A DANG Good Deal: West Davis Has a Grocery Store

westlakeAfter three years of sitting vacant, the West Lake Shopping center will have a new grocery store by November, in time for Thanksgiving according to a deal announced at Davis City Council.  This deal was agreed to by all parties involved including the current owners, the prospective grocers, the neighbors, and approved by city staff and city council. 

DeLano’s Markets is coming to West Lake.  The talks had been on and off for much of the last six months.  The deal at one point appeared dead when the owners pulled the financing, however due to the persistence of DANG (Davis Advocates for Neighborhood Groceries), city staff kept the pressure on the owners to put something together.  Those talks had heated up for the past month and they made steady progress until last week when the Vanguard announced the two sides were close to an agreement.

The agreement was contingent upon zoning being reduced from the current 15,000 square foot requirement down to 10,000 square feet.  The neighbors, represented by the group DANG, had been reluctant to go with such a reduction without assurances.  Part of the deal is that unless there is a grocer in place within a year the zoning would revert back to 15,000 square feet.  DANG was confident that the DeLanos know the grocery business well enough to have determined what the maximum store size is for this location to remain profitable and they have determined that it should be between 10 – 11,000 and still be able to offer a complete range of groceries and prepared food items.

At the meeting last night, the owners were represented by Dario Hosseinyoun, son of the majority owner Farokh  Hosseinyoun.  Mr. Hosseinyoun told the council that they have lost over $700,000 in direct money in the three years of vacancy of the grocery store site as well as the loss of other businesses which have departed from the shopping center too.  Over 50% of the center remains vacant.

Mr. Hosseinyoun is investing about $2 million into the project in much needed repairs to the building including a required remodel as well as assisting in the financing needed to bring the Delanos to Westlake and the DeLanos are investing $1 million in equipment, fixtures and inventory.  They reiterated their goal to open by Thanksgiving, but want the project to be fast-tracked in terms of meeting the necessary city regulations.  That appeared to be exactly what city staff and the council have in mind as well.

Harley DeLano (CEO of DeLano’s Markets) spoke to council and advocated for their ability to have an approximately 11,000 square foot store believing that they could be profitable while still providing a full service store.

“We believe we can offer a full service grocery story including fresh fish, including a suishi bar, including a hot foods area, including a bakery…  We have  certainly a limited amount of space and there would be a limited amount of items…”

The DeLano’s intend to meet with neighbors and DANG to see what people want from their grocery store in order to best meet the needs of the community.  They want to find out what people want to buy, offer it fresh and wholesome in a way that people want to buy it. 

They don’t think they will have a problem in terms of being profitable.  Although they reiterated that they were the only ones who felt thatway.  But as we reported in earlier articles there were two other legitimate full service grocers in the past twelve months including the Davis Food Co-op which had made serious consideration of and offers to be the grocer at Westlake Plaza.

The Delanos had trouble getting the financing for the project including from many lending institutions including local bankers without the owners putting up the capital.  Much of this was due to the national lending crisis.  As Mr. DeLano indicated, between himself and his son, they have 87 years of grocery experience.  As he put it, they know the business and believe this will be a huge success.
The grocery store will encompass the north and western portion of the site.  Council asked them about this  location at the shopping center and Mr. DeLano indicated that he believes this will be more visible and it will also enable them to have their own section of parking away from the rest of the complex.

DANG’s representatives also spoke as well as numerous neighbors.

Eric Nelson one of the board members of DANG: 

“It took everyone working together to make this happen.  That’s the way that government and grassroots involvement is supposed to work.  I predict that a year from now, we’ll have a vibrant center fully leased that will be the pride of West Davis.”

Russell Snyder also one of the board members:

“The original plan that went before the planning commission for a small convenience store was not going to serve the 13000 residents that live in Davis west of 113.  We needed something that would be a little bit more, that would be more adequate to serve the needs of the community.  This has been a long and a very difficult road to get us to where we are today.”

Numerous residents also came before council to support the grocer coming to West Davis one of the most vivid and lively was Miriam Hurley.

“I cannot tell you how happy—I really think it’s going to happen!”  She’s been a resident of west davis since 1998.  “The whole sad saga, I think finally—it’s just a win-win.  It’s a win for the environment, it’s a win for the community, and really it’s an economic win for the city of Davis because you’re going to be getting some more taxes.  So I just say—go, go, go, go west.  Go West DeLano’s.” 

She said this to great applause from the excited neighbors to which got Mayor Asmundson to playfully remark that she was a great cheerleader.

The city, as authorized by the city council, agreed to expedite the processing in order to enable it to open in November per their agreement with both sides.

Councilmember Lamar Heystek made the interesting remark that while he has good memories of Safeway (where he worked prior to his time on council), he also feels that customers are underserved there and believes that there is a demand for a full service grocery in west Davis.  He also reiterated that this is not about serving just one part of town, but about neighborhood equity and adhering to the general plan principle for neighborhood grocery stores.

The motion was interesting because instead of rejecting the previous appeal of the Planning Commission’s denial of the application to reduce the square footage requirement to 3000, the council was directed to uphold the appeal but modify the terms so that the zoning could be changed to 10,000 square feet with the stipulation that DeLano’s Markets must be functioning within a year or the ordinance reverts back to 15,000 square feet.

The vote was unanimous to loud applause from the audience.  However, there was a secondary vote on the resolution introduced by Councilmembers Lamar Heystek and Stephen Souza which would reaffirm the city and council’s policy to support neighborhood grocery stores.

Mayor Asmundson pushed hard to eliminate the discussion and vote on this issue making the argument that due to the fact that with the agreement in place the need for the resolution was moot.  During the meeting she pushed for a proclamation rather than a resolution that would make it council policy.

However, DANG argued that the Resolution is an important reaffirmation of the General Plan concept of the critical role the neighborhood grocery plays in the development and health of the local community.  They pushed for the resolution to be adopted as it will set the tone for future planning and zoning scenarios throughout the city.

Councilmembers Heystek and Stephen Souza agreed and continued to push for it with some modifications.  First, changing out the size from 15,000 square feet to 10,000 square feet and then at the behest of Mayor Pro Tem Saylor pulling out references to DANG in the policy.  Council wishes to acknowledge DANG’s efforts but not in policy.

There were a few minor changes, but the resolution passed 4-1 with Mayor Asmundson holding out for a proclamation rather than a resolution of policy.

Commentary

This was a very personal issue for me as the West Lake Shopping Center is right next door to where I have resided for the past nine years–little did I realize when Food Fair, which was a disaster, closed in May of 2006 that this would drag out for over three years.

It has only been in about the last nine months that prospects have heated up.  On November 24, 2008, the Vanguard listed out five goals for the upcoming year: the top goal listed at that time was bringing a grocery store to West Lake Shopping Center.

There were naysayers from the get-go saying that no one wanted to come to the site.  The owners claimed that they had tried for two and a half years and there was no interest.  But they hired consultants to find a grocer and those consultants immediately found several interested parties, the most promising was the DeLano’s.  Still, it seemed like a long shot.

But DANG never gave up: they pushed on city staff, they met with council, they kept the pressure on the owners, they were occasionally criticized for being two strident.  But it appears they were just strident enough, as well as relentless.  They have delivered on the promise of community activism and due to their efforts we will have a nice place to shop in West Davis that will not require us to get into our cars and drive over a mile.

This is a great victory for West Davis, but it is also a great victory for our General Plan concept of neighborhood grocery stores.  It is a great victory for environmentalism and sustainable communities and neighborhoods.  And it is a great victory for the fiscal and economic situation of this city that has lost out on potential revenue from this vacant spot and seen other businesses in that shopping center on the brink of collapse.  Now those businesses all know if they can hold out for less than four months, they will have a new influx of business due to the arrival of Delano’s Markets.

Well that’s one down.  I still have four goals that are unobtained.  That moves fixing the intersection at Fourth and D as a top goal along with the Road diet for Fifth Street as our top priorities.  Maybe DANG can branch out to help for these issues as well.

For now I look forward to setting foot in the new DeLano’s Market for the first time in November.

—David M. Greenwald reporting

About The Author

David Greenwald is the founder, editor, and executive director of the Davis Vanguard. He founded the Vanguard in 2006. David Greenwald moved to Davis in 1996 to attend Graduate School at UC Davis in Political Science. He lives in South Davis with his wife Cecilia Escamilla Greenwald and three children.

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26 Comments

  1. C. Hinshaw

    This has been a long and difficult process. But thanks to many members of the community, city staff, and City Council members, it appears we will finally have a grocery store in our neighborhood.

    I can’t wait to buy my Thanksgiving groceries at “DELANO’S DANG GOOD GROCERY STORE”!

  2. Frankly

    Bravo! Kudos to Dang, David, and the City Council and staff for getting the job done. I just ordered a good-sized pannier for my bicycle in anticipation of environmentally-correct grocery shopping. Soon those of us in West Davis can sip our lattes and graze on sushi while thumbing our nose at the all the South Davis and core area shopping snobs. Oh yeah, if they want to come shop at our neighborhood store they should travel by bike.

    DeLanos is a quality store and I expect it will be successful in this location. This is a win for everyone except maybe the Davis Food Coop.

  3. David M. Greenwald

    What wonderful news for the city and especially for those of us that live in West Davis!

    Thank you to the members of DANG for not giving up on a neighborhood grocery store in spite of negative comments from some. Thank you for all of your work! Thank you to Bill Ritter and Maynard Skinner who worked with DANG. And lastly, thank you to the city staff and city council. This is a win for everyone.

    DeLano’s is a wonderful grocery store and it’s going to help revitalize the West Lake Shopping center and West Davis. Let’s hope this can serve as a model for other neighborhoods such as east Davis that have wanted a grocery store for some time.

  4. wdf

    I am happy that there will be a grocery occupant at Westlake. But I wonder if the conditions exist to ensure that DeLano’s will be around for a good long while, and not be one of many temporary occupants.

  5. Eric Nelson

    If they build it WE must come!

    As one of the DANG board members, I would say that the game is not over . . . it half-time and we are ahead by a touchdown.

    I have seen their stores and talked with their employees and I’m confident the DeLano family will deliver a great service oriented grocery to Westlake with all the specialties, good varieties, excellent quality and competitive prices. But having the best grocery store on the planet, might not be enough to change people’s routines and shopping habits. Once the store is open I would hope that everyone living in or near Davis who buys groceries, will give DeLanos an opportunity to win their support and their business. These are local family folks who are making a major investment in our town, so spend your money where your mouth lives!

    And if you can’t find what you are looking for, “Ask Mr. D!”

    PS -Check out their website

  6. earoberts

    Congratulations to everyone for making this happen. I tend to agree with the last poster, that we must make the effort to make Delano’s welcome, and shop there. It will mean a change of habit, but if shoppers don’t buy, Delano’s cannot make it. So Delano’s must cater to what West Davisites want, and West Davisites need to make sure to try Delano’s out. I know I will!

  7. Alvin_Public

    I certainly hope it succeeds, however I believe the number of people living in apartment complexes in West Davis is a larger one than the number living in unattached single-family dwellings. Given these demographics, I think price will be a defining issue in whether DeLano’s is successful. A boutique grocery with boutique pricing might sell the occasional quick quart of milk, but when it’s time to do the weekly grocery list a savings of $10 will send the bulk of West Davis residents over 113. Despite all the congratulatory back-slapping, the jury is out.

  8. Greg Kuperberg

    Thanks to everyone for reaching an agreement on a new grocery store in Westlake Plaza. I live almost the same distance from Westlake as from 113, but the bicycle ride to Westlake is rather nicer than the one to Safeway. I promise that I will visit the new grocery store, in particular to see the fish counter and to look at ethnic foods and specialty foods. My comment to DeLano’s is that I think that a Davis supermarket could do more in the direction of Kim’s Mart, which is small, and Trader Joe’s, which hasn’t come to town.

    On the other hand, I agree with everyone who has pointed out that isn’t yet a “great victory”, because of course the store has yet to succeed.

    I also think that it’s foolish if today’s round of congratulations does not include the developer, who after all is investing $2 million in the store renovation. I don’t see at all that this is the right amount of stridency, to be unable to thank the guy who is putting in the most money into the project. At best, it means that the combative attitude that crept in didn’t do too much harm.

    I can understand the point that maybe the developer made some regrettable mistakes or even regrettable on-purposes. I assume that he’s a rich guy and for all I know he votes Republican too, while I gladly voted for Obama. Even so, we can’t afford to treat developers with a Hugo Chavez attitude. Too much of that certainly will depress local business, or in the worst case invite a huge lawsuit. For now, though, the lesson is that you can get somewhere as a big investor in Davis, if you can patiently turn the other cheek.

  9. PW

    I hate to be a party pooper, but we’ll see how long it lasts… my suspicion is that the reason the previous grocery stores failed was because there wasn’t enough demand for grocery in West Davis. But I will love having a grocery store just down the street, and if it’s not significantly more expensive than Save-Mart I’ll probably do most of my shopping there…

  10. Farwester

    Party pooper and you other nay sayers . . . that’s what we need is more negativism and pessimism. What is wrong with all you shadow people? Sit on the sidelines, pick your nose and complain, never to engage and never to get involved and never to do anything positive. If you don’t do anything else give these folks a chance to earn your business. I have been to their Bay Area stores and they are very aware of pricing . . . usually they offer a high, medium, low end option on the staples. Damn right you’ll love having a grocery store down the street . . . so shut up and shop!

  11. Farwester

    Party pooper and you other nay sayers . . . that’s what we need is more negativism and pessimism. What is wrong with all you shadow people? Sit on the sidelines, pick your nose and complain, never to engage and never to get involved and never to do anything positive. If you don’t do anything else give these folks a chance to earn your business. I have been to their Bay Area stores and they are very aware of pricing . . . usually they offer a high, medium, low end option on the staples. Damn right you’ll love having a grocery store down the street . . . so shut up and shop!

  12. rick entrikin

    Congratulations to Carolyn Hinshaw and all others who worked so hard to re-establish a grocery store in “Far” West Davis. You did a great job!

    Now, you need to find a way to promote the new market and ensure that it succeeds. That will be the true “test of time.” Good luck & great job!

    Rick Entrikin

  13. Russell Snyder

    In a previous life, I was a journeyman clerk and assistant manager for Luckys, so I know a well-run store when I see one. The previous stores at the Westlake location were dreary, overpriced and gave people absolutely no incentive to shop there. On the other hand, developer Al Smith ran the Farmtown market there at a profit for about 10 years (a copy of his letter to the City Council attesting to this fact is on the davisdang.org website). A well-run market can be successful in Westlake.

    Harlan and Dennis DeLano are both real pros, who also have Lucky management on their resumes. They have taken distressed stores in the Bay Area and turned them into neighborhood jewels. I have no doubt they will do the same in West Davis. They are even moving their corporate offices to the upstairs office space in Westlake Plaza. What a commitment!

    I was one of the first ones to commend the principal owner of the shopping center, Farrokh Hossenyoun, for the recent work he has done to spruce up the exterior of the center and to help with the grocery store financing. But remember, the ownership group admitted in public meetings that for many years they neglected the center when it was fully leased, allowing it to fall into disrepair, not fixing the parking lot lights and potholes, etc. After “Food Fair” closed in 2006, the shopping center owners filled in the loading dock and gutted the market space — all without getting city permissiion or community input. Much of the cost Mr. Hossenyoun is now paying for is to repair damage he did to his own property. Let’s not forget that.

    As I said at the City Council meeting on Tuesday, everyone has some skin in the game. The shopping center owners are investing a substantial amount of money in their property in a tough economic climate, the DeLanos are risking their family fortune and the residents of West Davis have their property values and quality of life on the line. A tremendous effort got us to this point, but if we don’t support DeLanos with our feet and our wallets it will all be for naught. Think globally, but shop locally.

    P.S.: Let’s all start practicing now: It’s pronouced “dee-‘LAY-nohz”

  14. tansey thomas

    Congratulations to all who have fought so hard and long for this neighborhood grocery store. If the managers of Delano are the pros you say they are, it should not take long for it to become a “destination” store also.

  15. rick entrikin

    Hey, DANG, just thinking about how to market your new market. Don’t know how much Enterprise or post office charge for weekly inserts, but they are very effective for Nugget, Rite-Aid, Safeway, etc.

    SO, as you continue working with the new grocers, please encourage them to advertise through the Enterprise & mail inserts. Really do think you can have a great grocery, but it will take some “upfront” effort to make it a “destination” market.

    Good Luck!

  16. Mr. Pleased

    I’m pleased we will finally get a grocer. I hope they can and will compete in the marketplace. Hopefully their grocery retailer offers things that are above and beyond what we were getting with Food Fair, Rays, and Farmtown Market. a good bakery, fresh made sandwiches, organic coffee stands, or other specialty things like that will be a big hit. I wish these people the best of luck. I promise I will shop there at least once to help em’ out.

  17. Russell Snyder

    Mr. Pleased: I’m pleased you’re pleased, but we need more of a commitment than that. We’ve been working on this thing for three years! At least say you’ll give ’em a month!

  18. My View

    “Mr. Pleased: I’m pleased you’re pleased, but we need more of a commitment than that. We’ve been working on this thing for three years! At least say you’ll give ’em a month!”

    This is a valid point. Shopping occasionally at Delano’s is not going to be enough to keep them afloat. At the same time, Delano’s must correctly determine what will keep shopper’s coming. It is a two way street. I plan to try and shop fairly regularly at Delano’s, provided the prices are reasonable in comparison to Safeway – my budget requires it.

  19. David M. Greenwald

    This is not really enough for a full follow up story, but I had an interesting talk with my own landlord who happens to manage the property next door. He told me that the previous grocery store had ridiculous rental agreement that basically made it impossible for them to be profitable. They left but felt like under more reasonable terms and conditions they could have been profitable in this location with Food Fair.

    I asked DANG about the current terms and conditions and was told that the rental agreement was most favorable in the view of the DeLano’s.

    One thing all the skeptics need to keep in mind–the DeLano’s are not novices in the grocery business, they have been around for decades in various forms. Mr. DeLano sunk $1 million of his own money into this project, he would not have done it had he not believed the store could make money.

    As many have pointed out three stores have not failed in this spot, in fact, given the info on Food Fair, perhaps none of them failed in the true sense of the word. They all left for different reasons.

  20. Eric w/DANG

    To “My View”:
    Harley and Dennis Delano are very aware of the pricing sensitivities and has shopped all the competition in Davis and says he has no problem meeting and beating the prices with comparable or better quality . . . and from personal experience, their great customer service will keep you coming back!

    Check out their website [url]www.delanomarkets.com[/url]

  21. My View

    “To “My View”:
    Harley and Dennis Delano are very aware of the pricing sensitivities and has shopped all the competition in Davis and says he has no problem meeting and beating the prices with comparable or better quality . . . and from personal experience, their great customer service will keep you coming back!”

    That is exactly what I am looking for – a grocery store near my home, that has reasonable prices, and good personal service. If Delano’s can deliver on those promises, I will be their customer for life – especially bc the parking and crowds at Safeway have become cumbersome. Can’t wait for Delano’s to arrive in town!

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