News Update - 9/30/2015 at 5:30 p.m. On Sept. 30, the City issued a citation for violation of an ordinance that requires the continued operation of a grocery store at Edgewood Plaza. In March 2015, Fresh Market ceased operation, and no new grocery store has been established since that time. There have been recent news reports about Adronico’s locating at the site, but the City has not received any official notification from the grocer.
The citation issued today includes a penalty of $500, and will increase to $750 on Oct. 1 and $1,000 for each day thereafter until the property is brought into compliance with the ordinance.
News Update - 8/24/2015 at 3:30 p.m. Starting on September 30, daily fines up to $1,000/day will be assessed against the property owner for its failure to find a suitable replacement market. The fee is set by code and that is the maximum allowed by the code. College Terrace was a different situation, since during discussions about a grocery store to replace JJ&F, there was a restrictive covenant put in place (with the approval of the property owner) that increased the penalty to $2,000/day if the replacement tenant left and another grocery store was not put in place within 6 months. Download the letter from City of Palo to property owner representatives regarding non-compliance.
The recent closure of the Fresh Market at Edgewood Plaza has prompted a number of questions from the community, most particularly about the requirement of the developer (Sand Hill Properties) to ensure that another grocery story occupies the site. The City’s ordinances that provided Sand Hill Properties the right to develop their site mandates a series of “public benefits” that includes providing a grocery store in the 20,600 square foot building. The owner is obligated now to find a grocery store to occupy the Edgewood store, and to ensure that the building continues to be used for that purpose.
Although the ordinance itself does not specify a penalty for non-compliance, the City does have a penalty schedule that could be applied if necessary of $500 per day, escalating to $1,000 per day, for zoning violations. The ordinance (5224) does state that that the public benefit outlines that the building be must “primarily used for grocery store uses”.
In terms of timing, the City is following a similar protocol as it did with the College Terrace Center market developer by allowing six months for a new grocery store to be put in place. City staff have sent several letters to Sand Hill Properties requesting information on their plans for the space with a reminder about potential daily penalties. The six month period will end in September.
It is possible that the owner of the property could propose an alternate use for the building, but would have to apply for a change to the zoning ordinances, which would be a public process and require City Council approval. At a minimum, the City would have to consider whether the new tenant meets the requirements of the current ordinances.
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