
indicated that the question is whether they will be allowed to open a
25 . 000 square foot store which will also carry food goods . He said
Payless is agreeable to a reciprocal parking agreement if a market
opened on the adjacent Telegram-Tribune property in the future . He
said Payless is willing to dedicate a portion of its property to an
operator of a produce-meat store . He said Payless has considered
locating a farmer ' s market on site . He said Vons was contacted and
indicated that their biggest sellers were packaged goods . which
Payless would be carrying .
Alan Michels . 1973 San Luis Drive , representing the San Luis Drive
Neighborhood Association , asked that those in the audience who were
opposed to this item to raise their hands , and nearly everyone in the
room raised their hands . He said if it wasn ' t raining , there would
have been even more residents at. the meeting . He said San Luis Obispo
does not have any grocery store as adequate as the Williams Brothers
in Grover City . After Vons closed . he said he drives to Grover City
to shop. He explained that the Lucky ' s Store in Madonna Plaza has
parking problems . and the Williams Brothers on Foothill Boulevard
serves students , not residents . He said 2 , 000 to 2 : 500 people per day
were using Vons . He said significant traffic and pollution problems
will be created without a new grocery store at the site . He said
Payless has made a wonderful effort . but the neighborhood needs a
grocery store . He said C-N means servicing the community . He
questioned the way Vons closed the store and eliminated competition by
buying out Williams Brothers . He asked that the city stop the use o
the lot as a used car lot . He asked that the request for the use
permit be denied .
David Rigara . 555 Ramona Drive . Apt . 110 . said he was- a Cal Poly
student and felt the cost of goods at Payless would be significantly
different than the cost of- the same goods at a grocery store .
Gene Miller . 1325 Pacific Street , said he has lived in the area since
1952 , and stressed the need for a grocery store . He said there are 4
pharmacies and 2- drug stores within a half-mile radius of the proposed
Payless .
Woody Combrink . 1432 Torro Street . expressed concern about enforcement
of the condition requiring Payless to carry food , and felt that the
use permit should be denied .
Marlee Schmidt . 1332 Pismo Street , said zoning regulations state C-N
zoning is for the convenience of the surrounding residential
neighborhood . which the proposed Payless store does not meet . She
said there are a lot of students and senior citizens in the area . She
expressed doubt about the applicant ' s good faith because Mr . Ochylski
said if the use permit was denied , Payless would open a 10 . 000 sq/uarg.
P.C. Minutes
February 12 . 1992
Page 9
foot store anyway . She felt requiring Payless to find a 5 . 000 square-
foot grocery store was as unenforceable as requiring food products to
be sold in the store .
Bonnie Garritano . 1950 San Luis Drive , said the staff report does not
mention a petition of 600 names given to the. City Council last October
protesting the selling of the property to Payless . She expressed
concern that there are no written conditions requiring Payless to have
a farmer ' s market or to find someone to operate a small grocery store .
Dr . Steve Hansen. 1744 Alisal Avenue . said the city ha.s a
responsibility for the health and welfare of its citizens . He
expressed concern that a healthy diet is one high in fruits and
vegetables . and Payless will not be selling those items . He said the
inversion layer in San Luis Obispo would increase because of the
increased pollution from added vehicle trips needed for area residents
to go grocery shopping .
Laverne Schneider , 1356 Marsh Street , showed the Commission a map she
made indicating drug and grocery stores in the area . She said there
are2 drug stores within 6 blocks , but not one grocery store in the
downtown area . She asked that the Commission deny the use permit
because a store that is a city-wide attraction does not belcr.V in the
C-?� zone . She said a grocery store is needed for competition_ She
presented a copy of 596 signatures that had been sent to the City
Council and 178 signatures and 5 letters sent to the Telegram-Tribune .
Roy nanff . 569 Lawrence Drive . expressed concern that it would be
extremely difficult for the Telegram-Tribune building to be converted
to a grocery store . He called attention to Item 2 in a January 30 .
1992 letter from Payless indicating their willingness to stock food
items on a short interim basis , but he felt it would be a long period
of time before a grocery store could be built on the Telegram-Tribune
property. He said the City should enforce the rules of the C-N zone
and deny the request for the use permit .
Alice Werbel . 1872 San Luis Drive . said there are 4 supermarkets . 3
small grocery stores. and 12 drug stores in San Luis . She said the
manager at Lucky ' s on Foothill told her the store serves 3 , 500 to
5 , 000 customers a day. She asked the Commission to consider the needs
of elderly people who cannot drive . _
Enrico Bongio , 2075 Sierra Way . asked how the representative from
Payless could tell the Commission what was going to be on the site .
He said the Commission represents the public and the public wants a
grocery store.
Sharon Dodsen , 2042 San Luis Drive . said she moved into the
neighborhood because of its proximity to Vons . She said she hoped the
Federal Trade Commission will overturn Payless ' purchase of the Von ' s
store . She felt the City had a responsibility to encourage a grocery
store on the site because of the City ' s policies for promoting /�/�'J
bicyclists and pedestrians to reduce traffic . She asked the ! /
Commission to deny the use permit and let the free market work to show
Payless they are not needed.
P. C. "Minutes
February 12 . 1992
Page 10
Star Jenkins . 285 Buena Vista Street , said if San Luis Obispo could
pioneer a no-smoking ordinance . the City could pioneer in denying an
application that it not appropriate for the area .
Marshall Ochylski , applicant ' s representative . :said Payless does own
the property and does have a right to develop a 15 . 000 square-foot
store . He added that Payless has been working with the community to
find a way to fill the neighborhood ' s needs . -
Ray Payne . 2706 Harbor Blvd . , Suite 201-B . Costa Mesa . said he
understood the neighborhood needs a grocery store in the area . ue
explained Payless often locates near a grocery store because the
increased trips generated by a grocery store benefit their store . He
said Payless wants to carry food items because it would help the
community and Payless . He said Payless would encourage a butcher shop
and a grocer to locate on the site because it would be smart
merchandizing . In answer to a question by Commr . Schmidt . Mr . Payne
said the vast majority of Payless customers live within ore-half mile
of the stores . He said Payless does not benefit much from county-
wide advertising , and although Payless would like to think it draws
from a greater distance . customer origin surveys do not show that to
be true .
Chairman Hoffman closed the public hearing .
Commr . kourakis explained a drug store of 15 . 000 square feet or less
is allowed in a C-N zone by right and the city cannot stop that from
happening . The free market system does not allow the city- to approve
stores or. the basis of what it sells . She said it is not the current
policy of the City of San Luis Obispo to solicit a grocery store . and
that type of request needs to go to t o City Coancil . She said Commr .
Schmidt distributed a lettfer to Commissioners that analyzed the
Payless proposal in regard to the zoning regulations and the Land 'se
Element Policy statements . She said Mrs . Schneider recited many of
those statements about the purpose of the C-N zone to provide
commercial services for the neighborhood . She felt the request for
the additional square footage should be denied because of the site ' s
C-N zoning and the City ' s Land Use Element policies .
Commr . Peterson said as a downtown resident and employer he .would miss
a grocery store downtown : however . the application before the
Commission is for a drug store . He felt Payless had made a good faith
effort to serve the neighborhood , but it could ,not meet all the needs
of the neighborhood . He said he could agree with Commr . Kourakis '
request for denial of the use permit .
Commr . KaLrleskint said as a businessman he did not feel it was the
City ' s role to tell merchants what to carry . He said he understood
the frustration of the residents because he used to buy fruit at Von
to make fruit baskets . He said the Commission could only consider ti.
request to allow a larger drug store at the site ( .the extra 10 . 000
square feet ) . He felt it would be best to get the issue before the
City Council . He added that he would probably- support the denial
P.C. Minutes
February 12 , 1992
Page 11
because it would be better for Payless to appeal the decision than the
residents. He felt that he could not make that motion because of his
views as a businessman.
Commr . Williams said she understood a grocery store was needed , but
Payless bought the property and the free market system should be
allowed to work . She said a drug store was consistent with the
zoning .
Commr . Schmidt said Payless as a general merchandise store that would
attract customers city-wide and region-wide : and therefore . the
Payless use was not consistent with the C-N zoning and related General
Plan policies . He felt that Payless was not a neighborhood use . He
thought a smaller Payless store of 15 .000 square feet might be
consistent with the zoning . He also felt Payless customers would be
drawn from a larger area and that this would be inconsistent with the
city ` s trip reduction policy .
Cindy Clemens suggested mentioning it was the additional 10 , 000 square
feet of floor area for the drug store use that was inappropriate in a
C-N zone .
Commissioner Schmidt moved to deny the request with the addition. of
Finding 2 stating that the drug store is inappropriate at the proposed
location because a drug store that exceeds 15 . 000 square feet would
create a draw community-wide and does not comply with the intent of
the C-N' zone for providing neighborhood commercial services : the
elimination of the word "not " in Finding 1 : Finding 3 changed to read
-The proposed drug store use does not conform to the general plan and
does not meet zoning ordinance requirements" .
Commr . Kourakis seconded the motion . Resolution No . 5085-92 .
Commr . Karleskint said everything that was just mentioned in the
motion could also apply to a grocery store .
Cindy Clemens said that a grocery store is an allowed use in the C-N
zone . without a limitation on size .
VOTING: AYES - Commrs . Schmidt , Kourakis , Karleskint , Peterson .
and Hoffman_
NOES - Commr . Williams .
ABSENT - Commr . Gurnee .
The motion passed .
Commr . Schmidt left the meeting .
Commr . Gurnee did not return to the meeting due to illness .
--------------------------------------------------------------
Item 3 . Use permit U1544 . Request to allow a child day
care/preschool for 12 children : 330 Mira Sol : R-1 zone :
Padmini Jeyanandarajan. applicant . (Continued from December
1 lq
18 .
�
ffIIII MEETING DATE:
d11NN�.�iIiN II IIIIfI I cityor Sall Lw b- OBISPO
44I�IIIZuUII� f �" ITEM NUMBER:
PLANNING COMMISSION STAFF REPORT a
By: FILE#
Pam Ricci, Associate Planner U 1551
SUBJECT:
Use Permit: Request to allow a 26,655 square-foot drug store on a site located on 'the
southeast comer of Marsh Street and Johnson Avenue (1221 Marsh Street).
SUMMARY RECOMMENDATION
Approve the use permit based on suggested findings and subject to suggested conditions.
BACKGROUND
Situation
In the fall of 1991, Vons announced that it was purchasing the Williams Brothers markets
and closed its store.at the subject site. Pay Less Drug Stores Inc., the applicant, has
purchased the property and submitted an application for a use permit to use the existing
building for one of its stores. The proposed drug store is classified under the category of
retail sales of general merchandise in the City's zoning regulations. The zoning regulations
stipulate that general merchandise stores with a gross floor area between 15,001 and 60,000
square feet require approval of a Planning Commission use permit in the C-N zone.
The applicant plans to use existing facilities, proposing only minor changes to the building
and parking lot. Changes to the facade of the building include new signage, addition of a
stucco canopy replacing the existing arch forms, tile details and embellishment of the
existing front columns. Parking lot revisions include the addition of tree wells down the
center of rows of parking spaces, restriping of some parking spaces and the addition of
motorcycle parking spaces. These changes require the review and approval of the
Architectural Review Commission.
Data Summary
Address: 1221 Marsh Street
Applicant/Property Owner. Pay Less Drug Stores, Inc., Ray Payne
Representatives: Marshall Ochylski, Landplans
Susan Quon, Musil Perkowitz Ruth, Inc.
Zoning: C-N
General Plan: Neighborhood Commercial
Environmental Status: Categorically exempt (Class 1, Existing Facilities)
Project Action Deadline: July 6, 1992
Site Description
The flat, 2.8-acre site is developed with the 26,655 square-foot building and parking lot
areas. Site access is available from a driveway off of Toro Street, two driveways off of
Marsh Street and a driveway off of Johnson Avenue. Significant vegetation includes several
street trees and a large ficus tree in the parking lot near the site's Johnson Avenue
entrance.
-1
Use Permit U 1551
Page 2
Surrounding land uses include the Telegram Tribune to the immediate east, residences to
the farther east and offices to the north, south and west.
EVALUATION
1. Appropriateness of Land Use:
The zoning regulations indicate that the "C-N zone is intended to provide retail sales and
personal services primarily for the convenience of surrounding residential areas.
Neighborhood commercial uses should provide several types of merchandise, as opposed
to a business offering a wide selection of a single type of merchandise."
A common issue that is raised with the review of proposed uses in the C-N zone is whether
or not the use truly meets the first criterion of serving the needs of the surrounding
residential neighborhood. There are drug stores, similar to the proposed one in terms of
scale, services and inventory, on other sites in the city zoned C-N. Two specific examples
are Longs Drugs in the Laguna Village Shopping Center and Thrifty Drugs in the Foothill
Plaza Shopping Center. Although these two stores operate as part of a shopping center,
rather than a freestanding use like the subject Pay Less Drug Store, they do attract
customers from other parts of the city along with residents of surrounding neighborhoods
because of their volume of merchandise, special services such as photo processing and
prescription medicines, and weekly advertised specials.
Consistent with the neighborhood-serving goals of the C-N .zone, it can be expected that
many of the patrons of the Pay Less store would either live near the store or pass by the
store regularly while commuting or running other errands. However, there will be people
that make single-purpose trips to the site that live in other parts of town because of
advertised specials or to comparison shop for specific items. Similarly, the previous Vons
store also put out weekly advertisements and drew customers from out of the area.
The proposal clearly meets the second criterion which ells for the use to provide a variety
of merchandise. According to an attached letter from the applicant's representative dated
12-17-91, the store will indeed provide a wide variety of merchandise and services including
a pharmacy, dry goods, soft goods, limited gifts, cosmetics, liquor and some convenience
food items such as milk, bread and canned goods. Another attached letter from the
applicant dated 1-2-92 includes a more extensive list-of planned convenience food and
household items typically also carried at grocery stores. The letter indicates that these
items were selected specifically for this location to help the surrounding neighborhood
mitigate the loss of a grocery store at this site.
Based on conversations with neighbors and information released by the press, the
preference of the surrounding neighborhood would be to retain a grocery store at the site.
However, the purview of the use permit is not to make a judgment call on what the best
use of the site would be, but rather to evaluate the merits of the proposed use and its
consistency with the zoning of the site.
Use Permit U 1551
Page 3
The applicant appears to be making a good-faith attempt to cater the goods offered at this
particular store to the needs of the neighborhood, in keeping with the site's C-N zoning.
To insure that the food items and household goods mentioned in the applicant's letter are
offered at the store into the future, staff is recommending that there be a condition
requiring that general list of items to be routinely carried at the store.
Section 17.58.060 of the Zoning Regulations states that "in deciding whether a proposal is
acceptable at a given location, the planning commission shall consider whether the proposal
could be established and maintained without jeopardy to persons or property within or
adjacent to the proposed site and without damage to the resources of the site and its
surroundings." Given the use of the site as a grocery store for over 30 years (since 1955)
with a higher parking requirement, higher traffic generation rates and longer hours of
operation, it would be difficult to find that the proposed drug store use adversely affects the
site or surrounding neighborhood in a physical or environmental sense.
2. Compatibility Issues Associated with the Proposed Use:
The Planning Commission use permit is required to establish the store at the site because
of the floor area proposed (26,655 square feet). Stores below the threshold of 15,000 .
square feet do not require use permit processing. The purpose of the use permit is to
determine whether or not the use will be compatible with the neighborhood and if any
potential detrimental effects can be reduced.
The building is set up to have its loading functions at the rear of the store. This portion
of the site is closest to the nearest residences across the creek on Pismo Street. To help
address potential concerns with increased noise from loading activities adversely affecting
neighbors, staff is recommending a condition to limit loading and delivery functions to the
hours of 7 a.m. to 9 p.m. The 12-17-91 letter from the applicant's representative indicates
that the store will be open between the hours of 8 a.m. and 10 p.m. The applicant has
indicated that the limitations on loading and deliveries are acceptable.
Other potential sources of noise at the rear of the building are the trash compactor in the
loading dock area and the trash enclosure located near the Toro Street driveway. Staff is
recommending that the hours of operation of the trash compactor (used for reducing
cardboard boxes) be limited to the same hours as loading and deliveries. Another condition
is suggested to limit trash pick-up to the hours of 7 a.m. to 10 a.m.
3. Parldng:
The drug store use has a parking requirement of 89 parking spaces (one parking space for
each 300 square feet of gross floor area). There are about 225 existing parking spaces on
the site. With modifications proposed to the parking lot, 219 parking spaces would be
provided.
� -aa
Use Permit U 1551
Page 4
The Public Works Department and Building Division have noted that plans need to be
more precise in terms of the parking lot layout and restriping of spaces. Given the sketch-
like quality of plans, it is difficult to ascertain whether current City parking and driveway
standards are being met. The parking spaces around tree wells and light standards may
need to be modified to accommodate these obstructions. With revisions to plans to address
these concerns some of the proposed spaces will need to be Eliminated. However, with
over twice the amount of parking spaces required by City standards on the site, changes will
not result in a parking shortfall.
In addition to the main tenant of the site, others have used the site both formally and
informally as a parking lot. Officially, only the tenants of 1318 Johnson Avenue have
approval for three off-site parking spaces. Unofficially, employees of the Telegram Tribune
park in the northeastern comer of the site near the Johnson Avenue driveway. This parking
situation has apparently been going on for many years without problems. The off-site
parking is not needed by the Tribune to meet ordinance parking requirements.
Staff has alerted the applicant to the fact that the northwestern corner of the'site near the
Marsh Street/Johnson Avenue intersection is currently being used as a used car sales lot
without authorization. In the past, the grocery store management regulated use of this area.
However, since the site has been vacant, the car lot activities have returned. Staff is
recommending a condition requiring the applicant to manage use of the site to prohibit the
parking of vehicles for sale.
4. Future Plans
Because of expressed concerns with the loss of a grocery store at the site to serve the
downtown area, City staff has met with PayLess representatives about possible ways to add
a grocery store either on the site or the adjacent Telegram Tribune. site in the future.
One idea that has been discussed is adding about 5,000 square feet of floor area on the
north side of the building (facing Johnson Avenue) to accommodate a small grocery that
would provide fresh meats and produce, dairy items and other merchandise that may not
be available at PayLess. The addition would be contingent on a suitable tenant being
available to run the grocery store.
City staff has also discussed with PayLess the possibility of shared parking arrangements
with the owners of the Telegram_Tribune site next door. Since an excess of parking exists
on the Payless site, shared parking between sites might become important with the
establishment of new uses at the existing Tribune site or the potential redevelopment of the
site.
Use Permit U 1551
Page 5
5. Demographic Profile of Surrounding_Neighborhood
At the 1-15-92 hearing where the use permit was continued, the Commission expressed an
interest in using census data to provide a demographic profile of the surrounding
neighborhood. Unfortunately, relevant 1990 Census information by tracts or blocks is not
yet available; therefore, staff relied on 1980 Census information.
The geographic extent of the block groups contained within the census tracts do not
especially well define the neighborhood surrounding the site. The area included in Blocks
1, 2 and 3 of Census Tract 11 (see attached map) appears most representative, and the data
from those blocks provides an idea of surrounding neighborhood characteristics. A table
is attached which includes information on total population, occupied housing units and age.
The census information indicates that 79% of residents are renters and that the largest
represented age group is 21-34. Older residents are often more dependent on having a
grocery store nearby. Census information indicates that 21% of nearby residents are 55 or
older.
OTHER DEPARTMENT COMMENTS
No other department has objected to establishment of the proposed use at the site. The
concerns of the Public Works Department and Building Division with parking areas were
discussed above in Section 3.
The City Arborist is recommending that the Blackwood Acacia tree located along Johnson
Avenue and identified on plans as a Quercus ilex, "Holly Oak", be removed and replaced
because the tree is near the end of its natural life cycle and in poor condition. He also
notes that the two trees along Toro Street are Deodar cedars and are incorrectly identified
on plans as Monterey cypress trees.
ALTERNATIVES
The commission may approve or deny the request with appropriate findings and conditions,
or it may continue the application with direction to the applicant and staff. _
RECOMMENDATION
Staff recommends that the Planning Commission approve the use permit based on the
following findings and subject to the following conditions:
Findings
1. The proposed drug store use will not adversely affect the health, safety and welfare
of persons living at the site or in the vicinity.
� a�
Use Permit U 1551
Page 6
2. The drug store use is appropriate at the proposed location and will be compatible
with surrounding land uses.
3. The proposed drug store use conforms to the general plan and meets zoning
ordinance requirements by providing for the surrounding residential neighborhood
and carrying a variety of merchandise.
4. The Community Development Director has determined that the project is
categorically exempt from environmental review.
Conditions
1. For the convenience of surrounding residential areas, the applicant shall make
reasonable efforts to include in the store inventory food items and household goods
similar to those listed in the attached letter of 1-2-92 labeled Exhibit A.
2. Hours of delivery, loading and trash compaction shall be limited to the hours of 7:00
a.m. through 9:00 p.m. daily.
3. Trash pick-up shall be limited to the hours of 7 a.m. to 10 a.m.
4. The applicant shall manage the use of the site in a manner which prohibits the
parking of vehicles for sale.
5. The site shall be maintained in a neat and orderly manner. All plant materials
shall be maintained and replaced as necessary.
Attachments: Vicinity Map
Letter from applicant dated 1-2-92 (Exhibit A)
Letter from applicant dated 1-30-92
Letter from applicant's representative dated 12-17-91
_ Letters from neighbors
Census district map
Demographic table
Enclosed: Full-size Plans
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REGIONAL REAL ESTATE AND CONSTRUCTION OFFICE
2706 Harbor Blvd. Sufte 201B • Costa Mesa.California 92626 • Phone(714)540-1201
January 2, 1992
John Dunn, City Administrative Officer
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, California 93403-8100
RE: Proposed Pay Less Drug Store
1221 Marsh Street
San Luis Obispo, CA
Dear Mr. Dann:
11-iank you for the input on suggested merchandise to be carried in our San
Luis Obispo store. We have reviewed your suggestions with our merchandis-
ing department and they have come up with the following list of iters that
we can expect to see in the store:
A. Dry Grocery: Bread, juices, canned vegetables, canned meats,
soups, canned fruits, cereals, coffee, tea, condiments (i.e. , salad
dressings, mayonnaise, sandwich spread) , jams, jelly, peanut butter,
spaghetti sauces, noodles, spices, crackers, Jello, pudding, canned
seafood (i.e. , tuna, salmon, oysters) , sugar and salt.
B. Refrigerated Products: Milk, butter, yogurt, cottage cheese,
lunch meats and bacon.
C. Frozen Foods: Juices, TV dinners, ice, ice cream, etc.
In addition to the foregoing, we will be carrying the following items that
are typical to a Pay Less Drug Store:
Cookies, bottled water, soda pop, beer, candy, nuts, chips, gum and
saints.
We will also be carrying such convenience items as dish soaps, laundry
detergents, household cleansers, bar soaps, bath tissue, towels, napkins
and paper plates.
We have developed this list of convenience items that we believe will be
of service to the cernrunity. It will, obviously, be subject to further
change and refinement, particularly once we are open and see how well we
do with the various categories. As you can see, we have made a concerted
effort to develop a selection unique to the needs of San Luis Obispo.
We will be purchasing these iters through a local grocery wholesaler. ,���
Mr. Jului Dunn
January 2, 1992
Paye 'No
The selection of this merchandise will make our store much more "neighbor-
luxxi friendly" in tem of its impact upon the residences in the vicinity.
Pay I.css has a lot to offer and I hope we can count on your support in
uroviiig forward with this exciting project.
VCLY tLvl yours,
#)ncd�e .
Real testate Manager
Suuthern Region
1tN:i y
cc:: Bill Roalman, Vice-Mayor
Penny Rappa, Councilmeiber
bcc: Jim Gaube
Karen Sheridan
1--a�
Lessor
Drug
Stores
EXECUTIVE OFFICES'9275 S.W. Peyton Lane Wilsonville, Oregon 97070-9984' (503) 682-4100
January 30, 1992 _ R E C E I V E D
FES 0 41992
CMY OF UM
CQWA9Penny Rappa, Bill Roalman and John Dunn Gt
City of San Luis Obispo
Subcommittee on Pay Less' Conditional Use Permit
900 Palm Street
San Luis Obispo, CA 93403-8100
Dear Penny, Bill and John:
Thank you for taking the time to meet with us and give us the
benefit of your thoughts. Hopefully, the following summarizes
our agreement on this matter. In order for Pay Less Drug
Stores to operate a drug store with the entire 24,747 square
feet of the former Von's supermarket building, the City of San
Luis Obispo has taken the position that a Conditional Use
Permit must be obtained. Without the Conditional Use Permit,
the City's position is that no more than 15, 000 square feet of
the space may be used for a drug store.
In an effort to work with the City and meet the needs of the
local neighborhood, Pay Less has met with this subcommittee,
various members of City staff and the Planning Commission, and
representatives of neighborhood groups. Based upon feedback
from these varying sources, we have developed a multi-pronged
approach that will ensure the maximum degree of convenience for
residents within the area. We hope to achieve this goal by the
following means:
1. Of primary importance is the need to locate a
supermarket in this part of town. Towards that end,
Pay Less agrees to cooperate with a potential
supermarket user for the Telegram Tribune building.
Pay Less will provide cross-access between the
properties. The provision of a 20, 000-25, 000 square
foot supermarket at this location is a high priority
for both the City and Pay Less Drug Stores.
2. Due to the length of time necessary to locate and
build a supermarket in the Telegram Tribune building,
Pay Less will agree to ,a number of interim steps in
order to provide the convenience shopping required in
the short term.
City of San Luis Lspo
Page 2
a. Pay Less will make every reasonable effort
to relocate the Farmer's Market from the
Williams Brothers center to the Pay Less
parking lot. The City will cooperate in
encouraging the relocation of the Farmer' s
Market. _
b. Pay Less will carry a selection of
food merchandise within the store.
Although Pay Less stores do not typically
carry a wide selection of food items, we
will merchandise this store specifically
for the San Luis Obispo market by carrying
an array of food items that shall include
most, if not all, major categories of food
except for fresh meat and produce. Every
effort will be made to maintain a pricing
structure competitive with supermarkets in
the area. A specific list of the food
items we will initially carry will be
provided in the near future. The items
actually carried will be subject to change
depending upon sales and availability.
C. In order to make available the food items
Pay Less is unable to carry, specifically,
fresh meat, produce, a deli, a salad bar,
etc. , Pay Less will agree that if a
financially sound, experienced and
reputable operator can be located, Pay Less
will construct a 5,500 +/- square foot
addition on the northeast side of the
building for the purpose of a fresh meat
and produce operation. The rent charged to
this operator would be computed at a factor
so as to provide Pay Less a return of 11%
on its investment in the additional space.
This return is substantially below what a
bank (or Pay Less) would typically require
for this type of venture.
3 . Pay Less agrees to upgrade the shopping center's
landscaping so as to aesthetically improve the
appearance of the parking lot. This would include
ten-foot landscape setbacks and the. addition of trees
within the parking lot.
4 . Pay Less agrees to upgrade the exterior of the
facility so as to provide a tasteful facade that is
in keeping with the surroundings.
City of San Luis ispo
Page 3
We believe the combination of these elements will provide
necessary services to the surrounding neighborhood, yet ensure
the economic viability of the store. Given the current
situation, this appears to be the best solution for the City of
San Luis Obispo and Pay Less Drug Stores. We appreciate the
efforts you have made to resolve this issue and look forward to
working with you in the future.
Very truly yours,
PAY LESS DRUG STORES NORTHWEST, INC.
Jim Gaube
Vice President
Real Estate
cc David E. Garth
Marshall Ochylski
Pierre Rademaker
Charles L. Senn
Arnold B. Jonas, Community Development Director
JG/ta
1 -31
Musil Perkowitz Ruth, inc.
Architecture
Planning
Engineering
December 17, 1991
Ms. Pam Ricci , Assoc. Planner
CITY OF SAN LUIS OBISPO
990 Palm Street _
San Luis Obispo, CA 93403-8100
RE: 1221 Marsh Street File NO. : 91-606-01
San Luis Obispo, CA M.Lawren
ARC 91-145 U 1551 M. awenceMcsi
Steven.: ;L0
Dear Ms. Ricci:
Assonaies:
Thank you for taking time on Friday, December 6th, to "earvIN.-iemen:s
review your letter of incomplete application, item by Nome-6rev
item. The following comprises our responses: Kennett,P.uunme
S-ank[Pret;z.1cz
Kennem Pe Shous-
1. The proposed use is for a Pay Less Drug Store which is ;e[;Y=m;h;
a full-service drug store providing a fully stocked
Pharmacy, Dry Goods, Soft Goods, Limited Gifts,
Cosmetics, Liquor and convenience food items to
include milk, bread and canned goods. The store will
have twenty employees on the premises during the hours
of operation from 8 A.M. to 10 P.M. , seven days a
week.
2. Parking Lot Development - Our proposal is to preserve
as much of the existing parking layout and light
standards as possible, as we upgrade to current
landscaping standards:
- Provide 10' wide perimeter landscape strips with
2' vehicle overhang along Marsh and Johnson.
- Re-stripe parking along Marsh to 8' x 16' compact
at 45`with a one-way drive aisle at 15' for a bay
dimension of 29' .
- Re-stripe along Johnson St. with standard stalls
8.5' x 18.5' and one-way drive aisle of 13' at 45°
for a bay dimension of 291 .
- Provide 5' x 5' tree wells every six parking
spaces.
- Provide landscape planters at the ends of parking
bays.
In a survey of the parking lot, the existing paved surface
and striping were in good repair. The existing light
standards were also salvageable. The intent of our
proposal is to use the existing parking layout and light
standards and amend the parking at Marsh and Johnson to
allow for perimeter landscaping. Compacts along Marsh St.
would preserve parking directly in front of the store for
easy customer access and provides for a 10' wide landscape
strip. For this reason we ask for an exception to allow
for the use of compact cars.
911 Studebaker Roac
Long 6ea-'r.CA 9"F-
213.1594
"6'S2t3.159a 9333 Q�
Hs. Pam Ricci
CITY OF SAN LUIS OBISPO
December 12 , 1991
Page 2 of 2
3. Bicycle and Motorcycle parking and storage will be
provided:
1 bicycle each 20 car spaces: 219/20 = it bicycle
spaces.
1 motorcycle each 20 car spaces: 219/20 = it
motorcycle spaces.
4. Recycle/refuse are accommodated in a compactor located
adjacent to the loading dock at the rear property
line. A trash enclosure will also be located at the
rear property line adjacent to Toro Street.
5. Existing trees will be located,,
6. C-N zoning note and parking required calculation will
be located on the Site Plan.
7. Driveway and building wall of the adjacent Telegram
Tribune will be located on the Site Plan.
ITEMS FOR ARCHITECTURAL REVIEW:
1. Color and materials board will follow in time for the
Architectural review meeting.
2. Sign details will be provided by Oregon Sign.
3 . Site furniture will consist of bike racks - details
will be provided.
4. Building colors/size of sign on building will be
provided in time for Architectural Review.
Enclosed please find 16 prints each of the revised Site
Plan containing additional information as requested.
We understand that this re-submittal will not delay our
scheduling for the use permit hearing nor the
architectural review. Please feel free to call me with
additional comments.
Sincerely,
MUSIL PERROWITZ RUTH, INC. cc: M. Davis
R. Payne
M. Ochylski
S. Ruth
Susan J. Qu esign Manager T. Yoshizaki
SJQ:ded
Musil Perkowiti Ruth,inc. r _
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1166 Pismo Street
San Luis Obispo , Calif.
93401
nicci Planning
Jan. 9, 1991
Pamela
Department
SAN Luis Obispo City Hall
P.O . Box 8100
San Luis Obispo, Calif. 93403
Dear Planning Commission. Re: Payless Drugs
Those of us who reside in this area of the city;,:are waiting patiently
for a SuperMarket to open at the Von's building on Marsh Street.
We understand Payless is willing to stock Dry Grocery, Refrigerated
Products and Frozen Foods.
While this is helpful it still does not address the great need of
FRESH PRODUCE and FRESH MEATS and more in the line of Dairy Pr6ducts.
If Payless would agree to stock these items we would not be against
them serving this area of the community.
Weare tired of third rate stores in our community and wonder why
Wall Mart chose to locate in Paso Robles. If you are going to let an-
other third rate in here why don't you give us a Costco, many are running
to Santa Maria now to do their shopping and losing our city and county
sales tax revenues. Give us the best, not third rate.
Our taxpayers deserve better than this.
Surely the Telegram Tribune building will come up for sale, then there
is the old Baldwin Home next to the Tribune and the cottage on the
creek. It world make a great shopping plaza for Old Town.
For General Merchandise we need only go a few blocks to Santa Barbara
Street or a few blocks downtown to Rileys and shops nearby but we
badly need a Supermarket on this side of town.
Many of us neighbors nearby and in the surrounding areas are hoping
you will makethe right decision for our city and for our area.
/ ! Sincrely
Bene Virginia Tanner
r t/ �J Cie-zLo• far-`e fT��, r.' .
Copy to John D , City Administrative Officer
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1980 CENSUS TRACT 111, BLOCKS 1, 2 & 3
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san lues amspo
990 Palm Street/Post Office Box 8100•San Luis Obispo,CA 93103.8100
1_37 >z
Payless Census Information
OCCUPIED HOUSING UNITS
Owner-Occupied 369 Units
Renter-Occupied 1 ,405 Units
TOTAL 1 ,774 Units
AGE GROUP BREAKDOWN
Under 21 Years 542 People
21 -34 Years 1 ,738 People
35-54 Years 302 People
55-64 Years 210 People
>64 Years 465 People
Total Population 31257 People
•1980 Census data,Tract 111, Blocks 1,2 &3. -
1 -38
mcETtN,rG� AGENDA
DATE ITEM I
CORFSMSan kpis Obispo Chamber of Commerce
�Camg �CDDDW9 horro Street • San Luis Obispo, California 93401-3278
I�CAO ❑ FIN.DIR. (805) 781-2777 • FAX (805) 543-1255
�ACAO ❑ FM CHIEF David E. Garth, Executive Director
Ery ATTO&NEY ❑ FW DR
EJ'CLEWORIC. ❑ POLICE CH.
❑ MGMT.mu i ❑ PEC DIR
❑ C READ FILE ❑ UTIL DIP,
April 3, 1992
Honorable Mayor and Members of the City Council
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, CA 93403-8100
Dear Mayor and Councilmembers:
The San Luis Obispo Chamber of Commerce supports the appeal by
Payless Drug Stores of the Planning Commission action to deny Use
Permit U 1551.
The Chamber's Retail Council, newly formed to deal with issues of
importance in the retail industry for San Luis Obispo, along
with members of the Issues Evaluation Committee, has reviewed the
Payless proposal to occupy the 1221 Marsh Street location in
conjunction with Scolari's Market. After a discussion of the
merits of the proposal, it was agreed that the expressed needs
of the neighborhood, and of the community in general, would be
greatly served by the successful completion of such a venture.
The Chamber has worked closely over the past six months with the
Payless representatives and believe them to be trustworthy in their
honest efforts to best serve our city. It is highly unusual for
the Chamber to take a position on a specific development such as
this, but the overwhelming- community reaction to the loss of a
neighborhood food market outlet, combined with the proposed
efforts of Payless to satisfy that need, lead the Chamber to this
position. In fact, no other issue has generated as much public
comment directed to the Chamber as the loss of the availability
of a .neighborhood market in the area.
we encourage, in concept, the Payless/Scolari's proposal, and urge
the City to expedite all appropriate approval processes to ensure
a successful outcome.
Sincerely, _
APR 3 199Z
Pierre Rademaker CITY COUNCIL
President, Chamber of Commerce SAN LUIS OBISPO, CA
ACCREDITED
CRWER OF CO,MV=
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990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100
PayLess Appeal
Page 2
■ Proposed 6, 000 square-foot building addition facing the Marsh
Street frontage, which impacts the open appearance of the site
and constrains internal parking lot circulation.
No action on the expanded project can be taken at the April 7, 1992
public hearing; the issue scheduled for this hearing is
consideration of the appeal of the Planning Commission's action to
deny the use permit for PayLess to occupy 26, 655 square feet of the
existing building at 1221 Marsh Street.
Staff has prepared a revised resolution which upholds the appeal
and approves the use permit. The changes to the language of the
resolution are minimal, but better acknowledge changed conditions.
Staff would caution the Council not to get too specific with the
language included in use permit conditions related to future site
development involving Scolari's given the uncertainty of the
expanded project at this time and the future establishment of
appropriate approval conditions as a result of the development
review process.
RESOLUTION NO. (1992 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
UPHOLDING AN APPEAL OF THE PLANNING
COMMISSION'S ACTION TO DENY A REQUEST
TO ALLOW A 260655 SQUARE-FOOT DRUG STORE
AT 1221 MARSH STREET
BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. That this council, after
consideration of the Planning Commission's action, public
testimony, the applicant's appeal, staff recommendations and
reports thereon, makes the following findings:
1. The proposed drug store use will not adversely affect the
health, safety and welfare of persons living at the site
or in the vicinity.
2. The drug store use is appropriate at the proposed location
and will be compatible with surrounding land uses.
3. The proposed drug store use conforms to the general plan
and meets zoning ordinance requirements by providing for
the surrounding residential neighborhood and carrying a
variety of merchandise.
.4 . The Community Development Director has determined that the
project is categorically exempt from environmental review.
SECTION 2. Conditions. The proposed use permit for a
26, 655 square-foot drug store at 1221 Marsh Street, U 1551, is
hereby approved, subject to the following conditions:
1. For the convenience of surrounding residential areas, the
applicant shall make reasonable efforts to effect those
items that are within its control to allow the
redevelopment of the Telegram Tribune site into a grocery
store including cooperation with the adjoining property
owner in property transfer and provision of shared parking.
2 . Hours .of delivery, loading and trash compaction shall be
limited to the hours of 7:00 a.m. through 9: 00 p.m. daily.
Resolution No. (1992 Series)
Page 2
3. Trash pick-up shall be limited to the hours of 7 a.m. to
10 a.m.
4. The applicant shall manage the use of the site in a manner
which prohibits the parking of vehicles for sale.
5. The site shall be maintained in a neat and orderly manner.
All plant materials shall be maintained and replaced as
necessary.
6. Architectural Review Commission review and approval of the
project shall be required focussing on the appropriate
location of the main store entrance, the design and
screening of the truck loading dock and service area and
any proposed building additions.
On motion of
seconded by and on the following roll call
vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was passed and adopted this day
of 1992.
Mayor
ATTEST:
City Clerk
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Resolution No. (1992 Series)
Page 3
APPROVED:
ty A nistrative .Officer
C' y to ey
Community Dev&klment Director
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990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403-8100
February 25, 1992
MEMORANDUM
To: Ron
From: J
Subject: lic hearing on Von's/Payless on April 7
Just to let you know, I've had good talks with both Alice Werbel
and LaVerne Schneider about Von's/Payless.
Payless has appealed the Planning Commission decision; the public
hearing is set for April 7.
They were basically concerned about what they should do, and I gave
them my best advice.
They were also concerned about whether the FTC would make a ruling
between now and then. I told them:
1. Not to count on it.
2 . If it happens, we'll let them know as soon as we're informed.
Subsequently I talked to Paul Roark of the Federal Trade
Commission. I will put his remarks in writing in a separate memo.
JD:mc
c: * Pam
Jeff
Ken
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MEETING AGENDA
CUESTA TITLE
DATE -�9.t ITEM #
751 MARSH STREET• SAN LUIS OBISPO, CA 93401 • P.O. BOX 1265 • SLO, CA 734D6
805 544-1860• FAX 805 541-3847 •TOLL FREE 800 544-1611
April 7, 1.992
City Council of. the City of San Luis Obispo
Honorable Mayor and Members of the City Council:
Today, April 7, 1992, we opened an escrow under number 49813-MM between
PayLess Drug Stores Northwest, Inc. and Joseph G. Scolari and the documents
include an Agreement of Purchase and Sale; Declaration of Restrictions; and
two (2) Grants of Easement for building set-backs. These agreements relate
to the joint development of one (1) shopping center on the PayLess property
(formerly Von's) and the Telegram Tribune property. This is subject to the
time frames as set forth in the attached letter.
Concurrenly an escrow was opened under number 49812-MM for the sale of the
Telegram Tribune property from John P. Scripps Newspapers to Joseph G. Scolari.
Res tfialyI
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Vice-Presiden and Manager h.°R 7 1992
CLERK
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REGIONAL REAL ESTATE OFFICE
2706 Harbor Blvd. Suite 201 B • Costa Mesa,California 92626 • Phone(714)540-1201
April 7, 1992
Cuesta Title Guarantee Company
733 Marsh Street, Suite A
San Luis Obispo, California 93401
RE: PayLess Drug Stores Northwest, Inc./Joseph G. Scolari
Your Escrow No. 9$13-h M , San Luis Obispo
Gentlemen:
I have enclosed a fully-executed Agreement of Purchase and Sale ( "Agree-
ment" ) between PayLess Drug Stores Northwest, Inc. ( "PayLess" ) and Joseph
G. Scolari in connection with the above escrow to be held by you until
further instructions from PayLess Drug Stores or its attorney.
The Agreement shall be effective only if (i) the City of San Luis Obispo
overturns PayLess' appeal of the Conditional Use Permit Application denied
by the Planning Conmission at the meeting of the City Council on April
1992, and (ii) the Architectural Review Committee approves the project
plan within 90 days after April 7, 1992.
Please confirm the receipt and acknowledgement of this letter on the en-
closed copy and return the same to me.
Very truly yours,
Ra nd G. Payne AGREE AND
Real Estate Manager
Southern Region By
RP:ig
enc.
cc: Randy Poltl
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