Source: Deal Close To Bring Grocery Store to Westlake

westlakeThe Vanguard has learned from sources close to the situation that a deal is close that would bring a Grocery Store to West Lake after the shopping center has been absent a grocer for over three years since Food Fair closed in May of 2006.

The Vanguard had previously reported the deal between the Delanos Grocery Store Chain and the owners of Westlake to be dead after the owners pulled their financial offer to put up the capital necessary to re-fixturize the interior of the store that the owners themselves gutted following the closure of Food Fair.

Talks have been increasing in the last few weeks as the city has increasingly got involved in the situation.  Originally, the city council was due to hear three separate but related items on the council agenda on June 23, 2009 but that had been moved back as the city hoped there would continue to be progress toward an agreement.  At this point, all we can report is that a deal is close and talks are continuing.

The three items now will be heard on this coming Tuesday, July 7, 2009.  They include an appeal of the Planning Commission’s denial of a request to re-zone the property to lower the required food store size, an examination of the possibility of adding Westlake into the redevelopment agency, and finally a separate resolution from Councilmembers Lamar Heystek and Stephen Souza to reinforce the council’s goals to bring about a grocery store to Westlake.

Staff is recommending that the council deny the appeal of the Planning Commission’s denial of the requested applications.  This is “based upon a determination that the Planning Commission did not err in its conclusion.”

However, because the Delano’s store would be less than the minimum size of 15,000, there still needs to be a deal arranged.  The current owners want the property to be permanently rezoned.  The neighbors (DANG) might be willing to grant that under very specified conditions.

The staff report currently reads:

“The property owner has been working with a potential grocery tenant for a portion of the food store space at Westlake Plaza. Approval of that store, as envisioned, would still require amendment of the Planned Development to reduce the minimum food store size from 15,000 to 11,000 square feet. Should the City Council wish to consider taking this action, staff would recommend a continuance to July 21 to allow preparation of the necessary ordinance, findings, and conditions.”

One of those conditions might be that the 5000 be devoted to food related items rather than office usage.

The city does not have a discussion of the prospects for including the property as a redevelopment zone,  However, they do remark:

“This agenda includes a separate report on prospects for including this site within the redevelopment area. Although that action might provide additional mechanisms for City assistance to the center, legal and practical barriers are high. The General Plan Housing Element Steering Committee has supported the construction of additional dwelling units at this and other centers. City staff have and will continue to explore options for increasing the intensity of the center, and potential customers for its tenants. These modifications would require a much higher level of interest from the property owner than has been demonstrated.”

The third portion of the council agenda is a separate item submitted by Councilmembers Stephen Souza and Lamar Heystek that is a resolution in support of a grocery at Westlake.

The key clauses of the resolution include that the “Council reaffirms its support of the City’s General Plan’s neighborhood shopping center concept,” and its “support to preserve the zoning requirement at Westlake Plaza specifying the inclusion of a minimum 15,000 square-foot grocery store,” and finally a pledge “to devote City resources, as part of a coherent economic development strategy, to support neighborhood efforts to recruit a grocery store tenant at Westlake Plaza.”

One of the big questions at this point whether there will be an announcement at the council meeting that the final agreement was reached.

Brief Commentary:

While many have doubted that a grocer would be interested in coming to this location, given the population in West Davis and the distance from Safeway, a good, well-run, and targeted grocery store has the potential to be very successful.  The grocery store would need to fill the need of neighbors to be able to quickly purchase an item or two, but also have a specialty draw that would induce customers who would otherwise shop at Safeway, Nugget, or the co-op to stay in West Davis and purchase their groceries.

It has always been my belief that the failure of Food Fair had less to do with the location and more to with the poor manner in which it was run and the lack of upkeep by the owners.  Neighbors have suggested that previous stores were successful in that location.

Now we might get a chance to see how the Delano’s who have been successful with smaller and more specialized stores can succeed.  It appears that a deal will go through, the question is when and how quickly zoning can be changed.

Tremendous credit goes to the perseverance of DANG–a group of dedicated neighbors who never stopped fighting for a grocery store.  This is obviously not a done deal yet, but due to their willingness to fight and bring city staff along, a dying shopping center may get a shot in the arm and that might help the entire city’s fiscal situation.

—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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12 Comments

  1. Christine

    I still can’t figure out why Trader Joe’s wouldn’t have taken that space. It would have been perfect for them, and people would definitely cross town and freeway to shop there. If they think that college students living in the dorms buy more groceries that families do, they are not thinking clearly. If Delano’s comes, I will welcome them, but I would prefer Trader Joe’s.

  2. Russell Snyder

    Kudos to the Davis Vanguard for keeping this story in the news, and on the radar screen of our elected officials. Al Smith, the developer of Stonegate who built the Westlake Plaza Shopping Center, operated the “Farm Town” market at the site for many years at a profit. Another well-run store can do the same. A copy of Smith’s letter to the City Council, as well as a timeline and other information, can be found at the website of Davis Advocates for Neighborhood Groceries (DANG!):[url]http://www.davisdang.org[/url]

  3. JayTee

    I agree that the Westlake spot would be perfect for Trader Joe’s. So would the spot in east Davis where Ralphs used to be, or the soon to be empty Gottschalks. A grocery store won’t make it just depending on people popping in for a loaf of bread and a half gallon of milk. They will need repeat customers doing their regular grocery shopping there. Will a smaller grocery be able to compete with the bigger stores in terms of sales and BOGOs? If I lived in that area and I could get two jars of peanut butter for the price of one, I certanly wouldn’t fuss about having to drive a whole mile to Safeway to get it.

  4. David Thompson

    I remain cautious about the outcome until a number of issues are settled. However, through DANG’s efforts on behalf of a neighborhood grocery store we are the closer than we have ever been in three years. As a board member of DANG I am in awe of the West Davis leadership of this effort and the time and focus given by Eric Nelson. I certainly hope that the Council will keep the item on the agenda for this coming Tuesday and act. Once the Council has acted we can work with the owner and the city to make adaptions suitable to all parties. Were agreement to be reached it will be a win win for everyone. In particular, a neighborhood grocery store will rejuvenate the center and bring the needed custom to all the small shops in the center. Thanks to the Vanguard for featuring our efforts.

  5. rick entrikin

    This is a “no-brainer,” win-win situation for our neighbors to the West. I am confused, though, about why the city council should have a say in this matter (other than their self-serving grandstanding after doing NOTHING to help residents in that part of town.)

    I sincerely hope that a viable grocery store will locate in Westlake, and the citizens will be victorious. Our City Council completely tanked on this issue, and made it seem as if no grocer would even consider setting up shop there.

    Well, I have two last things to say: (1) This is the most dysfunctional city council I’ve ever seen since moving here 34 years ago; and (2) citizens CAN make a difference. Great DANG job, folks!

    (And, just in case the council or landowners throw you a last-minute curveball, hang in there; you’ve done a great job; don’t quit fighting).

  6. AJ

    I am still skeptical that a grocery store would be successful at the Westlake location, but I would congratulate DANG if one actually opens there. I sincerely hope, though, that those people will not start campaigning against Trader Joe’s coming to another location in the city on the grounds that TJ’s will compete against their Westlake store.

  7. Preserve Neighborhood Grocery Stores....

    The 15,000 square foot grocery store restriction should stay in place, as is the rule for all shopping centers in Davis. A variance to that rule should be granted to the operator Delano’s Markets which has requested a 11,000 sq. ft. store. Should Delano’s leave Westlake Plaza the square foot restriction would then revert to 15,000 sq. ft. for a grocery store. This property owner has demonstrated over a three year period not to be a trustworthy landlord or committed to adhering to the City’s neighborhood grocery store policy. In this day and age of global warming we need grocery stores to walk, bike and drive short distances to. If Delano’s Markets actually comes to Westlake Plaza in west Davis, all I can say is: Welcome To Davis–We Need You!

  8. Cecilia Escamilla-Greenwald

    It’s good news to hear that a grocery store may be coming to Westlake Plaza. Delanos Grocery Store is a good, clean and well run grocery store with quality products. I hope we can welcome them to Davis soon.

  9. Rich Rifkin

    [quote]The Vanguard had previously reported the deal between the Delanos Grocery Store Chain and the owners of Westlake to be dead …[/quote]For what it’s worth, a friend of mine who shops at [u]DeLano’s[/u] IGA Market in Tiburon told me it’s a nice store, but pricey; and it is DeLano’s, not Delanos.

  10. Carla

    I, too, think that Trader Joe’s is the very best choice to occupy that space.
    Their name recognition will attract all from the surrounding areas.
    How can we help advocate to this end?

  11. wdf

    The July 4 Davis Enterprise article on the Westlake site is available at their website today (Monday, 7/6), free without subscription or password:

    [url]http://www.davisenterprise.com/story.php?id=101.1[/url]

  12. Ron Clement

    As a long-term West Davis resident, I would like to thank DANG and all the other volunteers for the great work leading to the City Council’s action last night. I look forward to seeing you at DeLano’s. What a great first step towards a renaissance for our beleaguered shopping center.

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