for cooperating with us as well as you did with the department and the commission. i think we wound up with an excellent project, and the expansion of the commercial space, other things, the courtyard, it was clear to me from this revision that you really paid attention to what we were asking, so thank you for that. secretary avery: commissioners, the motion on the floor is for approval. on that motion -- [roll-call vote] thank you. >> on the variance, in this case, third time as the time. we closed the public hearing on this item. also like to echo the thanks to the commission for their comments on this case. in particular, commissioner moore, who led the commons and

as a result, led to the dramatic improvement. >> thank you. we will look forward to item 9, kansas -- for 1401 california st.. >> good afternoon. this case is a request for conditional use authorization to modify the existing grocery store building and provide for a new trader joe's grocery store and it is cvs pharmacy, both formula retail uses and exceeding 1900 square feet in area. the previous occupant of the of the pen has closed as part of a consolidation. the project is located at the southwest corner of california and hyde streets and is occupied by a 30,000 square foot grocery store on the top level of a two- level parking garage. it has two-way access to both

california and hyde streets with a ramp providing access between the parking levels and a loading area on the bottom left. property was developed in 1961, and the building is considered a stored resource because of the building's design and construction system. the project were to divide the existing retail space and to approximately 14,600 square foot grocery store and an 11,000- square-foot pharmacy store with about 4500 square feet of common area appear the project would reconfigure the parking arrangement to provide up to seven more parking spaces for a total of 86 and replace the existing ramp between the parking levels with an elevator. the cvs stores can operate 24 hours a day provided a pharmacist is on duty. not made a final decision regarding 24-hour operations and will make that decision after the store is open. project will enhance the upper target level to create a more pedestrian-friendly zone, and

the entrance to the retail zone along the law. -- along tyhe lof -- along the loft. loading operations have the potential to block traffic on california street for short periods while trucks back into the loading dock. the condition for loading dock activities is recommended to ensure that loading operations do not disrupt the neighborhood or block traffic for an inordinate amount of time. to prevent use in the public right of way from occurring, the project will be required to implement a no-q condition of approval, which includes monitoring for cues and implementing measures -- which includes a monitoring for queues. the department has received one call, 30 e-mails, and a petition

with 65 signatures supporting the project and two letters in opposition. the opposition is not so much concerned with this particular use, but they would prefer a grocery store that has a wider range of choices and would be less expensive and more affordable than other -- to the neighbors. the department recommends approval of the projects with conditions as the proposal would maintain one of the three general grocery stores in the area, would prevent a major retail vacancy in the district, would add more competition among grocery stores in the surrounding marketplace, and introduced two new anchor stores to the disappear the product meets all the requirements of the planning code and advance the objectives and policies of the general plan. i'm available if you have questions. commissioner olague: thank you. project sponsor? >> good afternoon. thank you to rick for that

presentation and to the commission members and neighborhood groups, who have worked with us very respectfully to try to find common ground on our proposed project. today, i have hollywood was with landmark representing cbs, scott rutherford with cbs, who is the district manager, doug with trader joe's, and our land use counsel, if there are any questions following our presentation. a few key points about the project -- this is a renovation of an existing building. in all of our major interactions we had with the neighborhood and stakeholders over the years, the overwhelming concern was the loss of the grocery store and the substantial inconvenience associated with the downtime of redeveloping the site. after supervisor cju -- chu work with us to successfully get the previous owner to extend their

lease, we were able to put together a project with the combination of trader joe's and cvs. this took almost two years of lease negotiations, construction documents, and permitting. this is a single application, and the substantial costs of renovating, in addition to the tenant improvements, are being financed by the tenants. the project works with both, not one. we believe the project itself is a high-quality replacement grocery store and a high-quality drug store auction directly adjacent to and on a flat street from st. francis hospital. irresponsible companies who care about creating a safe, convenient shopping environment -- the previous owner had about 85 employees. the new project would provide about 100 or 150 jobs. both tenants are focused on local hiring. we have provided information to the existing employees so that they can follow up and be included in a hiring process

when that occurs, which is approximately nine months from now, assuming approval. if we are approved today, we are scheduled to start construction as early as january, and we can be opened before the 10 black up, which sets the worker in november. it permits that -- we have a demo permit that has been issued. we have a shell that has been submitted and a structural of great permit that has been submitted. as you know, we are focused on the formula of retail and the non-residential use. the highlights are really exterior upgrades, improved accessibility, street and our escape improvements. we are adding car share. we are adding bicycle parking. 18 spaces. we are doing voluntary seismic upgrade, and adding security. the lower level will be locked down after trader joe's closes. if cbs decides to operate 24 hours, they would only have the

upper level parking to be available. the neighborhood issues we have addressed -- they wanted us to address the elderly access to the grocery store. we have identified the shop around program, which is actually city program for elderly and disabled folks, and we have connected them and understand they are planning to speak to their membership. site maintenance and security -- defense the area with a security guard from 6:00 p.m. to 6:00 a.m. that will continue during construction. we have a sign with direct contact information to our property management folks. we are out there at their request and cleaning the sidewalk once a week, or as needed. we are also including anti- graffiti paint, special paint for the california street section of the project. as far as landscape enhancements, the podium cannot actually bear the weight.

the tables would also potentially impact pedestrian situation, so we are including binges with dividers to discourage sleeping. we are also adding potted areas. we are adding seven street trees on the california and hide street frontage is for a total of nine with is currently two. for pedestrian and elderly safety, which was another issue, we are adding vehicle warning sign it and save the bumps. we are also contracting with a pest company. there was some concern about possible pests, and then we also have agreed to assess whether the addition of 18 bicycle parking is actually sufficient, and that will be something we will look at after the stores open. we have also worked with the lower pulp neighborhood association, held meetings and discussions, and they have weighed in on the project and

the alcohol issue, which i will touch on. i understand you have a letter in your packet. we have worked with pope street merchants, and there is a neighborhood petition in your packet that provides some support letters. although we are not here today to seek approval for licenses to sell off a whole, which is a separate process that andrew can discuss in detail if anybody has questions, i do want to make a few brief comments, since i know this is an important issue beery of -- this is an important issue. overall, there will be a reduction in hours that alcohol would be sold by six hours. the previous owner was selling alcohol from 6 a.m. to 2:00 a.m., and under the proposed project, trader joe's and cbs would sell alcohol from 8:00 a.m. to 10:00 p.m. -- trader

joe's and cvs. there were also be a reduction in lineal feet that alcohol would be sold. with respect to cvs, they have also committed with a separate process to work with the police department and neighborhood groups to not sell nuisance alcohol, and cvs is currently also working on a purchase of an existing problem license in the neighborhood, not an additional license. as i mentioned earlier, our tenants and our team are available to answer any of your questions, and we thank you for the opportunity to present this renovation. we are ready to go, assuming that the project is approved. thank you. >> thank you. i would like to open it up for

public comment at this time. >> you can start. >> my name is joe nolte. can i go ahead? good afternoon, commissioners. the final project with this location, i have no problem except for the kind of chill use with the potential liquor license with the store being open 24 hours. that is what is in your packet. having four cvs stores in the

city already, only one selling beer and wine on 32nd ave. the newest one on market street has automatic check out. how do you check it for liberalizes is with that type of check up? this in the conditional use -- as you see, this is the current ad for this week for the city, and this is a full page of hard liquor. on the other side, more liquor that they are requesting. so i have a question of that. originally, they did not do that kind of stuff in there advertising. i would prefer joe's get the license. the commission has denied liberalizes is in this area previously. seeking the commission to put conditions on the trader joe's license today, they listen to

the presentation that they are not seeking conditions, but i do not understand that because they are coming in front of you with the pack of four bookstores, seeking conditional use for the licenses. it is kind of -- the project sponsor is saying one thing, but the paperwork says something else, so that is why i'm addressing the liquor license today. thank you very much. >> thank you. >> linda chapman. i want to express concern about the fact that although it was obvious people did want a grocery store there, we were sort of blindsided in that they signed leases for cbs and trader joe's as a lot -- as opposed to a large, general grocery store. then, they held a public meeting with practically no notice at all for public input and

discussion. i happen to be on the block where i get the notices that are required within 300 feet, and i happen to be seeing the secretary of a knob hill association. i give it to her, and she notified if the people and i notified a few people, and those were almost the only people that were there at the meeting. this is a huge issue. the report indicates that there are 52,000 people within half a mile. there is no other store with and certainly more than a mile, i would say, and two buses to get to any of them. i have tried using the one out near fillmore. really infeasible with big bags and two buses, let alone all the elderly people and the fact that everybody walks. trader joe's, first of all, is a good store of its kind, but it

is a specialty store with a very narrow line of things and certainly not produce. luckily, we have other produce stores. i would get a better line of groceries just from big apple. it is kind of expensive. although it was expensive, it had sales and house brands, and i got certain things there and other things from the little store. trader joe's does not do that at all. even the products they carry, they run out of all the time. like the most basic thing like couscous. they may be out of it for months. they do not sell ethnic groceries except they might have a frozen enchilada or something. there are a tremendous number of people coming from other parts of nob hill who have limited

incomes and who use ethnic products, none of which is sold. the two liquor licenses are a question. one beer and wine license for the grocery store i could see. two licenses i think everybody objected to. nobody wanted cvs, that i heard. we have three walgreen's nearby. there is a walgreen's directly across from the hospital. and hospitals provide pharmacy things for people leaving in the middle of the night. we certainly do not need that. greening they just said we could not do it. they could do some engineering. that was something we wanted. i think the main thing is to get a proper store. >> thank you. >> my name is ron case. i am current chairman of norfolk neighbors. i wanted to say over the last few months, i will be speaking in favor of the development. we have been negotiating with

trader joe's and cbs, and i think mainly the big issue most people will be talking about is the liquor license for cbs -- we have been negotiating with trader joe's and cvs. they came back with some really creative solutions that would help our neighborhood. we have some real problems places in our neighborhood, and we felt this was a good situation for us. based upon their dealing with us, straightforwardness, they have talked to us, they come back and ask us what we would like to have, what we would like to see, we are in support of the proposal for cvs to be part of this. >> thank you. [reading names] i will keep calling names. if you heard your name, please start coming up to the microphone.

>> good afternoon, commissioners. i am a neighbor, and i'm very much in support of this proposed project. i do my primary shopping at trader joe's, and right now, i have to go down to bay street to shop. i'm very much looking forward to being able to walk to this trader joe's. i think having another pharmacy is not a bad idea as well. thank you. >> thank you. if you heard your name, if you could please start coming to the microphone. >> i lived across the street.

i have listened to the people here. my experience with trader joe's is quite different. i find it prices really reasonable, and basically, people take me now to trader joe's, and that is where i do most of my shopping. by some things where i have to go somewhere else, but there are a lot of people in our building, maybe as many as 10 who are old and disabled, but they really need something there. i could do with another drug store, too, because that is near walgreen's. it is two blocks down and then up. i'm really looking forward to it, and i hope you will approve it. >> thank you. >> hello. i have to say, sorry for my language barrier.

i own a small shop across, and experience which i have every day with customers asking me when they go to have a new grocery store across the street. so please vote in favor for the new grocery store. other ways, you have lots of businesses in that area regarding a liquor license. for the past year, i witnessed a few bars open there. i wonder why the liquor license for that bar was not the problem. and regarding competition, cvs would be good there because competition is always good for the city, so please vote in favor. thank you so much.

commissioner olague: thank you. >> i have been a resident at my address about a block and a half away for the last 30 years. right now, it has been devastating. in order to get food, we have to take buses. you have to go way out of the neighborhood just to get something as simple as meet -- meat. they apple is about the only place in our neighborhood where you can buy affordable groceries. they do not have a meat market. it is a little thing, about two feet wide, and that is about it. simple products like bread, juices, cat food is simply not available or very limited supply. you are lucky that day if they happen to have that particular product. whole foods is the only other place, and that is really out of my price range.

we do not have any place to buy groceries other than to go take a bus, rent a car, do something and go to the castro or to go way out into the cabinet just to get something very simple and basic like food. i wish safeway would move in. i wish it was another store. i wish we had more notice. we do not. what we have got is a store we can move in right now. let's let them move in. let's let the market get the prices down. let them go where they are. if we are going have to pay higher prices, we will have to pay higher prices, but at least we will have food to buy. something we do not have right now. if i need to have groceries, even if i have to go to big apple, i have no way of carrying these things home. i have to take a bus, and i can

only buy one sack of groceries. before, even i could take two bags of groceries and hike up a hill, but now, try taking something on the bus. it is virtually impossible. the inconvenience of it is not that it is just another block or two that i have to walk. it is hiking up a hill, and it is hard when you are old and disabled. it is hard when you're tired after a hard day's work, and the prices will be with the prices are, and with more stores in the area, there will be competition. it is going to be harder. we will have to be better shoppers. that is what we will have to do, but we have to do it now, so please, let them move in. commissioner olague: [reading names]

>> i have owned a business on pope st. for 35 years. i lived in the neighborhood. i can remember when the market was a cable car barn a long time ago. this is formula used legislation. i do not understand what it is being bundled as two. if the project were a minimal, there would be six or seven. would this be one hearing for all six or seven? i do not think that is the spirit of the way the legislation was. i think we should have two separate hearings about this. this has been going on for a while. polk street merchants have been going to some of the meetings. trader joe's has been to every one of the meetings, has had a representative employee.

cvs -- we have never seen an employee at any of the meetings. we have never heard from them. we have actually written, and all we have gotten our e-mails was just cannot in the last three or four days from the consultants on the project. cvs does not want to seem to do anything with this except for use a consultant. this is not part of our neighborhood. the polk street merchants does not have a problem with trader joe's, looks forward to having it. having cvs is a problem. we urge you to split this up as it should be. and consider each one of them. how many drug stores are there? how many grocery stores are there? these are two separate companies. they do not have any ownership altogether. i appreciate your time.

>> afternoon, commissioners. i have lived in the neighborhood since 1997. my wife and i enjoy shopping at trader joe's. we think it is a very good store. we personally welcome their location. but we feel there is more than enough pharmacies in the area, given the hospital that is within a stone's throw of california and height, along with multiple walgreen's stores. while i understand that the site is too large for trader joe's and that a business decision was made to partner with cvs for the site, i have a simple issue to raise -- beer and wine have got no business being sold out of a pharmacy. if you allow this to occur, walgreen's and other competitors will request the same approvals

for their stores to be at parity with cvs. cvs is a good marketer. they have the ability to lower prices to predatory levels to get customers in the stores, and i would like them to focus on what they supposedly do best -- being a pharmacy. beer and wine opens up a can of worms for the neighborhood and for the city. cvs sells a plethora of products. short of lawn furniture, you can get most anything. i'm sure the marketing people can come up with promotions and numbers that will make this venture work. they can work around the disapproval of a beer and wine application. but the state -- to state that beer and wine is a deal breaker, which is something we have heard -- that is suspect, and you should take note of that. i am in favor of trader joe's. i wince at cvs at the site.

i'm sure we can keep this a level playing field. i would like you to approve the project, but disapproved any sort of application for cvs to sell liquor. thank you. >> good afternoon, commissioners. just a quick clarification -- in the letter mr. case said to the commission, he stated that lower pulp has not voted on this issue. his endorsement is his endorsement because it has not been voted on. we are always opposed to liquor licenses in our neighborhood because we are inundated with places to buy liquor. i just have a little graphic.