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HomeMy WebLinkAboutAgenda Report - May 13, 2009 B-01 PH/SMAGENDA ITEM 8 00' CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Conduct Public Hearing to consider appeals filed by Wal-Mart Stores, Inc., Browman Development Company, Lodi First, and PAQ, Inc. regarding the decision of the Planning Commission to deny Use Permit (U-02-12) concerning a Use Permit for the construction of a commercial center in a C -S, Commercial Shopping District, and the sale of alcoholic beverages at the proposed Wal-Mart Supercenter; Vesting Tentative Parcel Map (03-P- 001) concerning the creation of 12 parcels for the project; and Site Plan and Architectural Review (08 -SP -08) concerning site plan and architectural review of a proposed Wal-Mart Supercenter at the proposed Lodi Shopping Center located at 2640 West Kettleman Lane (collectively "the Project"); and further consider approval of the Project and consider adopting findings and statements of overriding considerations pursuant to the California Environmental Quality Act. MEETING DATE: May 13,2009 PREPARED BY: Community Development Director RECOMMENDED ACTION: Conduct Public Hearing to consider appeals filed by Wal-Mart Stores, Inc., Browman Development Company, Lodi First, and PAQ, Inc. regarding the decision of the Planning Commission to deny Use Permit (U-02-12) for the construction of a commercial center in a C -S, Commercial Shopping District, and the sale of alcoholic beverages at the proposed Wal-Mart Supercenter; Vesting Tentative Parcel Map (03-P- 001) concerning the creation of 12 parcels for the project; and Site Plan and Architectural Review (08 -SP -08) concerning site plan and architectural review of a proposed Wal-Mart Supercenter at the proposed Lodi Shopping Center located at 2640 West Kettleman Lane (collectively "the Project"); and further consider approval of the Project and consider adopting findings and statements of overriding considerations pursuantto the California Environmental Quality Act. BACKGROUND INFORMATION: On April 8, 2009, the Planning Commission held a Public Hearing to consider the applications that have been filed regarding the Lodi Shopping Center project. The specific applications would enable the project to move forward. The Use Permit requests are required by the Commercial Shopping (C -S) zoning designation. An additional Use Permit is required in order for Wal-Mart to sell alcoholic beverages within its store. The Vesting Tentative Map allows for the subdivision of the property consistentwith the number of buildings planned for the site and the site plan and architectural review is required for any building constructed on the property. In this case, just the Wal-Mart store is being reviewed at this time. Finally, the Planning Commission considered the required findings and statements of overriding considerations which link the project approvals to the certified Final Revised Environmental Impact Report. APPROVED: % Blair King, City anager The Planning Commission took testimony from 13 people including the project applicants and opponents. As with the previous meetings on this project, the focus of the comment was on the advantage or disadvantage of having a Wal-Mart Supercenter, not necessarily the details of the specific requests. The main issue raised by the attorneys representing Lodi First and Citizens for Open Government was on the findings and statements of overriding considerations which relate back to the action taken by the City Council to certify the environmental document. After consideration of the testimony, the Planning Commission voted a 3-3 tie. As the City Council is aware, an action approving a project requires an affirmative vote of the majority of the Planning Commission, so the end result of the Commission's tie vote was denial of the requests. The City has received four appeals as noted in the title of this action. Two appeals have been filed on behalf of the applicants and two requests were filed by the opposition to the project. PROJECT DESCRIPTION: Use Permit and Tentative Map Analvsis: Approximately 18 years ago, the City's General Plan designated the southwest corner of West Kettleman Lane/State Route 12 and Lower Sacramento Road for the construction of large-scale retail development. Since that time, the centers on the other three corners have built out as envisioned. Major national retailers such as Wal-Mart, JCPenney, Target, and Lowe's have occupied these corners. The Lodi Shopping Center is proposed on the remaining fourth corner to be anchored by a Wal-Mart Supercenter. This type and scale of development is consistent with the activity that has occurred at the other three corners. The City's Zoning Code requires that all plot plans for projects within the C -S, Commercial Shopping District receive Planning Commission approval. Over time, this review has been done through the Use Permit process. The Zoning Code also requires Use Permit approval for the sale of alcoholic beverages. The applicant is requesting a Use Permit and a Vesting Tentative Map in order to divide the property into 12 lots that will correspond to the number of buildings anticipated for the project. The proposed project includes the construction of approximately 339,966 square feet of commercial retail uses, representing a variety of retail sales and services, to be contained in 12 buildings of varying sizes. The primary use will be a Wal-Mart Supercenter that will occupy approximately 226,868 square feet of floor area, including approximately 70,000 square feet for grocery sales, 19,889 square feet for a garden center (including outdoor fenced area), and 6,437 square feet for an auto service shop. The Wal-Mart Supercenterwill not include the use of outdoor metal storage containers, and will not include a seasonal sales area in the parking lot. A moderate sized retailerwill occupy approximately 35,000 square feet on pad 12 in the southeast corner of the site. The remaining 11 buildings will range in size from 3,200 square feet to 14,788 square feet. Three of the 11 buildings will be occupied by fast food franchises, with another two buildings consisting of sit-down restaurants, and the remaining buildings occupied by such retail uses such as financial services/bank, professional/business services, and other retail sales and services. The uses, layout and design of the shopping center have remained the same as that presented to and approved by the Planning Commission in December 2004. The Wal-Mart building is located at the southwestern corner of the site, with 11 freestanding buildings located along Kettleman Lane and Lower Sacramento Road to the north and east. In the center of the shopping center is the main parking lot. The proposed vesting tentative map includes the Wal-Mart store and all corresponding parking in the largest lot (lot 12, 18.3 acres), with each of the remaining 11 buildings on their own lot with associated parking. These other lots are generally one+/- acre, ranging from 0.53 acres (lot 8) to 2.6 acres (lot 11). Internal travel lanes, parking medians and planters are located throughout the interior. Access to the Center is mainly from Westgate Drive and Lower Sacramento Road, with right turn in and out only from Kettleman Lane. As shown on the site plan, significant public improvements are required in order to build this project, as detailed in the draft conditions in the accompanying resolution of approval. The applicant will be responsible for the construction of Westgate Drive from Kettleman Lane to the southerly project boundary as well as the frontage improvements on Kettleman Lane and Lower Sacramento Road. The applicant is also responsible for the approximately four -acre site across Westgate Drive to be used for storm water detention, all associated project right-of-way dedications, utility easements, engineering reports and studies, and fees. An encroachment permit from CalTrans for Kettleman Lane/State Route 12 will be needed. Conditions in the draft Resolution cover fire safety, outdoor storage or display of merchandise, shopping cart storage, security and exterior lighting. Consistent with the prior approval by the City Council, conditions relative to re -use of the existing Wal-Mart building are also included. Further, even though a CEQA environmental impact as to urban decay or physical deterioration from the Lodi Shopping Center cannot be made, the City Council can make a decision that the economic effects of the Center on the Downtown should be addressed. To this end, staff is proposing a condition to require the Lodi Shopping Center to invest in the Downtown area. The aggregate value of the capital improvement must exceed $700,000. Finally, a condition is included to incorporate all mitigation measures as specified in the certified FREIR. The Use Permit will allow the Wal-Mart Supercenter to sell alcoholic beverages. No Use Permit for alcohol for any of the freestanding buildings has been applied for or is under consideration. The tenants of these freestanding buildings are not known to staff and have not been included in this request. Any such request in the future would require a Planning Commission hearing at that time when the specific details of the requesting business are known. The City Council has previously found that the sale of alcoholic beverages is incidental to a grocery store operation and that is what is being requested by the Wal-Mart Supercenter. As such, staff is recommending that the City Council approve the request to sell alcohol. The second Use Permit request emanates from the C -S zoning designation which specifically states that a "detailed plot plan of the proposed construction" be submitted to the Planning Commission. The design standards identified in the code are as follows: A. The site shall be designed and used as a unit, regardless of ownership of the land and buildings. B. All streets bordering the site shall be fully dedicated and improved by the developer. C. The design of the development shall include the landscaping of buildings and parking areas, the screening of nearby residential areas, and the enclosure or shielding of trash and disposal areas. Lights and signs shall be located to avoid disturbance to residential areas. D. Driveways, parking areas and loading areas shall be located so as to minimize traffic interference. Section 17.58 of the Municipal Code adds additional design requirements to the project. These standards were adopted in 2004 specifically to deal with the design of large-scale retail establishments like Wal-Mart. The applicant has met or exceeded each of these standards as presented and conditioned, and staff recommends approval of the request. As previously discussed in the analysis, a vesting tentative map approval is requested to divide the site into 12 lots. The applicant has met the requirements of the City's subdivision ordinance and the State Subdivision Map Act, and staff recommends approval of the map. SPARC Review: Along with the plot plan and tentative map for the Lodi Shopping Center, preliminary elevations and colors for the Wal-Mart Supercenter have been submitted. No elevations or colors, landscaping plan, signage plan, materials, or other final plans for the rest of the Center or buildings have been submitted. As mentioned, this shopping center is subject to the City's Design Standards for Large Retail Establishments. The overall site layout, building footprints, parking areas, and access driveways provide the overall direction of the Center and were used by staff and the Planning Commission in the December 8, 2004 review to determine that this project complies with the Design Standards for Large Retail Establishments. As such, no further design, layout, or changes have been proposed. The proposed project includes the construction of a new Wal-Mart Supercenter store with a building size of approximately 226,868 square feet. The Wal-Mart building would be located on the southwestern portion of the project site, and the building entrance would face east toward Lower Sacramento Road. The Wal-Mart Supercenter building is a single story structure. The architectural theme of the building is a contemporary style and uses construction materials commonly used in commercial shopping center construction. Architectural materials such as concrete masonry block, metal awnings, and exterior plaster finish will be utilized on the exterior of the building. The major materials used for architectural treatment include fawn (brown) colored stucco, fawn (brown) cultured stone veneer, split face (light brown) block, sea -green colored smooth finish metal panels, charcoal roofing material, hallow (gunmetal gray) metal doors and cornices, and black fencing. The body of the building will be in shades of brown. The ground level will have fawn (brown) colored stucco walls with fawn colored stone veneer accent walls near key entrances and along the lower eight feet of the exteriorwall. The architectural treatment features are mostly used on the north and east elevation. Also on the main entrance, a canopy type architectural feature is proposed. The proposed main entry canopy will be clad with a brown cultured stone finish. The west and south elevations do not feature the same detailed architectural treatment. The west (rear) elevation is a continuous wall with little architectural treatment to breakup the elevation of the building. The entire west elevation will have fawn (brown) colored stucco walls with metal doors painted to match the stucco. Cornices and accent trims are provided to break up the wall elevation. The ground level will also have cultured veneer stone elements. The midsection of the western elevation should receive further architectural treatment to add architectural interest to the wall. It is importantto note that this elevation will be visible from across Westgate Drive. The southern elevation will feature nearly identical architectural treatment as the west elevation. However, the proposed southern elevation is less of an issue. First, there will be an 8 -foot tall masonry wall on the southern property line to block any view of this elevation from the project to the south. Second, unlike the western elevation, the southern elevation is not a continuous large mass elevation. Because the main axis of the building faces west (the longest elevation), the south elevation is the side of the building and is relatively small in size in comparison. A condition of approval is included in the SPARC Resolution regarding additional architectural treatment for the west elevation. Circulation and Parking The site plan indicates six access points to three public streets. There will be three entrances/exits from Lower Sacramento Road, one from Kettleman Lane (Highway 12), and two from Westgate Drive. All three streets will have a raised center median that will restrict turning movements in some degree. The main entrance to the project parking lot is from Lower Sacramento Road and will be located near the middle of the project site. This entrance will have a traffic signal to control traffic flow and will allow both entering and exiting traffic to turn in both directions. The other access pointsfrom Lower Sacramento Road will be restricted to rightturn-in and right turn -out movements. The direct driveway entrance from Kettleman Lane (Highway 12) will only permit a right turn -in and right turn -out traffic movement. Traffic can also access the shopping center from Kettleman Lane by way of Westgate Drive. This intersection is controlled by an existing traffic signal that will allow both right- and left -turning movements. The main (northern) access point from Westgate Drive will allow both right- and left-hand turning movements. The southern access point will only allow right - in, right -out movements. Circulation to and from the site is very similar to the Vintners Square Center (Lowe's) to the north. The main parking lot is located on the east side of the Wal-Mart building. There will be smaller parking areas to serve the free-standing commercial pads. For the Wal-Mart building, a total of 965 parking spaces are proposed (4.45 per 1,000 square feet of building). A total of 434 parking spaces are required, per City code (General Retail 1 per 500). The proposed number of parking stalls exceeds the minimum parking requirements. There are 12 cart corrals proposed to be distributed throughout the parking lot. These cart corrals will be screened in brown Concrete Masonry Unit (CMU) wall with wooden frames to provide additional ornamentation. Landscaping and Signage The proposed landscape plan calls for various large shade trees, smaller trees, shrubs and ground covers. A total of 478 larger shade trees will be provided within the parking lot interior, along the southern and western edges the property line, and throughout the site. This total number of trees exceeds what the City code requires. The approval of project signage is not a part of the current review and would be subject to City of Lodi codes and requirementsto ensure they complement the building architecture and landscaping of the building. Signage applications and approvals would be done separately, should the project be approved. CONCLUSION: Staff believes that the discretion the City Council has is fairly limited as it relates to the project requests. The Use Permit, Tentative Map and Site Plan and Architectural review are all consistent with City Ordinances, Policy and past practice. The area of broader discretion is with the CEQA findings and statements of overriding considerations, and staff recommends approval of the Project. FISCAL IMPACT: None FUNDING AVAILABLE: None adt Bartlam Community Development Director Attachments: Draft Resolution Sheppard Mullin Richter& Hampton/ Remy Thomas Moose& Manley Appeal dated April 10,2009 Herum Crabtree Appeal dated April 15,2009 PAQ, Inc. Appeal dated April 17,2009 Planning Commission Resolution from April 8,2009 Draft Planning Commission Minutes from April 8, 2009 Planning Commission Staff Reportfrom April 8, 2009 CITY COUNCIL RESOLUTION RESOLUTION NO. 2009-58 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING USE PERMIT FILE NO. U-02-12 TO ALLOW THE CONSTRUCTION OFA COMMERCIAL SHOPPING CENTER IN THE C -S ZONE AND ALLOW THE SALE OF ALCOHOLIC BEVERAGES AT THE WAL-MART SUPERCENTER; APPROVING THE TENTATIVE PARCEL MAP 03-P-001 TO CREATE 12 PARCELS FOR THE PROJECT RELATING TO THE LODI SHOPPING CENTER; AND PROVIDING THE ARCHITECTURAL APPROVAL OF A NEW COMMERCIAL BUILDING TO BE CONSTRUCTEDAT 2640 WEST KETTLEMAN LANE (WAL-MART), AND MAKING FINDINGS AND STATEMENTS OF OVERRIDING CONSIDERATIONS PURSUANTTO THE CALIFORNIA ENVIRONMENTAL QUALITYACT ------------------------------------------------------------------------ ........................................................................ WHEREAS, an application was filed by Browman Development Company for a commercial shopping center at 2640 W. Kettleman Lane more particularly described as Assessor's Parcel Numbers 058-030-08 and 058-030-02 and portion of 058-030-09; and WHEREAS, the application is for the following approvals: Use Permits for the construction of commercial structures as required by the C -S Commercial Shopping District and for the sale of alcoholic beverages, a Vesting Tentative Map to create 12 parcels for the project, and architectural approval of a new commercial building including elevations and colors to be used for the construction of a Wal-Mart store located at 2640 W. Kettleman Lane (the "Project"); and WHEREAS, the Planning Commission of the City of Lodi, after more than ten (10) days published notice, held a public hearing before said Commission on April 8, 2009; and WHEREAS, the Planning Commission voted 3-3 on a motion to approve the requests and make the findings, which resulted in a denial of the Project approvals; and WHEREAS, the Project is consistent with all elements of the General Plan, and in particular, the following General Plan Goals and Policies: A. Land Use and Growth Management Element, Goal E, "To provide adequate land and support for the development of commercial uses providing goods and services to Lodi residents and Lodi's market share." B. Land Use and Growth Management Element, Goal E, Policy 7, "In approving new commercial projects, the City shall seek to ensure that such projects reflect the City's concern for achieving and maintaining high quality." C. Land Use and Growth Management Element, Goal E, Policy 3, "The City shall encourage new large-scale commercial centers to be located along major arterials and at the intersections of major arterials and freeways." D. Housing Element, Goal C, "To ensure the provision of adequate public facilities and services to support existing and future residential development". E. Circulation Element, Goal G, "To encourage a reduction in regional vehicle miles traveled." F. Circulation Element, Goal A, Policy 1, "The City shall strive to maintain Level of Service C on local streets and intersections. The acceptable level of service goal will be consistentwith financial resources available and the limits of technical feasibility." G. Noise Element, Goal A, "To ensure that City residents are protected from excessive noise." H. Conservation Element, Goal C, Policy 1, "The City shall ensure, in approving urban development near existing agricultural lands, that such development will not constrain agricultural practices or adversely affect the economic viability of adjacent agricultural practices." I. Health and Safety Element, Goals A, B, C, and D, "To prevent loss of lives, injury and property damage due to flooding." To prevent loss of lives, injury, and property damage due to the collapse of buildings and critical facilities and to prevent disruption cf essential services in the event of an earthquake. To prevent loss of lives, injury, and property damage due to urban fires. To prevent crime and promote the personal security of Lodi residents. J. Urban Design and Cultural resources, Goal C, "To maintain and enhance the aesthetic quality of major streets and public/civic areas." WHEREAS, the design and improvement of the site is consistent with all applicable standards adopted by the City. Specifically, the project has met the requirements of the Lodi Zoning Ordinance with particular emphasis on the standards for large retail establishments; and WHEREAS, the design of the proposed project and type of improvements are not likely to cause public health or safety problems in that all improvements will be constructed to the City of Lodi standards; and WHEREAS, these findings, as well as the findings made within City Council Resolution No. 2009-27 certifying Final Revised Environmental Impact Report EIR-03-01, are supported by substantial evidence in the record of this proceeding and before this body; and WHEREAS, approval of the requested architectural drawings will allow the construction of a commercial building that will comply with the City's Zoning Ordinance and Building Code regulations; and WHEREAS, the design of the proposed project and type of improvements are not likely to cause public health or safety problems in that all improvements wilI be constructed to the City of Lodi standards; and WHEREAS, the City of Lodi has invested over sixteen million dollars in its Downtown area to revitalize and create a specialty retail and commercial destination within the City; and WHEREAS, the Lodi Shopping Center will create retail and commercial shopping opportunities outside of the Downtown area; and WHEREAS, the City of Lodi is committed to revitalizing its Downtown area and is requiring that all new retail and commercial developments contribute to that effort; and 2 WHEREAS, the City of Lodi recognizes that the applicant will make an in kind contributionto the redevelopment of the Downtown area. NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED that the Lodi City Council does hereby approve the Project subject to the following findings, conclusions, and conditions of approval: California Environmental Quality Act ("CEQA") 1. The foregoing recitals are true and correct and incorporated herein by reference. 2. The City Council incorporates herein by reference City Council Resolution No. 09-27, dated March 11, 2009 certifying the Final Revised Environmental Impact Report ("EIR") for the Project and finds that the EIR, as revised, adequately identifies all significant environmental effects of the project pursuantto CEQA. 3. As provided by Public Resources Code section 21081, CEQA Guidelines sections 15091, 15092, and 15093, and other relevant provisions of CEQA, the City Council hereby makes and adopts those Findings of Fact and Statement of Overriding Considerations ("Findings") set forth in Exhibit A, attached hereto and incorporated herein by reference. The City Council, exercising its own independent judgment, determines that such Findings are supported by substantial evidence in the record including, but not limited to, the information and materials contained in the EIR, as revised, all notices and other documents related thereto, those documents and materials described in California Public Resources Code section 21167.6(e), and those documents and materials referenced in the Findings. 4. The City Council hereby approves and adopts each and every mitigation measure proposed in the EIR, as revised, (and as set forth in Exhibit A, attached hereto) and makes such mitigation measures a required component of and incorporated into approval of the Project. The City Council further finds that, except as to impacts found by the EIR to be significant and unavoidable, implementation of the mitigation measures identified and discussed in the EIR will avoid or lessen to a level of less than significant those environmental effects identified in the EIR for which a mitigation measure is identified. 5. Pursuantto Public Resources Code section 21081.6, the City Council hereby approves and adopts the Mitigation Monitoring and Reporting Program, attached hereto as Exhibit B and incorporated herein by reference, which was prepared in conjunction with the EIR. The Mitigation Monitoring and Reporting Program is made a required component and condition of approval of the Project. 6. Because the adoption of all feasible mitigation measures will not substantially lessen or avoid all significant adverse environmental effects caused by the project, the City Council adopts a Statement of Overriding Considerations concerning the Project's unavoidable significant impacts to explain why the Project's benefits override and outweigh its unavoidable impacts on the environment as set forth in ExhibitA. 7. The City Council does hereby make its findings with respect to the significant effects on the environment resulting from the Project, as identified herein and in the hereinbefore mentioned EIR, with the stipulation that all information in the findings is intended as a summary of the full administrative record supporting the EIR, which full administrative 3 record is available for review through the Director of Community Development at his office in Lodi City Hall at 221 West Pine Street, Lodi, 95241. 8. Having reviewed and considered the Draft and Final EIR for the Project, as revised, and other relevant materials and information in the record, the City Council hereby approves the Project and makes the following specific findings relative thereto. Use Permit andTentative Map 1. The foregoing recitals are true and correct and incorporated herein by reference. 2. Said Tentative Map complies with the requirements of the City Subdivision Ordinance, and the Subdivision Map Act. 3. Said Site Plan complies with the requirements of the Commercial Shopping (C -S) Zoning District. 4. The submitted plans, including site plot plan and architectural elevations for the major anchor building, for the project is approved subject to the following conditions. A. The approval of the Use Permit expires within 24 months from the date of this Resolution. Should any litigation be filed or continued regarding this project, the time limit shown shall be tolled during the pendency of the litigation. Final Parcel Map(s) conforming to this conditionally approved Tentative Parcel Map shall be filed with the Public Works Department in time so that the Public Works Department may approve said map before its expiration pursuant to City Council Resolution 2008-125, unless prior to that date, the Planning Commission or City Council subsequently grants a time extension for the filing of the Final Parcel Map, as provided for in the City's Subdivision Ordinance and the Subdivision Map Act. The Public Works Department shall notify the City Council of any such approvals. It is the developer's responsibilityto track the expiration date. Failure to request an extension will result in a refilling of the Tentative Map and new review processing of the map. Pursuant to Government Code section 66456. 1, the applicant may seek multiple/phased final maps. B. Prior to submittal of any further plan check or within 90 days of the approval of this project, whichever occurs first, the applicant and all property owners shall sign a notarized affidavit stating that "I (we), , the owner(s) or the owner's representative have read, understand, and agree to implement all mitigation measures identified in the Final Environmental Impact Report for the Lodi Shopping Center and the conditions of the City Council approving U-02-12 and 03-P-001." Immediately following this statement will appear a signature block for the owner or the owner's representative, which shall be signed. Signature blocks for the Community Development Director and City Engineer shall also appear on this page. The affidavit shall be approved by the City prior to any improvement plan or final map submittal. C. Prior to issuance of any building permit on the site, each building shall be reviewed by the Site Plan and Architectural Review Committee for consistency with this resolution as well as all applicable standards of the City. D. All applications for Site Plan and Architectural Review Committee consideration shall comply with the following conditions: 4 1. All buildings shall comply with the requirements of C -S zoning district and meet setback requirements from the right of way shown on the site plan. All buildings shall implement building elements and materials illustrated on the submitted elevation or otherwise consistent with the architectural theme presented on the submitted elevation of the major tenant building. 2. Submit a construction landscape plan consistent with the submitted conceptual landscape plan. The applicant shall also insure that the overall ratio of trees, including perimeter landscaping is equal to one tree for every four parking spaces. Further, said plan shall demonstrate that the City's requirement for parking lot shading is met. 3. The applicant shall select and note on all plans common tree species for the parking lot and perimeter areas from the list of large trees as identified in the Local Government Commission's "Tree Guidelines for the San Joaquin Valley". 4. All drive-through eating facilities shall have a "double service window" configuration and pullout lane to minimize auto emissions. 5. Cart corrals shall to be provided in the parking lot adjacent to Wal-Mart and distributed evenly throughout the lots rather than concentrated along the main drive aisle. In addition, a cart corral shall be provided as close as possible to the two bus stop/shelters provided on-site. Further, cart corrals shall be permanent with a design that is consistent with the theme of the center. Portable metal corrals shall be prohibited. Developer shall install landscaping, curbing and other features to discourage removal of carts from the site. However, if such features prove ineffective, the Planning Director may require the installation of a cartwheel locking system. 6. Trash enclosures shall be designed to accommodate separate facilities for trash and recyclable materials. Trash enclosures having connections to the wastewater system shall install a sand/grease trap conforming to Standard Plan 205 and shall be covered. 7. Hardscape items, including tables, benches/seats, trashcans, bike racks, drinking fountains, etc. shall be uniform for all stores throughout the shopping center. 8. All signage shall be in compliance with a detailed Sign Program that shall be submitted to SPARC for review and approval with the first building plan review. 9. Said program shall require all signs to be individual channel letter at the standards provided by the zoning ordinance. 10. Any bollards installed in a storefront location shall be decorative in style and consistent with the theme of the shopping center. Plain concrete bollards, or concrete filled steel pipe bollards shall not be permitted. E. All landscaped area shall be kept free from weeds and debris, maintained in a healthy growing condition and shall receive regular pruning, fertilizing, mowing, and trimming. Unhealthy, dead, or damaged plant materials shall be removed and replaced within 30 days following written notice from the Community Development Director. F. The following items are conditions of approval for the vesting tentative parcel map, all to be accomplished prior to, or concurrent with, final parcel map filing unless noted otherwise: 1. Project must receive and comply with all terms of the Cal Trans encroachment Permit necessary for access to Highway 12 directly from the Project and from Westgate Drive. Any conditions imposed by Cal Trans for the encroachment permit that result in site plan modifications shall be reviewed by City staff for consistency with Project approvals. 2. Dedication of street right-of-way as shown on the parcel map with the following changes/additions: a) Street right-of-way dedications on Westgate Drive shall be in conformance with the lane geometries, transitions and turn pocket configurations resulting from Item #1 above. The dedications shall be to the approval of the Public Works Department. b) Right-of-way dedications on Lower Sacramento Road and Kettleman Lane shall be in conformance with the lane geometries resulting from Item #1 above and City of Lodi street geometric requirements for this project and to the approval of the Public Works Department and Caltrans. Right-of-way dedications on Kettleman Lane shall be made to Caltrans in conformance with their requirements. Separate parcels shall be created for Caltrans dedications. It should be anticipated that Caltrans will require street widening improvements west of the project boundary. Acquisition of any right-of-way necessary to meet Caltrans requirements shall be the responsibility of the developer. c) Lower Sacramento Road is an established STAA route and turning movements to and from the roadway into private driveways and intersecting streets are required to demonstrate that accommodation has been made for the truck turning movement in conformance with Public Works requirements. d) The right-of-way dedication and driveway design at the south project driveway on Lower Sacramento Road shall accommodate and be in conformance with the California Semitrailer wheel track (18m/60ft radius) turning template. e) Right-of-way dedications at all proposed project driveway locations shall be sufficient to accommodate the handicap ramps and public sidewalks at the crosswalk locations. In addition, the right-of-way dedication at the proposed traffic signal location on Lower Sacramento Road shall be sufficient to allow installation of the traffic signal improvements within the public right-of-way. 3. Dedication of public utility easements as required by the various utility companies and the City of Lodi, including, but not limited to, the following: a) A PUE along the southerly property line sufficient to accommodate the installation of electric utility overhead transmission lines and underground conduit bank which may be outside proposed landscape areas, and the extension of water, wastewater and industrial waste transmission lines between Lower Sacramento Road and Westgate Drive. We anticipate the 6 required PUE along the south project boundary will be on the order of 65 to 75 feet. It may be possible to reduce the width of the PUE by realigning some of the pipes through the shopping center site. The actual alignment and width will be to the approval of the Public Works Department and City of Lodi Electric Utility. b) A PUE at the proposed signalized project driveway to accommodate the installation of traffic signal loops. c) A PUE at the existing southerly Sunwest Plaza (Food 4 Less) driveway to accommodate the installation of traffic signal loops. Acquisition of the PUE is the responsibility of the developer and must be accomplished prior to recordation of any final parcel map. 4. Provide a private access easement providing a clear path of travel for pedestrian traffic from the public right-of-wayto all parcels within the boundaries of the map in conformance with ADA requirements. 5. In order to assist the City in providing an adequate water supply, the property owner is required to enter into an agreement with the City that the City of Lodi be appointed as its agent for the exercise of any and all overlying water rights appurtenant to the proposed Lodi Shopping Center, and that the City may charge fees for the delivery of such water in accordance with City rate policies. The agreement establishes conditions and covenants running with the land for all lots in the parcel map and provides deed provisions to be included in each conveyance. Submit final map per City requirements including the following: a) Preliminarytitle report. b) Standard note regarding requirements to be met at subsequent date. 6. Payment of the following: a) Filing and processing fees and charges for services performed by City forces per the Public Works Fee and Service Charge Schedule. G. The following items are conditions of approval for the vesting tentative parcel map and use permit that will be deferred until the time of development: 1. Engineering and preparation of improvement plans and estimate per City Public Improvement Design Standards for all public improvementsfor all parcels at the time of development of the first parcel. Plansto include: a) Detailed utility master plans and design calculations for all phases of the development, including the proposed temporary storm drainage detention basin. Detailed utility master plans have not been developed for the area between Kettleman Lane on the north, Harney Lane on the south, Lower Sacramento Road on the east and the current General Plan boundary on the west. The project site is at the upstream boundary of the storm drain and wastewater utilities for this area. The developer's engineer shall provide a detailed drainage master plan, including engineering calculations, for the entire area as well as all phases of the proposed project. The developer's engineer shall prepare and submit a work plan/scope for master plan preparation for approval by the City Engineer prior to start of 7 master plan work. Master plans need to be coordinated with the Southwest Gateway development. City staff will assist in the master planning process to the extent practicable. Should City staff be unable to meet developer's schedule, developer shall have the option to pay the City to contract for supplemental outside consultant services to expedite review and approval of the master planning work. b) Current soils report. If the soils report was not issued within the past three (3) years, provide an updated soils report from a licensed geotechnical engineer. c) Grading, drainage and erosion control plan. d) Copy of Notice of Intent for NPDES permit, including storm water pollution prevention plan (SWPPP). e) All utilities, including street lights and electrical, gas, telephone and cable television facilities. f) Landscaping and irrigation plans for street medians and parkway areas in the public right-of-way. g) Undergrounding of existing overhead utilities, excluding transmission lines. h) Installation of the proposed traffic signal at the main project driveway on Lower Sacramento Road. The traffic signal shall be designed to operate as an eight phase signal. i) Modification of the existing southerly Sunwest Plaza (Food 4 Less) driveway to widen the driveway to the approval of the Public Works Department. j) Installation/modification of the traffic signal at the Kettleman Lane/Westgate Drive intersection as required by the project. k) Traffic striping for Lower Sacramento Road, Westgate Drive and Kettleman Lane. A complete plan check submittal package, including all the items listed above plus the Map/Improvement Plan Submittal cover letter, Improvement Plan Checklist and engineering plan check fees, is required to initiate the Public Works Department plan review process for the engineered improvement plans. 2. There is limited wastewater capacity in the wastewater main in Lower Sacramento Road. The area of the shopping center site containing the proposed Walmart store lies outside the service area for the Lower Sacramento Road wastewater line. Developer shall perform a capacity analysis using approved flow monitoring protocols to assess the viability of utilizing the Lower Sacramento Road wastewater line on an interim basis. Wastewater facilities outside the Lower Sacramento Road service area shall be designed to allow future connection to the wastewater main in Westgate Drive. If the capacity analysis indicates that interim capacity in the Lower Sacramento Road wastewater line is not available, wastewater collection facilities shall be constructed to serve the project to the satisfaction of the Public Works Director. 8 3. Installation of all public utilities and street improvements in conformance with City of Lodi master plans and design standards and specifications, including, but not limited to, the following: a) Installation of all curb, gutter, sidewalk, traffic signal and appurtenant facilities, traffic control or other regulatory/street signs, street lights, medians and landscaping and irrigation systems in Westgate Drive, Kettleman Lane and Lower Sacramento Road. b) All improvements on Kettleman Lane shall be in conformance with City of Lodi and Caltrans requirements and require a Caltrans encroachment permit. The Caltrans encroachment permit submittal package shall include a terminal access route application for STAA trucks. Additional right-of-way acquisition outside the limits of the map may be required. The City of Lodi will assist the developer in obtaining the additional right-of-way that may be required. Design and construction staking for the Kettleman Lane improvements will be performed by the City at the Developer's expense. c) Street improvements in Westgate Drive shall be in conformance with the lane geometries, transitions and turn pocket configurations resulting from Item #1 above and landscaped median, parkway and sidewalk improvements required by the City. Developer shall have no obligation to do any work on Westgate Drive west of the westernmost curb. d) Modification of the existing southerly Sunwest Plaza (Food 4 Less) driveway to construct a driveway to the approval of the Public Works Director. Acquisition of additional right-of-way and construction easements from the adjacent property to the south (APN # 058-140-04) may be necessary to accomplish this work and shall be the responsibility of the developer. e) The extension/installation of all public utilities, including, but not limited to, the extension/installation of master plan water, wastewater, storm drainage and recycled water mains to the south end of Westgate Drive, the extension of water, wastewater and industrial waste transmission lines through the shopping center site from Lower Sacramento Road to Westgate Drive and the installation of recycled water main in Lower Sacramento Road and Westgate Drive from Kettleman Lane to the south project boundary. The cost of extending or installing recycled water mains shall be eligible for reimbursement. The developer's engineer shall work with Public Works Department staff to resolve public utility design issues. f) Relocation of existing utilities, as necessary, and undergrounding of existing overhead lines, excluding electric (64 kv) transmission lines. g) Project design and construction shall be in compliance with applicable terms and conditions of the City's Stormwater Management Plan (SMP) approved by the City Council on March 5, 2003, and shall employ the Best Management Practices(BMPs) identified in the SMP. The City's adopted Stormwater Development Standards for new projects in conformance with the conditions of the City's Stormwater Discharge Permit. The design of projects containing more than 5,000 square feet of impervious area, retail gasoline outlets and trash enclosures is significantly affected by these Standards. The project shall be required to comply with the requirements of the Standards. 9 ii) State -mandated construction site inspections to assure compliance with the City of Lodi Storm Discharge Permit are required. The fee for the inspections is the responsibility of the developer and must be paid priorto commencement of site grading and/or construction operations. iii) If bioswales are to be used, they need to be clearly delineated and detailed on the site plan and the landscape plan. Most trees are not compatiblewith bioswales. The City and Applicant shall enter into an improvement agreement for the installation of public improvements required as part of the Project prior to the development of the first parcel. 4. The proposed temporary storm drainage basin shall be designed in conformance with City of Lodi Design Standards §3.700 and must be approved by the City's Public Works Department. Acquisition of property to accommodate the construction of the temporary drainage basin is the responsibility of the developer. All drainage improvements shall be designed for future connection to permanent public drainage facilities when they become available. In the event the Utility Master Plan referenced in paragraph 4(G)(1)(a) locates the permanent storm drainage basin in the same location as the temporary storm drainage basin, Project shall be entitled to reimbursement for its construction costs minus any cost to retrofit the temporary basin to serve as a permanent basin and meet public works permanent basin standards and specifications. Project's Stormwater Impact Fee shall be deferred pursuantto a Deferred Fee Payment Agreement as provided in Lodi Municipal Code Section 15.64.040 until such time as the reimbursement contingency set forth in this paragraph is resolved. 5. A Caltrans encroachment permit is required for all work in the Kettleman Lane right-of-way, including landscape and irrigation improvements in the median and parkway along the site frontage. Based on past experience, Caltrans will not allow landscape and irrigation improvements within their right-of-way unless the City enters into an agreement with Caltrans covering maintenance responsibilities for those improvements. The City is willing to execute such an agreement; however, the developer will be required to execute a similar landscape maintenance agreement with the City assuming the city's responsibilitiesfor the landscape and irrigation improvements in the parkways. 6. Design and installation of public improvements to be in accordance with City master plans and the detailed utility master plans as previously referenced above. Note that the developer may be eligible for reimbursement from others for the cost of certain improvements. It is the developer's responsibility to request reimbursement and submit the appropriate information per the Lodi Municipal Code (LMC) §16.40 7. All project design and construction shall be in compliance with the Americans with Disabilities Act (ADA). Project compliance with ADA standards is the developer's responsibility. 10 8. The following improvements shall be constructed with the development of the first parcel zoned for commercial development: a) Installation of all street improvements on Lower Sacramento Road, Kettleman Lane and Westgate Drive. Street improvements for Lower Sacramento Road and Westgate Drive shall be constructed from the signalized intersections on Kettleman Lane to the south boundary of the parcel map. Street improvements along the frontages of Parcels 1, 12 and " Ashall extend to and include the installation of the westerly curb and gutter. b) Modification of the existing southerly Sunwest Plaza (Food 4 Less) driveway to widen the driveway to the south as shown on the site plan and construct a driveway to the satisfaction of the City's Public Works Department. c) The extension/installation of all public utilities necessary to serve the commercial development and/or required as a condition of development. d) Temporary storm drainage detention basin to serve the project. 9. Acquisition of street right-of-way, public utility easements and/or construction easements outside the limits of the map to allow the installation of required improvements on Kettleman Lane, Lower Sacramento Road and Westgate Drive. 10. All property dedicated to the City of Lodi shall be free and clear of all liens and encumbrances and without cost to the City of Lodi and free and clear of environmental hazards, hazardous materials or hazardous waste. Developer shall prepare and submit a hazardous materials report and all property owners shall indemnify the City against any and all hazardous materials and/or ground water contamination existing on their individual property at the time of dedication for all property/easements dedicated to the City. 11. Abandonment/removal of wells, septic systems and underground tanks in conformance with applicable City and County requirements and codes prior to approval of public improvement plans. 12. The project shall provide for a prorated share of the on-going maintenance costs of median landscape improvements in Kettleman Lane, Lower Sacramento Road and Westgate Drive by annexation to the Lodi Consolidated Landscape and Maintenance District 2003-1 prior to acceptance of the public improvements. All costs associated with annexation to the District shall be the Developer's responsibility. 13. Payment of the following: a) Filing and processing fees and charges for services performed by City forces per the Public Works Fee and Service Charge Schedule. b) Development Impact Mitigation Fees per the Public Works Fee and Service Charge Schedule at the time of building permit issuance. c) Wastewater capacity impact fee at the time of building permit issuance. d) County Facilities Fees at the time of building permit issuance. e) Regional Transportation Impact Fee (RTIF) at the time of building permit issuance. 11 f) The City is currently developing a Water Capacity Impact Fee to pay for the costs to construct a water treatment plant necessary to provide water to the Project. In lieu of paying the fee as ultimately adopted, Project has agreed to pay a current fee estimate of $765,050 (1.43 times project Sewer Service Units (SSU's) times $5,000) prior to the development of the first parcel. The purpose of paying a fee now is to obtain certainty of costs and the Project shall not be subject to future assessment or refund in the event the fee is ultimately higher or lowerthan the amount set forth above. g) Stormwater compliance inspection fee prior to commencement of site grading and/or construction operations. h) Reimbursement fees per existing agreements: i. Reimbursement Agreement RA -02-02. The reimbursement fee for 2009 is $40,469.03. The fee is adjusted annually on January 1. The fee to be paid will be that in effect at the time of payment. The fee shall be paid prior to approval of the public improvement plans. ii. Resolution No. 2007-52 establishing an area of benefit and reimbursable costs for Lower Sacramento Road (Kettleman Lane to Harney Lane) improvements. The reimbursement fee for 2009 is $90,042.73. The fee is adjusted annually on January 1. The fee to be paid will be that in effect at the time of payment. The fee shall be paid prior to approval of the public improvement plans. iii. Reimbursement Agreement RA 08-01. The reimbursement fee for 2009 is $222,498.63. The fee is adjusted annually on January 1. The fee to be paid will be that in effect at the time of payment. The fee shall be paid prior to approval of the public improvement plans. i) City Resolution 2006-234, adopted on December 20, 2006 amended the Electric Utility Department's Rules & Regulations 13, 15 and 16 and requires new development and this Project to pay the full cost of extending electric facilities to serve the Project. The above fees are subject to periodic adjustment as provided by the implementing ordinance/resolution. The fee charged will be that in effect at the time of collection indicated above. 14. Obtain the following permits: a) San Joaquin County well/septic abandonment permit. b) Caltrans Encroachment Permit for work in Caltrans right-of-way. 15. The City will participate in the cost of the following improvements in conformance with LMC §16.40 Reimbursementsfor Construction: a) Master plan storm drain facilities and lines. b) Master plan water mains. c) Master plan reclaimed water mains. d) Industrialwaste lines. Please note that construction of master plan wastewater facilities to serve the project site is not included in the City's Development Impact Mitigation Fee Program and is not subject to impact mitigation fee credits for sewer facilities or reimbursement by the City. 12 H. Install fire hydrants at locations approved by the Fire Marshal. I. Shopping carts shall be stored inside the buildings or stored in a cart storage area adjacent to the entrance of the building. J. No outdoor storage or display of merchandise shall be permitted at the project unless a specific plan for such display is approved by SPARC. At no time shall outdoor storage or display be allowed within the parking area, drive aisle or required sidewalks of the center. K. Vending machines, video games, amusement games, children's rides, recycling machines, vendor carts or similar items shall be prohibited in the outside area of all storefronts. The storefront placement of public telephones, drinking fountains and ATM machines shall be permitted subject to the review and approval of the Community Development Director. L. All storage of cardboard bales and pallets shall be contained within the area designated at the rear of the Wal-Mart building for such use. No storage of cardboard or pallets may exceed the height of the masonry enclosure at any time. M. The loading area shown in front of the Wal-Mart building shall be stripped and posted with "NO PARKING — LOADING ONLY signs to the satisfaction of the Community Development Director. N. A photometric exterior lighting plan and fixture specification shall be submitted for review and approval of the Community development Director prior to the issuance of any building permit. Said plans and specification shall address the following: 1. All project lighting shall be confined to the premises. No spillover beyond the property line is permitted. 2. The equivalent of one (1) foot-candle of illumination shall be maintained throughout the parking area. O. Exterior lighting fixtures on the face of the buildings shall be consistent with the theme of the center. No wallpacks or other floodlights shall be permitted. All building mounted lighting shall have a 90 -degree horizontal flat cut-off lens unless the fixture is for decorative purposes. P. All parking light fixtures shall be a maximum of 25 feet in height. All fixtures shall be consistent throughout the center. Q. All construction activity shall be limited to the hours of 7:00 a.m. to 6:00 p.m. Monday through Saturday: No exterior construction activity is permitted on Sundays or legal holidays. R. Prior to the issuance of a building permit for the new Wal-Mart Supercenter, the applicant shall ensure one of the following with respect to the existing Wal-Mart building located at 2350 West Kettleman Lane ("Building"): a) The owner of the Building shall have entered into signed lease(s) with bona -fide tenant(s) for at least 50% of the Building square footage (not including the fenced, outdoor garden center). The signed lease(s) required hereunder shall include a lease(s) with a bona -fide retailer(s) or restaurant for a minimum of two- thirds of the Building frontage (not including the fenced, outdoor garden center); or 13 b) The owner of the Building shall have entered into a fully executed purchase agreement for the Building with a bona -fide retailer; or c) The Applicant shall present to the City a cash escrow account, subject to the approval of the City Attorney, which account shall be for the purpose of securing applicant's obligation to demolish the Building not later than 90 days after the opening to the general public of the new Wal-Mart Supercenter (the "Opening Date"). The amount of the deposit shall be equal to the City estimated reasonable costs to demolish the Building (based on a licensed contractor estimate) plus $100,000. The escrow account shall be paid to City in the event that Option (a), (b) or (c) is not satisfied within 90 days of the Opening Date. If Option (a), (b) or (c) is satisfied within 90 days after the Opening Date, the cash in the escrow account shall be refunded in full to the Applicant. If the Applicant does not satisfy this condition under Option (a), (b) or (c) within 90 days after the Opening Date, the City shall use the funds to demolish the Building with any balance reverting to the City as compensation for its expense and inconvenience incurred to demolish the Building. The owner of the Building shall present evidence that any lender on the Building consents to the demolition in a form subject to the approval of the City Attorney. This condition shall be recorded against the property as a deed restriction, which runs with the land. Applicant and Wal-Mart agree to enter into any agreements that are necessary in order to implementthis condition. S. No materials within the garden or seasonal sales area shall be stored higher than the screen provided. T. Wal-Mart shall operate and abide by the conditions of the State of California Alcoholic Beverage Control license Type 21, off sale -general. U. Wal-Mart shall insure that the sale of beer and wine does not cause any condition that will result in repeated activities that are harmful to the health, peace or safety of persons residing or working in the surrounding area. This includes, but is not limited to: disturbances of the peace, illegal drug activity, public drunkenness, drinking in public, harassment of passerby, assaults, batteries, acts of vandalism, loitering, illegal parking, excessive or loud noise, traffic violations, lewd conduct, or police detention and arrests. V. This Use Permit is subject to periodic review to monitor potential problems associated to the sale of alcoholic beverages. W. Prior to the issuance of a Type 21 license by the State of California Alcoholic Beverage Control Department, the management of the Wal-Mart store shall complete the Licensee Education on Alcohol and Drugs (LEAD) as provided by the State Alcoholic Beverage Control Department. in the event that Wal-Mart has training that is equivalent to the LEAD program, such documentation shall be submitted to the Community Development Directorfor review and approval. X. The project shall incorporate all mitigation measures as specified in the adopted Final Revised Environmental impact Report EIR-03-01 and attached CEQA findings for the project. Y. The submitted Use Permit, Tentative Map and associated plot plan are hereby approved subject to the conditions set forth in this resolution. 14 Z. No variance from any City of Lodi adopted code; policy or specification is granted or implied by the approval of this Resolution. AA. The sliding gates that are shown in the rear of the Wal-Mart building shall have a knox box system at each gate for Fire Department access. BB. Buildings, which are fire sprinkled, shall have Fire Department connections within 50 feet of a fire hydrant, subject to the Fire Marshall's approval. CC. Fire lanes shall be identified per Lodi Municipal Code 10.40.100 and marked in locations specified by the Fire Marshall. All fire lanes shall be a minimum of 24 -foot - wide. DD. The water supply for the project shall meet the requirements for fire hydrants and fire sprinkler demand and system approved by the Fire Marshall. EE. Developer shall pay for the linkage study that the City is required to do based on Program 11 of the recently adopted Housing Element of the General Plan. The developer shall receive a credit for the amount paid against the final fee as adopted by the City Council. FF. Wal-Mart shall provide proof of sale, to a non Wal-Mart related entity, of the existing Wal-Mart property located at 2350 W. Kettleman Lane prior to the issuance of the building permit for the new Wal-Mart Supercenter without condition on the right of purchaserto lease or sell the existing Wal-Mart building. GG. Wal- Mart shall not allow overnight camping of any type (i. e. campers, recreational vehicles, tents) within the parking lot or site. HH. The developer shall invest in a building and/or capital improvements within the Downtown area, as defined by the Community Development Director, but no smaller than the area described in the June 1997 Downtown Development Standards and Guidelines plus the Pine Street Corridor extending to Washington. Investment shall be defined as supporting construction, rehabilitation, acquisition, tenant improvements and other improvements. The developer may make or support improvements to commercial buildings or property it owns or rents independently or in partnership with others, or to commercial property owned by others in partnershipwith owners and/or tenants. The downtown investment must be made no later than seven and a half (7.5) years from the issuance of final certificate of occupancy for the largest retail tenant. The total aggregate value of the capital improvements resulting from developer's investment must exceed $700,000. ARCHITECTURAL APPROVAL 1. The foregoing recitals are true and correct and incorporated herein by reference. 2. The submitted Site Plan complies with the requirements of the Commercial Shopping (C- S) Zoning District. 3. The submitted plans, including site plot plan and architectural elevations for the major anchor building, for the project is approved subject to the following conditions: a. All conditions set for the above shall apply to this approval. b. The proposed building shall comply with all zoning and building code regulations. c. The finished building shall be consistent with the plans approved by the City Council. 15 d. The applicant shall submit appropriate plans to the Community Development Department for plan check and building permit. The final plans shall include the architectural features such as the approved colors, the building elevations including the cornice, trim caps, and curbed canopy, and other elements approved by the City Council. Any significant alteration to the building elevations as approved by the City Council shall require approval by the Planning Commission. Signage shall be individual letters. e. Further architectural treatment shall occur on the west elevation. Such treatment shall result in a visual break in the elevation. f. The proposed building must comply with all City Council requirements; as well as the requirements of the Community Development, the Public Works, the Electric Utility and the Fire Departments; and all other utility agencies. g. No variance from any City of Lodi adopted code, policy or specification is granted or implied by the approval of this resolution. h. The Developer shall pay for Electric Utility Department charges in accordance with the Electric Department's Rules and Regulations. The applicant shall submit load calculations and Electric drawings to Electric Utility as part of a building permit process. Load calculations and Electric drawings are needed for service equipment location, PUE requirements, and service sizing. Should the load calculations and Electric drawings require a change of site plan, the Planning Department shall forward the site plan to the Planning Commission for review and approval. j. This resolution does not constitute a complete plan check. Complete plan check shall be completed during building permit process. k. Wal-Mart shall employ the energy efficient measures proven effective, at the time of Plan Check submittal, by its High Efficiency (HE) program in the building design and construction. However, the measures used shall, at a minimum, be as energy efficient as those proven energy efficiency measures, or comparable measures, outlined more fully in the letter addressed to the City of Lodi from J. Kelly Collier, Senior Design Manager for Wal-Mart Real Estate and Design dated October 6, 2008 and presented to the Planning Commission at its October 8, 2008 meeting. NOW, THEREFORE, BE IT DETERMINEDAND RESOLVED by the City Council of the City of Lodi that Use Permit U-02-12, Vesting Tentative Map 03-P-001, and Site Plan and Architectural review relating to the Lodi Shopping Center project; State Clearinghouse No. 2003042113 is hereby approved, and the City Council hereby adopts the findings, statements of overriding considerations and other matters set forth in this resolution. Dated: May 13, 2009 16 I hereby certify that Resolution No. 2009-58 was passed and adopted by the City Council of the City of Lodi in a special meeting held May 13,2009, by the following vote: AYES: COUNCIL MEMBERS —Johnson, Katzakian, and Mayor Hansen NOES: COUNCIL MEMBERS — Hitchcock and Mounce ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS— None &RAJOHLL City Clerk 2009-58 17 ExhibitA (CEQA Findings) 915101.2 11233.26 CITY OF LODI FINDINGS OF FACTAND STATEMENT OF OVERRIDING CONSIDERATIONS PURSUANTTO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT FOR THE LODI SHOPPING CENTER Under the California Environmental Quality Act, California Public Resources Code, sections 21000 et seq. ("CEQA), for each significant environmental effect identified in an environmental impact report ("EIR) for a proposed project, the approving agency must issue a finding reaching one or more of three allowable conclusions in conjunction with approval of the project. The first allowable finding is that changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant effects on the environment. The second allowable finding is that those changes or alterations are within the responsibility and jurisdiction of another public agency and have been, or can and should be, adopted by the other agency. The third allowable finding is that specific economic, legal, social, technological, or other considerations, including considerations for the provision of employment opportunities for highly trained workers, made infeasible the mitigation measures or alternatives identified in the environmental impact report. (Cal. Pub. Res. Code § 21081; CEQA Guideline § 15091). CEQA requires that the lead agency adopt mitigation measures or alternatives, where feasible, to avoid or substantially reduce significant environmental impacts that would otherwise occur. Project modification or alternatives are not required, however, where they are infeasible or where the responsibility for modifying the project lies with some other agency (CEQA Guidelines, § 15091). Public Resources Code section 21061.1 defines "feasible" to mean "capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social and technological factors." CEQA Guidelines section 15364 adds another factor: "legal" considerations. See also Citizens of Goleta Vallev v. Board of Supervisors, 52 Cal. 3d 553, 565 (1990)). In situations in which significant impacts are not at least "substantially mitigated," the agency, after adopting the findings, may approve the project if it adopts a statement of overriding considerations setting forth the reasons why the agency found that the project's benefits render acceptable its unavoidable adverse environmental effects (CEQA Guidelines§§ 15093, 15043). The California Supreme Court has stated that, "[t]he wisdom of approving... any development project, a delicate task which requires a balancing of interests, is necessarily left to the sound discretion of the local officials and their constituents who are responsible for such decisions. The law as we interpret and apply it simply requires that those decisions be informed, and therefore balanced." (Citizens of Goleta Valley, supra, 52 Cal. 3d at 576). The Findings and Statement of Overriding Considerations set forth below ("Findings") provide the written analysis and conclusions of the City regarding the Project's environmental impacts, mitigation measures, alternatives to the Project, and the overriding considerations and presents an explanation to supply the logical step between the Finding and the facts in the record. (CEQA Guidelines § 15091.) To the extent that these Findings conclude that various proposed mitigation measures outlined in the EIR are feasible and have not been modified, superseded or withdrawn, the City hereby commits to implementing these measures. These Findings, in other words, are not merely informational, but rather constitute a binding set of obligations that will come into effect as part of the Project approval. The mitigation measures are referenced in the Mitigation Monitoring Program, adopted concurrently with these Findings, and will be effective through the process of constructing and implementing the project. 1. AGRICULTURAL RESOURCES A. LOSS OF PRIME AGRICULTURAL LAND 1. Impact: The projectwould convert approximately40 acres of prime agricultural land to urban uses. While the severity of this impact can be reduced somewhat, no mitigation is available which would reduce this impact to a less -than -significant level except an outright prohibition of all development on prime agricultural lands. (Significant and Unavoidable Impact) 2. Mitigation: The applicant shall obtain a permanent Agricultural Conservation Easement over 40 acres of prime farmland (1:1 mitigation ratio). The agricultural conservation easement shall consist of a single parcel of land of at least 40 acres. This easement shall be located in San Joaquin County (excluding the Delta Primary Zone as currently defined by State law). The easement shall be in current agricultural use; if it is not in current agricultural use, the easement shall be required to be put into agricultural production as a result of the conservation easement transaction. The lands subject to the easement shall be placed under permanent restrictions on land use to ensure its continued agricultural production capacity by limiting non-farm development and other uses that are inconsistent with commercial agriculture. The easement shall be held by the City or a qualified entity (i.e., land trust) approved by the City. The applicant shall pay a fee (in an amount to be determined by the City) for purposes of establishing an endowment to provide for adequate administration, monitoring, and maintenance of the easement in perpetuity. 3. Finding: The acquisition of an off-site agricultural conservation easement would provide partial mitigation for the loss of prime farmland resulting form the project, but it would not reduce the impact to a less -than -significant level. There are no feasible mitigation measures available that would avoid the significant loss of agricultural land if the project is implemented. Specific economic, legal, social, technological or other considerations make mitigation of this impact infeasible. In particular, mitigation is infeasible because it is not possible to re-create prime farmland on other lands that do not consist of prime agricultural soils. This impact, therefore, remains significant and unavoidable. 4. Facts in Support of Finding: The following facts indicate that the identified impact is significant and unavoidable. As discussed in the Draft REIR and Final REIR, there are no feasible alternatives or mitigation measures that would reduce the impact of loss of prime agricultural land resulting from the project to a less -than -significant level. The project's significant and unavoidable impacts to agricultural resources could be avoided by denying the project or lessened by requiring a substantially reduced project, which would prevent the conversion of all or a major portion of the site to urban uses. However, this action would not meet the fundamental objective of the applicant or the City of Lodi of developing the site for a commercial retail shopping plaza in conformancewith the General Plan and zoning designations applicable to the site. In addition, denial of the project would not constitute a "feasible mitigation," and therefore would not be required under Section 15126.4 of the state CEQA Guidelines. Although project -specific impacts to prime farmland cannot be feasibly mitigated to less -than -significant levels, the City has minimized and substantially lessened the 2 significant effects of the proposed project on prime agricultural land through the requirement that an off-site agricultural conservation easement be acquired by the project applicant. The City has also generally minimized the significant effects of development on prime agricultural land through the policies of its adopted General Plan. A principal purpose of the City's General Plan regulatory scheme is to minimize the impact on prime agricultural land resulting from the City's urban expansion. The City of Lodi is recognized for its compact growth pattern and clearly defined urban boundaries, its emphasis on infill development, and its deliberate and considered approach to urban expansion to accommodate housing and other long- term development needs. These guiding principles serve to minimize and forestall conversion of agricultural lands within the City's growth boundaries. The General Plan policies related to agricultural preservation and protection are intended, and have been successful, in maintaining the productivity of prime agricultural land surrounding the City by controlling urban expansion in a manner which has the least impact on prime agricultural lands. In addition to maintaining compact and defined urban growth boundaries, agricultural preservation and protection is primarily accomplished through the City's Growth Management Plan for Residential Development, which limits housing development to a growth rate of two percent per year, and which gives priority to proposed residential developments with the least impact on agricultural land, in accordance with General Plan policy. The General Plan implementation program includes a directive to "identify and designate an agricultural and open space greenbelt around the urbanized area of the City' (Land Use and Growth Management Implementation Program 10). This buffer zone is intended to provide a well-defined edge to the urban area, and to minimize conflicts at the urban -agricultural interface by providing a transition zone separating urban from agricultural uses, and to remove uncertainty for agricultural operations nearthe urbanfringe. The greenbeltwill perform an important function in minimizing urban -agricultural conflicts and promote the preservation of prime agricultural land beyond the greenbelt; however, it will not constitute mitigation for loss of farmland since it cannot itself replace land lost to development. The City is continuing to study the implementation of a greenbelt area between Stockton and Lodi, and is committed to the implementationof such a greenbelt. In summary, the City of Lodi has attempted to reduce the impact for the loss of prime agricultural land at the project site through the required acquisition of off-site agricultural conservation easements, and also through its extensive efforts to avoid the loss of prime farmland through its careful planning of urban areas. Nevertheless, the City recognizes that there is no feasible mitigation available to reduce this impact on the project site to a less -than -significant level and, therefore, the impact remains significant and unavoidable. These facts support the City's finding. 5. Statement of Overriding Considerations: The following is a summary of the benefits that the City Council has found to outweigh the significant unavoidable impacts of the project, the full discussion of which can be found in the "Statement of Overriding Considerations" at the end of this document. The project is expected to provide substantial revenue for the City of Lodi General Fund through increased sales tax and property tax, and will generate employment opportunities for Lodi residents. The project will cause vital municipal infrastructure improvements to be implemented in the project vicinity, and development impact fees paid by the 3 applicant will help fund the project's proportionate share of contributions towards public services throughout the City of Lodi. The project will implement adopted City plans and policies by accomplishing the City of Lodi's long-term development plans for commercial use at the project site, consistent with City's growth control measures prioritizing in -fill development within the existing City boundaries. The project will reflect a high quality of design, through the on-site implementation of the City's Design Guidelines for Large Commercial Establishments, which will be particularly important at this visually prominent western gateway into the City. 11. GEOLOGYAND SOILS A. SEISMIC HAZARD FROM GROUND SHAKING 1. Impact: Strong ground shaking occurring on the site during a majorearthquake event could cause severe damage to project buildings and structures. (Significant Impact) 2. Mitigation: Structural damage to buildings resulting from ground shaking shall be minimized by following the requirements of the Uniform Building Code, and implementing the recommendations of the project geotechnical engineer. 3. Finding: The above feasible mitigation measure, which has been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than -significant level. All portions of the project will be designed and constructed in accordance with the Uniform Building Code guidelines for Seismic Zone 3 to avoid or minimize potential damage from seismic shaking at the site. Conformance with these requirements will be ensured by the Building Division through its routine inspection and permitting functions. These facts support the City's findings. B. SEISMICALLY -INDUCED GROUND SETTLEMENTS 1. Impact: There is a potential for seismically -induced ground settlements at the site, which could result in damage to project foundations and structures. (Significant Impact) 2. Mitigation: If subsequent design -level geotechnical studies indicate unacceptable levels of potential seismic settlement, available measures to reduce the effects of such settlements would include replacement of near -surface soils with engineered fill, or supporting structures on quasi -rigid foundations, as recommended by the project geotechnical engineer. 3. Finding: The above feasible mitigation measure, which has been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less-than-significantlevel. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than -significant level. 4 As part of the mitigation for this impact, geotechnical investigations will be completed prior to the approval of building permits for specific buildings, and these buildingswill be designed in conformance with the geotechnical report's recommendations to reduce this potential hazard. Implementation of the recommendations will be ensured by the Public Works Department and Building Division through their routine inspection and permitting functions. These facts support the City's findings. C. STORMWATER BASIN BANK INSTABILITY 1- Impact: There is a potential for bank instability along the banks of the proposed basin. (Significant Impact) 2. Mitigation: Design -level geotechnical studies shall investigate the potential of bank instability at the proposed basin and recommend appropriate setbacks, if warranted. 3. Finding: The above feasible mitigation measure, which has been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -sig n ificant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less-than-significantlevel. As part of the mitigation for this impact, geotechnical investigations will be completed along with the design -level improvement plans for the stormwater basin, and the Public Works Director will ensure that the basin is constructed in conformance with the geotechnical report's recommendations to reduce this potential hazard. These facts support the City's findings. D. SOIL CONSOLIDATION AND COLLAPSE 1. Impact: Soils present on the site are subject to moisture -induced collapse, which could result in damage to structures. (Significant Impact) 2. Mitigation: The effects of soil consolidation and collapse can be mitigated by placing shallow spread foundations on a uniform thickness of engineered fill; specific measures shall be specified by an engineering geologist, as appropriate, in response to localized conditions. 3. Finding: The above feasible mitigation measure, which has been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less-than-significantlevel. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less-than-significantlevel. As part of the mitigation for this impact, geotechnical investigationswill be completed prior to the approval of building permits for specific buildings, and the Public Works Department and Building Division will ensure that these buildings are be designed in conformance with the geotechnical report's recommendations to reduce this potential hazard. These facts support the City's finding. 5 E. EXPANSIVE SOILS Impact: There is a low, but not necessarily insignificant, potential for soils expansion at the site, which could result in differential subgrade movements and cracking of foundations. (Significant Impact) 2. Mitigation: The potential damage from soils expansion would be reduced by placement of non -expansive engineered fill below foundation slabs, or other measures as recommended by the geotechnical engineer. 3. Finding: The above feasible mitigation measure, which has been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than -significant level. As part of the mitigation for this impact, geotechnical investigationswill be completed prior to the approval of building permits for specific buildings, and the Public Works Department and Building Division will ensure that these buildings are be designed in conformance with the geotechnical report's recommendations to reduce this potential hazard. These facts support the City's finding. F. SOILCORROSIVITY 1. Impact: The corrosion potential of the on-site soils could result in damage to buried utilities and foundation systems. (Significant Impact) 2. Mitigation: The potential damage from soil corrosivity can be mitigated by using corrosion -resistant materials for buried utilities and systems; specific measures shall be specified by an engineering geologist as appropriate in response to localized conditions. 3. Finding: The above feasible mitigation measure, which has been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support cf Finding: The following facts indicate that the identified impact will be reduced to a less-than-significantlevel. As part of the mitigationfor this impact, geotechnical investigations will be completed prior to the City's approval specific buried utilities and foundation systems for buildings, and these features will be designed in conformance with the geotechnical report's recommendations to reduce this potential hazard. These facts support the City's finding. 6 III. HYDROLOGY AND WATER QUALITY A. EROSION AND SEDIMENTATION DURING CONSTRUCTION 1. Impact: During grading and construction, erosion of exposed soils and pollutants from equipment may result in water quality impacts to downstream water bodies. (Significant Impact) 2. Mitigation: A comprehensive erosion control and water pollution prevention program shall be implemented during grading and construction. Typical measures required by the City of Lodi to be implemented during the grading and construction phase include the following: • Schedule earthwork to occur primarily during the dry season to prevent most runoff erosion. • Stabilize exposed soils by the end of October in any given year by revegetating disturbed areas or applying hydromulch with tetra -foam or other adhesive material. • Convey runoff from areas of exposed soils to temporary siltation basins to provide for settling of eroded sediments. • Protect drainages and storm drain inlets from sedimentation with berms or filtration barriers, such as filter fabric fences or rock bags or filter screens. • Apply water to exposed soils and on-site dirt roads regularly during the dry season to prevent wind erosion. • Stabilize stockpiles of topsoil and fill material by watering daily, or by the use of chemical agents. • Install gravel construction entrances to reduce tracking of sediment onto adjoining streets. • Sweep on-site paved surfaces and surrounding streets regularly with a wet sweeper to collect sediment before it is washed into the storm drains or channels. • Store all construction equipment and material in designated areas away from waterways and storm drain inlets. Surround construction staging areas with earthen berms or dikes. • Wash and maintain equipment and vehicles in a separate bermed area, with runoff directed to a lined retention basin. • Collect construction waste daily and deposit in covered dumpsters. • After construction is completed, clean all drainage culverts of accumulated sediment and debris. The project also is required to comply with NPDES permit requirements, file a Notice of Intent with the Regional Water Quality Control Board and prepare a Storm Water Pollution Prevention Plan. 7 3. Finding: The above feasible mitigation measures, which have been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than -sig n ificant level. The above mitigation measures are derived from Best Management Practices (BMPs) recommended by the Regional Water Quality Control Board, and are to be included in the Storm Water Pollution Prevention Plan (SWPPP) to be prepared and implemented by the project proponent in conformance with the state's General Permit for Discharges of Storm Water Associated with Construction Activity. In addition, the project grading plans will conform to the drainage and erosion control standards of the City of Lodi, and will be incorporated into the project Improvement Plans to be approved by the City. Implementation of the erosion control measures will be monitored and enforced by City grading inspectors. These facts support the City's finding. B. WATER QUALITY IMPACTS FROM NON -POINT POLLUTANTS 1. Impact: The project would generate urban nonpoint contaminants which may be carried in stormwater runoff from paved surfaces to downstream water bodies. (Significant Impact) 2. Mitigation: The project shall include stormwater controls to reduce nonpoint source pollutant loads. 3. Finding: The above feasible mitigation measure, which has been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less-than-significantlevel. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less-than-significantlevel. In January 2003, the City adopted a Stormwater Management Plan (SMP) to implementthe provisions of its Phase II NPDES stormwater permit issued by the State Water Resources Control Board. The SMP contains a comprehensive program for the reduction of surface water pollution. The project includes feasible structural BMPs (Best Management Practices) such as vegetated swales and a stormwater basin. Much of the stormwater runoff generated in the northern and southern portions of the site will be conveyed to vegetated swales or bioswales which will provide partial filtering of pollutants and sediments. This partially treated runoff, along with all other parking lot and roof runoff from the project will be conveyed to the 3.65 -acre stormwater basin planned adjacent to the southwest corner of the site. The basin would serve as a settling pond where suspended sediments and urban pollutants would settle out prior to discharge of the collected stormwater into the City's storm drain system, thereby reducing potential surface water quality impacts to drainages and water bodies. The pump intake for the basin will be located two feet above the bottom to provide for accumulation of sediments which would be cleaned out on a regular basis. 8 Non-structural BMPs typically required by the City include the implementation of regular maintenance'activities (e.g., damp sweeping of paved areas; inspection and cleaning of storm drain inlets; litter control) at the site to prevent soil, grease, and litter from accumulating on the project site and contaminating surface runoff. Stormwater catch basins will be required to be stenciled to discourage illegal dumping. In the landscaped areas, chemicals and irrigation water will be required to be applied at rates specified by the project landscape architect to minimize potential for contaminated runoff. Additional BMPs, as identified from a set of model practices developed by the state, may be required as appropriate at the time of Improvement Plan approval. These facts support the City's finding. IV. BIOLOGICAL RESOURCES A. LOSS OF HABITAT FOR SPECIAL -STATUS SPECIES 1. Impact: The project would result in the loss of approximately 40 acres of foraging habitat for three protected bird species, and could result in the loss of breeding habitat for two protected bird species. (Significant Impact) 2. Mitigation: ?n accordance with the San Joaquin County Multi -Species Habitat Conservation and Open Space Plan (SJMSCP) and City of Lodi requirements, the project proponent will pay the applicable in -lieu mitigation fees to compensate for loss of open space and habitat resulting from development of the project site, and will ensure the completion of preconstruction surveys for Swainson's hawks, burrowing owls, and California horned larks, as well as the implementation of specified measures if any of these species are found on the site. 3. Finding: The above feasible mitigation measures, which have been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than -significant level. The in -lieu mitigation fees prescribed under the SJMSCP vary depending on the location of the site, its designation under the SJMSCP, and annual adjustments. The project site is covered by two designations or pay zones under the SJMSCP. The 20.5 -acre eastern portion of the shopping center site, is designated "Multi -Purpose Open Space Lands," where in -lieu fees are currently $6,165 per acre (2008). The 19.5 -acre western portion of the site, which includes the proposed stormwater basin, is designated "Agricultural Habitat and Natural Lands," where in -lieu fees are currently $12,329 per acre (2008). The compliance with the provisions of the SJMSCP, along with the prescribed preconstruction surveys and any required follow-up measures prescribed at that time, would fully mitigate the small reduction in foraging habitat resulting from development of the project site. The applicant's duty to mitigatethe loss of agricultural land at a 1:1 ratio will further mitigate the loss of foraging habitat. These facts support the City's finding of less-than-significantafter mitigation. B. IMPACTS TO BURROWING OWLS AND RAPTORS 1. Impact: The project could adversely affect any burrowing owls that may occupy the site prior to construction, and could also adversely affect any tree -nesting raptor that E may establish nests in trees along the project boundaries prior to construction. (Significant Impact) 2. Mitigation: The following measures shall be implemented to ensure that raptors (hawks and owls) are not disturbed during the breeding season: If ground disturbance is to occur during the breeding season (February 1 to August 31), a qualified ornithologist shall conduct a pre -construction survey for nesting raptors (including both tree- and ground -nesting raptors) on site within 30 days of the onset of ground disturbance. These surveys will be based on the accepted protocols (e.g., as for the burrowing owl) for the target species. If a nesting raptor is detected, then the ornithologist will, in consultation with CDFG, determine an appropriate disturbance -free zone (usually a minimum of 250 feet) around the tree that contains the nest or the burrow in which the owl is nesting. The actual size of the buffer would depend on species, topography, and type of construction activity that would occur in the vicinity of the nest. The setback area must be temporarily fenced, and construction equipment and workers shall not enter the enclosed setback area until the conclusion of the breeding season. Once the raptor abandons its nest and all young have fledged, construction can begin within the boundaries of the buffer. If ground disturbance is to occur during the non -breeding season (September 1 to January 31), a qualified ornithologist will conduct pre -construction surveys for burrowing owls only. (Pre -construction surveys during the non -breeding season are not necessary for tree nesting raptors since these species would be expected to abandon their nests voluntarily during construction.) If burrowing owls are detected during the non -breeding season, they can be passively relocated by placing one-way doors in the burrows and leaving them in place for a minimum of three days. Once it has been determined that owls have vacated the site, the burrows can be collapsed and ground disturbance can proceed. 3. Finding: The above feasible mitigation measures, which have been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support cf Finding: The following facts indicate that the identified impact will be reduced to a less -than -significant level. While none of these species are currently on the project site, this mitigation measure is included as a contingency to be implemented in the event nesting occurs prior to construction. As specified in the Mitigation Monitoring and Reporting Program attached to this document, the Community Development Director will ensure that the pre -construction surveys are undertaken and that a report of the survey findings is submitted to the City prior to the approval of the project Improvement Plans. If any of the species are found on-site during the surveys, the Public Works Director will ensure that the required setback zones are established. No grading or construction in the vicinity of the nests would be permitted until the project biologist is satisfied that impacts to the species are mitigated or avoided. Relocation of burrowing owls would be allowed to occur only under the direction of the California Department of Fish and Game. These facts support the City's finding. 10 V. CULTURAL RESOURCES A IMPACTSTO CULTURAL RESOURCES 1. Impact: It is possiblethat previously undiscovered cultural materials may be buried on the site which could be adversely affected by grading and construction for the project. (Significant Impact) 2. Mitigation: Implementation of the following measures will mitigate any potential impacts to cultural resources: In the event that prehistoric or historic archaeological materials are exposed or discovered during site clearing, grading or subsurface construction, work within a 25 -foot radius of the find shall be halted and a qualified professional archaeologist contacted for further review and recommendations. Potential recommendations could include evaluation, collection, recordation, and analysis of any significant cultural materials followed by a professional report. • In the event that fossils are exposed during site clearing, grading or subsurface construction, work within a 25 -foot radius of the find shall be halted and a qualified professional paleontologist contacted for further review and recommendations. Potential recommendations could include evaluation, collection, recordation, and analysis of any significant paleontological materials followed by a professional report. • If human remains are discovered, the San Joaquin County Coroner shall be notified. The Coroner would determine whether or not the remains are Native American. If the Coroner determines that the remains are not subject to his authority, he will notify the Native American Heritage Commission, who would identify a most likely descendant to make recommendations to the land owner for dealing with the human remains and any associated grave goods, as provided in Public Resources Code Section 5097.98. 3. Finding: The above feasible mitigation measures, which have been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -sig n ificant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than -sig n ificant level. While the detailed site reconnaissance by Basin Research Associates indicated that there is no evidence to suggest that cultural resources may be buried on site, the mitigation measure is a standard contingency that is applied in all but the least archaeologically sensitive areas. In the unlikely event artifacts are encountered during grading or excavation, the Public Works Director will enforce any required work stoppages, and the Community Development Director will contact the project archaeologist and will ensure that the archaeologist's recommendations are implemented. These facts support the City's finding. VI. TRAFFIC AND CIRCULATION A NEAR TERM PLUS PROJECT UNSIGNALIZED INTERSECTION OPERATIONS 11 1. Impact: The addition of project -generated traffic would exacerbate LOS F operations at the intersection of Lower Sacramento Road / Harney Lane during both a.m. and p.m. peak hour conditions. (Significant Impact) 2. Mitigation: The project shall contribute its fair share cost to the installation of a traffic signal at Lower Sacramento Road and Harney Lane. 3. Finding: The above feasible mitigation measure, which has been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less-than-significantlevel. The traffic report prepared by Fehr & Peers Associates calculated that with the above mitigation in place, the level of service at the affected intersection would rise to Level of Service C and thus meet the service standards of the City of Lodi. These facts support the City's finding. B. CUMULATIVE PLUS PROJECT ACCESS CONDITIONS AT SIGNALIZED ACCESS DRIVE PROPOSEDALONG LOWER SACRAMENTO ROAD FRONTAGE 1. Impact: During the p.m. peak hour, the eastbound left -turn queue length of 250 feet (average queue) to 375 feet (95th Percentile queue) of exiting vehicles would extend west to the internal intersection located south of Pad 10. (Significant Impact) 2. Mitigation: Modify the project site plan to provide dual eastbound left -turn movements out of the project site onto northbound Lower Sacramento Road, consisting of a 150 -foot left -turn pocket and a full travel lane back to the internal project site intersection. In the eastbound direction, a left -turn pocket and a full travel lane back to the signalized intersection will provide adequate capacity for inbound traffic. In addition, STOP signs shall be installed on all approaches at the on-site intersections adjacent to Pads 10 and 11 , except the westbound approaches to provide continuous traffic flow into the project site and eliminate the potential for backups onto Lower Sacramento Road. On the Food 4 Less approach, a 100 -foot left -turn pocket will be provided at the signalized intersection. 3. Finding: The above feasible mitigation measures, which have been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less-than-significantlevel. The traffic report prepared by Fehr& Peers Associates indicates that with the above mitigations in place, the potential for traffic conflicts at this intersection would be eliminated. These facts support the City's finding. C. CUMULATIVE PLUS PROJECT ACCESS CONDITIONS AT NORTHERN UNSIGNALIZED ACCESS DRIVE PROPOSED ALONG LOWER SACRAMENTO ROAD 12 Impact: The addition of a northbound left -turn lane under Access Alternative B would result in Level of Service F conditions at this unsignalized intersection. (This condition does not occur under Access Alternative A where no northbound left -turn movement would occur.) In addition, a non-standard 60 -foot back-to-back taper is provided between the northbound left -turn lane (Alternative B) at the northern unsignalized access drive and the southbound left -turn lane at the signalized project entrance. (Significant Impact) 2. Mitigation: The following mitigations shall be implemented: a. Extend a third southbound travel lane on Lower Sacramento Road from its current planned terminus at the signalized project driveway to the southern boundary of the project site; b. Construct a 100 -foot southbound right -turn lane at the signalized project driveway; c. Extend the southbound left -turn pocket by 100 feet; d. Extend the taper from 60 feet to a City standard 120-foottaper; e. Eliminate the northbound left -turn lane into the northern driveway. 3. Finding: The above feasible mitigation measures, which have been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than -significant level. The traffic report prepared by Fehr & Peers Associates indicates that with the above mitigations in place, the potential for traffic conflicts at this intersection would be eliminated. These facts support the City's finding. D. INADEQUATE LEFT -TURN LANE TAPER ON WESTGATE DRIVE Impact: On Westgate Drive, a non -City standard 64 -foot back-to-back taper is proposed between the northbound left -turn lane at W. Kettleman Lane and the southbound left -turn lane at the northern project driveway. (Significant Impact) 2. Mitigation: The project site plan shall be modified to move the north project driveway on Westgate Drive south by 25 feet in order to accommodate the required 90 -foot taper length. 3. Finding: The above feasible mitigation measure, which has been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support cf Finding: The following facts indicate that the identified impact will be reduced to a less-than-significantlevel. The traffic report prepared by Fehr & Peers Associates indicates that with the above mitigation in place, the potential for traffic conflicts arising from inadequate queuing capacity on Westgate Drive would be eliminated. These facts support the City's finding. 13 E. INADEQUATE LEFT -TURN LANE TAPER ON LOWER SACRAMENTO ROAD Impact: On Lower Sacramento Road, a non -City standard 70 -foot back-to-back taper is proposed between the dual northbound left -turn lanes at W. Kettleman Lane and the southbound left -turn lane at the middle Food 4 Less Driveway. (Significant Impact) 2. Mitigation: The project site plan shall be modified to extend the northbound left -turn pocket to 250 feet, and to extend the taper from 70 feet to a City standard 120 -foot taper. 3. Finding: The above feasible mitigation measure, which has been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than -significant level. While the traffic report by Fehr & Peers indicated that mitigation for this impact would need to be achieved through closure of the southbound left -turn lane at the middle Food 4 Less Driveway, the applicant instead proposes to provide additional roadway right-of-way along the project frontage on Lower Sacramento Road to accommodate side-by-side left -turn lanes (instead of the back-to-back turn pockets as originally proposed). This would allow the mitigation to be implemented as specified while also maintaining the existing southbound left turn. Fehr & Peers Associates has reviewed the proposed roadway configuration and concurs that it would serve as adequate mitigation for the deficiencies noted in the EIR traffic impact report. Therefore, Fehr & Peers Associates concludes that with the above mitigation in place, the potential for traffic conflicts at this intersection would be eliminated. These facts support the City's finding. F. PUBLIC TRANSIT SERVICE 1. Impact: Development of the project would create a demand for increased public transit service above that which is currently provided or planned. (Significant Impact) 2. Mitigation: The project applicant shall work with and provide fair share funding to the City of Lodi Grapeline Service and the San Joaquin Regional Transit District to expand transit service to the project. 3. Finding: The above feasible mitigation measure, which has been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less-than-significantlevel. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less-than-significantlevel. The traffic report prepared by Fehr & Peers Associates indicates that with the above mitigation in place, the additional demand for transit service generated by the project would not exceed the capacity of the transit system. These facts support the City's finding. 14 G. PUBLIC TRANSIT STOP Impact: Development of the project would create an unmet demand for public transit service which would not be met by the single transit stop proposed for the northwest portion of the project. (Significant Impact) 2. Mitigation: Modify the project site plan to: 1) provide a bus bay and passenger shelter at the proposed transit stop; and 2) include a second transit stop and passenger shelter in the eastern portion of the project near Lower Sacramento Road. 3. Finding: The above feasible mitigation measures, which have been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than -significant level. The traffic report prepared by Fehr & Peers Associates indicates that with the above mitigations in place, the transit service to the site would be adequate to meet ridership demand and would be provided in a manner which is convenient to transit riders, and which avoids traffic and circulation conflicts or congestion. These facts supportthe City'sfinding. H. PEDESTRIAN FACILITIES 1. Impact: Development of the project would create an unmet demand for pedestrian facilities along West Kettleman Lane, Lower Sacramento Road and Westgate Drive, and internally between the different areas of the project site. (Significant Impact) 2. Mitigation: Pedestrian walkways and crosswalks shall be provided to serve Pads 8, 9, and 12 in order to complete the internal pedestrian circulation system. 3. Finding: The above feasible mitigation measure, which has been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -sig n ificant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less-than-significantlevel. The traffic report prepared by Fehr& Peers Associates indicates that with the above mitigations in place, the pedestrian facilities provided in the project would be adequate to meet demand and providefor safe pedestrian movement throughout the project. These facts support the City's finding. Vil. NOISE A. NOISE FROM PROJECTACTIVITY 1. Impact: Noise generated by activity associated with the project would elevate off-site noise levels at existing and future residences in the vicinity. (Significant Impact) 15 2. Mitigation: The following noise mitigations are identified as appropriate for the various types of project activities, to reduce project noise at both existing and planned future adjacent development: Rooftop Mechanical Equipment. To ensure that the potential noise impact of mechanical equipment is reduced to less -than -significant levels, the applicant shall submit engineering and acoustical specifications for project mechanical equipment, for review prior to issuance of building permits for each retail building, demonstrating that the equipment design (types, location, enclosure specifications), combined with any parapets and/or screen walls, will not result in noise levels exceeding 45 dBA (L�y hour) for any residential yards. Parking Lot Cleanina. To assure compliance with the City of Lodi Noise Regulations regarding occasional excessive noise, leaf blowing in the southeast comer of the project site shall be limited to operating during the hours of 7:00 a.m. to 10:00 p.m. 3. Finding: The above feasible mitigation measures, which have been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than -significant level. The City of Lodi Building Official will require demonstration of compliance with noise specifications for rooftop mechanical equipment in conjunction with each individual building permit required for the project. The enforcement of the City Noise Regulations with respect to leaf blower noise will be the responsibility of the Community Development Director, who may enforce the noise restrictions with or without a citizen complaint from a nearby resident. These facts support the City's finding. B. NOISE FROM STORMWATER BASIN PUMP Impact: Occasional pumping of water from the stormwater basin would generate noise at the planned future residential areas to the south and west of the basin. (Significant Impact) 2. Mitigation: The following measures shall be implemented to mitigate potential noise generated by the stormwater basin pump: 1) The pump shall be located as far as is feasible from the nearest future planned residential development. In addition, the pump facility shall be designed so that noise levels do not exceed 45 dBA at the nearest residential property lines. The pump may need to be enclosed to meet this noise level. Plans and specifications for the pump facility shall be included in the Improvement Plans for the project and reviewed for compliance with this noise criterion. 2) In order to avoid creating a noise nuisance during nighttime hours, pump operations shall be restricted to the hours of 7 a.m. to 10 p.m., except under emergency conditions (e.g., when the basin needs to be emptied immediately to accommodate flows from an imminent storm). 16 3. Finding: The above feasible mitigation measures, which have been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than significant level. The City of Lodi Public Works Director will require demonstration of compliance with noise specifications for the basin pump in conjunction with the Improvement Plans for the project. The enforcement of the City Noise Regulations with respect to the hours of pump operation will be the responsibility of the Community Development Director, who may enforce the noise restrictions with or without a citizen complaint from a nearby resident. These facts support the City's finding. C. CONSTRUCTION NOISE I. Impact: Noise levels would be temporarily elevated during grading and construction. (Significant Impact) 2. Mitigation: Short-term construction noise impacts shall be reduced through implementation of the following measures: Construction Scheduling. The applicant/contractor shall limit noise -generating construction activities to daytime, weekday, (non -holiday) hours of 7:00 a.m. to 6:00 p.m. Construction Equipment Mufflers and Maintenance. The applicant/contractor shall properly muffle and maintain all construction equipment powered by internal combustion engines. Idling Prohibitions. The applicanticontractor shall prohibit unnecessary idling of internal combustion engines. Equipment Location and Shielding. The applicant/contractor shall locate all stationary noise -generating construction equipment such as air compressors as far as practicable from existing nearby residences. Acoustically shield such equipment as required to achieve continuous noise levels of 55 dBA or lower at the property line. Quiet Equipment Selection. The applicant/contractor shall select quiet construction equipment, particularly air compressors, whenever possible. Fit motorized equipmentwith proper mufflers in good working order. Notification. The applicanticontractorshall notify neighbors located adjacent to, and across the major roadways from, the project site of the construction schedule in writing. Noise Disturbance Coordinator. The applicant/contractor shall designate a "noise disturbance coordinator" who would be responsiblefor responding to any local complaints about construction noise. The disturbance coordinator would notify the City, determine the cause of the noise complaints (e.g., starting too early, bad muffler, etc.) and would institute reasonable measures to correct the 17 problem. Applicanticontractor shall conspicuously post a telephone number for the disturbance coordinator at the construction site, and include it in the notice sent to neighboring property owners regarding construction schedule. All complaints and remedial actions shall be reported to the City of Lodi by the noise disturbance coordinator. 3. Finding: The above feasible mitigation measures, which have been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than -significant level. Each phase of grading and construction will be required to implement the above noise control measures and other measures which may be required by the City of Lodi. The construction noise control measures will be required to be included as part of the General Notes on the project Improvement Plans, which must be approved by the City Public Works Department prior to commencement of grading. Although there are noise sensitive uses such as residential neighborhoods in the vicinity of the project site, most existing dwellings would be at least 200 feet away from the nearest grading and construction activity. This distance separation from the noise sources and the effective implementation of the above mitigation measures by the contractors, as monitored and enforced by City Public Works Department and Building Division, would reduce the noise levels from this temporary source to acceptable levels. These facts support the City's finding. VIII. AIR QUALITY A. CONSTRUCTION EMISSIONS 1. impact: Construction and grading for the project would generate dust and exhaust emissions that could adversely affect local and regional air quality. (Significant Impact) 2. Mitigation: Dust control measures, in addition to those described in the FEIR, shall be implemented to reduce PM,o emissions during grading and construction, as required by the City of Lodi and the San Joaquin Valley Air Pollution Control ,District (Air District). (See Original Draft EIR, p.120). 3. Finding: The above feasible mitigation measures, which have been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support cf Finding: The following facts indicate that the identified impact will be reduced to a less -than -significant level. Each phase of grading and construction will be required to implement the dust control measures specified in the San Joaquin Valley Air Pollution Control District's Regulation VIII, as well as additional practices itemized in the FEIR and as otherwise required by the City of Lodi. The dust control measures will be required to be included as part of the General Notes on the project Improvement Plans, which must be approved by the City Public Works Department prior to commencement of grading. The Public Works Department will monitor and enforce the dust 18 suppression requirements as part of their site inspection duties. Violations of the requirements of Regulation VIII are also subject to enforcement action by the Air District. Violations are indicated by the generation of visible dust clouds and/or generation of complaints. These facts support the City's finding. B. REGIONALAIR QUALITY 1. Impact: Emissions from project -generated traffic would result in air pollutant emissions affecting the entire air basin. (Significant Impact) 2. Mitigation: Project design measures shall be implemented to reduce project area source emissions, and a Transportation Demand Management (TDM) plan should be implemented to reduce project traffic and resulting air emissions, including those measures described in the FEIR; however, these measures would not reduce the impact to a less -than -sig n ificant level. 3. Finding: While the implementation of specified design measures and a TDM plan in conjunction with the project would reduce the level of the air quality impact, the impact would not be reduced to less -than -significant level. Therefore, the impact is significant and unavoidable. 4. Facts in Support of Finding: The following facts indicate that the identified impact is significant and unavoidable. Due to the large size of the project and the very low thresholds for significance established by the Air District for the emission of Reactive Organic Gases, Nitrogen Oxides, and fine Particulate Matter, the air quality report by Donald Ballanti concluded that the project would exceed the significance thresholds established for these pollutants. In addition, large commercial shopping centers attract high volumes of personal vehicles, and transportation alternatives such as public transit, carpooling, and bicycling have limited effectiveness in reducing automobile traffic generated by this type of project. Thus, although the City will require the implementation of selected Transportation Demand Management measures, as appropriate, it is estimated by Donald Ballanti that such measures would reduce project -generated traffic by no more than five percent. The small reduction in associated emissions would not reduce overall regional air quality impacts to less - than -significant levels. These facts support the City's finding. 5. Statement of Overriding Considerations: The following is a summary of the benefits that the City Council has found to outweigh the significant unavoidable impacts of the project, the full discussion of which can be found in the "Statement of Overriding Considerations" at the end of this document. The project is expected to provide substantial revenues for the City of Lodi General Fund through increased sales tax and property tax, and will generate employment opportunities for City residents. The project will implement vital municipal infrastructure improvements in the project vicinity, and impact fees paid by the project will help fund its pro -rata share of public services throughout the City of Lodi. The project will implement adopted City plans and policies by accomplishing the City of Lodi long-term development plans for commercial use at the project site. The project will reflect a high quality of design, through the on-site implementation of the City's Design Guidelines for Large Commercial Establishments, which will be particularly important at this visually prom i nent western gateway into the City. 19 C. RESTAURANT ODORS 1. Impact: The restaurant uses in the project could release cooking exhausts which could result in noticeableodors beyond project boundaries. (Significant Impact) 2. Mitigation: All restaurant uses within the project shall locate kitchen exhaust vents in accordance with accepted engineering practice and shall install exhaust filtration systems or other accepted methods of odor reduction. 3. Finding: The above feasible mitigation measures, which have been required in, or incorporated into, the project, will avoid or substantially lessen the significant environmental impact described above to a less -than -significant level. 4. Facts in Support of Finding: The following facts indicate that the identified impact will be reduced to a less -than -significant level. While the nature and location of restaurants within the project has not been determined, this mitigation requirement will ensure that cooking odors from any on- site restaurants will not result in annoyance or nuisance conditions. The Building Official will ensure that the required equipment is included on the plans, and will ensure that the equipment is properly installed and functioning. These facts support the City's finding. IX. CUMULATIVE IMPACTS A. AGRICULTURAL LAND CONVERSION 1. Impact: The conversion of prime agricultural land at the project site, combined with the agricultural conversion associated with other foreseeable projects in the area, would result in a cumulatively substantial impact to agricultural resources. (Significant Impact) 2. Mitigation: The applicant shall obtain a permanent Agricultural Conservation Easement over 40 acres of prime farmland (1:1 mitigation ratio). The agricultural conservation easement shall consist of a single parcel cf land of at least 40 acres. This easement shall be located in San Joaquin County (excluding the Delta Primary Zone as currently defined by State law). The easement shall be in current agricultural use; if it is not in current agricultural use, the easement shall be required to be put into agricultural production as a result of the conservation easement transaction. The lands subject to the easement shall be placed under permanent restrictions on land use to ensure its continued agricultural production capacity by limiting non-farm development and other uses that are inconsistent with commercial agriculture. The easement shall be held by the City or a qualified entity (i.e., land trust) approved by the City. The applicant shall pay a fee (in an amount to be determined by the City) for purposes of establishing an endowment to provide for adequate administration, monitoring, and maintenance of the easement in perpetuity. 3. Finding: It is the City's current practice to require development projects to acquire off-site conservation easements to off -set the loss of prime farmland. The acquisition of an off-site agricultural conservation easement would provide partial mitigation for the cumulative loss of prime farmland resulting from development 20 projects, but it would not reduce the impact to a less -than -significant level. As with the project -specific agricultural impacts, there is no feasible mitigation measure available that would reduce or avoid the significant cumulative loss of agricultural land resulting from development of the proposed project and other foreseeable projects in the area. Specific economic, legal, social, technological or other considerations make mitigation of this impact infeasible. In particular, mitigation is infeasible because it is not possible to re-create prime farmland on other lands that do not consist of prime agricultural soils. This impact therefore remains significant and unavoidable. 4. Facts in Support of Finding: The following facts indicate that the identified impact is significant and unavoidable. As discussed in the Draft REIR and Final REIR, there are no feasible measures that would reduce the impact of loss of prime agricultural land to a less -than -significant level. Although impacts to prime farmland cannot be feasibly mitigatedto less -than - significant levels, the City has in fact minimized and substantially lessened the significant effects of development on prime agricultural land through requirements that an off-site agricultural conservation easement be acquired by project applicants. The City has also generally minimized the significant effects of development on prime agricultural land through the policies of its adopted General Plan. A principal purpose of the City's General Plan regulatory scheme is to minimize the impact on prime agricultural land resulting from the City's urban expansion. The City of Lodi is recognized for its compact growth pattern and clearly defined urban boundaries, its emphasis on infill development, and its deliberate and considered approach to urban expansion to accommodate housing and other long-term development needs. These guiding principles serve to minimize and forestall conversion of agricultural lands within the City's growth boundaries. The General Plan policies related to agricultural preservation and protection are intended, and have been successful, in maintaining the productivity of prime agricultural land surrounding the City by controlling urban expansion in a manner which has the least impact on prime agricultural lands. In addition to maintaining compact and defined urban growth boundaries, agricultural preservation and protection are primarily accomplished through the City's Growth Management Plan for Residential Development, which limits housing development to a growth rate of two percent per year, and which gives priority to proposed residential developments with the least impact on agricultural land, in accordancewith General Plan policy. The General Plan implementation program includes a directive to "identify and designate an agricultural and open space greenbelt around the urbanized area of the City' (Land Use and Growth Management Implementation Program 10). This buffer zone is intended to provide a well-defined edge to the urban area, and to minimize conflicts at the urban -agricultural interface by providing a transition zone separating urban from agricultural uses, and to remove uncertainty for agricultural operations near the urban fringe. The greenbelt will perform an important function in minimizing urban -agricultural conflicts and promote the preservation of prime agricultural land beyond the greenbelt; however, it will not constitute mitigation for loss of farmland since it cannot itself replace land lost to development. In addition, the City is continuing to study the implementation of a greenbelt area between Stockton and Lodi, and is committed to the implementation of such a greenbelt. 21 In summary, the City of Lodi has applied feasible mitigation measures for loss of prime agricultural land at the cumulative project sites through the required acquisition of off-site agricultural conservation easements, and also through its extensive efforts to avoid the loss of prime farmland through its careful planning of urban areas within its boundaries. Nevertheless, the City recognizes that there is no feasible mitigation available to reduce this impact to a less -than -significant level on a project -specific or cumulative basis and, therefore, the impact remains cumulatively significant and unavoidable. These facts support the City's finding. 5. Statement of Overriding Considerations: The following is a summary of the benefits that the City Council has found to outweigh the significant unavoidable impacts of the project, the full discussion of which can be found in the "Statement of Overriding Considerations" at the end of this document. The project is expected to provide substantial revenues for the City of Lodi General Fund through increased sales tax and property tax, and will generate employment opportunities for Lodi residents. The project will cause vital municipal infrastructure improvements to be implemented in the project vicinity, and development impact fees paid by the applicant will help fund the project's proportionate share of contributions towards public services throughout the City of Lodi. The project will implement adopted City plans and policies by accomplishing the City of Lodi's long-term development plans for commercial use at the project site, consistent with the City's growth control measures prioritizing in -fill development within the existing City boundaries. The projectwill reflect a high quality of design, through the on-site implementation of the City's Design Guidelines for Large Commercial Establishments, which will be particularly important at this visually prominent western gateway into the City. B. REGIONALAIR QUALITY IMPACTS 1. Impact: Emissions from project -generated traffic, combined with the emissions of other foreseeable projects in the area, would result in air pollutant emissions affecting the entire air basin. (Significant Cumulative Impact) 2. Mitigation: For the proposed project, design measures shall be implemented to reduce project area source emissions, and a Transportation Demand Management (TDM) plan should be implemented to reduce project traffic and resulting air emissions. However, these measures would not reduce the impact to a less -than - significant level, either on a project -specific basis or on a cumulative basis. 3. Finding: While the implementation of specified design measures and a TDM plan in conjunction with the project would reduce the level, of the air quality impact, the impact would not be reduced to less -than -significant level. This impact would be exacerbated by emissions from other foreseeable projects in the area. Therefore, the cumulative impact is significant and unavoidable. 4. Facts in Support of Finding: The following facts indicate that the identified impact is significant and unavoidable. Due to the large size of the project and the very low thresholds for significance established by the Air District for the emission of Reactive Organic Gases, Nitrogen Oxides, and fine Particulate Matter, the air quality report by environmental consultant, Donald Ballanti, concluded that the project would far exceed the significance thresholds established for these pollutants. In addition, large 22 commercial shopping centers attract high volumes of personal vehicles, and transportation alternatives such as public transit, carpooling, and bicycling have limited effectiveness in reducing automobile traffic generated by this type of project. Thus, although the City will require the implementation of selected Transportation Demand Management measures, as appropriate, it is estimated by Donald Ballanti that such measures would reduce project -generated traffic by no more than five percent. The small reduction in associated emissions would not reduce overall regional air quality impacts resulting from the proposed project to less -than - significant levels. Other foreseeable projects in the area may be more suitable for the implementation of TDM measures to reduce emissions on an individual project basis; however, the cumulative impact would not be reduced to a less -than - significant level. These facts supportthe City's finding. 5. Statement of Overriding Considerations: The following is a summary of the benefits that the City Council has found to outweigh the significant unavoidable impacts of the project, the full discussion of which can be found in the "Statement of Overriding Considerations" at the end of this document. The project is expected to provide substantial revenues for the City of Lodi General Fund through increased sales tax and property tax, and will generate employment opportunities for City residents. The project will implement vital municipal infrastructure improvements in the project vicinity, and impact fees paid by the project will help fund its pro -rata share of public services throughout the City of Lodi. The project will implement adopted City plans and policies by accomplishing the City of Lodi's long-term development plans for commercial use at the project site, consistent with City's growth control measures prioritizing in -fill development within the existing City boundaries. The project will reflect a high quality of design, through the on-site implementation of the City's Design Guidelines for Large Commercial Establishments, which will be particularly important at this visually prominent western gateway into the City. IMPACTSANALYZED IN THE REIR FOUNDTO BE LESS LESS-THANSIGNIFICANT. CEQA does not require that findings be made on impacts found to be less -than - significant (See CEQA Guideline § 15091 (requiring findings on impacts found to be significant)). Nonetheless, set forth below is a summary of the City's conclusions on new items analyzed in the REIR for which impacts were found to be less -than - significant. I. LAND USE AND PLANNING — SOCIOECONOMIC/URBAN DECAY IMPACTS Urban decay is the product of an economic chain reaction that results in the closures of retail businesses as a result of a project, such as a shopping center, which in turn leads to physical deterioration of the surrounding neighborhood and businesses. (See Bakersfield Citizens for Local Control v. City of Bakersfield, 124 Cal. App. 4th 1184 (2004)). An EIR need only disclose and analyze the direct and reasonably foreseeable indirect environmental impacts of a proposed project if they are significant. (Guidelines, §§ 15126.2, 15064(d)(3)). An impact "which is speculative or unlikely to occur is not reasonably foreseeable." (CEQA Guidelines, § 15064(d)(3)). Mere economic and social impacts of proposed projects are outside CEQA's purview. However, when there is evidence that economic and social effects caused by a project, such as a shopping center, could result in a reasonably foreseeable indirect environmental impact, such as urban decay or deterioration, then the CEQA lead agency is obligated to assess this 23 indirect environmental impact. See Anderson First Coalition v. City of Anderson, 130 Cal. App. 0 1137 (2005). As summarized below, urban decay impacts of the Project are found to be less -than -significant A. POTENTIAL FOR URBAN DECAY DUE TO SOCIOECONOMIC IMPACTS 1. Impact: The Project would include new retailers who would compete with existing retailers in the City of Lodi; however, there is insufficient evidence to suggest that this increased competition would result in business closures, and consequently would not indirectly result in substantial physical deterioration of properties, or urban decay (Less -than -Significant Impact). 2. Mitigation: None Required. 3. Findings: The above impact is less than significant. 4. Facts in Support of Findings: The DREIR, the FREIR, the BAE study and analysis included with the DREIR and the supplemental BAE Supplemental Reports dated October 1, 2008 and March 11, 2009, which are incorporated herein by reference, discuss the potential for urban decay. The analysis considered the economic effects of the project on local supermarkets general merchandise outlets, and businesses in Downtown Lodi. As explained further in the REIR and the BAE analyses, the evidence gathered as part of the economic analysis is insufficient to support a finding that the project alone would result in or contribute to business vacancies or a downward spiral resulting in physical deterioration or urban decay. While there may be some decline in sales of competing supermarkets, supermarket store closures are not reasonably foreseeable. Sales are expected to decline for general merchandise stores such as Target and Kmart. The Kmart store is at risk of closure. However, the owners of the Kmart site indicate that they feel they could find new tenants should Kmart close and cease operation, thus minimizing the prospect of long term vacancies or total neglect leading to urban decay. Furthermore, the City Council has directed diligent code enforcement, which will assist in the prevention of urban decay. The City is entitled to rely on the effectiveness of its Code Enforcement program to prevent code violations. (See City Municipal Code Section 1.10.010 et seq.; Cal. Health and Safety Code Sections 17980- 17992). Downtown Lodi has shifted its retail mix to specialty stores, entertainment, and restaurants which are less directly competitive with the proposed project and therefore not anticipated to realize urban decay because of the Project. With respect to the closure of the existing Wal-Mart store in conjunction with the project, conditions would be imposed on the project requiring, prior to the issuance of a building permit, either re -tenanting by a retailer, sale to a retailer, or demolition of the structure to minimize the possibility of urban decay resulting from its closure. In summary, even if the project were to result in the failure of one or more existing competing businesses, any resulting vacancy would not necessarily lead to urban decay. Other contributing factors would need to occur to result in urban decay, such as the failure of surrounding businesses, combined with little or no effort on the part of property owners to maintain or improve their properties to a condition suitable for leasing. To reach a condition recognized as a physical impact under CEQA would require total neglect or abandonment of these 24 properties by their owners for an extended period such that substantial physical deterioration or urban decay would ensue. Such a conclusion is not reasonably foreseeable. Moreover, the City Council has directed staff to pursue diligent code enforcement, and such an urban decay impact is not supported by substantial evidence in the record. Accordingly, this impact is found to be less-than- signiticant. B. POTENTIAL FOR URBAN DECAY DUE TO CUMULATIVE ECONOMIC EFFECTS OF COMPETING RETAIL PROJECTS 1. Impact: When the effects of the project are combined with those of the other approved, pending, or probable future retail project in the project trade area (e.g., Reynolds Ranch), there is a likelihood existing retail centers in Lodi would be subject to reduction in sales. Consequently, it is possible, but not reasonably foreseeable, that one or more business closures could result, and that the affected properties could be subject to long-term vacancies under cumulative conditions, but not total neglect or abandonment. Moreover, aggressive enforcement action by the City of Lodi under existing municipal code and state law provisions relating to nuisance abatement is expected to prevent conditions which would result in substantial physical deterioration of potentially affected properties. Therefore, no urban decay is expected to occur under cumulative conditions. (Less -than - Significant Cumulative Impact) 2. Mitigation: None Required. 3. Findings: The above impact is less than cumulatively significant. 4. Facts in Support of Findings: The DREIR, the FREIR, the BAE study and analysis included with the DREIR and the supplemental BAE Supplemental Reports dated October 1, 2008 and March 11, 2009, which are incorporated herein by reference, discuss the potential for urban decay. The analysis considered the proposed Reynolds Ranch development and other existing retail within the City, including, the Target Center (which includes a Target and a Safeway), the Cherokee Retail Center (which includes a Kmart and OSH store), the Sunwest Plaza (which includes the existing Wal-Mart and a Food 4 Less Supermarket), Vineyard Shopping Center (which includes a Mervyns and Ace Hardware), Vintner's Square Center (which includes a Lowe's), retail at Lodi and Hutchins (which includes the former Albertsons, which is now an S -Mart, and a Rite Aid), Westgate Shopping Center (which includes a Raley's), Lakewood Mall (which includes local -serving tenants) the Lockeford Payless IGA/True Value Hardware, the Downtown Lodi retail, as well as retail outside the Lodi Shopping Center Trade Area. The REIR also considered the then planned Wal-Mart supercenters in Stockton (as well as the existing store in Stockton on Hammer Lane) and Gait. The Stockton and Galt stores are not expected to have a cumulative economic impact within the Trade Area defined for the proposed project because the Trade Areas are not expected to overlap to any great degree. This is especially true considering Stockton's Ordinance No. 018-07 C.S. (August 14,2007). While it is possible that the project, in combination with the Reynolds Ranch project, will result one or more business closures, it is not reasonably foreseeable that such closures would lead to total neglect or abandonment of the 25 business or urban decay. Should there be a business closure, the potential for physical deterioration will depend largely on the commitment of the property owner to maintain the property. Should the owner fail to maintain the property, City code enforcement staff would pursue active and aggressive enforcement as previously directed by City Council. As discussed previously, Downtown has shifted to a specialty niche market, concentrated on entertainment and dining as well as unique, locally owned shops. Under cumulative conditions, the impacts to Downtown many include a reduction in sales and some additional limitation on Downtown's ability to expand its niche, particularly if Reynolds Ranch included boutique -style stores and restaurants. However, no closures of downtown business, including the downtown Long's Drugstore, are anticipated to occur under cumulative conditions with the assumed general tenant mix for the Reynolds Ranch project. Thus, in the absence of anticipated store closures, there is no potential for urban decay in the Downtown under cumulative conditions. Accordingly and as further explained in the REIR, even assuming a reasonable worst-case scenario that results in one or more business closure, urban decay impacts of the Lodi Shopping Center, when combined with the economic effects of projects such as Reynolds Ranch, would result in a less -than -significant cumulative urban decay impact. 11. ENERGY Appendix F to the CEQA Guidelines provides than an EIR should consider potentially significant energy implications. (See also Pub. Res. Code § 21100(b)(3); CEQA Guidelines § 15126.4(a)(1) (energy mitigation measures should be discussed when relevant)). As summarized below, energy impacts of the Project are found to be less- than-significan f. A. ENERGY CONSUMPTION 1. Impact: The project would increase energy consumption in the construction and operational phases of the project. However, energy conservation measures incorporated into the design, construction and operation of the project would avoid wasteful, inefficient or unnecessary consumption of energy. (Less -than -Significant Impact) 2. Mitigation: None Required. 3. Findings: The above impact is less than significant. 4. Facts in Support of Findings: The operation of the project would result in the consumption of about 162 billion BTU of electricity, natural gas, and transportation fuel per year. This is over 500 times more energy than the estimated 0.3 billion BTU in annual energy inputs that would be applied in an agricultural operation on the site. The energy consumed by the project operation would represent 1.9 percent of the total annual energy consumption in the City of Lodi of about 8,634 billion BTU, and about 0.002 percent of statewide energy consumption. However, there are a number of energy conservation measures beyond those required by Title 24 of the California Code of Regulations, which 26 will be incorporated into the design, construction, and operational aspects of the project, as discussed in the REIR, which would result in a considerable reduction in project energy consumption, particularly electricity. These measures include the use of skylights, energy-efficient HVAC units, solar -reflective roofing materials, energy-efficient lighting systems, and the reclamation of the "heat of rejection" from refrigeration equipment to generate hot water. Fuel energy consumed during construction would be temporary and would not present a significant demand upon energy resources. Some incidental energy conservation would occur during construction through implementation of the noise mitigation measures identified in the Draft EIR such as fuel savings from the prohibition of unnecessary idling of vehicles and equipment. The incremental increase in the use of energy bound in construction materials would not substantially increase demand for energy compared to overall local and regional demand for construction materials. The project demand for electricity would be approximately 4.42 gigawatt -hours per year during the operational phase; however, compared to the total electrical demand for the City of approximately 470 gigawatt -hours during 2005, the project would represent less than one percent of the total electrical demand in the City. The project demand for natural gas would be approximately 12.6 million cubic feet per year during the operational phase; however, compared with the total natural gas year demand for the City of approximately 3,892 million cubic feet during 2005, the project would represent about 0.3 percent of total gas demand. The project would not result in a significant impact to energy resources since it would result in the consumption of relatively small amounts of energy, compared to statewide and local consumption rates, in both the construction and operational phases, and because the energy conservation measures incorporated into the design and operation of the project would avoid wasteful, inefficient or unnecessary consumption of energy. B. IMPACT ON ENERGY SUPPLIES AND INFRASTRUCTURE 1. Impact: The increased demand for energy resulting from the project would not be substantial enough to require new or expanded sources of supply or the construction of new or expanded energy delivery systems or infrastructure capacity. (Less -than -Significant Impact) 2. Mitigation: None Required. 3. Findings: The above impact is less than cumulatively significant. 4. Facts in Support of Findings: The energy requirements associated with the project would not exceed the energy supplies available to the project or exceed the ability of the various energy infrastructures to provide adequate supplies of energy to the project, during normal and peak demand periods, for the foreseeable future. As such, no new energy supplies would need to be developed to serve the project, and no system improvements would be needed to the energy delivery infrastructure to serve the project. Therefore, the impact 27 of the project upon energy supplies and energy delivery infrastructure would be less than significant. ADDITIONAL CONSIDERATIONS A. GLOBAL WARMING The issue of global warming has been raised in the processing of the REIR. At the time the initial EIR was prepared and certified in 2005, no commenter raised the issue of climate change despite there being general awareness of the issue within the scientific and environmental communities. At that time, CEQA also did not require an analysis of global warming impacts. Assembly Bill 32 ("AB 32"), known as the California Global Warming Solutions Act, Cal. Health & Safety Code §§ 38500 et seq., was passed in September 2006 and became effective on January 1, 2007. AB 32 sets a statewide goal to decrease greenhouse gas emissions to 1990 levels by the year 2020, and it directs the California Air Resources Board to develop regulations on greenhouse gas emissions verification and monitoring. Senate Bill 97 ("SB 97"), enacting Public Resources Code section 21083.05, was passed in August of 2007, and became effective January 1, 2008. SB 97 directs the Governor's Office of Planning and Research to prepare, develop, and transmit to the Resources Agency guidelines for feasible mitigation of greenhouse gas emissions or the effects of greenhouse gas emissions, by July 1, 2009. It further directs that the Resources Agency certify or adopt those guidelines by January 1, 2010. Both AB 32 and SB 97 were passed after the certification of the initial EIR, which occurred in February 2005. However, the issue of global warming is not a new concept, and it was known at the time the original EIR was certified in 2005. Comments concerning global warming impacts could have been, but were not, made on the initial EIR certified in 2005. Since no comments were made on the topic of global warming at the time the original EIR was circulated for public review, and because the Court did not order analysis of global warming impacts, the City is not required to analyze global warming impacts in this EIR. Additionally, AB 32 and SB 97 are not the type of new information contemplated by Public Resources Code section 21166 and CEQA Guidelines section 15162 that would require revisions to an EIR. The City finds that it is not required to conduct an analysis of global warming in the FREIR, in part, because it is outside the scope of the FREIR prepared on remained and in response to the Superior Court's decision.. Nonetheless, the City notes that evidence and materials submitted by the applicant indicate that global warming impacts would be less than significant in any event and speculative on a cumulative level of analysis. B. WATER SUPPLY ASSESSMENT By letter dated December 10, 2008, the Herum Crabtree law firm suggests that a water supply assessment is required for the Project pursuant to California Water Code sections 10910, 10912, 10911 and Public Resources Code section 21159.9. Because this issue could have been raised at the time the initial EIR was prepared and certified in 2005, but was not raised, the commenter is precluded from raising the issue now under the legal doctrine of res judicata, and the City is not required to analyze this issue at this time. Nonetheless, the City notes that this Project does not satisfy the criteria for requiring a water supply study under the applicable statutes. Water supply assessments are required for projects meeting the following criteria: 28 (1) A proposed residential development of more than 500 dwelling units. (2) A proposed shopping center or business establishment employing more than 1,000 persons or having more than 500,000 square feet of floor space. (3) A proposed commercial office building employing more than 1,000 persons or having more than 250,000 square feet of floor space. (4) A proposed hotel or motel, or both, having more than 500 rooms. (5) A proposed industrial, manufacturing, or processing plant, or industrial park planned to house more than 1,000 persons, occupying more than 40 acres of land, or having more than 650,000 square feet of floor area. (6) A mixed-use project that includes one or more of the projects specified in this subdivision. (7) A project that would demand an amount of water equivalent to, or greater than, the amount of water required by a 500 dwelling unit project. (Cal. Water Code § 10912) Based on evidence in the record, including evidence and testimony from the applicant concerning the size and nature of the Project, the City concludes that the proposed Project does not meet the square footage or water demand requirements set forth above. The project is an approximately 326,000 shopping center anticipated to employ less than 1,000 person. (See Sheppard Mullin letter of March 10, 2009). The City, therefore, concludes that it is not required to conduct a water supply assessment for the Project for the reasons that: (1) the issue was not raised during consideration of the EIR in 2005 and is now barred under the legal doctrine of res judicata; and (2) the Project does not meet the statutory criteria for requiring a water supply assessment. FINDINGS CONCERNING ALTERNATIVES Under CEQA, an EIR must describe a range of reasonable alternatives to the project, or to the location cf the project, which would feasibly attain most of the objectives of the project but would avoid or substantially lessen any of the significant effects of the project, and evaluate the comparative merits of the alternatives. Even if a project alternative will avoid or substantially lessen any of the significant environmental effects of the project, the decision -makers may reject the alternative if they determine that specific considerations make the alternative infeasible. The findings with respectto the alternatives identified in the Final REIR are described below. I. NO PROJECT ALTERNATIVE A. Description of the Alternative: The No Project alternative consists of not building on the project site and possibly resuming agricultural cultivation of the property for oats, hay, or row crops. B. Comparison to the Project: The No Project alternative would avoid some of the significant unmitigable effects of the proposed project, such as conversion of prime farmland and regional air quality impacts. For all other areas of concern, the differences in impacts between the No Project alternative and the proposed project would not be significant because the project impacts could be reduced to less -than -significant levels through feasible mitigation measures. On balance, the No Project alternative would be superior to the proposed project because it would not result in the significant unavoidable 29 impacts to agricultural resources and air quality which are associated with the proposed project, and because itwould result in little or no impact in the other impact categories. C. Finding: This alternative is hereby rejected for the reasons set forth below. The substantial revenues for the City of Lodi General Fund through increased sales tax and property tax that would be generated by the project would be lost, as would the employment opportunities for City residents created by the project. The vital municipal infrastructure improvements that would be constructed by the project would be foregone, as would the development impact fees paid by the applicant which would help fund the project's proportionate share of contributions towards vital public services throughout the City of Lodi. Unlike the proposed project, the No Project alternative would not implement adopted City plans and policies by accomplishing the City of Lodi long-term development plans for commercial use at the project site, consistent with City's growth control measures prioritizing in -fill development within the existing City boundaries, or the objective of meeting unmet retail demand from existing and future residents of Lodi. The No Project alternative also would not implement the high quality of design reflected in the proposed project for this visually prominent western gateway into the City. For the reasons mentioned above, because the No Project alternative would not meet the project objectives, and because the No Project alternative would not provide the same benefits as the proposed project, it is not a feasible alternative. II. REDUCED PROJECT SIZE ALTERNATIVE A. Description cf the Alternative: This alternative would consist of a substantially reduced project site of approximately 24 acres, including about 22 gross acres for retail development and 2 acres for the stormwater basin. This would represent approximately 60 percent of the proposed project size of 40 acres. This alternative would include the Wal-Mart Supercenter, as proposed, but would not include any of the ancillary retail pads proposed in the project. B. Comparison to the Project: The Reduced Project Size alternative would result in a slight reduction in the levels of impact associated with the proposed project in several topic areas, although these impacts would be mitigated to less -than -significant levels under the proposed project. For the two significant and unavoidable impacts associated with the proposed project—impactsto agricultural resources and regional air quality—the Reduced Project Size alternative would lessen these impacts but would not avoid them or reduce them to less -than -significant levels. Thus, although the Reduced Project Size alternative would be slightly superior to the proposed project, it would not achieve the CEQA objective of avoiding the significant impacts associated with the project. C. Finding: This alternative is hereby rejected for the reasons set forth below. The revenues for the City of Lodi General Fund that would be generated by the project would be substantially reduced, as would the number of employment opportunities for City residents created by the project. This alternative would not complete the vital municipal infrastructure improvements that would be constructed by the project, and would substantially reduce the development impact fees paid by the applicant to help fund the project's proportionate share of contributions towards vital public services throughout the City of Lodi. This alternative would lessen the City's ability to implement adopted City plans and policies for accomplishing long-term development plans for commercial use at the project site. This alternative would also compromise the City's 0 ability to implement the high quality of design reflected in the proposed project for this visually prominent western gateway into the City and for these reasons is not a feasible alternative. For the reasons mentioned above, because the Reduced Project alternative would not meet the project objectives, and because the Reduced Project alternative would not provide the same benefits as the proposed project, it is not a feasible alternative. III. ALTERNATIVE PROJECT LOCATION A. Description of the Alternative: An alternative project site was identified in the unincorporated area of San Joaquin County known as Flag City, consisting of approximately 36 gross acres in the northeast quadrant of Highway 12 and Thornton Road, just east of 1-5. To allow direct comparison, it was assumed that a 36 -acre portion of the lands at this location would be developed with roughly the same land use configuration and intensity as the proposed project. B. Comparison to the Project: The impacts associated with development of the Flag City site would be somewhat greater than for the proposed project site. Although the impacts for many categories would be similar for both project locations, development of the Flag City site would result in negative effects in terms of land use policy, and the resulting potential for growth inducement, which would not occur with the proposed project site. Traffic impacts would be greater for the Flag City site, as would impacts to utilities and public services, although these impacts would be less than significant or could be fully mitigated. More importantly, the alternative project site would result in the same significant and unavoidable impacts to agricultural resources and air quality as are associated with the proposed project. Therefore, the alternative site would not lessen or avoid the significant and unavoidable impacts of the project. C. Finding: This alternative is hereby rejected for the reasons set forth below. The alternative project site is not environmentally superior to the proposed project site. In addition, due to its location outside the City of Lodi, the alternative site would not provide the benefits associated with the proposed project including increased municipal revenues and development impact fees for providing services, creation of employment opportunities for Lodi residents, meeting unmet retail demand from existing and future Lodi residents, construction of the project's proportionate share of vital municipal infrastructure improvements, and the opportunityto implement City goals and policies with respect to the commercial development of the project site (consistent with City's growth control measures prioritizing in -fill development within the existing City boundaries), and the chance to provide a high quality development at the western gateway to the City. For the reasons listed above, this alternative is infeasible. ENVIRONMENTALLY SUPERIOR ALTERNATIVE Of the three project alternatives considered, only the No Project alternative would avoid or substantially lessen the significant impacts of the project. The significant and unavoidable impacts to agricultural resources and air quality associated with the proposed project would both be avoided by the No Project alternative. Since all other project impacts are either less than significant or can be reduced to less -than -significant levels through the implementation of feasible mitigation measures, the No Project alternative would not offer substantial reductions in impact levels under the other impact categories. Therefore, the No Project alternative would represent the environmentally superior alternative to the proposed project. The No Project alternative was 31 not selected because it would not meet the applicant's objective of developing the site for shopping center uses; nor would it meet the City's goals of enhancing its revenue base, creating jobs, providing vital municipal infrastructure, and implementing the City's policy objective of developing the site with commercial retail uses. CEQA Guidelines Section 15126.6(e)(2) requires that if the environmentally superior alternative is the No Project alternative, the EIR shall also identify an environmentally superior alternative from among the other alternatives. The Reduced Project Size alternative was found to result in the same significant and unavoidable impactsto agricultural resources and air quality as the proposed project. However, it would result in slightly lower levels of impact in several impact categories, although these impacts would all be reduced to less -than -significant levels in conjunction with the proposed project. Therefore, the Reduced Project Size alternative represents the environmentally superior alternative. The Reduced Project Size alternative was not selected because it would not entirely fulfill the project objective of developing the proposed project site with a regional shopping center in conformance with the City of Lodi General Plan and zoning regulations, and because it would be substantially less effective than the proposed project in fulfilling the project objective of meeting unmet retail demand from existing and future residents of Lodi. It also would be substantially less effective than the proposed project in fulfilling the City's objective of enhancing its fiscal resources through increased sales tax and property tax revenues, or in meeting the objectives of creating new jobs, and providing a pro -rata share of vital municipal infrastructure. Additional alternatives recently suggested in a letter dated December 10, 2008 from the law firm of Herum Crabtree include: (1) a "Reynolds Ranch" alternative; (2) an "East Lodi/Redevelopment Area" alternative; (3) a "Proportionately Reduced Size" alternative; and (4) a "High Efficiency" alternative. As noted above, the EIR must identify a reasonable range of alternatives which would feasibly attain most of the Project's objectives and would avoid or substantially lessen any of the significant effects of the project. The lead agency need not consider every conceivable alternative, and it has discretion to determine how many alternatives constitute a reasonable range. The EIR's discussion and analysis of alternatives satisfies the requirement in its of analyzing a reasonable range of alternatives. The additionally proposed alternatives need not be considered at this time. Furthermore, it has not been demonstrated that these additionally proposed alternatives would meet most of the project objectives and also avoid or substantially lessen the environmental effects of the Project. Based on materials in the record, including a letter dated March 10, 2009 from the law firm of Sheppard Mullin, the Reynolds Ranch, East Lodi/Redevelopment Area and Proportionately Reduced Size alternatives appear infeasible. Components of the High Efficiency alternative are included as part of the Project conditions, and thus, it has not been shown that the High Efficiency alternative would most of the project objectives and also avoid or substantially lessen the environmental effects of the Project. In conclusion, the City finds that there are no alternativesto the Projectwhich could feasibly attain most of the basic objectives of the project and also avoid or reduce the significant impacts associated with the proposed project to less -than -significant levels. MITIGATION MONITORING PROGRAM Attached hereto and incorporated and adopted herewith, is the Mitigation Monitoring and Reporting Program for the Lodi Shopping Center project. The Program identifies the mitigation measures to be implemented in conjunction with the project, and designates responsibility for the implementation and monitoring of the mitigation measures, as well as the required timing of their implementation. 32 STATEMENT OF OVERRIDING CONSIDERATIONS Pursuant to Public Resources Code Section 21081 and CEQA Guidelines Sections 15091- 15093, the City Council of the City of Lodi hereby adopts and makes the following Statement of Overriding Considerations regarding the remaining significant and unavoidable impacts of the project and the anticipated economic, social and other benefits of the project. A Significant Unavoidable Impacts With respect to the foregoing findings and in recognition of those facts which are included in the record, the City Council has determined that the project would result in significant unavoidable impacts to prime agricultural land and regional air quality. While mitigation measures have been identified which will reduce these impacts, they cannot be mitigated to a less -than - significant level by feasible changes or alterations to the project. B. Overriding Considerations The City Council specifically adopts and makes this Statement of Overriding Considerations that this project has eliminated or substantially lessened all significant effects on the environment where feasible, and finds that the remaining significant, unavoidable impacts of the project are acceptable in light of environmental, economic, social or other considerations set forth herein because the benefits of the project outweigh the significant and adverse effects of the project. The City Council has considered the EIR, the public record of proceedings on the proposed project and other written materials presented to the City, as well as oral and written testimony received, and does hereby determine that implementation of the project as specifically provided in the project documents would result in the following substantial public benefits: 1. Proiect Will Generate Citv Taxes. The sales generated by the Lodi Shopping Center will generate additional sales tax and property tax revenues for the City, which would otherwise not be generated by the undeveloped site. These revenues go to the City's General Fund which is the primary funding source for the construction, operation and maintenance of a numberof essential City services, programs and facilities including fire and police services, recreation programs, transit operations, library services, public infrastructure such as water and sanitary sewer service, and administrative functions, among other things. 2. Proiect Creates Employment Opportunities for City Residents. The Lodi Shopping Center project will generate both temporary construction jobs as well as hundreds of permanent full-time and part-time jobs. The vast majority of the permanent jobs will not require special skills and therefore could be filled by existing local residents. Thus, with the exception of a very few management positions which will likely be filled by transferees from other localities, no specially -skilled workers would need to be "imported" from outside the City. Consequently, it is expected that City residents would benefit from added employment opportunities offered by the Lodi Shopping Center project. 3. Proiect Will Implement Vital Municipal Infrastructure Improvements. Through the development of the project, a number of public infrastructure projectswill be constructed on the project site and the project vicinity. As described on page 15 of the Draft EIR, the project will construct planned roadway improvements along the portions of Lower 33 Sacramento Road and State Route 12/Kettleman Lane that front the project site, and as well as Westgate Drive to its full design width along the western project boundary. This is an economic benefit of the project in that these improvements would otherwise not be made without approval and implementation of the project. The project will also be conditioned to pay impact fees to the City in accordance with City's adopted Development Impact Fee program, which can be applied toward it's pro -rata share of municipal improvements such as water, sewer, storm drainage, and streets, as well as police, fire, parks and recreation, and general City government. These are vital municipal improvements necessary to the function of the City and the quality of life for City residents, providing another economic benefit as well as social benefit of the project. 4. Proiect Implements Adopted City Plans. The project is situated within Lodi City limits and has been planned for commercial development in the current City of Lodi General Plan since its adoption in 1991. Therefore, the project implements adopted City plans and policies by accomplishing the City of Lodi long-term development plans for commercial use at the project site, consistent with City's growth control measures prioritizing in -fill development within the existing City boundaries. In addition, the project completes the development of the "Four Corners" area by providing a large-scale retail center on the last remaining undeveloped site at the Lower Sacramento Road/Kettleman Lane intersection consistent with the goals and policies of the City's General Plan and Zoning Ordinance. 5. Creates High Quality Design at Western Gateway to the Citv. The Lodi Shopping Center has been designed in conformance with the City's Design Standards for Large Retail Establishments which will ensure a consistent high quality of design throughout the project site. This is a particularly important consideration given the project's visually prominent location at the western gateway to the City, and will effectively implement the General Plan goal and policies which call for the establishment of identifiable, visually appealing, and memorable entrances along the principal roads into the City. 6. Proiect Features Numerous Energy Conserving Measures. The project proposes to include energy efficient and sustainable features as part of the project designs, including, for example, automated control system for heating/air conditioning, lighting controls, energy efficient lighting, and light colored roof materials to reflect heat. In making the statement of overriding consideration in support of the findings of fact and this project, the City Council has weighed the above economic and social benefits of the proposed project against its unavoidable environmental risks and adverse environmental effects identified in the EIR and hereby determines that those benefits outweigh the risks and adverse environmental effects and, therefore, further determines that these risks and adverse environmental effects are acceptable. 34 Exhibit B (Mitigation Monitoring and Reporting Program) EXHIBIT MITIGATION MONITORING AND REPORTING PROGRAM (MMRP) LODI SHOPPING CENTER CITY OF LODI APRIL 2009 887538.4 11233.26 1 ffWW4Kr" "NEW"" PARTY (To be completed by responsible party) DATE INITIALS B. AGRICULTURALRESOURCES B 1. Agricultural B 1. The applicant shall obtain a permanent Agricultural Conservation Project Applicant with Prior to Land Conversion Easement over 40 acres of prime farmland (1: 1 mitigation mtW. The agricultural conservation easement shall consist of a single parcel of approval of City of Lodi Community issuance of occupancy land of at least 40 acres. This easement shall be located in San Development Director. permits. Joaquin County (excluding the Delta Pm -nary Zone as currently defined by State law). The easement shall be in current agricultural use; if it is not in current agricultural use, the easement shall be required to be put into agricultural production as a result of the conservation easement transaction. The lands subject to the easement shall be placed under permanent restrictions on land use to ensure its continued agricultural production capacity by limiting non-farm development and other uses that are inconsistent with commercial agriculture. The easement shall be held by the City or a qualified entity (i.e., land trust) approved by the City. The applicant shall pay a fee (in an amount to be determined by the City) for purposes of establishing an endowment to provide for adequate administration, monitoring. and maintenance ofthe easement in perpetuity. 887538.4 11233.26 1 EXHIBIT B I1VII'AC'S' k r._-_....,�..I "VIITGA;TIt)1V'1VIEAS7RES' RES>�'ONSIBL T11VIINU `` I1�.. PL�lYrf'i']N'`' PARTY (To be completed by responsible party) DATE INITIALS C. GEOLOGY AND SOILS C1. Seismic C 1. Structural damage to buildings resulting from ground shaking Project Applicant with Prior to Shaking_shall be minimized by following the requirements of the Uniform Building Code, and implementing the recommendations of the project approval by City of Lodi Building Official issuance of grading geotechnical engineer. and Lodi Public Works permits. Director. C2. Seismic C2. If subsequent geotechnical studies indicate unacceptable levels of Project Applicant with Prior to Settlement potential seismic settlement, available measures to reduce the effects approval by City of issuance of of such settlements would include replacement of near -surface soils Lodi Building Official grading with engineered fill, or supporting structures on quasi -rigid and Lodi Public Works permits. foundations, as recommendedby the project geotechnical engineer. Director. C3. Stormwater C3. Design -level geotechnical studies shall investigate the potential of Project Applicant with Prior to Bank Stability bank instability at the proposed basin and recommend appropriate setbacks, if warranted. approval of City of Lodi Public Works issuance of grading Director. permits. c4. Soil C4. The effects of soil consolidation and collapse can be mitigated by Project Applicant with Prior to Consolidation placing shallow spread foundations on a uniform thickness of engineered fill; specific measures shall be specifiedby an engineering approval of City of Lodi Public Works issuance of grading and Colla se geologist as appropriate in response to localized conditions. Director and Building pen -nits. Official. C5. Expansive C5. The potential damage from soils expansion would be reduced Project Applicant with Prior to Soils by placement of non -expansive engineered fill below foundation approval of Lodi Public issuance of slabs, or other measures as recommended by the geotechnical Works Director and grading engineer. Building Official. pen -nits. 881538.4 11233.26 EXHIBIT B IMPACTS` . 1VI)�T�GATYO� MEA�UI2ES 'R�'S�PO'iY�L"� TIMING "' T1V�`13�L"E1V��NTA`t' (5N"' PARTY (To be completed by responsible party) DATE INITIALS C. GEOLOGYAND SOILS(Cont'd) C6. Soil C6. The potential damage from soil corrosivity can be mitigated by Project Applicant with Prior to Corrosivity using corrosion-resistantmaterials for buried utilities and systems; approval of City of issuance of specific measures shall be specifiedby an engineering geologist as Lodi Public Works grading appropriate in response to localized conditions. Director. permits. D. HYDROLOGY AND WATER QUALITY D3. Erosion and D3. A comprehensive erosion control and water pollution prevention Project Applicant with Throughout e imentati n program shall be implemented during grading and construction. (See EIR text for details.) approval by City of Lodi Public Works grading and construction of Director. the project. D4. Urban D4. The project shall include stormwater controls to reduce nonpoint Project Applicant with Throughout Non -Po int pollutant loads. (See EIR text for details.) final approval by City construction Pollution of Lodi Public Works and operation Director. of project. E. BIOLOGICALRESOURCES E3. Loss of E3. In accordance with the SJMSCP and City of Lodi requirements, Project Applicant, in Prior to Habitat for the project proponent will pay the applicable in -lieu mitigation fees accordance with issuance of S ecial Status to compensate for loss of open space and habitat resulting from development of the project site, and will ensure the completion of SJMSCP, and with approval of City of grading pen -nits. Animals preconstruction surveys for Swainson's hawks, burrowing owls, and Lodi Community California horned larks, as well as the implementation of specified Development Director. measures if any of these species are found on the site. 887538.411233.26 V 111101MA111 IMPACTS S � ',S�YYM1�,'M MI �GAN' ME RESP`bl I$LP `� T 1M1NG IIVYP . Ul ,,, i . PARTY (To be completed by responsible party) DATE INITIALS E. BIOLOGICAL RESOURCES (Cont'd) E4. Disturbance E4. The following measures shall be implemented to ensure that Project Applicant, in Prior to to Burrowing raptors (hawks and owls) are not disturbed during the breeding consultation with issuance of Owls and season: CDFG, and with grading Ravtors . If ground disturbance is to occur during the breeding season (Feb. approval o f City of pen -nits. 1 to Aug. 31), a qualified ornithologist shall conduct a pre- Lodi Community construction survey for nesting raptors (including both tree- and Development Director - ground -nesting raptors) on site within 30 days of the onset of ground disturbance. These surveys will be based on the accepted protocols (e.g:, as for the burrowing owl) for the target species. If a nesting raptor is detected, then the Ornithologist will, in consultation with CDFG, determine an appropriate disturbance - free zone (usually a minimum of 250 feet) around the tree that contains the nest or the burrow in which the owl is nesting. The actual size of the buffer would depend on species, topography, and type of construction activity that would occur in the vicinity of the nest. The setback area must be temporarily fenced, and construction equipment and workers shall not enter the enclosed setback area until the conclusion of the breeding season. Once the raptor abandons its nest and all young have fledged, constructioncan begin within the boundaries of the buffer. • If ground disturbance is to occur during the non -breeding season (September 1 to January 31), a qualified ornithologist will conduct pre -construction surveys for burrowing owls only. (Pre - construction surveys during the non -breeding season are not necessary for tree nesting raptors since these species would be expected to abandon their nests voluntarily during construction.) • If burrowing owls are detected during the non -breeding season, they can be passively relocated by placing one-way doors in the burrows and leaving them in place for a minimum of three days. (Continued on next page.) 887538.4 11233.26 IIVIPACTS ,' " ;MITIGA`T�01�T PARTY (To be completed by responsible party) DATE INITIALS E. BIOLOGICAL RESOURCES (Cont'd) ]E4. (Cont'd) Once it has been determined that owls have vacated the site, the burrows can be collapsed and ground disturbance can proceed. F. CULTURAL RESOURCES F 1. Disturbance F1. Implementation of the following measures will mitigate any Project Applicant in Throughout �o Buried potential impacts to cultural resources. consultation with a grading and Cultural . In the event that prehistoric or historic archaeological materials qualified archaeologist construction of Resources are exposed or discovered during site clearing, grading or and/or qualified project. subsurface construction, work within a 25 -foot radius of the find paleontologist, as shall be halted and a qualified professional archaeologist applicable, with contacted for further review and recommendations. Potential verificationof recommendations could include evaluation, collection, mitigation by City of recordation, and analysis of any significant cultural materials Lodi Community followedby aprofessionalreport. Development Director. . In the event that fossils are exposed during site clearing, grading or subsurface construction, work within a 25 -foot radius of the find shall be halted and a qualified professional paleontologist contacted for further review and recommendations. Potential recommendations could include evaluation, collection, recordation, and analysis of any significant paleontological materials followedbv aprofessionalreport. (Cont'd next page.) 887538.4 11233.26 EXHIBIT B IlVIPACTS r_ ` PARTY (To be completed by responsible party) DATE INITIALS F. CULTURAL RESOURCES (Cont'd) FI. (Cont'd) • If human remains are discovered, the San Joaquin County Coroner shall be notified. The Coroner would determine whether or not the remains are Native American. If the Coroner determines that the remains are not subject to his authority, he will notify the Native American Heritage Commission, who would identify a most likely descendant to make recommendations to the land owner for dealing with the human remains and any associated grave goods, as provided in Public Resources Code Section 5097.98. H. TRAFFIC AND CIRCULATION H2. Future Plus H2. The project shall contribute its fair share cost to the installation Project Applicant with Prior to Proiect of a traffic signal at Lower Sacramento Road and Harney Lane. approval by City of issuance of Unsignalized Lodi Public Works occupancy Intersection Director permits. Operations H4. Cumulative H4. Modify the project site plan to provide dual eastbound left -turn Project Applicant with Prior to Plus Proiect movements out of the project site onto northbound Lower approval by City of issuance of Acces Sacramento Road, consisting of a 150-footleft-turn pocket and a full Lodi Public Works occupancy Conditions at travel lane back to the internal project site intersection. In the Director. permits. the Si alized eastbound direction, a left -tum pocket and a full travel lane back to Access Driv the signalized intersection will provide adequate capacity for Pro osed Along inbound traffic. In addition, STOP signs shall be installed on all the L w r approaches except the westbound to provide continuous traffic flow Sacramento into the project site and eliminate the potential for backups onto Road frontaize Lower Sacramento Road. On the Food 4 Less approach, a 100 -foot left-turnpocket will be provided at the signalized intersection. 887538.4 11233.26 EXHIBIT 887538.411233.26 PARTY (To be completed by responsible party) DATE INITIALS H. TRAFFIC AND CIRCULATION (Cont'd) H5. Cumulative H5. The following mitigation measures shall be implemented Project Applicant with Prior to Plus Pr i ct A) Extend a third southbound travel lane on Lower Sacramento final approval by City issuance of Access Road from its current planned terminus at the signalizedproject of Lodi Public Works occupancy Conditions at driveway to the southern boundary of the project site; Director. permits. Northem B) Construct a 100 -foot southbound right -turn lane at the signalized Unsienalized project driveway; Access Driv Along Lower C) Extend the southbound left -tum pocket by 100 feet; Sacram D) Extend the taper from 60 feet to a City standard 120-foottaper; Road E) Eliminatethe northbound left -tum lane into the northernproject driveway (under Alternative B). H6. Inadeauate H6. The project site plan shall be modified to move the north project Project Applicant with Prior to Left -tum Lane driveway on Westgate Drive south by 25 feet in order to accommodatethe required 90 -foot taper length. approval of City of Lodi Public Works issuance of occupancy Taper on Westgate Drive Director. permits. H7. Inadeauate H7. The project site plan shall be modified to extend the northbound Project Applicant with Prior to Left -tum Lane left -tum pocket to 250 feet, and extend the taper from 70 to a City standard 120-foottaper. approval by City of Lodi Public Works Director. issuance of occupancy permits. Tamr on Lower Sacrament Road H8. Publi H8. The project applicant shall work with and provide fair share Project Applicant with Prior to Transit Service funding to the City of Lodi Grapeline Service and the San Joaquin Regional Transit District to expand transit service to the project. final approval by City of Lodi Public Works issuance of occupancy Director. permits. 887538.411233.26 EXHIBIT B ti'SW'i^ �I v •!� ;5: t� y�c4 r'A 'F,F 4hY PARTY (To be completed by responsible party) DATE INITIALS H. TRAFFIC AND CIRCULATION (Cont'd) 119. Public H9. Modify the project site plan to: 1) provide a bus bay and Project Applicant, in Prior to Transit Stop passenger shelter at the proposed transit stop; and 2) include a consultation with City issuance of second transit stop in the eastern portion of the project near Lower of Lodi Grapeline grading Sacramento Road. Service, and with pen -nits. approval of City of Lodi Public Works Director. H1 1. H 11. Pedestrian walkways and crosswalks shall be provided to serve Project Applicant with Prior to Facilities Pads 8, 9, and 12 in order to complete the internal pedestrian approval of City of issuance of circulation system. Lodi Community grading Development Director. pen -nits. I. NOISE 13. Noise from 13. The following noise mitigation measures are identified as Project Applicant with Prior to Proiect AgUyiU appropriate for the various types of project activities, to reduce project noise at both existing and planned future adjacent development approval of City of Lodi Community issuance of building Roofto Mechanical Equipment. To ensure that the potential noise Development Director. permits. impact of mechanical equipment is reduced to less -than -significant levels, the applicant shall submit engineering and acoustical specifications for project mechanical equipment, for review prior to issuance of building permits for each retail building, demonstrating that the equipment design (types, location, enclosure specifications), combined with any parapets and/or screen walls, will not result in noise levels exceeding45 dBA (Leq-hour) for any residentialyards. r ' tleanin . To assure compliance with the City of Lodi oise Regulations regarding occasional excessivenoise, leaf blowing the southeast comer of the project site shall be limited to operating rin ring the hours of 7:00 am. to 10:00 v m. 887538.4 11233.26 EXHIBIT 887538.4 11233.26 PARTY (To be completed by responsible party) DATE INITIALS I. NOISE (Cont'd) 14. Noise from 14. The following measures shall be implemented to mitigate Project Applicant with Prior to St nnwater potential noise generatedby the stormwaterbasin pump: approval of City of issuance of Basin Pump I ) The pump shall be located as far as is feasible from the nearest Lodi Community grading future planned residential development. In addition, the noise Development Director. pen -nits. levels generated by pump shall be specified to produce noise levels no greater than 45 dBA Lq at the nearest residential properly lines. The pump facility shall be designed so that noise levels do not exceed 45 dBA at the nearest residential property lines. The pump may need to be enclosed to meet this noise level. Plans and specifications for the pump facility shall be included in the Improvement Plans for the project and reviewed for compliance with this noise criterion. 2) In order to avoid creating a noise nuisance during nighttime hours, pump operations shall be restricted to the hours of 7 am. to 10 p.m., except under emergency conditions (e.g., when the basin needs to be emptied immediately to accommodate flows from another imminent storm). 15. Construction H5. Short-term noise impacts shall be reduced through Project Applicant, to be Throughout Noise implementation of the following measures: limiting the hours of verified by the City of grading and construction; proper muffling and maintenance of equipment; Lodi Building Official construction. prohibition of unnecessary idling; noise shielding of stationary and City of Lodi equipment and location of such equipment away from sensitive community receptors; selection of quiet equipment; notification to neighbors of Development Director. construction schedule, and designation of a 'noise disturbance coordinator' to respond to noise complaints. (See EIR text for details.) 887538.4 11233.26 EXHIBIT B 887538.4 11233.26 3D - PARTY (To be completed by responsible party) DATE INITIALS J. AIRQUALITY J1. Construction J1. Dust control measures shall be implemented to reduce PMIo Project Applicant, to be Throughout Emissions emissions during grading and construction, as required by the City of verified by the City of grading and Lodi and the San Joaquin Valley Unified Air Pollution Control Lodi Public Works construction. District. (See EIR text for details.) Director and City of Lodi Community Development Director. J3. Regional J3 Project design measures shall be implemented to reduce project Project Applicant, to be Prior to Air Quality area source emissions, and a Transportation Demand Management verified by the City of issuance of (TDM) plan should be implemented to reduce project traffic and Lodi Building Official building resulting air emissions; however, these measures would not reduce and City of Lodi permits. the impact to a less-than-significantlevel. Community Development Director. J6. Restaurant J5. All restaurant uses within the project shall locate kitchen exhaust Project Applicant with Prior to vents in accordance with accepted engineering practice and shall approval of City of issuance of install exhaust filtration systems or other accepted methods of odor Lodi Building Official building reduction. and City of Lodi permits. Community Development Director. 887538.4 11233.26 3D APPEAL LETTERS Sheppard Mullin AND Remy, Thomas, Moose & Manley LLP 4/10/09 Herum/Crabtree 4/15/09 PAQ Inc. 4/17/09 17th Floor I Four Embarcadero Center I San Fiana isco CA 9411 1-4106 `• • 415-434 9100 office 1 415 434 3947 ku. l) www.sheppardmVJ11V,com A T T O R N E Y 5 A T L A W r, Writer's Direct Line: 415-774-2974 apelosi@sheppardinuIlin.cm April 10,2009 Our File Number: 15CM-130407 VIAE -MAIL AND FEDEX Ms. Randi Johl, City Clerk 221 West Pine Street Lodi, CA 95240 Re: Appeal of Planning Commission's decision to not approve the Lodi Shopping Center entitlements and to not adopt the Findings of Fact and Statement of Overriding Considerations (April 8,2009 Planning Commission agenda item 2) Dear Ms. Johl: We submit this letter on behalf of our clients, Wal-Mart Stores, Inc. and Browman Development Company. We hereby appeal the Planning Commission's decision to: (1) not approve the Use Permit (U-02-12), Vesting Tentative Map (03-P-001), and Site Plan and Architectural Review (08 -SP -08); and (2) not make and adopt the Findings of Fact and Statement of Overriding Considerations for the Lodi Shopping Center project ("Project") to the City Council. The Planning Commission held a public hearing on April 8,2009 to hear public testimony and to consider the Project entitlements (Use Permit, Vesting Tentative Map, and Site Plan and Architectural Review) and the Project Findings of Fact and Statement of Overriding Considerations. Alexis Pelosi and Darryl Browman presented testimony on behalf of Wal-Mart Stores, Inc. and Browman Development Company, respectively, in connection with the Planning Commission's decision. The Planning Commission motion to approve the Project Entitlements and to make and adopt the Findings of Fact and Statement of Overriding Considerations failed for lack of a majority vote and is therefore appealable per the City's code provisions and the State Subdivision Map Act. City staff and its team of expert consultants have worked on this Project for at least seven years. We believe that the Project complies with all applicable City requirements for these entitlements and that the Findings of Fact and Statement of Overriding Considerations complies with the California Environmental Quality Act. Thus, we respectfully request that the City Clerk place this appeal on the City Council agenda in compliance with the City's appeal SHE, PPARD MUI.LIN RICHTER & HAMPTON LLP City Clerk April 10,2009 Page 2 procedures set forth in the City Zoning Code Chapter 17.88 and the State Subdivision Map Act. (See Government Code section 66452.5(a).) Thank you for your time and consideration of this matter. Please contact us if you need additional information. V', Len Andrea K. LeisyV\- J �jr'i for REMY, THOMAS, MOOSE & MANLEY LLP W02-WEST;5ENS 1\401483434.2 Sincerely, / (VA, �y Alexis M. Pelosi for SHEPPARD, MULLIN, RICHTER & HAMPTON LLP cc: Rad Bartlam, City Community Development Director Steve Schwabauer, City Attorney Blair King, City Manager 401 1 pre6� FFEE 7ITwr M17 I== 4) LI LJ L LJ -77 11 J mMin BROWMAN DEVELOPMENT COMPANY, INC. Development . Leasing 0 Management Company Overview: Browman Development Company, Inc. (BDC) is a commercial retail development company based in Walnut Creek, California that has undertaken multiple development projects throughout the western United States including the San Francisco Bay Area, Central Valley of California, Washington and Alaska. An active shopping center developer since 1989, BDC has withstood multiple real estate cycles by adapting to expanding and contracting real estate markets. BDC is not a merchant builder, It develops shopping centers for its own portfolio and manages them internally through its construction, leasing, legal and property management divisions. Since its inception, BDC has completed the development of over 40 neighborhood and regional shopping centers totaling 3,500,000 square feet. Company Philosophy: BDC's philosophy is to develop viable shopping centers for its long term portfolio by creating attractive retail environments that serve the needs of the communities in which they are built. BDC pursues this philosophy by seeking out quality tenants to fill voids in the marketplace, fostering a healthy tenant mix, and developing a welcoming environment for customers to enjoy on a recurring basis. BROWMAN DEVELOPMENT COMPANY, INC. Development Leasing . Management Project History San Francisco Bay Area: Alameda Tulare - Marina Village Shopping Center (Outparcel) - Walgreens Pharmacy - Webster Square - Tulare Marketplace American Canyon Visalia - American Canyon Marketplace E1 Sobrante - E1 Sobrante Center Hayward - City Center Gateway - Mission Plaza Shopping Center - Shops at Palmtag - Skywest Commons - Sueirro Plaza Morgan Hill - Morgan Hill Shopping Center SanJose - The Shops at Evergreen San Pablo - Richmond Parkway Plaza Central Valley Atwater - Five Corner Crossings Phase I & II Fresno - Ashlan Plaza - Cedar Marketplace - Sunnyside Marketplace Hanford - Walgreens Pharmacy Lodi - Lodi Town Plaza - Sunwest Plaza Madera - Walgreens Pharmacy Orangevale - Greenback Promenade Riverbank - Crossroads at Riverbank - Walgreens Pharmacy Sacramento Area Davis - Covell Plaza Elk Grove - Laguna 99 Marketplace Sacramento - Arden Place - Bradshaw Marketplace Northwestern California Eureka - Eureka Plaza McKinleyville - Mill Creek Marketplace Alaska Anchorage - Tikahtnu Commons Wasilla - Cottonwood Creek Place Washington State Richland - Vintner Square Spokane - Northwest Center - Crestline Center - Cascade Center - Sullivan Shopping Center BROWMAN DEVELOPMENT COMPANY, INC. Development . Leasing . Management Current Projects Tikahtnu Commons Shopping Center (Anchorage, AIg Tikahtnu Commons is an 85 acre regional shopping center serving the growing needs of Anchorage, Eagle River, and the Mat -Su Valley that commenced construction May 15,2007. The shopping center is presently anchored by Target, Lowe's, and Kohl's; with Sports Authority, Best Buy, and Regal Cinemas opening in May 2009, June 2009, and March 2010 respectively. The center also offers additional retail opportunities ranging from shop space to major anchor locations. By being conveniently located next to Glenn Highway, the project will serve as a gateway to Anchorage as it is located at the first Anchorage off -ramp from the rapidly growing Mat -Su Valley and Eagle River. Cottonwood Creek Place (Wasilla, AI) This Target anchored center is located at the high identity intersection of Glenn Parks Highway and Palmer Wasilla Highway. Its tenant mix provides a varied offering to serve the community, including Walgreens, Sports Authority, Famous Footwear, Wells Fargo, Taco Bell, GCI, AT&T, Regis, Sally Beauty, GameStop, and more. This center is home to Walgreens first store in the Alaska market and one of Target's first two stores in Alaska. BROWMAN DEVELOPMENT COMPANY, INC. Development . Leasing . Management Featured Projects Cochrane Commons Shopping Center (MorganHill, CA) A 650,000 square foot regional retail project located -v i the affluent community of Morgan Hill anchored by Target, Petco, DSW, and Staples. Other key tenants include Chili's, Red Robin, Starbucks, Men's Wearhouse, Sleep Train, Massage Envy, Jamba Juice, Seds Candies, Dickey's BBQ, and more. This Art Deco architecturally themed project is conveniently located in north Morgan Hill to serve southeast San Jose, Gilroy, and of course, Morgan Hill. Skywest Commons Retail Shopping Center (Hayward, CA) Located on the site of a former movie theater, hotel, and gas station, this redevelopment project features a 140,850 square foot Target store, a 15,000 square foot Fresh & Easy Neighborhood Market, a 5,000 square foot junior major tenant, and 25,500 square feet of retail shops and restaurants including Payless Shoes, Pizza Hut, GameStop, Starbucks, Jamba Juice, T -Mobile, and more. Skywest Commons' Tuscan themed architecture and site amenities have set a new design standard for Southern Alameda County retail projects. Crossroads Regional Center at Riverbank (Riverbank, CA) A 600,000 square foot regional retail project located on the border of northeast Modesto anchored by Target, Kohl's, Save Mart, and Home Depot, serving Riverbank, Oakdale, Escalon and northeast Modesto. This project, which opened in 2005, also includes Petco, Staples, Wells Fargo, The Men's Wearhouse, Famous Footwear, Justice for Girls, Red Robin, Applebee's, and Round Table Pizza among the co -tenants. The project also includes 152 single family homes built adjacent to the center by Morrison Homes. BROWMAN DEVELOPMENT COMPANY, INC. Development . Leasing . Management Featured Projects American Canyon Maxketplace (American Canyon, CA) A 77,000 square foot neighborhood shopping center anchored by a Safeway Marketplace store and one of the first Safeway Fuel Centers to open in the region. Jack in the Box, Starbucks, UPS Store, and Cold Stone Creamery are among the national shop tenants located within this Napa Wine Country themed shopping center. Sunwest Plaza Shopping Center (Lodi, CA) Located in the growing Central Valley community of Lodi, this successful 250,000 square foot regional shopping center is anchored by Wal-Mart, JC Penney, and Food 4 Less. The many shops and restaurants in the center include Applebee's, Hollywood Video, McDonald's, GNC, Strings Italian Cafe, Sally Beauty Supply, and Radio Shack. City Center Gateway (Hayward, CA) City Center Gateway features three multi -tenant buildings containing 17,800 square feet of retail space located in the heart of Downtown Hayward. This exciting, pedestrian friendly project is anchored by Lucky grocery store and includes Starbucks Coffee, Jamba Juice, La Salsa Fresh Mexican Grill, Panda Express, and Cold Stone Creamery as co -tenants. BROWMAN DEVELOPMENT COMPANY, INC. Development . Leasing • Management Featured Projects Lodi Towne Center (Lodi, CA) Situated in Lodi's most dominant retail corridor, Lodi Towne Center features 170,000 square feet of retail space that is anchored by a recently remodeled Target store, Staples Office Supply, Big 5 Sporting Goods, and Payless Shoe Source. The Shops at Evergreen Village (SanJose, CA) Located in southeast SanJose's Evergreen neighborhood, The Shops at Evergreen Village feature a 15,000 square foot Walgreen's Drug Store and 6,000 square feet of retail and office space on two floors. The building's distinct European architecture creates a unique environment for patrons. Tulare Marketplace (Tulare, CA) Tulare Marketplace features one of the first Super Target stores to be built in California. This regional shopping center contains approximately 230,000 sf of retail and is strategically located in the path of growth at Prosperity and Mooney Blvd. Key co -tenancy for the peoject includes Tractor Supply Company, Valvoline, Starbucks, AT&T, Jeb's Blueberry u;'l FedEx Kinko's, and Curves among others. It also offers two pads ideal for fast food and sit down restaurants. HERUM CRABTREE ATTORNEYS i `tf`F,i /_Ri1�iF� § h'7 Ms. Randi Johl, City Clerk 221 W. Pine Street Lodi, CA 95240 Brefl S. Jolley bjolley@herumcrabtree.com Re: Lodi First Appeal to City Council re Lodi Shopping Center Project Dear Randi: Pursuant to Chapter 17.88 of the Lodi Municipal Code, please accept this letter as Lodi First's appeal of the Planning Commission's actions on April 8, 2008 regarding the Lodi Shopping Center Project ("Project"). Enclosed herewith please find a check in the amount of $300for the appeal fee. This appeal is filed in an abundance of caution to preserve all claims and to exhaust all remedies regarding the Planning Commission's 3-3 tie -vote on a motion to approve the Project. Although staff declared the tie vote to be a denial, Lodi Fist appeals from the fact that the Commission did not make any affirmative denial of the Project - including affirmatively denying the findings of fact and statement of overriding considerations as set forth in CEOA Guidelines §§ 15091 and 15093 and that staff curtailed further Commission discussions regarding the Project or alternative motions once the motion to approve failed. We request that the City Council set this appeal for hearing as required by the Lodi Municipal Code and that the hearing on this appeal be consolidated with any other hearings on timely filed appeals of the same decision. Should you have any questions, please feel free to contact me. Very truly yours, Attorney -at -Law Enclosure cc: Client Don Mooney, Counsel for Citizens for Open Government Steve Schwabauer, City Attorney 2291WEST MARCH LANE SUITE 13100 STOCKTON, CA 95207 PH 209 472 7700 MODESTO PH 209 525 8444 FX 209 472 7986 APC HERUM CRABTREE ATTORNEYS April 22, 2009 VIA ELMAIL Ms. Randi Johl, City Clerk 221 W. Pine Street Lodi, CA 95240 Brett S Jolley bjoiley@herumcrabtree.com Re: Lodi First: Corrected Appeal to City Council re Lodi Shopping Center Project DearRandi: Please accept this letter as correction of Lodi First's April 15, 2009 letter appealing the Planning Commission's actions on April 8, 2009 regarding the Lodi Slopping Center Project. The $300 appeal fee was paid by Check No. 19432, delivered to your office, along with the original appeal letter, on April 16, 2009. I recently discovered that the original appeal letter contained a typographical error listing the date of the Planning Commission hearing as April 8, 2008 rather than April 8, 2009. Although yourconfirming e-mail acknowledged the appeal related to the April 8, 2009 hearing date (thankyou), in orderto ensure an accurate record, this letter formally corrects that typographical error and, to ensure no issues arise regarding timeliness of the correction, the correction issubmitted within the appeal timeframe set forth in Lodi Municipal Code Section 17.88.060.A.1. All other information in the original appeal letter applies. Should you have any questions, please feel free to contact me. Very truly yours, Iff BR,ETrS. JOLLEY Attorney -at -Law cc: Client Don Mooney, Counsel for Citizens for Open Government Steve Schwabauer, City Attorney 2291 WEST MARCH LANE 1 SUITE 81001 STOCKTON, CA 952071 PH 209.472.77001 MODESTO PH 209.525.844-41 FX 209.472.7986 1 APC April 17,2009 Lodi City Council c/o City Clerk 221 W. Pine Street 2nd Floor Lodi, CA 95240 Dear City Council: Please accept this letter as an appeal by PAQ Inc. (doing business as Food 4 Less and Rancho San Miguel supermarkets) of the Planning Commission hearing on April 8, 2009 on the Lodi Shopping Center Project. Please find a check in the amount of $300 as payment for the appeal fee. A representative of PAQ Inc. has attended and spoken against the project and EIR at all hearings on the project and EIR in 2008 and 2009. The Planning Commission tied 3-3 on a motion to approve the project, but did not affirmatively deny the project. PAQ Inc. requests that the City Council affirmatively deny the application of Brownian Development Company and Wal-Mart Stores Inc. to construct a Wal-Mart Supercenter at the proposed location for the following reasons: The project will severely impact and likely close several existing Lodi businesses, including our Food 4 Less store located at the southeast quadrant of Lower Sacramento Road and Kettleman Lane • The project will create additional retail vacancies, decay, and blight throughout the city and prevent revitalization in East Lodi, and the project will stall or reverse downtown revitalization. • The project will not create substantial taxes orjobs to support approving the project. The project will impact public services such as police, fire, and code enforcement; placing an improper financial burden on residents, taxpayers, and business owners. • The project has the potential to displace hundreds of existing Lodi workers. Sincerely, Chris Podesto Director of Marketing 4/8/09 PLANNING COMMISSION MEETING Resolution Transcript of meeting Packet RESOLUTION NO. P.C. 09-07 A RESOLUTION OF THE LODI PLANNING COMMISSION DENYING USE PERMIT FILE NO. U-02-12 TO ALLOW THE CONSTRUCTION OF A COMMERCIAL SHOPPING CENTER IN THE C -S ZONE AND THE SALE OF ALCOHOLIC BEVERAGESAT THE WAL-MART SUPERCENTER; THE TENTATIVE PARCEL MAP 03-P-001 TO CREATE 12 PARCELS; PROVIDING AND THE ARCHITECTURAL APPROVAL FORA NEW COMMERCIAL BUILDING TO BE CONSTRUCTED AT 2640 W. KETTLEMAN LANE (WAL-MART) ------------------------------------------------------------------------ WHEREAS, an application was filed by Browman Development Company for a commercial shopping center at 2640 W. Kettleman Lane more particularly described as Assessor's Parcel Numbers 058-030-08 and 058-030-02 and portion of 058-030- 09; and WHEREAS, the application included the following requested approvals: Use Permits for the construction of commercial structures as required by the C -S Commercial Shopping District and for the sale of alcoholic beverages, a Vesting Tentative ..................... Map to create 12 parcels for the project, and architectural approval of a new commercial building including elevations and colors to be used for the construction of a Wal-Mart store located at 2640 W. Kettleman Lane (the "Project"); and WHEREAS, the Planning Commission of the City of Lodi, after more than ten (10) days published notice, held a public hearing before said Commission on April 8, 2009 to consider the Project; and WHEREAS, the Planning Commission considered the information provided in the record and at the Public Hearing on April 8, 2009, including, but not limited to, the proposed conditions of Project approval and the proposed findings and statement of overriding considerations pursuant to the California Environmental Quality Act; NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED, as follows: 1. The foregoing recitals are true and correct and incorporated herein by reference. 2. A motion to approve the Project resulted in a tie (3-3) vote of the members of the Planning Commission, as indicated below, which results in a denial of the Project. Dated: April 8, 2009 1 hereby certify that Resolution No. P.C. 09-07 was passed and adopted by the Planning Commission of the City of Lodi at their meeting held on April 8, 2009, as a result of the following vote to approve the Project: AYES: Commissioners: Cummins, Olson, Hennecke NOES: Commissioners: Kiser, Kirsten, Heinitz ABSENT: Commissioners: Mattheis ATTEST: Secre ary, Planning Commission 913848.1 4-08 PC PH trascripts.txt 0001 1 LODI PLANNING COMMISSION 2 PUBLIC HEARING 3 RE: REQUEST OF BROWMAN DEVELOPMENT COMPANY 4 AND WAL-MART REAL ESTATE BUSINESS TRUST 5 TO APPROVE USE PERMIT U-02-12 TO ALLOW THE CONSTRUCTION 6 OF A COMMERCIAL CENTER IN A C -S DISTRICT, AND ALLOW THE 7 SALE OF ALCOHOLIC BEVERAGES AT THE WAL-MART SUPERCENTER; 8 AND APPROVE VESTING TENTATIVE MAP 03-P-001 TO CREATE 9 12 PARCELS FOR THE PROJECT; AND SITE PLAN AND 10 ARCHITECTURAL APPROVAL OF A NEW RETAIL BUILDING TO BE 11 CONSTRUCTED AT 1600 WESTGATE DRIVE; TO CONSIDER 12 ADOPTING THE FINDINGS AND STATEMENTS OF OVERRIDING 13 CONSIDERATIONS PURSUANT TO THE CALIFORNIA 14 ENVIRONMENTAL QUALITY ACT 15 16 --------------------------------------------------- 17 Wednesday, April 8, 2009 18 at 6:04 p.m. 19 20 125 S. Hutchins Street Charlene Powers Lange Theatre 21 Lodi, California 22 23 Mandy M. Medina, CSR No. 11649 24 25 0002 1 APPEARANCES 2 3 Planning Commission Members: 4 WENDEL KISER, CHAIRMAN 5 BILL CUMMINS, VICE CHAIRMAN 6 RANDALL HEINITZ, COMMISSIONER 7 DEBBIE OLSON, COMMISSIONER 8 DAVE KIRSTEN, COMMISSIONER 9 STEVE HENNECKE, COMMISSIONER 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 0003 1 PUBLIC HEARING 2 April 8, 2009 3 4 CHAIRMAN KISER: Call the meeting to order, 5 please. would the Secretary please call roll? 6 MS. CHADWICK: Absolutely. Okay. 7 Commissioner Heinitz? 8 COMMISSIONER HEINITZ: Present. 9 MS. CHADWICK: Commissioner Hennecke? Page 1 4-08 PC PH trascripts.txt 10 COMMISSIONER HENNECKE: Here. 11 MS. CHADWICK: Commissioner Kirsten? 12 COMMISSIONER KIRSTEN: Here. 13 MS. CHADWICK: Commissioner Olson? 14 COMMISSIONER OLSON: Here. 15 MS. CHADWICK: Commissioner Mathias? 16 (No response.) 17 MS. CHADWICK: Vice Chair Cummins? 18 VICE CHAIRMAN CUMMINS: Here. 19 MS. CHADWICK: Chair Kiser? 20 CHAIRMAN KISER: Here. 21 Before we get started, I would like to kind of 22 set the ground rules so that everybody knows what is 23 going to be happening this evening. First of all, I 24 would like to welcome everybody to the meeting of the 25 Lodi Planning Commission. we have a large number of 0004 1 people here tonight. I understand that everyone is very 2 interested in our subject tonight. I want to start the 3 meeting by letting everybody know that, first, we will 4 keep to our agenda, which is available on the back 5 table. And that's this. Okay? 6 All right. Next thing I would like to say is, 7 if you want to speak, please fill out a speaker card 8 like this. Pass it up here, and I will give everybody 9 an opportunity to speak. Once recognized by me, you may 10 speak for up to three minutes. I'm going to give the 11 proponent and the opponent ten minutes each to do it, 12 then five minutes on the rebuttal. I will let you know 13 when you have about a minute left. Once I notify you, 14 you should start wrapping it up. when your three 15 minutes are up, I would ask you to conclude, and then 16 you must stop speaking. 17 Just as you have an opportunity to be heard 18 with respect, so, too, do others. There will be no 19 applause, no heckling, no personal attacks. And please 20 limit your comments to relevant facts or to a point of 21 view. 22 Additionally, as there are so many people here 23 to speak, please try not to repeat comments that already 24 have been made. If you agree with a previous speaker, 25 you may simply tell us so. Come up and say, I agree 0005 1 with what was said, and that would be fine. 2 we will first hear a staff report from 3 Mr. Bartlam. After he concludes, I will ask the 4 Commission if they have any questions. once all 5 Planning Commissioners' questions are answered, I will 6 open to the public. First we will hear from the 7 applicant. I will take public comment in the order I 8 receive cards, and once all comments have been heard, 9 the public hearing will close. At this point, all 10 decisions will be between the Planning Commission. 11 Is there anyone who does not understand these 12 rules, or is there anyone who does not agree with the 13 following? 14 Thank you very much. Okay. Mr. Bartlam. 15 MR. BARTLAM: Thank you. Good evening, 16 Commissioners. we're here once again to present the 17 Lodi Shopping Center for your consideration. As the 18 Commission will recall, you reviewed these very same 19 requests this past October. At that time, the 20 Commission chose to not certify the final revised Page 2 4-08 PC PH trascripts.txt 21 Environmental Impact Report. As a result of that 22 action, you were not able to consider the other project 23 approvals that were before you. 24 Subsequent to the Commission's action, the 25 matter was appealed to the City Council. The City 0006 1 Council considered the appeal last month in this 2 theater, and after the public hearing, voted to certify 3 the final revised EIR. Therefore, the Commission is now 4 faced with the balance of the project requests before 5 you and as previously presented. 6 Specifically, the applicant is requesting 7 three actions: A use permit to allow the sale of 8 alcoholic beverages within the Wal-Mart Supercenter 9 building, an additional use permit which is essentially 10 a site plan review within the community shopping center 11 district; a tentative parcel map which will divide the 12 land into 12 lots; and the site plan and architectural 13 review required for the buildings within the C -S 14 designation. And specifically before you this evening 15 is the Wal-Mart building. 16 So just by way of background, as you all know, 17 the Commission first reviewed and approved this project 18 in December of 2004. That began a fairly long list, at 19 least from Lodi's perspective, of actions before the 20 Lodi Planning Commission and City Council. Most 21 recently, the Commission, as I mentioned, denied a 22 request to certify the final revised EIR in October. 23 And as I mentioned, the City Council certified that 24 document last month. 25 So, once again, just to orient everybody as to 0007 1 what the project is, it's the southwest corner of 2 Kettleman Lane and Lower Sacramento Road. The property 3 is designated commercial shopping center. Its general 4 plan is neighborhood community commercial, and has been 5 that way since the 1991 general plan. 6 As you can see on the aerial, it is 7 essentially the fourth of -- fourth leg of what is a 8 built -out retail intersection, and this would complete 9 all the commercial activity within this area of Lodi. 10 So, specifically, as I mentioned, there are a 11 variety of project approvals before you. The use permit 12 and the commercial shopping center zone is the process 13 by which the C -S designation gets a public review. It's 14 the exact same review that took place with the other 15 three legs of the intersection, the Lowe's center, the 16 other Wal-Mart center, the Target center all came before 17 a planning commission during their review process. 18 In particular, the Commission's review should 19 be focused towards the standards for large retail 20 establishments, which was adopted by the City in 2004, 21 and in fact were, for the most part, derived to deal 22 with this project, in particular, and projects like it 23 in the future. 24 The second use permit request is the sale of 25 alcoholic beverages. As the Commission is aware, the 0008 1 City requires a use permit and a public hearing whenever 2 alcoholic beverages are requested to be sold, whether 3 those are packaged for off -sale consumption or for 4 on -sale consumption like a restaurant, a bar, night 5 club, and so forth. Page 3 4-08 PC PH trascripts.txt 6 The shopping center site plan is not changed 7 from December of 2004. Specifically a requirement of 8 the City was to keep everything that was approved at 9 that time the same as what is being proposed today. The 10 tentative map before you is to subdivide the property 11 into 12 parcels. The largest parcel is obviously for 12 the Wal-Mart building. It's just over 18 acres. The 13 smallest is just under a half an acre. All 12 buildings 14 in the project will accompany their own parcel. In 15 other words, each parcel will have a building on it. 16 As a typical shopping center, all the parking 17 is reciprocal, and would be no reserved parking or 18 identified parking for one use over the other. And 19 that's an idea of what the map looks like. 20 The site plan and architectural review is 21 relatively new for the Planning Commission's action. 22 Typically, in the past, this action would have taken 23 place by your site plan architectural review committee 24 subsequent to all of the Planning Commission and City 25 Council actions. A recent, a fairly recent, 0009 1 modification to the city code requires the Planning 2 Commission to do the site plan and architectural review 3 whenever the project's entitlement to those approvals 4 require a Planning Commission action. So before you is 5 the site plan and architectural review. Just briefly, 6 we're talking about the Wal-Mart building only, not the 7 entire center. Those will come back in subsequent 8 actions before you when they're ready to be constructed. 9 The Wal-Mart building is approximately 10 216,000 square feet. It's located in the southwestern 11 portion of the site and would face towards Lower 12 Sacramento Road much like the Lowe's shopping center to 13 the north. There are three entrance and exits off of 14 Lower Sacramento Road: one off of Kettleman Lane, which 15 is State Highway 12, and two from Westgate Drive, which 16 is the extension of the street to the west, or what 17 would be in back of the Wal-Mart building. 18 The main parking lot is located east side of 19 the Wal-Mart building itself. There are a variety of 20 smaller parking magazines strewn throughout the site 21 that are more convenient to the pad shops and smaller 22 tenants. There are a total of 965 stalls proposed. 23 Their landscape plan calls for a variety of 24 large shade trees, ground cover, shrubs and so forth. 25 There are over 450 trees being proposed. The conceptual 0010 1 plan indicates standards that meet the large retail 2 standards that I mentioned previously approved in 2004. 3 In terms of the elevation -- and I apologize 4 for the quality of the visual for the audience -- the 5 building is obviously a very large building. The front 6 of the building and the street side of the building are 7 shown in the first two elevations; the rear of the 8 building, the west elevation, being the third from the 9 top, and then the south elevation which will face 10 essentially a block wall on the site. A little better 11 perspective of what that building looks like. 12 There is a variety of building materials 13 proposed, including split face masonry, rock detail, 14 stucco, cornice treatments, and so forth. The 15 attempt -- the attempt, obviously, architecturally with 16 this building is to break up the large masses into Page 4 4-08 PC PH trascripts.txt 17 smaller frameworks. Again, it is a large building, so 18 I -- from a staff perspective, we believe they have done 19 an incredible job in trying to humanize, if you will, or 20 put a pedestrian scale to the building proposed. 21 This is a view -- as the previous elevations 22 were really the front of the building that faces inward 23 towards the parking lot, this is a view what would be 24 from the entry off of Westgate Drive. It shows the auto 25 related activities that are proposed for that north 0011 1 elevation, which brings me to a conclusion. 2 Staff believes that, based on the City 3 Council's action to certify the final revised EIR, the 4 plans that have been submitted, policies, and the 5 previous actions of the City, including this Planning 6 Commission, that the Planning Commission should make the 7 findings that are contained in your resolution, which 8 would approve the two use permit requests, it would 9 approve the vesting tentative map, and it would approve 10 the site plan and architectural review. 11 And with that, I'll entertain any questions 12 you might have. 13 CHAIRMAN KISER: Questions? 14 VICE CHAIRMAN CUMMINS: I just want to -- a 15 point of clarification: So tonight we're not dealing 16 with any issue relating to the EIR, because that's 17 certified and that's past, correct? 18 MR. BARTLAM: Yes and no. The Council 19 certified the EIR, so the contents of that environmental 20 review, the mitigation measures that were proposed have 21 all been adopted by the Council. Those are issues off 22 the table for the Commission's action tonight. You are 23 required, however, and contained in your resolution are 24 a set of findings having to do with the Environmental 25 Impact Report as well as statements of overriding 0012 1 consideration for those impact areas that were not able 2 to be mitigated. 3 And you will recall, there's really two issue 4 areas: one is cumulative air quality, and the second 5 being agricultural resources. Those are two areas of 6 environmental impact for which mitigation cannot be 7 proposed or implemented that lessens to a less than 8 significant impact. 9 And so by the California Environmental Quality 10 Act, the Commission is now faced with making a finding 11 for each of those two issue areas of statement of 12 overriding consideration. Essentially what you're being 13 asked to find is that there are benefits to the project 14 that outweigh the negative environmental impact that's 15 associated with the project. 16 And so, yes, in the sense that the 17 environmental document is certified. You don't have the 18 ability to go in and ask for more environmental study, 19 you don't have the ability to suggest other types of 20 mitigation. The Council has dealt with that issue. 21 The only thing before you is whether you agree 22 with the Council action. And simply put, if you agree, 23 there are findings that are consistent with that action. 24 If you disagree, then you just simply cannot find those 25 findings, you can't agree and make those findings, and 0013 1 your action tonight is simple. You have to say no. Page 5 4-08 PC PH trascripts.txt 2 VICE CHAIRMAN CUMMINS: So, really, we have 3 five proposals. So the four you mentioned, plus we're 4 going to be voting on a statement of overriding plans, 5 or making a ruling on that as well? 6 MR. BARTLAM: That's right. In 7 your resolution, as you have with every resolution that 8 is before the Planning Commission, regardless of the 9 action, there are a series of findings which are 10 essentially the facts of the action. And with this set 11 of requests, as is the case with other requests we've 12 seen, you must make those findings in the affirmative. 13 And so a piece of the findings in your resolution are 14 the environmental findings. And, again, I'm not going 15 to tell you you must do one thing or another. You can 16 do with it as you wish. But you can't -- you can't 17 modify the environmental document. Now, that's not to 18 say that you can't -- you can't tweak the findings. You 19 certainly can. If there's something that is written 20 that staff has proposed as a finding that you may not 21 agree with, but written a different way you might, you 22 certainly are able to modify those findings to get them 23 to a place where you can agree. But you are not 24 obligated -- and I'll stress this -- you're not 25 obligated to agree with the Council action. But should 0014 1 you not agree, your action then must be to deny the 2 request. 3 VICE CHAIRMAN CUMMINS: Okay. 4 CHAIRMAN KISER: Commissioner Olson. 5 COMMISSIONER OLSON: I have a quick clarifying 6 question. And that is, will you -- will we be asked to 7 take all of this in one action, or can we parse them in 8 any way, the actions, or are you going to address each 9 one separately and ask for a vote? I noticed the 10 resolution is drafted so that it's all in one fell 11 swoop. 12 MR. BARTLAM: we've given you one resolution 13 for one action. The Commission could certainly split 14 them if you wanted to vote on the use permits separate 15 than the parcel map, that's separate than the site plan 16 and architectural review. we would then just make sure 17 you understand that the various findings that are 18 specific to those requests, the use permit findings 19 would go with the use permit action, the environmental 20 findings would go with each one of the actions you might 21 take separately. 22 COMMISSIONER OLSON: Thank you. 23 CHAIRMAN KISER: Commissioner Heinitz. 24 COMMISSIONER HEINITZ: Yes. Just to clarify 25 what Commissioner Olson just said, it's actually set up 0015 1 so we're going to have public opinion on each and every 2 one of these at one time; is that correct? So we're not 3 going to take them one at a time that they're going to 4 speak on. 5 CHAIRMAN KISER: Right. 6 COMMISSIONER HEINITZ: So it would be better 7 for us that we just wait and look at it all in one 8 package together? If they're going to speak -- if 9 everybody is going to speak on everything all at one 10 time, they're not going to be separated per action -- 11 CHAIRMAN KISER: Right. Right. Right. Yes. 12 COMMISSIONER HEINITZ: That's what I wanted to Page 6 4-08 PC PH trascripts.txt 13 know. Thank you. 14 CHAIRMAN KISER: Any other questions? seeing 15 none, open it to the public. 16 Applicant come up and speak, please. state 17 your name and address for the record. 18 MR. BROWMAN: Mr. Chairman, members of the 19 Planning Commission, I want to thank you again for the 20 opportunity to be before you. I think it's an exciting 21 time. This is a project that's been going on -- 22 CHAIRMAN KISER: Excuse me. Can you state 23 your name for the record, please? 24 MR. BROWMAN: I'm sorry. Darryl Browman, 1556 25 Parkside Drive, walnut Creek, California. sorry about 0016 1 that, Mr. Chairman. 2 Again, I just wanted to say that we're excited 3 to be before you. This is a project that we've been 4 working on for over eight years, and we are in agreement 5 with staff on the conditions of approval. You know, one 6 of the benefits that you get with a project that's gone 7 on for this duration is, and that has been this 8 controversial, is that you get a huge amount of public 9 debate and you get a huge amount of input. And I think 10 one of the benefits that comes from that is that the 11 ultimate project that's before you today is a 12 culmination of years and years of people's hard work and 13 effort and public debate and participation. And as 14 difficult as it's been on my company and, you know, 15 planning staff and the City and the Planning 16 Commissioners on multiple occasions, I think that at the 17 end of the day, you ultimately will probably have a 18 better project as a result of the amount of debate and 19 effort and work that people put in. 20 I also want to take a minute and thank staff, 21 because staff has worked extremely hard, and I think has 22 been instrumental in the project design. And that's 23 something that I'm extremely proud of, and that's one of 24 the things that's before you. This project, I think, 25 will become a statement, and it will become -- it will 0017 1 become the project that people look to for new projects 2 in the City in terms of quality and design and, you 3 know, architectural enhancements for retail developed in 4 the City. 5 A couple of things that I want to talk about 6 that really, I think, make a big difference in this 7 project is we have taken it to what's called a 8 contemporary craftsman, which we think goes very well 9 with the wine industry for the City of Lodi. we got 10 large -- we've got large slope tiled roofs, we've got 11 significant breaking up of the massing as Mr. Bartlam 12 indicated in the front. And that articulation does a 13 lot of important things, but one of the most important 14 is it creates a pedestrian scale to the buildings. It 15 reduces the mass. And we have incorporated a lot of 16 trellising in the parking lot to both bring down the 17 scale of the buildings, and we did introduce, you know, 18 decorative light sconces and things like that that will 19 appeal to both the pedestrian in a distant visual basis. 20 And, lastly, from an architectural standpoint, 21 the pad buildings that will surround that are not before 22 you today are intended to match the same architectural 23 theme that you see, but the scale of those buildings Page 7 4-08 PC PH trascripts.txt 24 will be smaller, again, bringing the scale and feel of 25 the project to a pedestrian level both from the street 0018 1 and as you go from the street back into the project. 2 And we also intend to incorporate a number of outdoor 3 seating plazas and outdoor spaces as a part of the 4 project as well. 5 The other thing that I wanted to just clarify 6 for a second, in our last meeting, there was some 7 concern, and I think a little bit of misunderstanding, 8 regarding what Wal-Mart was willing to do as a part of 9 the building. And I wanted to go on the record to say 10 that Wal-Mart is prepared to do, at minimum, those items 11 that were outlined in the letters that were given to the 12 Planning Commission from Kelly Collier (ph), dated 13 10/6/08. And a lot of those -- a lot of those energy 14 efficiency items are things that we wanted to go on 15 record to say that they would do that or better. And I 16 think Mr. Bartlam also included that as a condition. 17 But I just wanted to make sure that was clarified. And 18 I can take a couple of seconds and talk about some of 19 those things if the Commission thought that was 20 appropriate, or if they just wanted to refer back to the 21 letter. 22 CHAIRMAN KISER: You can talk about those. 23 MR. BROWMAN: Number one, the structural steel 24 is going to be predominantly recycled structural steel. 25 The concrete floor slab will have fly ash and furnace 0019 1 slag which can reduce the amount of concrete by up to 2 40 percent. That would be put in the building. The 3 interior slabs will have an integral color rather than 4 the typical flooring and carpets for VCT and carpet. 5 we're talking about the introduction of about 6 250 skylights, with each of the skylights containing 7 daylight -- I'm sorry -- daylight sensoring and dimming 8 ballasts which will be another significantly energy 9 efficient feature. 10 There will be a central energy monitoring 11 system that will be covered by the home office that can 12 allow the store to deal specifically with the climatic 13 issues in Lodi, the particular location of the store. 14 we intend -- the store intends to use high efficiency 15 RTUs which will save between 14 and 70 percent -- I'm 16 sorry -- 14 and 17 percent of additional energy. we 17 intend to use TA fluorescent light fixtures in the 18 store. we also intend to use sensory activated high 19 efficiency low-flow toilets and faucets and urinals in 20 the project as well, which also saves significantly in 21 water. And the building signage is intended to be 22 internally illuminated LED instead of fluorescent. 23 And this has been to give you some examples of 24 the stuff that was highlighted in that letter. The only 25 other thing that I wanted to say is, you know, we think 0020 1 that this project has been highly scrutinized. we 2 appreciate the effort that everyone is putting into it 3 both at the Planning Commission and the City level and 4 at the public's level as well. we respectfully ask for 5 your approval of the project today. And I'm available 6 to answer any questions, and I thank you very much for 7 the chance. 8 CHAIRMAN KISER: Any questions? No questions Page 8 4-08 PC PH trascripts.txt 9 at this time. Thank you. 10 MR. BROWMAN: Thank you. 11 CHAIRMAN KISER: Opponent will get up and 12 speak. 13 MR. JOLLEY: Chair Kiser, I'm Brett Jolley, 14 2291 West March Lane, Suite B-100 in Stockton. I'm here 15 tonight on behalf of the Lodi First Group. And I 16 assumed that the proponents were done, so I stepped up 17 on behalf of the opponents. 18 Regarding this project, as Mr. Browman points 19 out, it has been a long time that this has been going 20 through the process. But we need to remember that time 21 doesn't necessarily heal all wounds, or in this case, 22 address all environmental and land use concerns with 23 this project. 24 Specifically, in looking at this proposal, I 25 see what I would call Costanza permitting. And if we 0021 1 think back to Seinfeld, one of my favorite characters 2 was George Costanza. And if you'll recall, George had a 3 famous adage about work. He said, when you're at work, 4 always walk around with papers in your hand so you look 5 busy and important. And in this case, we have heard 6 time and time again about all of the papers, all of the 7 studies and reports that have been put in, particularly 8 those that were recently produced by the applicants. 9 But like George's papers in his hand, these papers don't 10 necessarily go to answering the questions that you must 11 consider before approving this project. And, 12 specifically, that relates to this statement of 13 overriding considerations. 14 As we back up through this, we have to 15 remember that, although the Council certified the 16 Environmental Impact Report, as Mr. Bartlam has pointed 17 out, this commission still has a particular CEQA role in 18 makings it decision. And in doing that, you have to 19 adopt findings required by CEQA guideline sections 15091 20 and 15093. 21 The 15091 findings require you to address the 22 significance and mitigation measures of impacts from the 23 project and to adopt a mitigation monitoring plan. The 24 15093 finding is the so-called statement of overriding 25 considerations, and that's where the focus of my 0022 1 discussion is. Specifically, the statement of 2 overriding considerations is required where the project 3 has significant and unavoidable effects as in the case 4 with this project. The Commission cannot approve the 5 project unless it makes that statement of overriding 6 considerations, finding that the benefits of the project 7 outweigh the environmental burdens. 8 In this case, your statement of overriding 9 considerations is found at page 34, Exhibit A of the 10 proposed resolution. And in that, the proposed 11 resolution contains six findings of overriding 12 consideration. They are tax generation, employment 13 creation, municipal infrastructure development, plan 14 implementation, high quality design, and energy saving 15 features. 16 I would submit to you that the latter four, 17 municipal infrastructure development, plan 18 implementation, design standards, and energy saving 19 features are project specific. They relate only to the Page 9 4-08 PC PH trascripts.txt 20 project, and do not necessarily confer any additional 21 benefit on the City that would justify the project going 22 forward. The real statements of overriding 23 consideration are one and two, tax generation and 24 employment creation. 25 The problem is the record is replete with 0023 1 contradictory evidence on both of these items. 2 Specifically, regarding evidence of tax generation 3 increases in the City, we have a 2004 report submitted 4 by the applicants and prepared by ADE, Applied 5 Development Economics. And in that 2004 report, it 6 indicated that there would be approximately a $135,000 7 tax increase from this project. 8 In October of 2008, Wal-Mart said that the 9 project would generate about $790,000 in sales tax, and 10 then noted that the current store generates about 600, 11 leaving about a $190,000 tax increase. At the same 12 hearing, Mr. Browman said that the project would bring 13 about a million dollars in sales tax revenue to the 14 City. 15 In December, I submitted a report from 16 Professor King, an economics professor from San 17 Francisco State, who looked at the EIR's numbers and 18 concluded there would likely be about a $143,000 tax -- 19 gross -- adjusted gross tax increase from this project, 20 which he found was negligible when you consider other 21 closed businesses and loss of other revenue in the City. 22 Then in March of this year, Wal-Mart, at the 23 last City Council hearing, brought CBRE consultants from 24 San Francisco who presented a report that night that 25 found there would be a $1.364 million tax benefit to the 0024 1 City. So we raised the gamut from negligible to 1.364. 2 That is meaningful to your conclusion, if you 3 so make it, that this project has benefits that outweigh 4 its burdens. You need to know whether this is going to 5 generate $100,000 in additional tax revenue that might 6 not even cover costs from the project, or whether it's 7 going to generate 1.36 million. 8 You've got similar inconsistencies with jobs. 9 And point two on the statement of overriding 10 consideration says that the project will increase jobs 11 in Lodi. on October 2008, Browman said the project will 12 generate 900 to 1,000 new jobs. In December, Browman 13 reduced that number and said it will probably create 600 14 to 800 new jobs. In March of this year, Wal-Mart said 15 the project would have about 866 jobs, 568 at the 16 Supercenter and 298 at the other retail. 17 Again, you don't have a clear picture of what 18 amount of jobs are being created, what types of jobs, 19 and what type of employment revenues are going to come 20 from this project. And that's relevant, because a 2007 21 case called Woodward Park versus City of Fresno 22 explains, overriding considerations contrast with 23 mitigation and feasibility findings. There are larger, 24 more general reasons for approving the project such as 25 the need to create jobs, providing housing, generate 0025 1 taxes, and the like. This does not mean, however, that 2 an agency's unsupported claim the project will confer 3 general benefits is sufficient. The asserted overriding 4 considerations must be supported by substantial evidence Page 10 4-08 PC PH trascripts.txt 5 in the final EIR or in the record. 6 You do not have that evidence in the record to 7 support that conclusion. That evidence may well be out 8 there, but you don't have it yet. And what I would 9 encourage the Commission to do is to require that a 10 fiscal impact analysis be done by the City, not by the 11 developer, not by project opponents, not by Wal-Mart, 12 giving the City an objective statement of what the true 13 job and tax revenues will be from this project. once 14 you have that, you can determine whether or not to make 15 your statement of overriding considerations. And until 16 you have that, you're unable to make that statement. 17 MS. CHADWICK: That's eight minutes, so you 18 have two minutes left. That's two minutes left. 19 MR. JOLLEY: Mr. Kiser, I apologize. 20 Mr. Mooney representing Citizens for Open Government is 21 here tonight. He had asked for four minutes, and I did 22 not stop the clock. So if you could indulge him once 23 you're done with me, I would appreciate that. 24 CHAIRMAN KISER: Okay. You got two minutes. 25 Any questions before -- a question for you, Mr. Jolley. 0026 1 COMMISSIONER KIRSTEN: Hi, Mr. Jolley. I have 2 a question. You summarized the various analysis 3 relative to the tax -- sales tax benefits that the City 4 might realize. Just -- and I'm not sure that I 5 understand. Are those figures, are they designed to 6 describe the sales tax benefits at the outset, or is 7 that an average over a period of years, or how is that 8 analysis done? 9 MR. JOLLEY: It's not even that much 10 information in most of the documents, Mr. Kirsten. what 11 you have is one of the documents might say -- for 12 example, the 2004 ADE report reaches a conclusion that 13 there will be $13.5 million in captured sales leakage 14 that is new tax revenue in the City. The City gets 15 one percent of that, or 135,000, if we assume that 16 number is correct. The report doesn't even go that far 17 to say it's going to generate $135,000 in City sales tax 18 revenue. That's the data that can be extrapolated from 19 that. And that's the reason that I'm advocating the 20 City get its own analysis of this done for the specific 21 issue of what are the tax benefits from this pro] ect. 22 COMMISSIONER KIRSTEN: would you say that each 23 of these figures that are given in the various reports 24 are independent of sales tax dollars that would be lost 25 to other businesses based on competitive issues? 0027 1 MR. JOLLEY: Yes. They do not account for -- 2 based on my noneconomist reading of it, they do not 3 account for lost revenue from other closed businesses or 4 reduced income that might result from this project. 5 COMMISSIONER KIRSTEN: Okay. And then you 6 also mentioned that you would propose that the 7 Commission require an independent fiscal analysis based 8 on not only the jobs, but also the sales tax. Have you 9 seen examples of that? Is that a mainstream thing to 10 do, or have you seen examples of that occurring? 11 MR. JOLLEY: Yeah. Yes. To answer your 12 question, yes. Actually, several cities have recently 13 adopted big box type ordinances. And, oftentimes, those 14 will require special permitting for big box, however 15 that ends up being defined. And one of the requirements Page 11 4-08 PC PH trascripts.txt 16 for permitting a big box is often the preparation of a 17 fiscal impact study that addresses the respective costs 18 and benefits in terms of a tax revenue from those big 19 box stores. 20 In terms of case law, there's only one case 21 out there that addresses fiscal impact studies. It's a 22 case called American Canyon from 2006. And in that 23 case, the City had prepared a fiscal impact study 24 analyzing the costs and benefits to the City coffers 25 from adopting a supercenter development project, and 0028 1 said that substituted for the need to conduct an urban 2 decay analysis. And the appellate court said, no, the 3 fiscal impact study may be relevant to the City 4 understanding the impacts to the City's coffers, but it 5 doesn't substitute for an urban decay analysis. 6 Here you almost have a flip-flop situation 7 where you have an urban decay analysis, but not a fiscal 8 impact study to address the impacts. 9 COMMISSIONER KIRSTEN: One last question 10 regarding the expected increases in employment and job 11 opportunities. Should we view that as a measure of the 12 buildout, the complete buildout, of the project, or is 13 the number of jobs that are expressed in that figure, 14 are they -- are they resulting from an expected buildout 15 over the years, and what might ultimately be produced in 16 terms of jobs in that project? 17 MR. JOLLEY: I think it would be relevant for 18 your analysis, in the analysis that the Commission 19 conducts, to look at that, job creation from the entire 20 project and over what time frame you would expect to see 21 that so you can understand. If you're only going to 22 create a gross of five new jobs when you compare it to 23 the existing facility, that should weigh in your 24 decision of whether or not the benefits of five new jobs 25 outweigh the impacts from this project. The numbers 0029 1 that are out there that I quoted you from the record, I 2 don't know exactly what those -- what those relate to, 3 because that detail is not included. 4 COMMISSIONER KIRSTEN: Would you guess that 5 it's likely that, say, for example, a Wal-Mart project 6 is built or is not built, whether that happens, there is 7 likely to be a shopping center or some similar use in 8 that corner, some of thoseJobs that are incorporated in 9 that figure would exist with or without the Wal-Mart, 10 correct? 11 MR. JOLLEY: Correct. Correct. So there's an 12 offset there that you have to account for. 13 COMMISSIONER KIRSTEN: okay. I don't have any 14 other questions. 15 CHAIRMAN KISER: Any other questions? No 16 questions for you at this time, Mr. Jolley. 17 MR. JOLLEY: Thank you. 18 MR. MOONEY: Good evening. My name is Don 19 Mooney. I'm an attorney for Citizens for Open 20 Government. My address is 129 C Street, Suite 2, Davis, 21 California. 22 A couple of things. one, we did provide a 23 letter to the Commission this afternoon. And, again, 24 with these things, we don't get the -- apologize for 25 getting it to you on, you know, Wednesday afternoon, but 0030 Page 12 4-08 PC PH trascripts.txt 1 when we receive the staff reports on Friday afternoon, 2 it takes us a little bit of time to go through it and 3 prepare a letter and get it to the Commission. 4 A couple of things I just wanted to touch on. 5 I agree with what Mr. Jolley had said. I also want to 6 focus on the fact that, in the resolution that you've 7 been asked to -- that's before you, one of the things in 8 the resolution on page three, I want to make sure the 9 Commission understands, it states that the Commission is 10 exercising its own independent judgment. And then some 11 of the things that you're being asked to find in the 12 resolution in the findings really seem to go against 13 what this Planning Commission -- actually, some of the 14 concerns that this Planning Commission raised back in 15 October with regards to the economic analysis, I'll even 16 say with regards to global warming, and some of the 17 other things -- the other issues that were of concern, 18 and the statement of overriding considerations, as 19 Mr. Jolley was stating. 20 So I wanted to make sure -- and I was glad 21 that there was a little bit of discussion from staff -- 22 that you do have -- you're not simply bound -- you're 23 not required to simply approve this pro]ect with a 24 rubber stamp. And I think that that's kind of -- there 25 is another provision here in the staff report that says 0031 1 that the Commission has a little discretion with regards 2 to approval of this use permit. And I found that 3 troubling, because then, at the same time, you're 4 supposed to be exercising your own independent judgment 5 with regards to the CEQA findings. 6 And so I would like -- you know, and I 7 encourage the Commission to go back and think about 8 those issues that were of concern to it in October that 9 really haven't been addressed. And, in fact, on some of 10 the economic issues that hadn't been addressed, we all 11 know that the economic situation has only gotten worse 12 as time has gone by. And so, as Mr. Jolley said, 13 there's a lot of uncertainty there. And your decision 14 with regards to the statement of overriding 15 consideration is supposed to be based upon substantial 16 evidence within the record. And the Commission has 17 already expressed some concern about these issues. So I 18 encourage the Commission to take a hard look at it, and 19 prior to exercising your independent judgment, ask some 20 of those hard questions, but particularly of the 21 applicant and the staff in terms of the recommendations. 22 The other things of concern is that one of the 23 things in here is the -- we talked about in our letter 24 was the alternative analysis where staff has indicated 25 in the staff report that there is little discretion with 0032 1 regards to what could be approved. That makes the 2 alternative analysis within the EIR essentially a sham. 3 Because they're saying, this is the project you have to 4 approve, that you don t have the option of looking at 5 what those other alternatives are. And I would -- I 6 would argue that you, in fact, could adopt a no -project 7 alternative, and CEQA certainly allows for that. And 8 simply because the City Council had certified the EIR, 9 essentially, granted the appeal to certify the EIR, does 10 not -- does not bind the Council to adopt what 11 essentially was the preferred project in the EIR, or the Page 13 4-08 PC PH trascripts.txt 12 preferred alternative in the EIR. There are other 13 alternatives there that can be looked at and evaluated 14 and/or considered. 15 CHAIRMAN KISER: You have about two minutes. 16 MR. MOONEY: Thank you. You know, I really 17 don't have -- I really don't have anything else to add 18 in terms of what Mr. Jolley had said and what I had 19 said, so I'll just -- I will leave it at that, and 20 encourage -- again, I encourage the Commission to 21 exercise its own independent judgment with regards to 22 this, and not feel that they are bound by approving a 23 project simply because the City Council had certified 24 the EIR. 25 CHAIRMAN KISER: I think we have some 0033 1 questions for you. Commissioner? 2 COMMISSIONER KIRSTEN: Thank you, Mr. Mooney. 3 Just quickly, can you help me understand the -- you 4 mentioned that we have a no -protect alternative. Can 5 you explain -- help me define that? 6 MR. MOONEY: well, the no -project alternative 7 is under -- under the CEQA analysis. In the EIR, in the 8 final EIR, there was a range of alternatives on -- that 9 were evaluated. one was this project, one was a reduced 10 size project, one was the alternative location, and then 11 there's a required no -project alternative. And the 12 no -project alternative is oftentimes what you use to 13 evaluate kind of your baseline in terms of evaluating 14 your environmental impacts. 15 And in your consideration of your CEQA 16 findings, in terms of what project you want to adopt in 17 making your CEQA findings, do you have that discretion 18 to say, we're going to adopt the no -project alternative? 19 I acknowledge that, in essence, it would be a 20 denial of the application that's before you, but it 21 would be taking a look at the CEQA document. As 22 Mr. Jolley talked about the statement of overriding 23 considerations, in order for you to approve this 24 project, you have to make a statement of overriding 25 consideration, so -- and that statement of overriding 0034 1 consideration applies to the project the applicant has 2 put before you. So if you simply said, we're not 3 willing -- we don't think -- either the evidence does 4 not support the statement of overriding consideration, 5 or you don't think that the benefits as outlined in this 6 staff report in the resolution outweigh the -- outweigh 7 the costs or the impacts of the project, you're free to 8 simply say instead, we're going to -- we're going to 9 adopt the no -project alternative. 10 COMMISSIONER KIRSTEN: well, then before we do 11 that, I would like to get the City staff and possibly 12 the City Attorney's opinion here. Thank you, 13 Mr. Mooney. 14 CHAIRMAN KISER: Any other questions for 15 Mr. Mooney? None at this time. Thank you. 16 MR. MOONEY: Thank you. 17 CHAIRMAN KISER: Okay. The next item on the 18 agenda is anyone who wanted to speak. If you want to 19 speak, please turn one of these cards in. 20 MR. BARTLAM: Mr. Chair, I believe you were 21 going to give opportunity for rebuttal. 22 CHAIRMAN KISER: Yes. Do you have rebuttal? Page 14 4-08 PC PH trascripts.txt 23 MS. PELOSI: Good evening, Chairman. My name 24 is Alexis Pelosi. I'm with Sheppard, Mullin, Richter & 25 Hampton. I'm land use counsel for Wal-Mart. In 0035 1 response to some of the questions, and I'll just be 2 brief, Darryl Browman wanted to have a few minutes. So 3 if you could just let me know when I have a little more 4 than a minute left. 5 CHAIRMAN KISER: You have five minutes for 6 rebuttal, so -- 7 MS. PELOSI: Okay. Great. I don't think I'll 8 take all that time. with regard to the comments made by 9 the opponents, first, I wanted to be clear and on the 10 record that there is substantial evidence in the record 11 before you to make the CEQA findings and to adopt the 12 statement of overriding considerations. 13 what we have here is a conflict among experts. 14 There are experts that have been presented that state 15 that the economic benefit of the project is one thing, 16 then there are also statements by experts that say 17 another. That's the battle of the experts, and that is 18 what you have before you here tonight. 19 The Woodward Park case is not exactly on 20 point, because in that case, there was no evidence in 21 the record. Here we do have evidence in the record. we 22 have the BAE report, which actually did do a fiscal 23 impact analysis and it did look at sales tax. we also 24 have the CB Richard Ellis report, which we prepared in 25 direct response to the comments that we received from 0036 1 the Planning Commission when we were before you the last 2 time. And the point of the CB Richard Ellis is to go 3 over what the net tax gain or net tax revenue would be 4 to the City from this project. It looks at the gain of 5 sales tax, it takes away the loss of sales tax from the 6 closing of the existing Wal-Mart, the gain of 7 replacement tenants to that building, and then the loss 8 of sales tax from the diversion of the applicant based 9 on information in the BAE report and the EIR. It also 10 looked at property taxes and other sales tax revenues. 11 with regard to jobs, the existing Wal-Mart 12 employs approximately 300 people. It's been estimated 13 in a letter that was submitted to the City Council that 14 there will be approximately 866 -- or up to 866 new 15 employees at the Lodi Shopping Center. That would be a 16 net gain of 566 new jobs from not only the Wal-Mart, but 17 then also from the other -- 18 COMMISSIONER HEINITZ: Is there feedback? 19 CHAIRMAN KISER: we're having a tough time. 20 we can't hear. 21 (A brief interruption.) 22 CHAIRMAN KISER: That's better. 23 MS. PELOSI: Is that better? 24 CHAIRMAN KISER: Yes. 25 MS. PELOSI: So, basically, that, in summary, 0037 1 you know, are the comments that we have with regard to 2 the statements that the opposing attorneys have said. 3 There is substantial evidence in the record 4 before you tonight. There is evidence that shows the 5 economic benefit of this project both in the EIR and in 6 the CB Richard Ellis report, which was submitted. 7 And with regard to current economic Page 15 4-08 PC PH trascripts.txt 8 conditions, before the City Council considered the EIR, 9 BAE did prepare an update of current market conditions 10 and the impact on their analysis. And that was 11 considered in the EIR, and the City Council considered 12 it before deciding to certify the EIR. So there has 13 been additional information that has been given, that 14 has been analyzed, that is in the record, this report, 15 the findings, and the statement of overriding 16 considerations. 17 CHAIRMAN KISER: They have some questions for 18 you. I do. 19 MS. PELOSI: Sure. 20 CHAIRMAN KISER: I have been at the meetings, 21 the last Council meeting and the one before that. I ve 22 been in all those meetings. I was there at this meeting 23 and a gentlemangot up from CB Richard Ellis, and those 24 numbers were conflicting with, and the numbers have been 25 all over the board. Can you explain that to me? 0038 1 MS. PELOSI: Yes. And, again, you should have 2 received today a letter from CB Richard Ellis. And, 3 unfortunately, Elliott was not able to attend tonight, 4 because it is a Jewish high holiday, and so he was not 5 able to be here. And this basically goes over those 6 questions that were raised. And the letter explains the 7 difference in those numbers between the ADE report and 8 the CB Richard Ellis report. 9 So in it you can see that BAE actually 10 included a larger diversion in sales. So they assume 11 that there would be 55 million in sales diverted. This 12 is from the EIR. And ADE assumed a lower figure of 13 36.2 million. 14 There also, if you compare again, there's a 15 disparity between the estimate of total sales for the 16 pro]ect. ADE only estimated total sales of 111 million, 17 while BAE estimated 163 million. And the reason why is 18 it's a difference in assumptions. ADE assumed a 19 Wal-Mart annual sales of $350 per square foot, and BAE 20 assumed an estimate of $564 per square foot, which was 21 based on more current information, including national 22 sales data for all Wal-Mart stores, and the estimated 23 sales per square foot of the existing Lodi store. 24 CHAIRMAN KISER: Now, the question I have is, 25 this is 207. we're in 209. And your sales are down 0039 1 from 207, aren't they, or are they up? 2 MS. PELOSI: unfortunately, Aaron Rios from 3 Wal-Mart would be the person to answer that question 4 regarding existing sales. But I think if you follow the 5 news reports, I think of all the retailers, Wal-Mart has 6 continued to do very well in these tough economic times. 7 Wal-Mart is one of the only large scale retailers who 8 continues to show increase in profit and also an 9 increase in their share price. So as a result, I don't 10 think that that would be an accurate statement to assume 11 that simply because the economy is down that the sales 12 per square foot at the existing Lodi store is also down. 13 CHAIRMAN KISER: Thank you. I got a question 14 for you here. Mr. Kirsten? 15 COMMISSIONER KIRSTEN: Ms. Pelosi, thank you 16 for your comments. 17 MS. PELOSI: Yes. 18 COMMISSIONER KIRSTEN: I would just comment, Page 16 4-08 PC PH trascripts.txt 19 this letter dated today, April 8th, comes to us at the 20 11th hour. And in each of our previous meetings, we 21 received information just in the hours preceding the 22 meeting. It's important information. It's a little 23 hard to get our brain around this on such short notice. 24 So while there may be some valuable information in here, 25 and something that would be pertinent, I would just say 0040 1 that for the -- in my case, I would rather see this 2 information a little earlier so that I have a chance to 3 incorporate it into my thought process. 4 MS. PELOSI: I do apologize for that. There 5 was some scheduling issues and some people were out of 6 the country, and that's the reason why the report didn't 7 get to you until this afternoon. And I do apologize for 8 that. 9 COMMISSIONER KIRSTEN: Okay. I don't blame 10 you. I'm just saying that -- 11 MS. PELOSI: No, I understand. 12 COMMISSIONER KIRSTEN: -- I'm speaking for 13 myself, it's pretty difficult to incorporate. It looks 14 like -- it looks like it contained some useful 15 information, but I didn't get it in time to really have 16 a chance to analyze it. 17 MS. PELOSI: And, again, I mean, the CB 18 Richard Ellis report which was prepared previously 19 actually is in the packet. It was in the agenda packet. 20 And this just specifically responds to the questions 21 that the City Council had raised. 22 COMMISSIONER KIRSTEN: Right. And we agree on 23 that. 24 MS. PELOSI: And I do apologize it came so 25 late. 0041 1 COMMISSIONER KIRSTEN: Okay. I agree. I'm 2 just referring to this April 8th letter. 3 CHAIRMAN KISER: I have a question for you. 4 This report was prepared January the 12th, 209. The 5 Planning Commission never got that report until it was 6 brought to the Council. How come we never got it 7 before? 8 MS. PELOSI: And I just have to assume that 9 the report wasn't final and wasn't ready for 10 dissemination at that point. 11 CHAIRMAN KISER: It states right here it was 12 completed on January 12th of 209. That s why I asked 13 the question. 14 MS. PELOSI: Yeah. And, again, I don't know 15 the answer to that question. 16 CHAIRMAN KISER: Okay. All right. Thank you. 17 MS. PELOSI: And then Darryl wanted to say a 18 few -- 19 CHAIRMAN KISER: Yes. Can you state your name 20 and address for the record again? 21 MR. BROWMAN: Yeah. Darryl Browman again, 22 1556 Parkside. Thank you, Mr. Chairman and Members of 23 the Council. I just wanted to say a couple of things. 24 I think that there's -- as Alexis said, there's a 25 substantial amount of evidence before you that supports, 0042 1 you know,lob creation, sales tax revenue increases. 2 But I think even more importantly, we have a Planning 3 Commission that has the ability to exercise its own Page 17 4-08 PC PH trascripts.txt 4 discretion and is an intelligent group of people. And I 5 would ask not only to look at those reports, but to use 6 some common sense. And I would point out a couple of 7 things that I think are helpful. 8 Number one, one of the benefits that hasn't 9 been, but I think should be if you -- if you do elect 10 the report of the overriding considerations, is that the 11 creation in the buildout of the four corners creates a 12 powerhouse intersection that ensures for the City of 13 Lodi successful retail for the foreseeable future, 30, 14 40, 50 years. 15 And I use -- let's talk specifically. Let's 16 not use speculation. Let's use some real examples. And 17 the best example I can give you is a community of 20,000 18 people in Riverbank, California. And each time we added 19 larger and better retailers to that project, the sales 20 of those tenants have increased substantially. And the 21 base of what you have been able to obtain in terms of 22 retail possibilities has expanded each time we've done 23 that. And that's practical real examples that's less 24 than an hour and a half from where we're talking about. 25 And what ends up happening is, by creating a 0043 1 broad -- a broader retail environment, you not only are 2 able to increase the amount of people that come to shop 3 in the location, but you're also able to increase the 4 quality and the number of tenants that are potential 5 tenants for the project. For example, you know, when we 6 first started in Riverbank, if there wasn't a Target and 7 a Home Depot, we never would have gotten Kohl's in a 8 community of 20,000 people. But with a Target, with a 9 Home Depot, we were able to attract that kind of a 10 tenant. And then what happened after that was, with the 11 Kohl's, we were able to get a grocery store to that 12 location, because the volumes that were available there 13 were actually expandable, and so -- 14 CHAIRMAN KISER: Two minutes. Just to let you 15 know. 16 MR. BROWMAN: Thank you. And so I think those 17 are things that I think are certainly available for the 18 Planning Commission to consider as part of this decision 19 process. 20 And I would also say, you know, there was some 21 concerns expressed about, you know, when do those jobs 22 occur. And I think that's a legitimate question. And I 23 think the answer is they're not all going to happen 24 tomorrow. But what I can assure you is I have a history 25 of 17 years with the City. And we're going to do it 0044 1 incrementally, so that we build when we have tenants 2 that support what we're trying to do. Not just tenants, 3 but the right tenants that will create a good, viable 4 shopping center over the long-term. 5 So will that be in 12 months? No. It may be 6 a three- or four-year buildout. But what I can do is I 7 can point to a history in the City of doing just exactly 8 that. we phased each one of our projects and built them 9 out, and those tenants still exist today because we've 10 not gone after the first available body that might not 11 be the best retailer, but who is the best retailer that 12 will complement what's going on at that intersection. 13 we're committed to doing that exact same thing. So I 14 would suggest, yeah, it's not going to happen tomorrow, Page 18 4-08 PC PH trascripts.txt 15 but we're all in this for the long-term. we've been 16 together for 17 years and, frankly, we'll probably be 17 together for another 20 or 25 or 30 years, at least in 18 my lifetime. And I can say that that's, I think, the 19 approach we ought to be taking. Let's make good 20 long-term decisions that get us where we want to go. 21 And the other thing, the discussion about the 22 no -project alternative, I think, misses the point. This 23 property has been zoned in general plan for I believe 24 it's 12 years. So if this project gets denied, that 25 doesn't mean the project will lay fallow forever. There 0045 1 would end up ultimately being another commercial 2 property here which, theoretically, could have the exact 3 same impacts. 4 And so I think that the real answer is I would 5 ask the Council to take a look at some of these 6 benefits. I think that they're real and they're 7 measurable. And I would ask the Council to use their 8 discretion. I have faith in your ability to make 9 quality decisions. And I thank you very much for your 10 time, and I'm available to answer any questions. 11 CHAIRMAN KISER: Commissioner Heinitz. 12 COMMISSIONER HEINITZ: Yes, Mr. Browman. 13 Thank you. Since you opened it up, I'll continue on. 14 The dynamic four corners. Great idea. It's dynamic as 15 it sits now. Tell me, what will you do with your 16 dynamic four corners once the Wal-Mart goes across the 17 street and you have an empty Wal-Mart existing building, 18 and it affects Food -4 -Less, which possibly could be 19 affected, and it affects Safeway, which could be 20 affected? what happens to your dynamic four corners at 21 that time? 22 MR. BROWMAN: Actually, I look forward to that 23 challenge. I have an occupancy rate that's in the high 24 98, 99 percent. And I'm committed to getting the space 25 leased. I purchased the building. That was one of the 0046 1 big concerns that people had said early on, that it was 2 going to get restricted. we worked with the City and 3 made sure there were no restrictions on the building. 4 I've had the building leased once. I couldn't deliver, 5 because it was four years ago. And for two years, I sat 6 there with a fully negotiated lease ready to sign it and 7 couldn't give the tenant a delivery date. I had a 8 second tenant I was very close to. I'm not able to get 9 delivery. I'm very comfortable that space will be 10 leased. 11 And there is nobody that's got any motivation 12 any greater than me to make sure that I take care of my 13 existing tenants. I mean, I'm the guy who lives and 14 dies by it. And the one benefit you have is you got a 15 guy that's been here for 17 years. You know, if there 16 was ever a time in my career that there was a time to 17 sell projects if you were a merchant builder and just 18 wanted to capitalize and get out, it was probably three 19 or four years ago. And if nothing, we basically 20 recommitted to all of our projects. I just reinvested 21 and bought out my partner in the Target project. 22 And so, I mean, I don't -- I don't know what 23 else I can do other than to show everybody I'm committed 24 to the City and I'm committed to doing a great job on 25 the project. I won't rush the project. So if Wal-Mart Page 19 4-08 PC PH trascripts.txt 0047 1 moves across the street, that traffic generation will be 2 greater than it existed in the existing Wal-Mart lot. 3 But what I can tell you -- so I don't think you lose any 4 of that traffic. I think you actually expand it. But 5 what I can tell you is I'll be committed to do it right, 6 and that I won't rush out just to get a tenant in order 7 to fill the space. we're going to get the right tenant 8 that are going to make that intersection viable over the 9 long -run. And I think we have shown that time and time 10 again. And we're committed to continue to do that. 11 COMMISSIONER HEINITZ: Thank you. 12 CHAIRMAN KISER: Commissioner Olson. 13 COMMISSIONER OLSON: Thank you for coming 14 tonight and speaking on behalf of this pro]ect. You do 15 have a very -- a reputation that is admirable, and I 16 don't want to impugn it at all, but I think comparing 17 this project to Riverbank is a little misguided 18 considering that there was no K -Mart across town in 19 Riverbank, there was nothing in town, much less a 20 Safeway across the street. And there is no doubt that 21 that project is -- has brought a lot of revenue. But I 22 think that it's misleading to compare this particular 23 corner and the Wal-Mart to what happened in Riverbank 24 when there was absolutely nothing else. And if the 25 point you are making is that you believe in your ability 0048 1 to bring other tenants in, I'll accept that. But other 2 than that, I'm not sure that I can accept the 3 comparison. So I just wanted to state that. 4 MR. BROWMAN: Yeah. And let me -- maybe I 5 didn't do a very good job of explaining. what I was 6 trying to say is -- I don't think Wal-Mart is the savior 7 to everybody's problems. But what I do think is that 8 they're a great anchor tenant and they drive a 9 significant amount of traffic. And what I was trying to 10 point out in the analogy to Riverbank is, Riverbank, as 11 a community, is not capable of supporting the type of 12 retail that's there without drawing from a much larger 13 trade area. And the analysis that I was trying to show 14 was that by expanding and putting a million square feet 15 at that intersection, you expand Lodi's trade. Not 16 because Wal-Mart is some superstar, but by creating that 17 much synergy at that intersection. 18 And I can only give you some examples. Like 19 part of -- for years and years we tried to get somebody 20 like a Best Buy or a Borders to look at Lodi's 21 community, and it was too small. But when you put that 22 much -- that concentration of retail in an intersection, 23 notwithstanding whether it's Wal-Mart, but it's quality 24 anchor tenant kind of retail like your Targets, 25 Wal -Marts, Safeways, Food-4-Lesses, Penney s, you open 0049 1 the base of who else will take a look at that 2 intersection because of the amount of traffic it drives. 3 So I apologize if that came out -- but that's really 4 what I was trying to get at is the synergy that's 5 created. 6 CHAIRMAN KISER: Do you have any questions? 7 COMMISSIONER KIRSTEN: Yes. Mr. Browman, 8 thank you again. You answered one of my questions, but 9 the other one would be, and I think you alluded to it a 10 little bit, that the net number of jobs, I suppose, for Page 20 4-08 PC PH trascripts.txt 11 that powerhouse at four corners, for your project, is a 12 function of, I guess, how quickly it builds out. And I 13 don't know if there's been a published time line. 14 But I guess my question is, have you had to 15 amend your time line or your projections based on the 16 difficult economy, or are you still pretty much on track 17 with your original projections? 18 MR. BROwMAN: Yeah. You know, Lodi is sort of 19 an interesting one. I've been working on this project 20 for about eight years. So unlike a lot of projects that 21 were being done like up in Sacramento or some other 22 communities, they were all done based on a lot of 23 housinggrowth occurring. Lodi has got limited growth. 24 And so the demand for this project actually existed 25 seven or eight years ago. So although the economy has 0050 1 slowed down, it may impact to some degree the -- how 2 quickly things happen. I don't believe that it's the 3 same demand problem that you'll have like, for example, 4 in Roseville where they were expecting 5,000 homes to be 5 built in a very short period of time. 6 I don't know if that answered your question. 7 So I think that the -- I think that ultimately -- I 8 believe there's tenants for what we want to do. I don't 9 believe we're overbuilding the market. And that's not 10 something that we're going to be willing to do. we're 11 going to lease the space to the right tenants when those 12 tenants are available. 13 And I think in the best case, if the Planning 14 Commission saw it in their discretion to approve this 15 project, we would still have to go back to court, and it 16 would another year before the project is built. It may 17 be two years before anything gets out on that site. So 18 my -- if I had to hold up a crystal ball, I would say 19 that '09 is a difficult year and '010 will be a somewhat 20 difficult year, and I think '011, I think retailers will 21 be back starting to do new projects again and stuff like 22 that. So I don t think -- unfortunately, given the 23 delays that we've had, I don't think that you're talking 24 about a significant time lag in the reality. 25 COMMISSIONER KIRSTEN: If you look at the 0051 1 crystal ball, once you to get to the golden shovel 2 stage, from that point on, could you give me any kind of 3 a prediction as to how long it takes to build out the 4 shopping center? 5 MR. BROwMAN: Yeah. Absolutely. I would say 6 phase one -- and you have to understand, we stopped 7 leasing the project a couple of years ago, because it 8 was going so long we couldn't -- we didn't know where to 9 make deals with tenants and when we could deliver 10 spaces, and tenants would put termination rights in 11 their leases if you didn't deliver. 12 So I would say, let's say it took us until the 13 end of the year -- if we were to get approved, it took 14 us to the end of year to get a court decision, we got 15 the ground in spring, then it would probably take seven 16 to nine months to build the first phase of the project. 17 And then each phase takes about, say, as quick as four 18 months and as long as six and a half months. So you can 19 actually start progressing pretty quickly with your 20 buildings once you get going. And so the first one 21 happens probably in nine months, because you're doing a Page 21 4-08 PC PH trascripts.txt 22 lot of off -sites and a lot of on -sites. And then all 23 the rest of the utilities are stubbed and stuff like 24 that, so it happens pretty quickly, say, four to six for 25 each other phase. 0052 1 And if you want to look historically, I think 2 we built the Target and the Wal-Mart, the existing 3 centers, I think we built them in three or four phases. 4 So that would probably be -- I mean, I think that would 5 be a reasonable approach to look at as well, three to 6 four phases. Yougot 12 building pads. Some would go 7 right away, like, for example, you know, Walgreens is 8 interested ingoing on the corner and has been for four 9 years. There's three or four pads that would go right 10 away. But I think we would take time to do it right to 11 make sure we have the right tenants. 12 CHAIRMAN KISER: Go ahead, Mr. Heinitz. 13 COMMISSIONER HEINITZ: Yes. I think there's a 14 great deal of confusion out there that is being promoted 15 by Wal-Mart, and the fact that all of these wonderful 16 numbers that are going to come into Lodi, the jobs, the 17 tax revenue, the income is all based upon not only 18 Wal-Mart, but the stores that will come along with the 19 Wal-Mart. At this time, do you have any of these 20 businesses that have committed to those other spots 21 whatsoever? 22 MR. BROWMAN: Yeah, we have one, two, three, 23 possibly a fourth of the pads that are committed right 24 now. And we stopped. we actually could have probably 25 leased seven or eight of them, but we stopped, because 0053 1 we couldn't understand, you know, where you make a deal 2 and what the delivery time frames are. 3 But, you know, this is -- this is a very 4 unique situation. This is a case where you got a 5 project that's been ready to go for eight years, let's 6 say, and probably a little bit longer. It's very 7 atypical, because most of the retail stuff that you're 8 seeing .n a lot of other communities was predicated on 9 retailers getting way ahead of the growth. 10 And Lodi is not a community like that. That's 11 one of the beautiful things about it. It's slower 12 growth, it's -- you know, the people take a real good 13 look at what's going on. It's not like, you know, 14 they're approving 6,000 units and somebody has got to 15 run out two miles from the intersection of a real 16 intersection today and tie that up so they can build a 17 store three years from now. 18 So it's -- you know, so I think it's a little 19 bit different in that regard. And Sacramento is a great 20 example of a lot of that. There's been a ton of that in 21 other portions of the Central valley as well. 22 COMMISSIONER HEINITZ: I guess one of my 23 concerns is, to add insult to injury, would be the fact 24 that we would have a beautiful new Wal-Mart in that 25 corner, we have an empty Wal-Mart across the street, and 0054 1 then we would have empty pads or empty buildings, if you 2 did build them, with no other stores. And that would be 3 a real horrible situation. 4 MR. BROWMAN: Absolutely. I can assure you, 5 you know, I feel very comfortable that we would be able 6 to lease those pads without much difficulty, and we will Page 22 4-08 PC PH trascripts.txt 7 lease the Wal-Mart building. That is our number one 8 priority. 9 In fact, we -- at this point, we will not 10 lease our junior anchor building -- and that's one of 11 the benefits of having someone like us. we're motivated 12 to make sure we take care of our existing centers first. 13 And so the unior anchor building that's part of the 14 Wal-Mart will not get leased until we have our Wal-Mart 15 building leased. You know what I mean? So that's 16 actually one of the positive benefits that flow from 17 something like this. Rather than having disparate 18 ownerships where some guy doesn't care about what 19 happens next to him. 20 And, you know, we love Food-4-Less. They're a 21 great tenant. It is unfortunate that we're in this 22 situation, because we have a very good relationship with 23 Chris, and they're a fantastic tenant and have been a 24 great tenant for us over the years. 25 CHAIRMAN KISER: I have a question for you. 0055 1 In the agreement, it states that prior to the issuance 2 of a building permit, you have to have 50 percent leased 3 ahead of time. Do you feel you can achieve that? 4 MR. BROWMAN: Yeah. Absolutely. 5 CHAIRMAN KISER: And my second question is, 6 what's going to make people go to you instead of the 7 guys across the street where they've had a vacant 8 building for approximately a year now in the Lowe's 9 shopping center and have them become a tenant there? 10 MR. BROWMAN: That's their 12,000-foot 11 building? 12 CHAIRMAN KISER: Yes. 13 MR. BROWMAN: Yeah, I think we're -- I think 14 that Mr. Geweke does a good job with his properties. I 15 think we are -- we do one thing, and we pride ourselves 16 on our ability to work with tenants. We build shopping 17 centers and we own and manage them and lease them on our 18 own behalf. 19 And I think -- that's a very small building. 20 And what we're talking about here is the ability to 21 attract retailers in the 25- to 120,000-foot range. 22 That's something that they don't have the flexibility. 23 And, frankly, we have people that are committed to doing 24 nothing on our projects but lease them. And that's one 25 of the reasons why we have a higher occupancy rate. we 0056 1 do multiple transactions with tenants. You know what I 2 mean? And that gives us the ability to convince tenants 3 they should come to our project versus a different 4 project, you know, because it's those long-standing 5 relationships that we've had over the years. 6 CHAIRMAN KISER: Thank you. Any questions? 7 None at this time. Thank you. 8 MR. BROWMAN: Thank you very much. 9 CHAIRMAN KISER: Would the opponents like to 10 get up for rebuttal? Mr. Mooney is going to want some 11 time, too? 12 MR. JOLLEY: Yes. 13 CHAIRMAN KISER: You have five minutes. 14 MR. JOLLEY: If you can give me one minute to 15 at least let Mr. Mooney wrap up -- 16 CHAIRMAN KISER: One minute? 17 MR. JOLLEY: -- and I'll try to be brief. Page 23 4-08 PC PH trascripts.txt 18 Again, for the record, Brett Jolley on behalf of Lodi 19 First. 20 Responding to Ms. Pelosi's comments first, 21 regarding substantial evidence, I would submit to you 22 that you don't really have that situation that she 23 describes. And that in fact goes to your question that 24 you asked, Commissioner Kiser, of why did you not get it 25 as a Planning Commission when it was prepared in 0057 1 January. It wasn't released until March. And, again, 2 why does apparently a new letter that I have not seen, 3 and probably most of you have not had the opportunity to 4 review in detail, come in today? 5 And the answer is because Wal-Mart is not 6 putting that in there to educate you. They're putting 7 that in there to pad the record, so when they go to 8 court, they can say, we have evidence in the record that 9 the Commission considered and adopted. It's -- there's 10 not an intent for you to read or consider that evidence, 11 otherwise, it would have been produced to you when it 12 was available and not submitted to you at the last 13 minute when you can't review it. 14 And with respect to the evidence that's been 15 prepared, it is not objective. It is -- it is 16 essentially biased evidence prepared by Wal -Mart's 17 consultants. That's true of CBRE that you got the 18 letter from, apparently, in January, and it's also true 19 of BAE, Bay Area Economics, that has prepared the 20 Environmental Impact Report. 21 And I say that because in 2008, September of 22 2008, the City of Tracy asked BAE how many Wal-Mart 23 Supercenters have you done environmental review on. And 24 BAE said, dust off the top of my head, we've done Suisun 25 City, Redding, Antioch, Crescent City, Lodi, 0058 1 Porterville, Ceres, Soledad. So off the top of his 2 head, the BAE representative came up with eight 3 Supercenters that BAE is working on. BAE has a 4 relationship with Wal-Mart all over, and they are not 5 going to be inclined to bite the hand that feeds them. 6 That's why I would encourage this commission 7 to conduct an independent analysis, not by BAE, not by 8 CBRE, not by Professor King. Have it done either by 9 your staff or by your staff engaging someone that hasn't 10 done work with the other consultants. 11 Regarding jobs, the interesting thing is the 12 letter submitted by Wal-Mart at the City Council hearing 13 said, no, no, no, Lodi First has overestimated the 14 number of jobs that will come from this project. our 15 argument was it triggered a water supply assessment 16 requirement. 17 They did that because -- we did that because 18 we based our evidence on press releases issued by 19 Wal-Mart on new Supercenter openings. But, in fact, the 20 Supercenters employed much lower numbers than announced 21 in Wal -Mart's own press releases. So that tells you 22 that you're not getting accurate information. You got 23 the marketing side that's going to play it up, and the 24 other side that won't. 25 CHAIRMAN KISER: You got about two minutes or 0059 1 a minute. 2 MS. CHADWICK: One minute. Page 24 4-08 PC PH trascripts.txt 3 MR. JOLLEY: Thank you. And, finally, 4 regarding Mr. Browman and Wal-Mart being a great anchor 5 tenant for this site, I don't think we need to have a 6 synergy overriding consideration, and that is because 7 you already have a Wal-Mart at that intersection. The 8 benefits of that Wal-Mart should really be fully 9 realized by the City at this point. But, in fact, what 10 you would be doing is adding so much additional square 11 footage that that synergy is going to hurt the rest of 12 the city. 13 And I think one example of this can be seen by 14 the story in yesterday's paper about downtown Starbucks 15 closing. Downtown Starbucks is closing, but the three 16 that are located at that intersection will remain open. 17 And when you get that synergy out at that intersection, 18 it really hurts the core of the city, because it draws 19 people away. Thank you. 20 CHAIRMAN KISER: We got a question for you. 21 COMMISSIONER HENNECKE: We have seen a lot of 22 numbers on these reports. And, of course, you know, 23 pros and cons. You guys have had your opportunity. 24 Tell me if I'm correct on my take here. We have got a 25 range on the tax dollar assessment of a low of 134,000 0060 1 to a high of 1.3 million; is that correct? 2 MR. JOLLEY: Approximately, yes. 3 COMMISSIONER HENNECKE: And then on the job 4 range, we've got a range of 600 to 1,000; is that 5 correct? 6 MR. JOLLEY: Correct. 7 COMMISSIONER HENNECKE: okay. The one thing 8 that puzzles me, and I'll give you a little background 9 on it is, I had the good fortune of taking statistics in 10 college from a very smart lady who was working for Gray 11 Davis at the time who was a spin doctor. And she used 12 to leave our class and go out and do whatever they 13 needed for press releases. And the one thing that she 14 taught me is that you can make stats say whatever you 15 want them to say. The one thing that puzzles me is, you 16 being against this, you have not been able to come up 17 with any negative numbers. All of these are in the 18 plus; is that correct? 19 MR. JOLLEY: It's in the plus for the shopping 20 center itself. So there's no evidence that says the 21 shopping center itself will actually have a negative 22 number of jobs or negative taxes. But you have to look 23 at the comparison of the shopping center against what 24 it's taking away from the rest of the city. 25 COMMISSIONER HENNECKE: So what you're asking 0061 1 us to do as planning commissioners is, on our overriding 2 consideration, is to take a positive gain in tax dollars 3 and a positive gain inJobs and try to quantify that to 4 a number, a threshold that says that if it's below this 5 dollar amount, even though it's positive, I can't do 6 this? Is that what you're asking? 7 MR. JOLLEY: I don't know that you have to 8 reach an actual threshold, but you need to have the 9 information, credible information, there before you so 10 you understand what those numbers are, what are your 11 real tax benefits going to be. It may be CBRE is 12 correct and it is 1.3 million. I'm not an economist. I 13 don't know. But that's information that seems to Page 25 4-08 PC PH trascripts.txt 14 conflict with much of the other information in the 15 record and was produced by Wal-Mart at the 11th hour. 16 So I have a feeling that's probably not accurate. Maybe 17 it is. And maybe you get that information, and as a 18 commission, you say, well, looking at these benefits, 19 they really do outweigh the burdens, and we can adopt 20 this statement of overriding consideration. 21 COMMISSIONER HENNECKE: Yeah. Well, I can 22 understand that these are all just projections and, you 23 know, crystal ball numbers. But I guess I'm really 24 amazed that you can't come up with anything more 25 negative being against it. 0062 1 MR. JOLLEY: I'm a positive guy. 2 COMMISSIONER HENNECKE: okay. Thank you. 3 CHAIRMAN KISER: Questions? That's all. 4 Thank you. 5 MR. MOONEY: I don't have anything else to 6 add. 7 CHAIRMAN KISER: Thank you. I would like to 8 take comments from the public. Let's take a little 9 recess, please. Five minutes. 10 (A recess was taken.) 11 CHAIRMAN KISER: Back to order. We have the 12 cards here. First, Chris Podesto. 13 MR. PODESTO: Good evening, Chairman and 14 Commissioners. My name is Chris Podesto, and my 15 business address is 8014 Lower Sacramento Road, 16 Stockton. 17 I do have a tremendous amount of respect for 18 Mr. Browman. we are friends. And that's why he's here 19 in a sling tonight. we decided to arm wrestle over this 20 issue. 21 Anyway, on a serious note. Many of you know I 22 come here tonight wearing two hats: Director of 23 marketing for Food -4 -Less and Rancho San Miguel, and a 24 local area resident. And what I have to say here is 25 equally influenced by both roles. 0063 1 The City Council may have overruled your 2 decision not to certify the EIR. This does not mean 3 that you should approve this project here before you 4 tonight. The EIR tells you this project may close 5 several existing businesses in Lodi. our store is near 6 the top of the list. we agree, and think that store is 7 in greater jeopardy than the EIR would suggest. 8 we coanchor the southeast corner of Lower 9 Sacramento -- Lower Sac and Kettleman Lane with the 10 existing Wal-Mart. If this project goes forward, not 11 only do we lose our 120,000 square foot Wal-Mart 12 coanchor, but we will also see the addition of a new 13 discount supermarket across the street in a part of town 14 that is already inundated with supermarkets. 15 A couple of these changes, with the current 16 economic downturn, yield a recipe for disaster. Not 17 only could this create a vacant commercial space in west 18 Lodi, but will also result in a loss of community 19 partners such as Food -4 -Less and other local businesses 20 who have contributed to Lodi's well being. 21 while this decision to certify the EIR may be 22 out of your hands, the decision of whether to approve 23 this project is not. You must balance the benefits of 24 this project against the costs. Is approving this Page 26 4-08 PC PH trascripts.txt 25 340,000 square foot project at the expense of other 0064 1 retailers and possibly the downtown supported by other 2 benefits? Is approving this project in west Lodi at the 3 expense of east Lodi worth the cost? 4 CHAIRMAN KISER: You got a minute, Chris. 5 MR. PODESTO: I do not think so. I can tell 6 you that Food -4 -Less will seriously consider placing a 7 supermarket in east Lodi. But if the Supercenter goes 8 forth, that will not happen. The Supercenter will 9 simply place too much pressure on the existing 10 groceries -- Lodi grocers, and will likely lead to 11 vacancy of existing shopping centers and losses of their 12 tax revenue. Any increase in tax revenue will be offset 13 by the losses, as well as increased city need for 14 services. 15 For these reasons, I urge you not to approve 16 this project. Any questions? 17 CHAIRMAN KISER: Yes. Mr. Heinitz. 18 COMMISSIONER HEINITZ: Yes. Thank you, 19 Mr. Podesto. I appreciate you coming forward tonight. 20 Just a couple very simple questions. Does Food -4 -Less 21 own the building that they're in? 22 MR. PODESTO: No. 23 COMMISSIONER HEINITZ: It is owned by? 24 MR. PODESTO: Mr. Browman. 25 COMMISSIONER HEINITZ: You have a lease. 0065 1 MR. PODESTO: Yes. 2 COMMISSIONER HEINITZ: How long do you have 3 left on the lease? Do you have any idea? 4 MR. PODESTO: I would have to defer to 5 Mr. Browman on that. 6 MR. BROWMAN: Seven to eight years. 7 MR. PODESTO: Seven to eight years we'd say. 8 COMMISSIONER HEINITZ: Seven to eight years 9 comes up, the Wal-Mart Supercenter goes in, your sales 10 are lacking, what would you tell me? 11 MR. PODESTO: We will absolutely -- well, when 12 you say lacking, I guess to what extent? The EIR would 13 suggest that our business would be impacted by at least 14 40 percent. If that's the case, we would absolutely 15 close the doors. we could not afford to lose 40 percent 16 of our business. 17 COMMISSIONER HEINITZ: Thank you. 18 CHAIRMAN KISER: Commissioner Kirsten. 19 COMMISSIONER KIRSTEN: Hi, Chris. Quick 20 question. How many employees are there currently in 21 your facility, Food -4 -Less? 22 MR. PODESTO: Approximately 140, give or take. 23 COMMISSIONER KIRSTEN: And I don't know if 24 this is a number that you want to make public, but can 25 you give us any kind of estimation of the sales tax -- I 0066 1 mean, it's all grocery, or is it -- it's a very high 2 percentage of grocery, correct? 3 MR. PODESTO: High percentage of grocery. we 4 are a taxable grocery as well. But I am not prepared to 5 give you those figures tonight. If the Planning 6 Commission would like those figures, I would be glad to 7 bring them to you. 8 COMMISSIONER KIRSTEN: I think it suffices. 9 It's a high percentage of grocery. And would you say is Page 27 4-08 PC PH trascripts.txt 10 the Rancho San Miguel market also -- would you say it 11 could be impacted by this proposed Supercenter? 12 MR. PODESTO: There's no question. This is -- 13 this is -- let me answer your question directly. 14 There's no question that the socioeconomics of the east 15 side will be a draw to the west side. You will be 16 pulling people from Cherokee Lane to west Lodi. That's 17 dust the nature of the consumer base in Wal -Mart's 18 demographic. 19 With respect to a Supercenter, the tax 20 revenue, you already have a tremendous tax base from the 21 existing Wal-Mart. The Supercenter really isn't going 22 to generate a tremendous amount of additional taxes, 23 because the additional component will consist of 24 grocery, which doesn't create a lot of tax dollars for 25 the City. 0067 1 COMMISSIONER KIRSTEN: So just to clarify, the 2 greatest impact this community is likely to suffer if -- 3 if Food -4 -Less or Rancho San Miguel are impacted to the 4 extent it could possibly go out of business, then the 5 greatest impact to our community is likely to be the 6 loss of the jobs, correct? 7 MR. PODESTO: Oh, there's no question. It 8 will simply be a redistribution. To suggest that we're 9 going to pull from this greater area around us is kind 10 of deceiving. we all know that Galt is projected to 11 have a Wal-Mart or Supercenter, we know that they're 12 pushing to have one on Eight -Mile Road. what is this 13 radius we think we're going to pull from? And as 14 Mr. Browman indicated, Lodi does grow at a slow pace. 15 So where are these incremental customers coming from? 16 And if in fact you bring in Costco, which 17 needs to do approximately 700,000 in grocery, Wal-Mart 18 is going to want to do 700,000 in grocery, where is the 19 1.4 million in grocery going to come from? Since you 20 have a Costco in Stockton, you have wal-Marts in 21 Stockton, you're going to have a Wal-Mart in Galt, 22 where -- seriously, where do we think these incremental 23 dollars are coming from? And since when do we need a 24 commercial center every five minutes away? It's kind of 25 crazy. 0068 1 COMMISSIONER KIRSTEN: All right. That's all 2 I have. 3 VICE CHAIRMAN CUMMINS: Thanks for being here, 4 Chris. Thanks for the bags, too. I appreciate that. 5 MR. PODESTO: You're welcome, sir. 6 VICE CHAIRMAN CUMMINS: And I wanted to ask a 7 question. How long ago -- or how old is Rancho San 8 Miguel, the actual -- 9 MR. PODESTO: Five years. 10 VICE CHAIRMAN CUMMINS: Five years? And when 11 you opened up Rancho San Miguel, up through today, did 12 net sales of Food -4 -Less go up or down with the addition 13 of Rancho San Miguel? It s probably the most new -- the 14 newest grocery store in town? 15 MR. PODESTO: Yeah. They actually went down. 16 VICE CHAIRMAN CUMMINS: Food -4 -Less went down? 17 MR. PODESTO: Yes, sir. 18 VICE CHAIRMAN CUMMINS: But together, they had 19 to have gone up. 20 MR. PODESTO: I'm sorry? Page 28 4-08 PC PH trascripts.txt 21 VICE CHAIRMAN CUMMINS: Since you own both of 22 them together, obviously the net sales together would 23 have gone up. 24 MR. PODESTO: Well, you certainly double your 25 overhead. And Food -4 -Less was very much impacted by 0069 1 Rancho San Miguel on the east side. Again, the people 2 from the east side in many cases will pull to the west 3 side and vice versa. 4 VICE CHAIRMAN CUMMINS: But, I mean, opening 5 Rancho San Miguel didn't make Food -4 -Less go out of 6 business; is that correct? 7 MR. PODESTO: No. But I think that's an 8 interesting comparison. 9 CHAIRMAN KISER: I have a question for you. 10 Actually, what San Miguel did was provide a grocery 11 store for the east side so people could go there, and 12 Food -4 -Less would provide for the west side, and some go 13 vice versa is what you're saying. would that be a fair 14 analysis, I should say? 15 MR. PODESTO: Yeah. It's interesting. 16 Food -4 -Less is a price -impact store similar to Wal-Mart. 17 It has the ability to pull from a greater distance. So 18 Food -4 -Less can in fact pull from the east side. Rancho 19 San Miguel really acts as a ethnic store and a 20 neighborhood store, but it doesn't have the draw like a 21 Wal-Mart or a Food -4 -Less. 22 CHAIRMAN KISER: Okay. Commissioner Olson has 23 a question for you. 24 COMMISSIONER OLSON: Yeah. Mr. Podesto, I 25 just want to congratulate you on being such a really 0070 1 outstanding corporate citizen in our community. And I 2 know how much Food -4 -Less does, and Rancho San Miguel, 3 and I appreciate that, and I hope the community has 4 given you that appreciation. 5 Part of what I want to ask you is, really, I'm 6 trying to distill in my mind what some of the issues -- 7 what some of your issues are. And I don't believe it's 8 necessarily competition, and you can correct me if I'm 9 wrong, because you have competition around town. It's 10 really more of, I think -- are you really saying it's 11 more an outsider coming in and usurping local -- 12 MR. PODESTO: No. As I stated earlier, I 13 really come here wearing two hats. I live in Lodi. I 14 love this community. I am very aware of Wal-Mart and 15 their practices and what they -- the impact they have on 16 our community. The hat I'm wearing tonight, however, 17 though is Chris Podesto, corporate citizen. 18 I think that you guys all were aware of 19 Measure W. we know that there is blight and decay on 20 the east side of town. To bring a Supercenter to this 21 west corner, in my opinion, is just Silly. How are you 22 ever going to stop the blight and bring business to the 23 east side if, in fact, you're going to put all your eggs 24 in one basket on the west side. You're going to 25 perpetuate the blight, and you're going to stop all the 0071 1 businesses such as ourselves from considering partnering 2 on the east side. 3 COMMISSIONER OLSON: That helps. Thank you. 4 COMMISSIONER HENNECKE: Wouldn't -- I'm sorry. 5 wouldn't you consider the Reynolds Ranch project east Page 29 4-08 PC PH trascripts.txt 6 side stores and shopping? 7 MR. PODESTO: Very much so. I guess the 8 difference with the Reynolds Ranch is we don't have a 9 Costco in Lodi. As a citizen and a consumer in Lodi, we 10 think Costco is wonderful and makes sense for Lodi. our 11 whole point is that we already have a Wal-Mart, and we 12 certainly don't need a fifth grocery store on that 13 corner. It makes terrible planning sense. Somebody has 14 got to go. Something has got togive. This notion that 15 nothing will give is not real world, and I think we're 16 seeing that in our current economic planning. 17 COMMISSIONER HENNECKE: If Costco was to try 18 to move into the Reynolds center, would that pose the 19 same problem for you as the Super Wal-Mart? 20 MR. PODESTO: No. Again, as a consumer of 21 Lodi -- and, again, I have to articulate I wear two 22 hats -- I think a Costco would be fantastic. I wouldn't 23 oppose a Costco at all. We don't have a Costco in Lodi, 24 but we already have a Wal-Mart. 25 COMMISSIONER HENNECKE: Thanks. 0072 1 CHAIRMAN KISER: Thank you. Next person, John 2 Ibarra. John Ibarra? 3 MS. CHADWICK: He's already gone. 4 CHAIRMAN KISER: John Ibarra? Roger Oster? 5 MR. OSTER: My name is Roger Oster. I live at 6 2026 Oxford way here in Lodi. Born and raised in this 7 town. I thought the meeting was going to be talking 8 about the three items that you were supposed to be 9 voting on tonight. All I've heard from both sides, of 10 course, is a rehash of everything that's been talked 11 about before; the fact that Food-4-Less is going to go 12 out of business because of Wal-Mart coming in, and 13 Safeway, and Lodi downtown being deteriorated. 14 Things have deteriorated in Lodi not because 15 of Wal-Mart coming in, because it hasn't come in yet, 16 the supercenter, but because of bad management and, of 17 course, the economy. 18 As far as the people at Safeway, they're going 19 to shop Safeway regardless if there's a Supercenter. 20 The people who shop at Raley's will shop at Raley's 21 regardless of whether there's a Supercenter. I agree. 22 Food-4-Less may be hurt. But being a person who shops 23 at all of the different markets, and I used to shop the 24 Food-4-Less continuously until about a year ago when the 25 employees started bad mouthing Wal-Mart while we were in 0073 1 there shopping and checking out. That's not a thing to 2 do. If they don't like it, that's fine. But we're 3 supposed to have free society of competition. 4 Now, all the projections that everybody makes, 5 you realize that all projections are crystal ball 6 projections, and usually they're more than what's going 7 to really happen. As far as you're saying, you're 8 getting reports, and you got them here at the 11th hour, 9 and you haven't had time to read them. well, our great 10 politicians in Washington, they just passed a trillion 11 dollar budget, 18,000 pages that they didn't even read. 12 If you haven't already decided on what you're 13 going to do before you come to this meeting tonight, 14 then what are you doing here and how can you make a 15 decision based on the few comments that you've heard 16 time and time again? Page 30 4-08 PC PH trascripts.txt 17 Look at what you're supposed to be voting on 18 and vote on that. Don't worry about the gobbledegook. 19 The lawyer was talking about Seinfeld, walking around 20 with papers to look busy. He walked around talking 21 words to make himself look busy, which nobody understood 22 what the heck he's talking about. You people aren't 23 lawyers. You have no idea what's right or what's wrong. 24 The young lady from Wal-Mart, she was correct. 25 There are experts on this side and there are experts on 0074 1 that side. who are you going to believe? You have to 2 just toss them up in the air and pick out the one you 3 want to believe. So that's what it amounts to, what you 4 think is what's going to happen. 5 And, unfortunately, you have no responsibility 6 to the public, because you're not voted on. You're 7 appointed. So you're trying to tell the City Council 8 what they can and can't do. well, go ahead, vote on the 9 way you want. But we need a Wal-Mart in this town to 10 keep us sustained. 11 we have got businesses all over Lodi being 12 built that are standing empty. That's the blight. 13 You're approving all these other small constructions 14 when there's not anybody in them. what for? we have a 15 tremendous amount of empty buildings around. 16 Wal-Mart at least is going to be occupied and 17 built. And I believe in the developer who is going to 18 do it, that he will get people into the old store and he 19 will fill up that center. But that's my belief. You're 20 the ones who are voting on it. Thank you. 21 COMMISSIONER KIRSTEN: I'll just comment. I 22 would like to say thank you for coming forward and 23 offering your viewpoints publicly so we can take them 24 into consideration. Thank you. 25 CHAIRMAN KISER: Leo Duncan, please. 0075 1 MR. DUNCAN: My name is Leo Duncan. I reside 2 at 35 River Pointe Circle here in Lodi. Five years ago 3 last month I moved into the house that I built in that 4 gated community. I have enjoyed it very much and 5 enjoyed being a resident of Lodi. 6 I have listened to the arguments both ways 7 that have beengoing on. And as I have heard not only 8 tonight, but other times, people talking about they want 9 to have a certified account of how much income and how 10 many jobs it's going to be. They're requiring that they 11 give something out of prediction that is going to hold 12 up and be accurate when it's completed. And yet we have 13 been years in process, and so that's not a very easy 14 thing to do. However, it seems to me it's a simple 15 thing to count nickels and noses in the existing 16 locations. You can see progress in the cities where 17 they have built. And if you look at the national income 18 of Wal-Mart, they are consistently growing and ahead of 19 the curve even in this depression, or recession, or low 20 business cycle, or whatever you wish to call it. 21 Yes, competition will come as a result of 22 this. I have in the past, in the '70s, owned four 23 businesses. I saw Costco come in to where I live and 24 created competition for me, but it didn't put me out of 25 business. It stimulated me to find better ways to 0076 1 market what I had. Page 31 4-08 PC PH trascripts.txt 2 I don't -- I think that those who are looking 3 for the problems that Wal-Mart is going to create, 4 according to their theory, it's like looking in a black 5 room for a black -- a dark room for a black cat that 6 isn't there. You can't prove it, but you can see -- you 7 certainly can see the progress in existing locations. 8 when I built the house in Lodi here, it 9 required permitting, as you well know. And the house I 10 built is 2,800 square feet and single floor, and it did 11 require a great deal of permitting and some exceptions. 12 And it took a long time, because at that time, the 13 building cycle was very, very busy. And you, the 14 Planning Commission, even farmed out some of their plan 15 checks to Sacramento. And so I know what delay can be. 16 But I think it is unconscionable for a city to hold -- 17 CHAIRMAN KISER: You got a minute. 18 MR. DUNCAN: -- thank you -- to hold any 19 developer and/or landowner at bay for this length of 20 time. I think that it is wrong. I have seen in other 21 cities where this kind of thing happened, and it put a 22 smaller developer out of business, bankrupt. And it 23 does not speak well for our city. You should give them 24 an up or down vote. It should have been done years ago. 25 It's too far into this thing. 0077 1 I approve -- I am in favor of and would urge 2 you to approve this project. Thank you. 3 CHAIRMAN KISER: Thank you. Ann Cerney. 4 MS. CERNEY: Ann Cerney, 900 West vine Street, 5 Lodi. I am here mainly to just register my presence -- 6 CHAIRMAN KISER: Can you please speak up a 7 little bit, ma'am? 8 MS. CERNEY: Myself and a group, Citizens for 9 Open Government, have been involved in this since the 10 beginning. And I Just wanted to contain my standing and 11 indicate that I'm here. 12 I do have one more comment to make, that 13 you've already determined in the previously reviewed 14 Environmental Impact Report, that you found it 15 inadequate and you overruled. I find it very, very 16 difficult to imagine that the decision that -- the 17 certification of this EIR is going to be enough to 18 support the findings that are recommended. And the 19 information, I don't believe, is there, but deliberately 20 ignored some pretty extensive legislation that's been 21 passed since the previous decision, and I think those 22 are very telling factors. 23 And I urge you to make the finding -- make the 24 findings -- to not make the recommended findings. And I 25 do ask that you consider seriously the alternative of 0078 1 no-project. Thank you. 2 CHAIRMAN KISER: Mark Anaforian? If I messed 3 it up, I apologize. 4 MR. ANAFORIAN: No, you're pretty close. My 5 name is Mark Anaforian. I live at 625 Black oak way 6 here in Lodi. 7 This meeting has been all about assumptions. 8 All we've heard is one side assume this way, one side 9 assume that way. I want to stick to facts. At the last 10 Planning Commission meeting, the representatives of 11 Wal-Mart used the La Quinta store as their shining 12 example. It should be noted -- or noted that the La Page 32 4-08 PC PH trascripts.txt 13 Quinta store was the first Supercenter built in 14 California. But for the sake of argument, let's use 15 that store as a barometer. 16 That store was opened in 2004, and 17 unemployment in La Quinta was 2.6 percent. In 2005, it 18 was 2.4; in 2006, it was 2.3; and by 2007, it had risen 19 to 3.5 percent. This is an example -- this is an 20 increase of .9 percent unemployment. 21 By way of comparison, Lodi had only a .2 22 increase in unemployment at that time. It should also 23 be noted that California as a whole had a .6 percent 24 increase. So La Quinta actually was higher than the 25 State average. These numbers reaffirm the argument that 0079 1 when a Supercenter opens, there are a couple of years of 2 increased jobs, but those tail out pretty quickly. 3 The second point I want to bring up is the 4 impact on other stores. For many years I managed a 5 major -- or a major drug chain here in town. when the 6 first Supercenter was going to be built, we heard the 7 same arguments. It's not going to affect business, 8 there won't be a loss of jobs, what have you. well, I'm 9 here to tell you that our sales the first year the first 10 Wal-Mart was opened went down 30 percent. Now, they did 11 come back. Not to anywhere near the level before. we 12 wound up rising to about 18 percent loss. what that 13 correlated to was a loss of jobs and a loss of folks 14 that were -_good paying jobs, jobs with benefits. Some 15 of those folks did wind up going over to Wal-Mart and 16 working at a lesser pay and with no benefits. 17 Thirdly, the one thing I want to stick to is 18 the Wal-Mart has -- and this was 2007 numbers. Wal-Mart 19 has four times more calls than Target for police 20 service. Lodi News Sentinel reported in the past year, 21 2007, Wal-Mart had 507 calls for service, Target had 22 123, K -Mart had 198. If you take into consideration the 23 cost of a police officer for the 507 calls, that's 24 $17,000. That does not correlate into administrative 25 costs, court costs, whether there's two police officers 0080 1 in the car, what have you. 2 So when you're looking at the whole of what 3 Wal-Mart brings to you, you have to look at the whole. 4 You have to look at what it's going to cost in jobs, 5 what it's going to cost in revenue, what it's going to 6 cost in service to the City. 7 Lastly, I just would like to leave you with 8 the fact that you're talking about adding a grocery 9 store. Most grocery store items are nontaxable. I 10 would love to know where these numbers are coming from. 11 Wal-Mart sells some food items in their stores right now 12 that are taxable, sodas, beers, those type of things. 13 They'll sell those in the new store. But, 14 predominantly, the stuff that they want to bring in 15 that's different are nontaxable items. I would just 16 love to know where this is coming from. 17 And I'll leave you with this one, too. 18 Mr. Browman reaffirmed my point when he said Lodi is a 19 slow -growth community. Lodi is a slow -growth community. 20 Being as we are a slow -growth community, where are these 21 additional tax dollars coming from if they're not coming 22 from the existing business? where are these employees 23 coming from unless they're coming from existing Page 33 4-08 PC PH trascripts.txt 24 businesses? 25 I got a lot of friends that are contractors. 0081 1 They're not building new homes. They're definitely not 2 building new homes in Lodi. what they're doing is 3 redoing older homes. So if somebody could please 4 explain to me where we're going to pull from and where 5 these folks are coming from and where these extra 6 dollars are coming from because, frankly, right now, I 7 don't have a whole lot of extra dollars. If you could 8 explain that to me, I would love to hear it. Thank you. 9 COMMISSIONER KIRSTEN: Mark, just a 10 question -- 11 MR. ANAFORIAN: Absolutely. 12 COMMISSIONER KIRSTEN: -- for you. who do you 13 work for? 14 MR. ANAFORIAN: Right now, I'm actually in 15 sales. I don't work for any groceries or anybody right 16 now. 17 COMMISSIONER KIRSTEN: And on the subject of 18 the higher rate of police calls or crime -- 19 MR. ANAFORIAN: Yeah. 20 COMMISSIONER KIRSTEN: -- where did those 21 numbers come from? 22 MR. ANAFORIAN: Those numbers came from the 23 City of Lodi. I pulled off their web site the same way 24 the unemployment numbers came from the La Quinta city 25 web site. 0082 1 COMMISSIONER KIRSTEN: Okay. 2 MR. ANAFORIAN: Actually, give me a second 3 here. That came from Police Captain David Mann. 4 COMMISSIONER KIRSTEN: Could you just state 5 again the statistic that you cited regarding the number 6 of calls there? 7 MR. ANAFORIAN: Sure. David Mann had said 8 four times as many. Lodi News Sentinel reported that 9 Wal-Mart had 507 calls for service, Target had 123, and 10 K -Mart had 198 in that same time period. 11 COMMISSIONER KIRSTEN: Those are calls for 12 service, is that right, over a one-year period? 13 MR. ANAFORIAN: Those are calls for service 14 where a police officer had to respond to the scene, yes. 15 COMMISSIONER KIRSTEN: All right. Thank you 16 very much. 17 MR. ANAFORIAN: Absolutely. 18 CHAIRMAN KISER: okay. Brad Clark? 19 MR. CLARK: Good evening, Commission Members. 20 My name is Brad Clark. I live on westbridge Drive here 21 in Lodi. 22 I think it's important to look at the overall 23 job loss to the community if we allow another grocery 24 store to go on this corner. And I urge you to think 25 about Safeway, Raley's, Save -Mart, Food -4 -Less, Apple 0083 1 Market, and Rancho San Miguel that was brought up 2 tonight as well. 3 It is without a doubt that one of these stores 4 will close. And the ones that don't close, I think, are 5 going to suffer significant impacts to their sales, with 6 a result of loss of jobs, reduced hours, less income to 7 the community, and unhigh paying jobs. 8 That's a huge impact on our community. As a Page 34 4-08 PC PH trascripts.txt 9 tax payer in this community, how does our community 10 absorb that loss of tax base? If they're not generating 11 the income, where are they spending their money? They 12 don't have it to spend. The dollars are tight now. If 13 I had to work less hours in my job, I would have to cut 14 back my household spending. My family will not go to 15 the movies, we won't go out to dinner, we won't do these 16 other things. 17 So asJobs are lost, you know, what is the net 18 gain? And it's been said different ways here tonight, 19 so I don't want to duplicate what people are saying. 20 But it seriously needs to be considered that, you know, 21 yeah, there's new jobs, but they're lower paying jobs 22 than the current tax base jobs at the grocery stores, 23 not to mention, without benefits. 24 Mr. Browman stated that Riverbank, a community 25 of 20,000 people, wasn't impacted by this new retail. 0084 1 when you have a small town like that that has no retail, 2 that's going to create growth. Lodi doesn't compare, 3 because we're not a small town anymore. I mean, we have 4 significant retail here in town. what happens when you 5 do look at retail, we already have a Wal-Mart, and you 6 move it across the street and you add another grocery 7 store on the corner, something has got to close. 8 Now if we were talking about a Costco coming 9 to town, or a whole bunch of retailers such as you would 10 see at the end of Eight -Mile Road and that type of a 11 center, I don't think we would all be here, because 12 those would be incremental tax dollars, because people 13 aren't leaving our city to go to purchase items in 14 another place. we're not gaining anything new. I think 15 that if you bring new retail to Lodi, we wouldn't be 16 here at all. 17 I think that you really need to consider the 18 retaining of the Wal-Mart. If he takes the Wal-Mart out 19 of the Sunwest Plaza now, you can compare that to what 20 happened in Stockton. If you look at the Hammer Lane 21 Wal-Mart that's there, as soon as it closed, within a 22 year, they had retenanted it to -- I believe it was a 23 furniture company that was in there about six months, 24 and then closed. 25 But if you ever had any time to travel through 0085 1 Stockton -- I work in Stockton and do a lot of work 2 there -- there was never any traffic in that center. 3 And there's all of a sudden a couple of strip malls. 4 All those offices and shops in the strip malls have all 5 closed. And they keep trying to reopen it in different 6 areas, but it keeps failing. They have since -- 7 CHAIRMAN KISER: You got one minute. 8 MR. CLARK: They have since split that 9 building into two different retailers. And one, I 10 believe, is a Burlington Coat Factory, and another is 11 some kind of a retailer I never heard of before. You 12 drive by there and take a look. There's anywhere 13 between 10 and 15 cars in a parking lot that holds 1,500 14 cars. Okay? That doesn't support a center. 15 You go a mile away to Food Max on the corner 16 of Hammer Lane and west Lane, that's closed as a direct 17 result of the food -- the Supercenter opening up on 18 Hammer Lane. That center has over 30 stores in it. And 19 if you drive by there now -- I counted the other day -- Page 35 4-08 PC PH trascripts.txt 20 there's 21 closed shops. There's over 1,000 parking 21 stalls in that Food Max shopping center that are 22 completely empty. 23 A. So is there a financial impact on the City if 24 the Wal-Mart closes down? Yes. what is the net gain 25 that we get? You don't get taxes on groceries. Yeah, 0086 1 you get an auto center, but does that mean that one of 2 the auto centers -- one of the auto places downtown 3 closes, these local businesses that we've supported for 4 years? our friends and neighbors are going to lose 5 their businesses because of the other thing. 6 It all needs to be considered. And are we 7 just trading tax dollars? And that's my opinion. I 8 don't think that there's any net gain there by letting 9 them come across the street. If there was another 10 retailer there, I wouldn't be standing here before you 11 tonight. I don't think there's any value to a 12 Supercenter coming across the street in that center. 13 CHAIRMAN KISER: Thank you. 14 MR. CLARK: Thank you. 15 COMMISSIONER KIRSTEN: I have a quick 16 question. Mr. Clark, what kind of business are you in? 17 MR. CLARK: I'm in the grocery business, sir. 18 COMMISSIONER KIRSTEN: which company? 19 MR. CLARK: I'm with Food -4 -Less, Rancho San 20 Miguel. 21 COMMISSIONER KIRSTEN: So I think I already 22 know the answer. so you feel like your business, the 23 business that you're associated with, is -- would be 24 directly impacted by this. 25 MR. CLARK: Absolutely. 0087 1 COMMISSIONER KIRSTEN: Thank you. 2 COMMISSIONER HENNECKE: I have a quick 3 question also. So your view is that you expect us, as 4 planning commissioners, to regulate commerce? In other 5 words, no matter who it was, if there was another 6 grocery store that wanted to come into Lodi, you would 7 ave the same view? 8 MR. CLARK: well, when you look at where they 9 are, a third grocery store on one corner, two being 10 price -impact, is that good planning? I would say no. 11 If you're going to draw all the businesses -- all the 12 business to one side of town, is that good planning? I 13 would say no. 14 COMMISSIONER HENNECKE: who is the last 15 grocery store to move into that corner? Do you know? 16 MR. CLARK: Safeway. 17 COMMISSIONER HENNECKE: Safeway was? 18 MR. CLARK: Yeah. 19 COMMISSIONER HENNECKE: Did you protest when 20 they moved? 21 MR. CLARK: No. 22 COMMISSIONER HENNECKE: why not? 23 MR. CLARK: Safeway, for one, pays prevailing 24 wages. They take good care of their employees. They 25 have full benefits to all their employees. So it's -- I 0088 1 don't want to say a fair fight, but at Food -4 -Less, we 2 pay prevailing wage, all of our employees are fully 3 benefited, whether you work 20 hours or 40 hours a week, 4 there's no -cost benefits. So when you put those things Page 36 4-08 PC PH trascripts.txt 5 on your business, you have a higher cost of doing 6 business. we are a price-impact format. So are they. 7 Their MO, they move into towns, they drop 8 their retails, they run businesses out -- they run 9 companies out of business, and then they raise up the 10 retails. How is that good for a community? That's what 11 I ask. 12 COMMISSIONER HENNECKE: Okay. But I guess 13 what you're asking us, you want us to regulate commerce 14 and you also want us to enforce work policies and 15 benefits and all that, too? 16 MR. CLARK: That's not what I'm asking, sir. 17 COMMISSIONER HENNECKE: we're a planning 18 commission, sir. 19 MR. CLARK: My original statement was that 20 there is no net gain with the job losses. And I think 21 the tax base and everything they're talking about is a 22 farce. I think there's going to be a significant job 23 loss due to the fact that they're going to open up. And 24 they're talking there's going to be a great tax gain. 25 They're selling groceries. There's no tax gain in 0089 1 groceries. 2 And the jobs that are going to be lost are 3 high paying jobs. All that money that's going to be 4 lost because they've lost their jobs and the hours that 5 they work, that money is not going to be spent back in 6 the community. That's my point, sir. 7 COMMISSIONER HENNECKE: wouldn't you agree 8 though that there's probably external forces that are 9 going to create job loss, and it's tied to the economy, 10 and probably doesn't have anything to do with this 11 project necessarily? 12 MR. CLARK: Not to the extent that this 13 project would create. 14 COMMISSIONER HENNECKE: And I know in other 15 industries, not talking grocery, but right now, with the 16 economy the way that it is, there's going to be a lot of 17 businesses that fail. 18 But the free market system is survival of the 19 fittest. so that competition is what has made America 20 the way it is. It makes people sharpen their pencils 21 and get better at their business. You don't -- 22 MR. CLARK: Is that a question? 23 COMMISSIONER HENNECKE: You want to us to make 24 policy to regulate your competition as planning 25 commissioners? 0090 1 MR. CLARK: No, I don't. 2 COMMISSIONER HENNECKE: All right. Thank you. 3 CHAIRMAN KISER: Stan Finberg? 4 MR. FINBERG: My name is Stan Finberg, and I'm 5 an owner, one of the owners, and manager of a shopping 6 center in Lodi here called Cherokee Plaza on South 7 Cherokee Lane. 8 I'm not here to give you a bunch of facts and 9 figures like everybody else. I'm here to give you just 10 the true experience I'm having here in Lodi, the most 11 wonderful little town, except that it seems like lately 12 we are concentrating on only one area of Lodi, and 13 that's on the west side, or should I say, the 14 intersection of Kettleman Lane and Lower Sacramento 15 Road. Page 37 4-08 PC PH trascripts.txt 16 I have been here seven years now, and I have 17 seen no interest in -- from the people that have had 18 businesses here for 20, 30 years, that built their whole 19 life owning a small, little business, which is the basis 20 of America, not working for huge corporations or big 21 companies such as Wal-Mart. I m saying that I'm very 22 close to some of these people, and I really feel for 23 them. And I said this three weeks ago when I was here 24 and in front of the Council. At that time, I had been 25 listening to the cries of many of my tenants over there 0091 1 at Cherokee Plaza, how they struggle to just make ends 2 meet in a business. The area on the east side has been 3 neglected. I don't hear any talk at all here today 4 about what we're going to do about the east side. It's 5 what we're going to do about the little area over there 6 way on the west side. 7 Now, I'm here to tell you that since a month 8 ago when I was here, I have lost one of my best tenants. 9 They moved out and went bankrupt. I have four other 10 tenants that are ready to go out. I work with these 11 tenants. They -- if they can't make it, I don't want 12 them to have a vacancy. we have lowered their rents 13 just to keep them in there to help them out. I've gone 14 to the City and asked, what can you do to even lower 15 their electrical bills, which are so high in this city. 16 I can't believe it. I think it's because the City adds 17 onto them, a little profit on what they buy here, just 18 like the garbage companies, see? I have to pay a higher 19 price here than I do in any other cities. I'msaying 20 that the reason this is all happening is because of all 21 this development in other areas of the city here, you're 22 not thinking about this is one big Lodi. You're 23 thinking about one area way out there and another area 24 way over here. what's happening to the people downtown? 25 That's a beautiful downtown you have there, and it's 0092 1 very quiet. And why isn't it a concentration of helping 2 those businesses? And I'm saying, I know that 3 eventually, if this keeps up, we 11 have much more 4 blight on the east side. In our shopping center, which 5 we have about 24 -- 6 CHAIRMAN KISER: One minute. 7 MR. FINBERG: -- when the last tenants go out, 8 what are you going to do then? what are we going to do? 9 We can't make payments, we can't keep it up. Are you 10 going to come over there in your city and pay and keep 11 it up? Think of that. 12 I'm just saying that I don't think that Lodi 13 can afford now to put in -- maybe eight years ago when 14 things were great to put in a Wal-Mart, but not now. 15 Maybe not even three years from now. we do not know 16 what the economy is going to be. Nobody has got a 17 crystal ball, so some say it's going to turn around the 18 end of this year or two years. Let me tell you, I don't 19 know if you're going to be surprised and see it actually 20 turn around. You're going to see lots more people 21 losing their homes, lots of small businesses that are 22 failing. And IJUst -- I'm just here emotionally, 23 because I'm really trying to help these tenants stay in 24 their stores. Because once they're vacant, it's very, 25 very difficult to find a tenant. And there's other 0093 Page 38 4-08 PC PH trascripts.txt 1 vacancies around town here now. And, I mean, I have 2 been talking to people around the country to find 3 tenants to fill some of our vacancies, and it's getting 4 impossible. 5 So we have a nice little area over there, but 6 it needs help. And I don't see anyone saying, hey, 7 let's dress up the street of Cherokee Plaza. Let's make 8 it beautified, let's do things like that. You're 9 abandoning all these small businesses. And you're a 10 planner. You are all planners. And you got to think of 11 the whole city, not just one little area, instead of 12 bringing a big blight to the area. 13 I don't know what else I can tell you. But as 14 you can see, I'm not for you people approving a Wal-Mart 15 and that permit. Thank you. 16 CHAIRMAN KISER: Thank you. I got a question 17 for you, Mr. Finberg. 18 MR. FINBERG: I'm sorry? 19 CHAIRMAN KISER: A question for you, sir. 20 COMMISSIONER KIRSTEN: Mr. Finberg, you know, 21 I guess I can't really disagree with you in one regard, 22 and that is that, certainly, the east side could use 23 some help. I'm sure that you are aware that Measure W 24 was, by some measure, an attempt to help improve the 25 east side and other parts of the community. 0094 1 I just -- I have a quick question for you. Do 2 you feel -- there's a proposed Costco that might 3 eventually occupy a space near Reynolds Ranch. How 4 would you expect that might impact your businesses? 5 would that -- would that help bring new business or 6 traffic to your part of the city? 7 MR. FINBERG: What I see now is if a person 8 could go one place and buy all the little things they 9 need, including grocery, and liquor, and beer, and do it 10 all in one place, why would they shop anywhere else 11 around Lodi? They '11 just go there every day and spend 12 their time, because they can save on gas and don't have 13 to go to many places. It'sJust like -- it's one place. 14 I can see it. I've seen it happen over in some of the 15 other areas of California. It's just that when you have 16 everything in one place versus -- they're just going to 17 go there and buy everything there and go back home. 18 And so the other stores in the area, the 19 people that have really been giving customer service for 20 years to their customers, you can't get that service 21 from Wal-Mart. Absolutely not. 22 I was reading in the paper this morning where 23 the Consumers Digest did a study of stores in 2006 and 24 just this year, and Wal-Mart was on the bottom of the 25 list of quality, service, cleanliness. And it was in 0095 1 this morning's paper, the Sacramento Bee. And the top 2 one was Raley's, of course. They were the top up there 3 for being clean and friendly with their people. 4 So you have to get close to people. And you 5 just don't get close at a big store like that. You have 6 to have these small businesses to succeed. 7 COMMISSIONER KIRSTEN: Thank you for your 8 comments. 9 CHAIRMAN KISER: Cheryl Nitschke. 10 MS. NITSCHKE: Good evening. My name is 11 Cheryl Nitschke. I live at 532 Louie Avenue in Lodi. Page 39 4-08 PC PH trascripts.txt 12 My husband was born and raised here in Lodi, and I have 13 been here almost that many years. 14 Anyway, what I have to say tonight is that a 15 little over seven years ago, Wal-Mart to be built in 16 Lodi was put on a ballot. It was passed. Now we're 17 still fiddle faddling around seven years. I mean, my 18 God, is that supposed to be the Taj Mahal? It took a 19 long time for that one to be built, too. 20 But what I'm really upset about is the delays, 21 over and over and over. There's been so many required 22 things that Wal-Mart has been asked to do. They have 23 complied as far as I can tell. They have even been 24 required to pay money to downtown Lodi because, oh, my, 25 Wal-Mart is going to drive them out of business. I 0096 1 don't know what for. There's nothing down there that 2 Wal-Mart sells. And I don't know -- I can't remember of 3 another project that has come into this town that has 4 taken this long to be approved, back and forth and back 5 and forth. 6 Yeah. Food-4-Less, as an example. If I 7 remember correctly, when Safeway came in, Food-4-Less 8 was going out of business. They're still there, and 9 they re still complaining about the same thing. 10 Wal-Mart is not and will not be a grocery store. They 11 have multiple things. They have more clothing, more 12 hardware stuff, more other things than they do 13 groceries. 14 I went down to Wal-Mart in Stockton, and I've 15 also been to Food-4-Less. In comparison shopping, 16 Wal-Mart really, when you average out what you could 17 buy, same items, Wal-Mart is not that much cheaper, if 18 they're any cheaper at all. In fact, canned goods, 19 especially at Food-4-Less, are less than what they are 20 at Wal-Mart. 21 Now, where are these other businesses going to 22 come from? My opinion is is that the reputation of 23 Lodi. we're livable, lovable Lodi. Gee, that's going 24 to bring everybody and their brother in. But, no, it's 25 not. But we, as the City of Lodi -- and it's a clean 0097 1 town. Every -- you know, it's very nice town. 2 In fact, I had new neighbors that came in. 3 They said, oh, gee, I love this street, it's just like 4 Mayberry, USA. And it is. We take pride in our town. 5 And that's how we're going to get other businesses, 6 along with Wal-Mart, as the base on that. 7 CHAIRMAN KISER: You have one minute. 8 MS. NITSCHKE: okay. Also why -- okay. I 9 guess it's not being -- really going to be approved yet 10 as far as a Costco coming in. Hey, Costco is nice. I 11 like Costco. I shop there. Food-4-Less is going to 12 jump on that one, too. They say no, but that's going to 13 take business away, because the majority of Costco is 14 food. 15 You know, come on. Let's make a decision on 16 this. Let's get it over with. Let's get it done. Let 17 these guys start building, or let them say goodbye, 18 Lodi, see you. Thank you. 19 CHAIRMAN KISER: Thank you. Sean Reilly. 20 MR. REILLY: Sean Reilly, 101 West Locust 21 Street. I have been here for almost two years, and I 22 used to live in Stockton. And, you know, I go there Page 40 23 24 25 0098 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 0099 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 0100 1 2 3 4 5 6 7 4-08 PC PH trascripts.txt right now, you know, to Super Wal-Mart, because they have more than what we do here. I think it's better to -- for us to have a Super Wal-Mart here so we don't have to go all the way to Stockton or Eight -Mile Road. I do now know that was in the process, but that's a different story. But the revenue -- I like to take my revenue here in Lodi more than to Stockton. Okay? Stockton is a good town. It's getting big. I like Lodi. It's quiet. You know what, coming in the past, in the past year, have been bad, and I've seen businesses stay in business, you know. You know, Food -4 -Less should be worried about if a Costco was going to go in there, because that's where -- you know, where all the food is. But Wal-Mart has more, like, clothing and stuff like that. So I support Super Wal-Mart here, because it will have jobs, revenue will be good, and no one -- you know, I can see it right now that no other businesses will go down and will not go out of business. That's what I have to say. CHAIRMAN KISER: Thank you. Last one, Don Mooney. MR. MOONEY: I had filled out a card, but I already spoke. CHAIRMAN KISER: okay. All right. Any other people that would like to come up and make a comment? Not seeing any, I'll close it to the public. we'll go back to the Commission. COMMISSIONER KIRSTEN: Can I have just a moment here to -- for the record, I need to state that I had met with certain parties relevant to tonight's discussion, and they are Chris Podesto with Food -4 -Less, and I met with both Steve Herum and Brad Jolley of Herum & Crabtree, and I also met with the applicant, Darryl Browman of Browman Company. CHAIRMAN KISER: I also would like to disclose that I talked to Darryl Browman and I talked with Steve Herum. And I'll just state that for the record. VICE CHAIRMAN CUMMINS: I also spoke with Mr. Browman today as well. COMMISSIONER HENNECKE: I'll just disclose that I talked to Mr. Browman and Mr. Podesto. COMMISSIONER OLSON: And I spoke with Mr. Herum. questions questions. CHAIRMAN KISER: All right. COMMISSIONER KIRSTEN: I had a couple of for staff. CHAIRMAN KISER: Go ahead. Ask your COMMISSIONER KIRSTEN: If this is the time, have two questions for staff, and I will ask them separately. At some point, Mr. Mooney brought up the no -project option. And I just wondered, at this stage, is a no -project option within the authority of the Planning Commission? MR. BARTLAM: Under the scenario. Sorry about that. under the scenario of the environmental document, it's not. That scenario, if you will, was acted on by Page 41 4-08 PC PH trascripts.txt 8 the City Council. That having been said, the Commission 9 actually does have discretion of a no-project 10 alternative, if you want to call it that, by not 11 approving the resolution. And so your ability -- 12 COMMISSIONER KIRSTEN: But that's the only 13 form that it would take from the standpoint of tonight's 14 discussion? 15 MR. BARTLAM: That's right. It's not an 16 environmental decision. It's a decision to not make an 17 affirmative to any one of the numbers of findings before 18 you. 19 COMMISSIONER KIRSTEN: Then there was another 20 discussion we heard from Mr. Jolley that -- and my 21 question is, do we have the authority at this stage to 22 delay this application, this request, pending a request 23 for an independent economic analysis, new information? 24 MR. BARTLAM: I would say you have the 25 authority to request additional information as it 0101 1 pertains to the projects before you: The two use 2 permits, the tentative map, the site plan and 3 architectural review, and any of the findings, including 4 the statements of overriding consideration. 5 That having been said, I would actually 6 challenge the Commission to decide whether any 7 additional information that might come forward would 8 have bearing on your decision. so if you feel, in the 9 range of opportunities for additional economic 10 information, as an example, would that information have 11 an impact on your decision making. And if it would, ask 12 for it. whether that will be forthcoming, I can't tell 13 you. But if you just simply are looking for additional 14 information in order to have yet more information, then 15 why bother frankly. 16 COMMISSIONER KIRSTEN: Let's borrow 17 Mr. Jolley's argument for a moment. And I believe that 18 we heard a range of estimates. From my memory, it's 19 from $130,000 of additional sales tax revenues all the 20 way to a high of up to $1.3 million. I would say that, 21 speaking for myself, as -- I find that to be a pretty 22 wide range, and it would help me make a useful decision 23 if I knew in fact that it was $1.3 million, then I might 24 weigh that more heavily as I consider the statement of 25 overriding consideration. 0102 1 The same would be true with the employee 2 numbers. You heard the same ranges that I did, 600 to 3 1,000. If it's 600, then you weigh that differently 4 when you're trying to make -- consider a statement of 5 overriding consideration. or if it's 1,000, then it -- 6 you know, it has the obvious weight and impact on your 7 decision making. 8 And so, to me, I might be able to make the 9 argument that if we don't know -- at this point, I 10 personally have heard a lot of estimates. And I'm not 11 sure that I have an independent and accurate analysis, 12 particularly of those two measures, economic measures. 13 And so would you suggest -- would you say then that if 14 we could get a clearer picture of that, it might be a 15 reasonable request on the part of the Commission? 16 MR. BARTLAM: Yeah. Again, I can't speak for 17 each individual commissioner in terms of what is going 18 through your own minds about what's important and what's Page 42 4-08 PC PH trascripts.txt 19 not important. The fiscal impacts, plus or minus, may 20 or may not make a difference whatsoever in your decision 21 making. That's all I'm suggesting. If it does, then 22 asking for additional information would be valuable. If 23 it doesn't, then I certainly wouldn't suggest wego out 24 and study yet another realm of possibility when the end 25 result won't make a difference. That's all I'm saying. 0103 1 MR. HOBBS: There's another consideration, if 2 I could, Planning Commission. under State law, since 3 the EIR has now been certified, you have a certain 4 amount of time to make a decision on the project. And 5 that time is 50 days, five, zero days, from the date of 6 certification of the EIR to approve or disapprove the 7 map. And that 50 days runs on April 30th of this year. 8 So we don't have a lot of time on that. So 9 you're coming up against some deadlines where you need 10 to make a decision one way or the other. And which 11 decision you make is certainly up to you. 12 The other consideration that you should think 13 about if you're going to ask for additional analyses and 14 studies is what might be gained, sort of building on 15 what Mr. Bartlam is saying. we have some estimates and 16 some ranges here that are given. If we have another 17 analysis done, it's reasonable to assume that you're 18 going to get a third or a fourth set of data sets, of 19 studies, of analyses, and it will probably come within 20 those ranges. 21 And as planning commissioners, you have the 22 authority tonight in deciding on the project, and the 23 discretion to accept whatever sets of evidence has been 24 presented to you so far, and reject those that you don't 25 find credible and persuasive. So you have that 0104 1 authority. 2 And the fiscal analysis is not necessarily a 3 CEQA related issue anyways. The tax benefits that may 4 be gained from it is certainly a consideration that you 5 can take into account, but that doesn't necessarily have 6 a physical, environmental impact. 7 COMMISSIONER KIRSTEN: If -- kind of borrow 8 for a minute that we chose that path. How -- what would 9 be -- logistically, I have knowledge that the time frame 10 may prohibit this being done in time to achieve that 11 objective, but if we -- if we were to do that, what 12 would be the logistics on how we would obtain 13 independent information, from what body would it come 14 from, and how would that be paid for? 15 MR. BARTLAM: It's a good question. So let's 16 play that scenario out. First, let's assume that the 17 majority of the commission so chooses to direct the 18 additional information. Your action then would be to 19 continue the actions tonight. 20 I frankly would fully expect to see an appeal 21 of that decision to the City Council, which would be 22 perfectly appropriate for the proponents to do. So if 23 you take the scenario, branching off on the appeals 24 basis, we would then schedule that appeal to the City 25 Council, the City Council would weigh in on whether that 0105 1 additional information is valuable or not, and then you 2 would branch off on a yes or a no to -- whether, indeed, 3 they would direct staff to go do additional study. Page 43 4-08 PC PH trascripts.txt 4 If they did, we would follow, frankly, the 5 same process that we do to hire any other consultant. 6 we would put together a request for proposal, we would 7 send out that request to a variety of economic 8 consultants that exist within Northern California, and 9 then weigh what we felt was the most responsive 10 proposal. That proposal would then go to the City 11 Council for approval, and we would then hire the 12 consultant. 13 The consultant would then take however much 14 time they felt necessary to undertake the work. That 15 work would be ultimately paid for by the applicant, much 16 like the Environmental Impact Report. And I appreciate 17 Mr. Jolley's concern about the legitimacy of Bay Area 18 Economics, but Wal-Mart didn't hire them. The City of 19 Lodi hired them. And so if the best proposal was yet 20 another economic firm that somehow did business with 21 Wal-Mart down the road, we would be back, frankly, right 22 before you. 23 So, at any rate, there's obviously some 24 concern about impartiality. And it's not a piece of 25 work that City staff is going to do for the Commission. 0106 1 It's a piece of work that's going to come from some 2 outside body. 3 So let's assume that we've now hired and we've 4 received a report, it's paid for through our contracting 5 system by the applicant, Mr. Browman, and then we 6 schedule the Planning Commission back to a meeting much 7 like tonight -- 8 COMMISSIONER HENNECKE: So, in essence, the 9 BAE report was commissioned by the City and is an 10 impartial third party report? 11 MR. BARTLAM: Yeah. Bay Area Economics was 12 retained by the City. It was not a decision to hire Bay 13 Area Economics by Wal-Mart, much like the environmental 14 consultant, PMC. PMC was hired by the City. That 15 process took place back in, I want to say, 2001 or 2002 16 when we initially got the application for the project. 17 The original economic consultant was retained by the 18 City. 19 And so, again, what's impartial, who is 20 impartial, what information you get, to a certain 21 degree, anybody will tell you anything as long as you're 22 paying them. And I would argue Dr. King, the consultant 23 of choice for Mr. Jolley, has the same cloud of 24 credibility that anybody that Mr. Jolley would bring 25 forth as well. 0107 1 CHAIRMAN KISER: Is there -- just like -- the 2 question that I had though was that, CB Richard Ellis, 3 that was hired by Wal-Mart. 4 MR. BARTLAM: They were hired by Wal-Mart. 5 CHAIRMAN KISER: Those are conflicting numbers 6 with what the other ones have. That's why I have the 7 question, because -- 8 MR. BARTLAM: I can tell you that every 9 economic report that's been submitted to the City, 10 whether it be a firm hired by the City, a firm 11 representing Mr. Jolley, or a firm representing Wal-Mart 12 Stores, every one of those reports suggests a different 13 number. And I think as Mr. Hobbs has suggested to you, 14 we can certainly go out and do yet another study. And I Page 44 4-08 PC PH trascripts.txt 15 would -- I would lay odds that that study is going to 16 come up with yet a different set of numbers. 17 CHAIRMAN KISER: Is there a possibility of 18 getting someone that hasn't done a report for either one 19 of -- the proponent or opponent? 20 MR. BARTLAM: Perhaps. 21 CHAIRMAN KISER: And just the City pick that 22 person and -- 23 MR. BARTLAM: Perhaps. 24 CHAIRMAN KISER: -- take that report? 25 MR. BARTLAM: But, again, I won't know that 0108 1 until I've gone through the process to find out who is 2 out there that might be standing that hasn't been, 3 quote, unquote, clouded by the applicant or the 4 Opposition. 5 COMMISSIONER HENNECKE: It doesn't matter who 6 you hire. It's all going to be conjecture on forecasts 7 and how you slice and dice statistics. So you can get 8 reports until the cows come home and get a different 9 answer every time. 10 VICE CHAIRMAN CUMMINS: I would agree with 11 Commissioner Hennecke. we have more than enough data 12 before us. we have statistics coming out of our ears. 13 we've all taken college stats. we know how these things 14 go. And I think we have more than enough economic data 15 information for us to make a decision tonight. 16 CHAIRMAN KISER: Well, I don't feel that I 17 could make a decision on those impacts. Regarding -- 18 VICE CHAIRMAN CUMMINS: How many more studies 19 do we need? Do we need one more? But what if you don't 20 like those numbers? 21 CHAIRMAN KISER: I want to know that we've 22 done the right thing. And in my mind, I'm not 23 comfortable with it right now. 24 VICE CHAIRMAN CUMMINS: okay. 25 CHAIRMAN KISER: I feel that the -- again, I 0109 1 want to know if they're hiring 600 people, because -- I 2 mean, there's got to be something that's going to be a 3 lot closer. when you got -- I don't care -- I know you 4 can get there, but there's something that's going to 5 be -- 6 MR. BARTLAM: Let's talk about that a bit 7 more. I think you can come pretty close -- in fact, I 8 mean, I think we've got the data telling you pretty 9 close what the potential sales and the number of 10 employees from the project will be. 11 That's really not the point of contention. 12 The point of contention is how much loss of jobs or 13 sales from other projects are you going to attribute to 14 the project. And that is really where you're going 15 to -- you're going to take what is at best a crystal 16 ball, particularly in this economic climate, and then 17 cover it with a blanket and decide how many -- what's 18 the percentage of loss of sales, if any, from 19 Food-4-Less, and what does that mean in terms of the 20 number of jobs. 21 All I'm Suggesting is you're not asking for 22 what are the gross dollars and gross employee gains as a 23 result of the project. That's simple. It's in your 24 record. Give me five minutes, and I'll tell you what 25 those numbers are. That's not where the argument is. Page 45 4-08 PC PH trascripts.txt 0110 1 The argument is, what is the net impact? In other 2 words, how many sales, if any, are going to be lost from 3 other stores, and how many people as a result are going 4 to lose their jobs as a result. 5 And I got to tell you, I think you're going to 6 get another set of numbers, and somebody will call those 7 numbers into question. And, again, I challenge you to 8 be definitive about whether that is going to result -- 9 that information, whatever it is, is going to result in 10 a decision different than what you're sitting at -- 11 looking at with the volume of text that you've already 12 seen. And if it is, then make a motion, and we'll see 13 where the rest of the Commission sits. 14 COMMISSIONER HENNECKE: I don't think that 15 would be easy anyway with the economic climate, because 16 we're not looking at a static target. It's forever 17 moving and volatile. So I don't see how anybody is 18 going to analyze and come up with something concrete. 19 MR. BARTLAM: Again, you have full discretion 20 over whether you agree or disagree with the 21 environmental findings before you. I think Mr. Mooney 22 or Mr. Jolley, whichever one said it, took the comments 23 in the staff report out of context. 24 Your slimming discretion relates specifically 25 to the findings relative to the use permit, tentative 0111 1 map, and site plan and architectural review. That is 2 where you have little discretion, and that is what the 3 staff report says. I'm telling you here tonight, the 4 Commission can accept or reject any of those 5 environmental findings. You can -- you can ask for 6 additional information, if you think that's necessary. 7 You can strike the entire piece of statement of 8 overriding consideration having to do with jobs and 9 revenue, and still have a valid statement of overriding 10 consideration. Take it out of the equation completely, 11 if you want. You don't have to accept any of that. 12 VICE CHAIRMAN CUMMINS: I have one more 13 question for the staff. when we get ready to actually 14 vote on something, do we have to take each of these four 15 or five items individually, or can we lump the use 16 permit, sale of alcoholic beverages, tentative map, et 17 cetera, together? How do we do this? 18 MR. BARTLAM: You can take it as one motion, 19 or you can split it up and take each of those actions 20 separately. we have provided a resolution that gives 21 you one motion to approve or deny the whole thing. 22 VICE CHAIRMAN CUMMINS: The whole thing. 23 CHAIRMAN KISER: Any other questions? 24 MR. BROWMAN: Mr. Chairman, could I say one 25 thing? would that be possible? 0112 1 CHAIRMAN KISER: It's closed to the public 2 right now. 3 COMMISSIONER KIRSTEN: I think you have a -- 4 CHAIRMAN KISER: Do I have to open it back up? 5 MR. BARTLAM: That's completely up to you, 6 Mr. Chairman. 7 CHAIRMAN KISER: Go ahead. I'll open it back 8 up. 9 MR. BROWMAN: Thank you. I just wanted to ask 10 one thing at this point. Page 46 4-08 PC PH trascripts.txt 11 MS. CHADWICK: At the mic, please. 12 MR. BARTLAM: Excuse me. Can we at least have 13 him come to the mic so we can have it on record? 14 MR. BROWMAN: I'm sorry. Thank you very much, 15 Mr. Chairman and Members of the Council. I appreciate 16 the opportunity. All I would ask tonight is -- I 17 respect your discretion whether you approve or deny the 18 project. I would just ask for a decision. This has 19 been going on for eight years. And with all due 20 respect, I would -- if you don't believe the information 21 is there to approve the project, or for some reason you 22 don't, I would just ask that you make that decision. 23 There's been so much information that's been provided. 24 At some point, I would hope that fairness and just 25 getting a decision, whatever it may be, I would hope 0113 1 that you would support theproject. But if, for 2 whatever reason, that wasn't something, I would just ask 3 for a decision on all of the items that are before you. 4 If you don't feel there's adequate information to 5 support the project, I would ask you to deny the project 6 just so that we can get some definition and resolution. 7 And -- and, respectfully, that's all I would ask. Thank 8 you very much. 9 MR. HOBBS: Chair and Members of the 10 Commission, if I could just add to that a little bit. 11 That's certainly an option, what the applicant is 12 suggesting. And if you don't feel you have enough 13 information tonight, you can certainly deny the project, 14 and with your comments on the record, or with an express 15 directive or declaration that the City Council can take 16 into consideration that you feel that there should have 17 been or needed to be more studies in order for you to 18 make a yes vote. 19 COMMISSIONER KIRSTEN: I have a quick 20 question. Mr. Browman, I think it was Mr. Hobbs that 21 mentioned that, in all likelihood, if the Planning 22 Commission was to take the decision tonight to request, 23 what we call, quote, unquote, an independent economic 24 analysis so that we can try to sort out the difference 25 between the ranges we discussed earlier, if the Planning 0114 1 Commission did that -- I'm not saying that they are -- 2 but if in that case, they mentioned that it would likely 3 be, you know, contested. And is that your 4 understanding, that in all likelihood, that the 5 applicant would contest that decision and ask for appeal 6 there as well? 7 MR. BROWMAN: Absolutely. I think, from our 8 standpoint, with all due respect, I respect your 9 judgment, whatever that judgment would be. I would just 10 ask, as long as this has been going on, you know, just 11 treating us fairly would be just to give me a decision, 12 whether we agree or not. 13 I mean, I have respect for everyone sitting at 14 that table. But, please, at this point, give me a 15 decision and let me move on, whether it's yes or no. To 16 do another study, we'll be back in the same place. what 17 we've been doing is, you know, we provide data, we 18 provide practical answers, and then, you know, 19 Mr. Jolley is a great attorney, so he provides a bunch 20 of arguments, and then, you know, it creates some 21 uncertainty. I think the people that are sitting at Page 47 4-08 PC PH trascripts.txt 22 that table are more than capable of making a decision 23 based on the information. And I would respectfully just 24 ask you to do that. If it's in support of the project, 25 that's wonderful. And if for some reason you don't feel 0115 1 like there's adequate information for you to support the 2 project, if you would just make the decision and deny 3 the project, at least then I would know where I stand 4 after eight years. 5 COMMISSIONER KIRSTEN: All right. And I 6 just -- personally, I regret that we have this threshold 7 of 50 days or -- I'm sorry. what was it, Mr. Hobbs? 8 MR. HOBBS: It was 50 days from certification 9 of the EIR. 10 COMMISSIONER KIRSTEN: And that hardly 11 provides enough time. I swallow hard on this subject, 12 because more information is always good, but to be 13 perfectly fair, in your words, and respectful of your 14 situation, I struggle that you might be exposed to 15 another time lapse that would cause you further delays, 16 costs. So I got to tell you, I'm really respectful and 17 sympathetic to that argument. And so -- I don't speak 18 for the Commission, but that weighs my decision making. 19 MR. BROwMAN: Thank you. Thank you very much. 20 CHAIRMAN KISER: Thank you. 21 MR. JOLLEY: Chair Kiser, if you may -- if I 22 may have a moment to respond to those comments. Thank 23 you. 24 with respect to the timing, the 50 -day issue, 25 I would submit that that is not an issue for the 0116 1 Commission at this point. That comes from the 2 Subdivision Map Act. And it says, when an agency 3 certifies an EIR, then the time frame for approval is 50 4 days. 5 The problem is, the term, "certifies an EIR," 6 includes several components, one of which is the 7 adoption of the mitigation measures, mitigation 8 monitoring and reporting program that you are to do 9 tonight. 10 And that comes from a case called Vedanta 11 Society versus California Quartet. And in that case, a 12 planning commission approved an environmental impact 13 before certifying the EIR and approved the project. And 14 that was appealed to the city council. The city council 15 had one member recuse himself and deadlocked 2-2. The 16 council said that this was an appeal of a planning 17 commission approval, that the approval stood, and 18 opponents challenged that. And the appellate court 19 said, no, that is not the case, because you must 20 affirmatively certify the Environmental Impact Report 21 and make the findings before the project can be 22 approved. 23 And so I would submit to you that the 50 -day 24 time frame for EIR certification doesn't run until those 25 findings are made, and that's something the Commission 0117 1 is being asked to do. 2 Aside from that, let's assume that the 50 days 3 does apply. Mr. Bartlam has said he can look at the 4 data andgive you some real information on this. The 5 data is there, but maybe the information summary is not. 6 we have conflicting reports. I'm not sure which reports Page 48 4-08 PC PH trascripts.txt 7 he would look at to get that information. He thinks he 8 can do it in a short period of time. Perhaps the better 9 course for the Commission is to give Mr. Bartlam and his 10 staff the opportunity to do that, and give you his 11 objective analysis in a short period of time, and have 12 him come back to you before that April 30th deadline to 13 give you that information. Thank you. 14 COMMISSIONER KIRSTEN: Well, I would defer to 15 staff -- 16 CHAIRMAN KISER: Hold on. Any questions for 17 Mr. Jolley? 18 COMMISSIONER KIRSTEN: None. 19 CHAIRMAN KISER: Closed meeting. Back to 20 staff. 21 MR. BARTLAM: Let me jump on the last part. I 22 think Mr. Hobbs wants to jump on the first part. what I 23 said was the information is in the record relative to 24 the gross numbers, whether that be sales or numbers of 25 employees. The short period of time is take your 0118 1 five-minute break, because it's in the record, and I'll 2 pull it out. 3 what I can't give you in a short period of 4 time, and in fact, I would not even propose to suggest I 5 can provide it, is the cloudy crystal ball about the 6 assumption that somebody will have to make, whether it's 7 another economic consultant or you individually as 8 planning commissioners, of what is the net effect. 9 Because if Mr. Jolley just wants the gross effects, he 10 knows what those are. we can agree, I think, pretty 11 quickly on the number of employees and the gross 12 revenues from the project. 13 what I think everybody from day one with the 14 project has had a hard time getting their arms around is 15 acceptance of what the assumption for store closures, 16 and as a result, what might be the impacts of the 17 project because of that. And that's not something that 18 myself, my staff, or anybody else at the City of Lodi is 19 going to be able to provide for you. They're not going 20 to feel comfortable, because quite honestly, as 21 Mr. Jolley is not an economist, neither am I, and 22 neither is anybody else at the City of Lodi. 23 MR. HOBBS: Commissioner, let me just respond 24 briefly to what Mr. Jolley was speaking about with the 25 certification of the EIR. 0119 1 The City Council has certified the EIR. The 2 EIR has to be certified prior to approval of the 3 project, which is a consideration before you tonight. 4 And under CEQA guideline 15090, what needs to happen for 5 certification of the EIR is that the decision making 6 body, the City Council, has to certify that it was 7 completed in compliance with CEQA, they did that, that 8 the EIR was presented to them, and that they reviewed it 9 and considered the EIR, they did that, and that they 10 affirmed that the EIR reflects their independent 11 judgment. They did that. 12 what my colleague, Mr. Jolley, is referring to 13 are the findings that are made in conjunction with 14 project approval. Those happen tonight, if at all, or 15 if it is appealed to the Council following your 16 decision, may happen at that point. That is separate 17 than the certification of the EIR. The certification of Page 49 4-08 PC PH trascripts.txt 18 the EIR is just basically a declaration by the City 19 Council that the EIR analyzed all the environmental 20 impacts. It doesn't approve the project, it doesn't do 21 anything towards approval of the project, except certify 22 that that document adequately analyzed all the impacts. 23 The case that my colleague refers to, the 24 Vedanta case, I'm very familiar with that case. It's 25 actually different from what he's suggesting. In that 0120 1 situation, what happened was there was a planning 2 commission decision that was appealed to the city 3 council. It went to the city council and hung up on a 4 2-2 vote, which the city council determined was an 5 approval, an approval by, basically, a tied vote. 6 what the court said in that case is that you 7 can't, at the appeal level, city council level, approve 8 a project by, basically, inaction, which is what a tie 9 was. You have to have an affirmative majority vote 10 affirming the findings and making specific findings. 11 That's a different consideration than what's before you 12 tonight. The case doesn't have application to what's 13 before you. 14 The 50 days comes out of the subdivision Map 15 Act. And it says that following certification of the 16 EIR, the legislative body considering the map, which is 17 the Planning Commission here, has 50 days to act on it. 18 You don't have to approve it, but you have to act on it. 19 MR. BARTLAM: And, mind you, we're talking 20 about one of the actions before you. So in a, let's 21 call it, a potential worst-case scenario, the Commission 22 doesn't act within the 50 days, the tentative map would 23 be approved by inaction. So in the scheme of things, 24 they don't have a project, they don't have an ability to 25 construct. You need the use permit approval and the 0121 1 site plan architectural review approval for that. 2 There's a separate clock ticking for that action. It's 3 180 days from the council's certification. what they 4 would have is a tentative map, which is nothing more 5 than an ability to then work towards filing the final 6 map, subdivide the property into 12 blocks. 7 I don't want to make more of the 50 days than 8 it is, but in the worst-case scenario, if you think 9 about it from the ability for the City to consider it 10 appropriately, you end up subdividing the property by 11 the inability for the Commission to take action. The 12 pro]ect, the use permits, the site plan and 13 architectural review, that clock ticking is 180 days. 14 And, frankly, if I have to go back, hire a consultant, 15 go through the typical process, we're going to bump up 16 against that time frame. 17 COMMISSIONER HENNECKE: Mr. Chair, if I would, 18 I would like to maybe make a recommendation that we take 19 a ten-minute break, and maybe you can work your 20 five-minute magic, and pull out two numbers, and maybe 21 that would appease some of my fellow commissioners. 22 More numbers for them to throw in their number basket to 23 mix them around and see how they like them. 24 COMMISSIONER OLSON: I don't need that. 25 CHAIRMAN KISER: okay. 0122 1 VICE CHAIRMAN CUMMINS: Mr. Chairman, I would 2 like to make a motion that the Planning Commission Page 50 4-08 PC PH trascripts.txt 3 approve the use permit file number U-02-12 to allow the 4 construction of a commercial shopping center in a C -S 5 zone and allow the sale of alcoholic beverages at the 6 Wal-Mart Supercenter; that we approve the tentative 7 parcel map, 03-P-001, to create 12 parcels for the 8 project relating to the Lodi Shopping Center; that we 9 also approve the architectural approval for the new 10 commercial buildings to be constructed at 2640 West 11 Kettleman Lane, and making findings that we adopt the 12 statement of overriding consideration pursuant to the 13 California Environmental Quality. 14 COMMISSIONER HENNECKE: I will second that. 15 CHAIRMAN KISER: we have a motion on the floor 16 as to the Browman Development Company and Wal-Mart Real 17 Estate Business Trust to approve use permit U-02-12 to 18 allow the construction of commercial center in a C -S, 19 commercial shopping district, and allow the sale of 20 alcoholic beverages at the Wal-Mart Supercenter; to 21 approve vesting tentative map 03-P-001 to create 12 22 parcels for the project; site plan and architectural 23 approval of a new retail building to be constructed at 24 1600 Westgate Drive. In addition, the Planning 25 Commission will consider adopting and approving the 0123 1 findings and statements of overriding consideration 2 pursuant to the Environmental Act. 3 We have a first by Commissioner Cummins; a 4 second by Commissioner Hennecke. All those in favor? 5 COMMISSIONER HENNECKE: Aye. 6 VICE CHAIRMAN CUMMINS: Aye. 7 COMMISSIONER OLSON: Aye. 8 CHAIRMAN KISER: Opposed? 9 COMMISSIONER KIRSTEN: Aye. 10 CHAIRMAN KISER: Aye. 11 COMMISSIONER HEINITZ: Aye. 12 MR. BARTLAM: Could I get a voice vote? I'm 13 not able to read the lips. If the ayes could either 14 raise their hand, or we can go across and do it. 15 MR. HOBBS: Let's do it audibly so we have a 16 record. 17 COMMISSIONER HENNECKE: Approved. Aye. 18 VICE CHAIRMAN CUMMINS: Aye. 19 COMMISSIONER OLSON: Approved. 20 CHAIRMAN KISER: Nay. 21 COMMISSIONER KIRSTEN: No. 22 COMMISSIONER HEINITZ: No. 23 COMMISSIONER OLSON: Approved. 24 MS. CHADWICK: Okay. I missed that. 25 MR. BARTLAM: What was your vote, Mr. Heinitz? 0124 1 COMMISSIONER HEINITZ: No. 2 MR. BARTLAM: Oh, good. We have a tie vote. 3 VICE CHAIRMAN CUMMINS: I'm going to comment 4 as follows -- 5 MR. BARTLAM: Tied votes are denied. You have 6 to have an affirmative action for the project to move 7 forward. 3-3 is, in effect, a denial. 8 COMMISSIONER KIRSTEN: All right. I believe 9 that concludes the matter, correct? 10 CHAIRMAN KISER: Yes. We have just issued a 11 denial. 12 MR. BARTLAM: That's correct. 13 CHAIRMAN KISER: okay. Comments by the Page 51 4-08 PC PH trascripts.txt 14 public? Comments by the Planning Commission and staff? 15 MR. BARTLAM: I have no comments, Mr. Chair. 16 CHAIRMAN KISER: None? Then I adjourn the 17 meeting. 18 (The proceedings concluded at 9:00 p.m.) 19 20 21 22 23 24 25 0125 1 REPORTER'S CERTIFICATION 2 3 I, Mandy M. Medina, Certified Shorthand Reporter, 4 in and for the state of California, do hereby certify: 5 6 That the foregoing was taken before me at the 7 time and place herein set forth; that the testimony 8 and proceedings were reported stenographically by me 9 and later transcribed into typewriting under my 10 direction; that the foregoing is a true record of the 11 testimony and proceedings taken at that time. 12 13 IN WITNESS WHEREOF, I have subscribed my name 14 this 5th day of May, 2009. 15 16 17 18 19 Mandy M. Medina, CSR No. 11649 20 21 22 23 24 25 Page 52 LODI PLANNING COMMISSION Staff Report MEETING DATE: April 8, 2009 APPLICATION NO: Use Permit U-02-12, Vesting Tentative Map 03-P-001 Site Plan and Architectural Review 08 -SP -08 REQUEST: The request of Browman Development Company to allow construction of the Lodi Shopping Center and allow all subsequent development approvals for the center. Specifically, to approve Use Permit U-02-12 to allow the construction of a commercial center in a C -S, Commercial Shopping District, and allow the sale of alcoholic beverages at the Wal-Mart Supercenter and Vesting Tentative Map 03-P-001 to create 12 parcels for the project. Finally, to approve the SPARC application concerning the Wal- Mart building. LOCATION: 2640 West Kettleman Lane. Approximately 40 acres located at the southwest corner of west Kettleman Lane/State Route 12 and Lower Sacramento Road in west Lodi. APPLICANT: Browman Development Company 100 Swan Way, Suite 206 Oakland, CA 94621 PROPERTY OWNER: Browman Development Company & Wal-Mart Real Estate 100 Swan Way, Suite 206 Business Trust Oakland, CA 94621 Mail Stop 0555 Bentonville,AR 72716-0555 RECOMMENDATION: Staff recommends that the Planning Commission approve the Use Permit, Vesting Tentative Map, and SPARC requests subject to the conditions listed in the Draft Resolution as attached. PROJECT/AREA DESCRIPTION General Plan Designation: NCC, Neighborhood/ Community Commercial. Zoning Designation: C -S, Commercial Shopping District. Property Size: Approximately 40 acres, 36 acres for the shopping center development and 4 acres adjacent and southwest of the shopping center site for construction of a stormwater detention drain. Adjacent General Plan, Zoning and Land Use: North (across W. Kettleman Ln): General Plan; NCC, Neighborhood Community Commercial Zoning; C -S, Commercial Shopping Center Land Use; The Vintner's Square Shopping Center anchored by the Lowe's Home Improvement store Lodi Planning Commission Stall Report re Lodi Shopping Center 4-8-09.doc J:\Community Development\Planning\STAFP REPORTS\2008\ 1-23 000256.1 South: General Plan; LDR, Low Density Residential Zoning; PD, Planned Development Land Use; Currently Agricultural planted as a vineyard, but planned as the Southwest Gateway planned residential community West: General Plan; PQP, Public/Quasi Public & HDR, High Density Residential Zoning; PUB, Public & PD, Planned Development Land Use; Currently agricultural, but planned for a utility substation and higher density residential as part of the Southwest Gateway planned residential community East (across Lower Sacramento Rd.): General Plan; NCC, Neighborhood Community Commercial Zoning; C -S, Commercial Shopping Center Land Use; The Sunwest Plaza Shopping Center currently anchored by the existing Wal-Mart, J.C. Penny and the Food 4 Less Grocery Store. BACKGROUND: March 11, 2009, the Lodi City Council certified the Final Revised Environmental Impact Report (FREIR) for the Lodi Shopping Center project. The action took place as a result of two appeals that were filed concerning the Planning Commission's decision to not certify the document at their October 8, 2008 meeting. At that October meeting, the balance of the requests that have been submitted were tabled in order for final action on the environmental document to take place. With the Council action, those requests are now back before the Commission for consideration. PROJECT DESCRIPTION: Use Permit and Tentative Map Analysis: Approximately 18 years ago, the City's General Plan designated the southwest corner of West Kettleman Lane/State Route 12 and Lower Sacramento Road for the construction of large-scale retail development. Since that time, the centers on the other three corners have built out as envisioned. Major national retailers such as Wal-Mart, J.C. Penney, Target, and Lowe's have occupied these corners. The Lodi Shopping Center is proposed on the remaining fourth corner to be anchored by a Wal-Mart Supercenter. This type and scale of development is consistent with the activity that has occurred at the other three corners. The City's Zoning'Code requires that all plot plans for projects within the C -S, Commercial Shopping District receive Planning Commission approval. Over time, this review has been done through the Use Permit process. The Zoning Code also requires Use Permit approval for the sale of alcoholic beverages. The applicant is requesting a Use Permit and a Vesting Tentative Map in order to divide the property into 12 lots that will correspond to the number of buildings anticipated for the project. The proposed project includes the construction of approximately 339,966 square feet of commercial retail uses, representing a variety of retail sales and services, to be contained in 12 buildings of varying sizes. The primary use will be a Wal-Mart Supercenter which will occupy approximately 226,868 square feet of floor area, including approximately 70,000 square feet for grocery sales, 19,889 square feet fora garden center (including outdoor fenced area), and 6,437 square feet for an auto service shop. The Wal-Mart Lodi Planning Commission Staff Repurt re Lodi ShoppingCcnter 4.8.09.duc J;\Community Dcvclopmcnt\Planning\STAPP REPORTS\2008\ 1-23 900256.1 Supercenterwill not include the use of outdoor metal storage containers, and will not include a seasonal sales area in the parking lot. A moderate sized retailer will occupy approximately 35,000 square feet on pad 12 in the southeast corner of the site. The remaining 11 buildings will range in size from 3,200 square feet to 14,788 square feet. Three of the 11 buildings will be occupied by fast food franchises, with another two buildings consisting of sit-down restaurants, and the remaining buildings occupied by such retail uses such as financial services/bank, professional/business services, and other retail sales and services. The uses, layout and design of the shopping center has remained the same as that presented to and approved by the Planning Commission in December, 2004. The Wal-Mart building is located at the southwestern corner of the site, with 11 freestanding buildings located along Kettleman Lane and Lower Sacramento Road to the north and east. In the center of the shopping center is the main parking lot. The proposed vesting tentative map includes the Wal-Mart store and all corresponding parking in the largest lot (lot 12, 18.3 acres), with each of the remaining 11 buildings on their own lot with associated parking. These other lots are generally one+/- acre in size, with the smallest (lot 8) being 0.53 AC and the largest (lot 11) being 2.6 AC. Internal travel lanes, parking medians and planters are located through -out the interior. Access to the Center is mainly from Westgate Drive and Lower Sacramento Road; with--right-turrfim-and out -only -from Kettleman-Lane. As sh-owri orr-the sites plan; significant -public improvements are required in order to build this project, as detailed in the draft conditions in the accompanying resolution of approval. The applicant will be responsiblefor the construction of Westgate Drive from Kettleman Lane to the southerly project boundary as well as the frontage improvements on Kettleman Lane and Lower Sacramento Road. The applicant is also responsible for the approximately four acre site across Westgate Drive to be used for storm water detention, all associated project right-of- way dedications, utility easements, engineering reports and studies, and fees. An encroachment permit from CalTrans for Kettleman Lane/ State Route 12will be needed. Conditions in the draft Resolution cover fire safety, outdoor storage or display of merchandise, shopping cart storage, security and exterior lighting. Consistent with the prior approval by the City Council, conditions relative to re -use of the existing Wal-Mart building are also included. Further, even though a CEQA environmental impact as to urban decay or physical deterioration from the Lodi Shopping Center cannot be made, the Planning Commission can make a decision that the economic effects of the Center on the Downtown should be addressed. To this end, staff is proposing a condition to require the Lodi Shopping Center to invest in the Downtown area. The aggregate value of the capital improvement must exceed $700,000. Finally, a condition is included to incorporate all mitigation measures as specified in the certified FREIR. The Use Permit will allow the sale of alcoholic beverages, for the Supercenter's use. No Use Permit for alcohol for any of the freestanding buildings has been applied for or is under consideration. The tenants of these freestanding buildings are not known to staff and have not been included in this request. Any such request in the future would require a Planning Commission Hearing at that time when the specific details of the requesting business are known. The Planning Commission has previously found that the sale of alcoholic beverages is incidental to a grocery store operation and that is what is being requested by the Wal-Mart Supercenter. As such, staff is recommending that the Planning Commission approve the request to sell alcohol. The second Use Permit request emanates from the C -S zoning designation which specifically states that a "detailed plot plan of the proposed construction" be submitted to the Planning Commission. The design standards identified in the code are as follows: Lodi Planning Commission Staff Report re Lodi Shopping Center 4.8.09.doc J:\Community Developmcnt\Planning\STAFF REPORTS\2008\ 1-23 900256.1 A. The site shall be designed and used as a unit, regardless of ownership of the land and buildings. B. All streets bordering the site shall be fully dedicated and improved by the developer. C. The design of the development shall include the landscaping of buildings and parking areas, the screening of nearby residential areas, and the enclosure or shielding of trash and disposal areas. Lights and signs shall be located to avoid disturbance to residential areas. D. Driveways, parking areas and loading areas shall be located so as to minimize traffic interference. It is staffs opinion that the Planning Commission has little discretion regarding this Use Permit. Effectively, Section 17.58 of the Municipal Code adds additional design requirements to the project. These standards were adopted in 2004 specifically to deal with the design of large scale retail establishments like Wal-Mart. The applicant has met or exceeded each of these standards as presented and conditioned. Therefore, staff is recommending that the Planning Commission approve this request. As previously discussed in the analysis, a vesting tentative map approval is requested to divide the site into 12 lots. The applicant has met the requirements of the City's subdivision ordinance and the State Subdivision Map Act. Staff recommends approval of this action and has included vesting tentative map conditions in the draft resolution. SPARC Review: Along with the plot plan and tentative map for the Lodi Shopping Center, preliminary elevations and colors for the Wal-Mart Supercenter have been submitted. No elevations or colors, landscaping plan, signage plan, materials, or other final plans for the rest of the Center or buildings have been submitted. As mentioned, this shopping center is subject to the City's Design Standards for Large Retail Establishments. The overall site layout, building footprints, parking areas, and access driveways provide the overall direction of the Center and were used by staff and the Planning Commission in the December 8, 2004 review to determine that this project complies with the Design Standards for Large Retail Establishments. As such, no further design, layout, or changes have been proposed. The proposed project includes the construction of a new Wal-Mart Supercenter store with a building size of approximately 226,868 square feet. The Wal-Mart building would be located on the southwestern portion of the project site, and the building entrance would face east toward Lower Sacramento Road. The Wal-Mart Supercenter building is a single story structure. The architectural theme of the building is a contemporary style and uses construction materials commonly used in commercial shopping center construction. Architectural materials such as concrete masonry block, metal awnings, and exterior plaster finish will be utilized on the exterior of the building. The major materials used for architectural treatment include fawn (brown) colored stucco, fawn (brown) cultured stone veneer, split face (light brown) block, sea -green colored smooth finish metal panels, charcoal roofing material, hallow (gunmetal gray) metal doors and cornices, and black fencing. The body of the building will be in shades of brown. The ground level will have fawn (brown) colored stucco walls with fawn colored stone veneer accent walls near key entrances and along the lower eight feet of the exterior wall. The architectural treatment features are mostly used on the north and east elevation. Also on the main entrance, a canopy type architectural feature is proposed. The proposed main entry canopywill be clad with a brown cultured stone finish. The west and south elevations do not feature the same detailed architectural treatment. The west (rear) elevation is a continuous wall with little architectural treatment to breakup the elevation of the building. The entire west elevation will have fawn (brown) colored stucco walls with metal doors painted to match the stucco. Cornices and accent trims are provided to break up the wall elevation. The ground level will also have cultured veneer stone elements. The midsection of the western elevation should receive further architectural treatment to add architectural interest to the wall. It is important to note that this elevation will be visible from across Westgate Drive. Lodi Planning Commission Stnf( Report re Lodi Shopping Center 4.8.09.doc J:\Community Development\Planning\STAFF REPORTS\2008\ 1-23 900256.1 The southern elevation will feature nearly identical architectural treatment as the west elevation. However, the proposed southern elevation is less of an issue. First, there will be an 8 -foot tall masonry wall on the southern property line to block any view of this elevation from the project to the south. Second, unlike the western elevation, the southern elevation is not a continuous large mass elevation. Because the main axis of the building faces west (the longest elevation), the south elevation is the side of the building and is relatively small in size in comparison. A condition of approval is included in the SPARC Resolution regarding additional architectural treatment for the west elevation. Circulation and Parking The site plan indicates six access points to three public streets. There will be three entrances/exits from Lower Sacramento Road, one from Kettleman Lane (HWY 12), and two from Westgate Drive. All three streets will have a raised center median that will restrict turning movements in some degree. The main entrance to the project parking lot is from Lower Sacramento Road and will be located near the middle of the project site. This entrance will have a traffic signal to control traffic flow and will allow both entering and exiting traffic to turn in both directions. The other access points from Lower Sacramento Road will be restricted to right turn in and right turn out movements. The direct driveway entrance from Kettleman Lane (Hwy. 12)will only permit a right -turn in and right -turn out traffic movement. Traffic can also access the shopping center from Kettleman Lane by way of Westgate Drive. This intersection is controlled by an existing traffic signal that will allow both right and left turning movements. The main (northern) access point from Westgate Drive will allow both right and left hand tuning movements. The southern access point will only allow right in, right out movements. Circulation to and from the site is very similar to the Vintners Square Center (Lowes)to the north. The main parking lot is located on the east side of the Wal-Mart building. There will be smaller parking areas to serve the free-standing commercial pads. For the Wal-Mart building, a total of 965 parking spaces are proposed (4:45/1000). A total of 434 parking spaces are required, per City code (General Retail 1/500). The proposed number of parking stalls exceeds the minimum parking requirements. There are 12 cart corrals proposed to be distributed throughout the parking lot. These cart corrals will be screened in brown CMU wall with wooden frames to provide additional ornamentation. Landscaping and Signage The proposed landscape plan calls for various large shade trees, smaller trees, shrubs and ground covers. A total of 478 larger shade trees will be provided within the parking lot interior, along the southern and western edges the property line, and throughout the site. This total number of trees exceeds what the City code requires. The approval of project signage is not a part of the current review and would be subject to City of Lodi codes and requirements to ensure they complement the building architecture and landscaping of the building. Signage applications and approvals would be done separately, should the project be approved. PUBLIC HEARING NOTICE: Legal Notice for the Use Permit and Vesting Tentative Map was published on March 28, 2009 in the Lodi New Sentinel. The item was posted at City Hall and at the City of Lodi Library on March 26, 2009. 62 public hearing notices were sent out through the combination of the U.S. Postal Service and electronic mail which included all property owners of record within a 300 -foot radius of the subject property as required by Government Code section 65091(a)3. CONCLUSION: Based on the fact that the applicant has met all of the City's requirements for these requests, staff recommends that the Planning Commission approve Use Permit U-02-12, Vesting Tentative Map 03 -P- LA Planning Commission Staff Report re Lodi Shopping Center 4.8.09.doc J:\Community Development\Planning\STAR' REPORTS\2008\ 1-23 900256.1 001and that the Planning Commission approve Site Plan and Architectural Review for the Wal-Mart building 08 -SP -08, P.C. 09 - ALTERNATIVE PLANNING COMMISSION ACTIONS: • Approve with additional/different conditions • Deny the Use Permit/Tentative Map • Continue the requests Respectfully Submitted, rr 1 Ko radt-g-a�tiam Community Development Director ATTACHMENTS: 1. Vicinity Map 2. Site Plan 3. Vesting Tentative Map 4. Wal-Mart Elevation and Hardscape Plan 5. Draft P.C. Resolutions; PC 09- 6. City Council Resolution 2009-27 7. Comment Letters Lodi Planning Commission Staff Report re Lodi Shopping Center 4.8.09.doc J:\Community Development\Planning\STAFF REPORTS\2008\ 1-23 900256.1 _ __. tr m A NT T T �m . --N89 49;46 "1$�7F�... _ - � L, 207.2I` =1"I _. .......... E%ESONG PROPERTY UNE-� _ _ EXISi1NG EASEMENT - .._ .,. __.,. _ _..r.. .. _ _... T -. .. ....�-.__ . .._..•.., ._.. __. __ ...-... j l - ECCE OF PAYFAIFNT �{ I SITE MOTES / AREA STRPm K1TiK 4" SYSL AT 45' O 2'-0" O.C, A.=Sme RAMP, SEE DTA; G ON 94ET PEDEGIRIN CROSSWC 5X4 WO -2 AN SH 2p AT PEDESTRIAN AS NOTED ON PLANS. SEE OETNL P ONTiTRCAY. SNEET C-&3. -,nW PAINTED YELLOW *4 PAV9kH;NT TYPICAL SEE DETAX. 5 ON SKEET C-5.1. PAD M PAD 4 ENHANCED PAYLMENi nRfd. SEE ARCRiECTUNAI PLANS FDR OEUAS 8,031 SP A PAD 5 F ,,., , li 10,075 SF (� o n 7,490 SF Z EXT PORCH. SEE ARM1ECTURAL PLANs PCR EXACT SPC. —AVM PO4 4 S1OOP5. 8TNPS ANIC P PS THAT NAY RE REOD'RSO. k.P PAYENEXT fLU5H I a IWRI 11,E 101' AR STOUP _ do °ei PE BOLLARD TWew. uxrSS IN M- OTNDevnsT, sTi GETaa. 2 ON 9Wtr .. - L,tf{€,j PAD 6 it 1 j CARI mom EDIT SEE OEM i ON 91EET C-&7 AND DETA& TO ON SHEET C-&2. s` vX" X 11x LCNO -LW W PA TEO TRUCK AUGNNEMT SYRPES. PAO, R£EER TO ARa1IMPRAL PLAN Po EXACT �fDre ACO1tPAA VO ACCESSOIL PMXNO 9•A1 III SEE OSTAIL SHEET FOR Ae( '% f PARAiNO SPACE EKE, SGN A40 SWAG ("YAM-INCCAITS VAN ACC:551UIE SPAGQ, SEE DETAIL 3 cN S1E" C-&1 8 OCTAL S ON SHEET 08.2. CaHmmTRAt1SORMER PAD. CONTRACTOR TO COORIF.IATE WTI; LOCAL POKA COT OP FCN OCTAtS. PLACE STEP Salk PANT STOP RAR 8 'STC•' PER OErl, & ON SHEET 0-&1 AND DETAIL T Ott SHEET O6.2. PEDEsTRIAi CROSBWAI.X. ETNA: I,N-S PAN7E0 4RA/8" NRi tiSNE sTR7iTM i PANTED SNA/,; AT Y -O' RG PMPERaTMAAR TO [OCE TLYES. SEE OETAL 7 ".1. M SHEET • CART ODRRAL SEE, DEIN. s DN mar 6-&7. • A.D.& SITE ENTRANCE Sal. SEE OVAL 5 ON SHEET C-8.2. . RF„C011IL.T-&(WM'RPF.WM TO vA4KWDACSET 8 ON Uc2. PV . 14' CONCRETE CURD ANS GUTTER. SEE DETAIL D ON SIIEET 08.3. • TRAFFIC FAD* ARROW, SEE DETM T SHEET C -SA • CONCRETE UVI SEE DETAR 7 On SHEET 0-8.1 PN . NDM,MENi Sat (SEP A*M EGTVRA PLANS} , AISLE POICATOR SIGNS (TTP} STE DETAILS 0 & 11 ON STEET C-&2. `CARL OROSSWO %ITN WA SEE MAIL I ON 91EET C-B.T. .-NO -WOKS' SISI. SVC D£TAI. 1 at SHEET 0-82. .-TRUCK ORAS SON. SEE OET&% 3 ON SHEET 0-8.2. IBCHT rWRN ONLY' ECL SEE DUAL I2 ON SIRT 0-8.2, m ,x 11945' PALLET/BALE STORAGE AREA. ol,l tr 1 50, . IwY.lACA1,9 OQEES. SEE DETAIL 4011 SHEET C-8.7. I .SAKDUT EXSSLD EDGE OF PAVEWENIT TO FORK A SNOOK, UHMORN LINE, PKAfE PROPOSED PAVEMENT AIAHSi SAWCOT LINE & MATOI tP.V.M GRADE. .AT GRADE OVERHEAR DOOR LOCAAON SEE ARa1TECTURAL KMS FOR EXACT SIZE ANO LWADOR FOR COIXK NATOV MRI OML MANS. Si(E DATA TDan A,INXN Amaut�v.v { MACE CREASE/OL INJMCEPT SEP ARCHITCCTWTAL P:A4S FOR EXACT SO. fOM1OE 2TRSit S0. Fl. 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Y re i3. fi�4� i ��. �. 23.x' ----- Ta.s•1+�_',r �'-� 105.9 T�.� no PAD 7 5,180 SF PAD 9 0,537 � PAD 10 8,596 SF 1)?— - I 1 1 PAD 11 �t I 35,000 SF , ,,o R d G� Z � co W r Q I:ezVZ � g0N U< -in w a Ej LU (A o.rP,w ez aP/cY -- dam Ay. w/a act.; D.0 13, M64 SHEET CN2.1 OF 34 ProICt NP: 60T -AM 15.5V - So0o5'orw 3 I 1 9 1 ao�ns•33• R-1469' 1-I79.7fi' I ° Iwzl3' Rnar HIGHWAY 12 KETTLEMAN LANE o2 1^19.63' ..—__—__ Na09726'E PARCEL -A (KETILEMAN LANE DEDICATION_.—_.—__ 4_a�t,• yyf 0.41 At (18,026 SF) N6939T63w N087t'Aw Q+L �>N- �•--•��r--_—�:'- 69'S9i3•E -_ N6x3WE -_ ,116 23.x5 1 SB65.f'{2•E-;a;'it... .w16'J5--1 LD.11'J6'OB• jig �••••�."•� ..�.�._.. 1 -+0.0+'_. 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Ie I I I �s. lel SII I 1 I it I 9 141 I w I-— l0'1 I�'I BIS I�11 p I I I I I I I I I 1 Inch = 60 ft Vesting Tentative9ilap Lot Layout for Lodi - III ATNs. 058-030-01 caZ 058-030-02 County (f San Joaquin, Cafifornia August 15,2008 Sheet 2 of 2 QpOFESS/p�� COle S y J No. C60698 DA-Doucet & Associates, Inc. Dec. 31, 2008 loss er<d,.wa R;ax 0.1�, s:u In a'4 Cryl aP -k, CA936M936. Pb (916))80.2003fu(916))00.x018 rFor CAl1EOP No.: 001-272 00 O 00 00 O EAST ELEVATION NORTH ELEVATION WEST ELEVATION SOUTH ELEVATION 3levations refitNc,; NC".•\%VMT: 02-0_X16 REVISIONS nM: 614,111.1.,.•1 MIN am Ualr: M—.1— 7. NM leparcd B,: lu. r1m. U.•.�gn 'I,r1kc11 By 17 N Sheet 1 of 7 WAL*MART William in h design development consultants, consultants, inc. 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SITE PLAN 01 �1 \• :�'r of C"-. �.i . -!i � e�m� 4 �^II .IDa I►elf' r.. ,i ''r � �'i �', "�" �i �i ll�� - 1 OUTPARCEL 10 PIIl17\Z MIIII. • nODOGPWf O0.A�ID. J rma me Au •a oA'.�DN nn rorx cDlMr, ax SHRUBS AND ACCENTS: ww a+us ewunNs�. °'`lG" OrtTDfADNMTDeYaI. �AtA �ATlD tDNA 1 <}� .HnAN.l. �aA•.r WAPYtlLNB'JADc NAN!' GW IIaW1MDPN! Itll<.a'rxOWd1'6.arta' NNIf� MVA w.W1T�LYW/ %.IIMAOO AURCUaTA CAPE 0.N4lAGO DWAFF GNxw�. UU¢L DNeCt" � xnus �.naar 'aacw ewmr JanAN.l..oXwDDD b FwD4aa..naalra w Pra+na.. Yeu.ow w+tan�Y.m bil.WMIIMYA U►wFRt gMNl HeYF1OCALLA Y6LGw lvQKiP![N DATULY GROUND COVERS: I� coonoxuraax I� va�l4vnre cavaDan. Ili 4NL,YLDlPlbalM 3AsnND.u! lrAR�Ay..a sateN eu•:ceos N1TN I wweHwl alacuolNel oAvw rrtwwA Ya:Dw Ap f�uW xuov eAw+.. 9 w.rAw.w,aFi.e i .DD vw>v •. ••-•4• NDT6 THAT TlYl RA. I! CD1YeR4AL M'wtlAu,NDrALL lwtrel ow rt.ANraa MAYx lMDw.t nae! ` IGKJ�y ANp C0.wTlliWRRATM DnwVAT wxLM NGWN On The DONITMICTON DOCLMNTI ` ALL 1..ANT/IY M{ TO N eMLC11lD WRM A T VnFI M eMK a411.C,1 A TN! aaaeATgNlritD4 f`f4L MAN AV1OnATK, unGlael4iLLYD 1YP! uYVe 4lTV Voux44 Fui.T.Durut DPi 1 Iv rsxaswr.tvY T1ANe TO VKM MVJrvD4�1 n�Aal.ORx+.+•e pL9 tDwD.vo POn.11v, L.Tv voluM !/RAY MADb. Au. VTDKAaaVe ewu w w eeew�A.ra wmt nu eyY on Ieo.! wA4w ur 1A+waaNe auDu+rrl. JAMES FERGUSON CLABANGR ARCHITECT 4s% SHAWN LAI VACAVILLE•CA 95688 PHONEI FAX: 707d49-3916 LODI SHOPPING CENTER LOWER SACRAMENTO ROAD AND KERKEMAN ROAD LODI, CALIFORNIA Date 7/15105 Eb. Dab �e6Ne. D-qg 6y J.C. -.y J.C. PRELIM UNARY LANDSCAPE PLAN 9Mat No. PL -0 9117 SUGGESTED PLANT LIST v TREES: COUNT � � l�Dua+sl•csrvama!'lDaule�' coot w.vooD O 2 O uaoo enoaaN u os,aA �. Z NA TW! w a cc I v.al uur.Ax..A.mroour n ROw>elaH PlM 1P/ v + Q � J . � V•eellTlDpAA TUlUJtlIUAYD wsrJet n aa+w rDten! nAYwDDD Aw � rydt1 • nurAeus..ca4osA a:D0000aa lYc++aDlae r \ w+.us'naxrne' � • nODOGPWf O0.A�ID. J rma me Au •a oA'.�DN nn rorx cDlMr, ax SHRUBS AND ACCENTS: ww a+us ewunNs�. °'`lG" OrtTDfADNMTDeYaI. �AtA �ATlD tDNA 1 <}� .HnAN.l. �aA•.r WAPYtlLNB'JADc NAN!' GW IIaW1MDPN! Itll<.a'rxOWd1'6.arta' NNIf� MVA w.W1T�LYW/ %.IIMAOO AURCUaTA CAPE 0.N4lAGO DWAFF GNxw�. UU¢L DNeCt" � xnus �.naar 'aacw ewmr JanAN.l..oXwDDD b FwD4aa..naalra w Pra+na.. Yeu.ow w+tan�Y.m bil.WMIIMYA U►wFRt gMNl HeYF1OCALLA Y6LGw lvQKiP![N DATULY GROUND COVERS: I� coonoxuraax I� va�l4vnre cavaDan. Ili 4NL,YLDlPlbalM 3AsnND.u! lrAR�Ay..a sateN eu•:ceos N1TN I wweHwl alacuolNel oAvw rrtwwA Ya:Dw Ap f�uW xuov eAw+.. 9 w.rAw.w,aFi.e i .DD vw>v •. ••-•4• NDT6 THAT TlYl RA. I! CD1YeR4AL M'wtlAu,NDrALL lwtrel ow rt.ANraa MAYx lMDw.t nae! ` IGKJ�y ANp C0.wTlliWRRATM DnwVAT wxLM NGWN On The DONITMICTON DOCLMNTI ` ALL 1..ANT/IY M{ TO N eMLC11lD WRM A T VnFI M eMK a411.C,1 A TN! aaaeATgNlritD4 f`f4L MAN AV1OnATK, unGlael4iLLYD 1YP! uYVe 4lTV Voux44 Fui.T.Durut DPi 1 Iv rsxaswr.tvY T1ANe TO VKM MVJrvD4�1 n�Aal.ORx+.+•e pL9 tDwD.vo POn.11v, L.Tv voluM !/RAY MADb. Au. VTDKAaaVe ewu w w eeew�A.ra wmt nu eyY on Ieo.! wA4w ur 1A+waaNe auDu+rrl. JAMES FERGUSON CLABANGR ARCHITECT 4s% SHAWN LAI VACAVILLE•CA 95688 PHONEI FAX: 707d49-3916 LODI SHOPPING CENTER LOWER SACRAMENTO ROAD AND KERKEMAN ROAD LODI, CALIFORNIA Date 7/15105 Eb. Dab �e6Ne. D-qg 6y J.C. -.y J.C. PRELIM UNARY LANDSCAPE PLAN 9Mat No. PL -0 9117 Comment Letters Dear Ms. Johl and Members of the City Council: Mis office represents the Citizens for Open Government. This letter is to call your attention to violations of the Ralph M. Brown Act, which occurred during the Lodi City Council ("Council") meeting on December 10,2008. The violation occurred with respect to the Council's aetien on the following agenda item: B.1 Public Hearing to Consider the Appeals of Browman Development Company and Wal-Mart Stores, Inc. Regarding the Decision of the Planning Commission to Not Certify the Final Environmental Impact Report Regarding the Lodi Shopping Center Project Located at 2640 West Kettleman Lane (CD) The action cf the Council to grant the appeal and certify the Final Environmental Impact Report ("EIR") for the Lodi Shopping Center was not in compliance with the Brown Act for the following reasons: 1. The meeting was not open as required by Government Code section 54953. An open meeting is not one where the only choice to attend is to sit in near freezing temperatures for 2 and half hours, particularly when the City could have easily postponed the meeting in order meet in a facility capable cf providing seatin for all concerned. These facts also establish a violation Cf section 54954.3(aby unreasonably interfering with the public's right to comment on the agenda item. 2. In order to ensure attendance, members of the public had to fill out speaker cards in violation of Government Code section 54953.3,which prohibits the placement of eorklitions of identification on meeting attendance. 5307587169 P.1 Jan 06 2009 1:02PM Law Office of DB Mooney LAW OFFICES OF DONALD B.. MOONEY R. E E IV E D 129 C Street, Suite. 2 B Davis, California 95626 T�ONfit.1? MOC�NFY 'reiephone (530) 758-2377 2009 �ir:. —6 PM 1:'06 Facsimile 630) 758-7169 dbinooney �n.�rg ,,, C', 1 TO L'r ft � CIS( Y OF LODI January 6,2008 ✓CC HR VIA FACSLMILE (209-333-6807) VCM is AND .FEDERAL EXPRESS ✓CA GLIB ZCD �PR Randi Johl, City Clerk ^EUD SPD Lodi City Council —FIN _PW 221 W. Pine Street AFD COM Lodi, California 95240 Re:. NOTICE TO CUREAND CORRECTVIOLA77ON Com' THERALPH M BROWN ACT PURSUANT TO GOVERNMENT CODE SECTION 54960.1 Dear Ms. Johl and Members of the City Council: Mis office represents the Citizens for Open Government. This letter is to call your attention to violations of the Ralph M. Brown Act, which occurred during the Lodi City Council ("Council") meeting on December 10,2008. The violation occurred with respect to the Council's aetien on the following agenda item: B.1 Public Hearing to Consider the Appeals of Browman Development Company and Wal-Mart Stores, Inc. Regarding the Decision of the Planning Commission to Not Certify the Final Environmental Impact Report Regarding the Lodi Shopping Center Project Located at 2640 West Kettleman Lane (CD) The action cf the Council to grant the appeal and certify the Final Environmental Impact Report ("EIR") for the Lodi Shopping Center was not in compliance with the Brown Act for the following reasons: 1. The meeting was not open as required by Government Code section 54953. An open meeting is not one where the only choice to attend is to sit in near freezing temperatures for 2 and half hours, particularly when the City could have easily postponed the meeting in order meet in a facility capable cf providing seatin for all concerned. These facts also establish a violation Cf section 54954.3(aby unreasonably interfering with the public's right to comment on the agenda item. 2. In order to ensure attendance, members of the public had to fill out speaker cards in violation of Government Code section 54953.3,which prohibits the placement of eorklitions of identification on meeting attendance. Jan 06 2009 1:02PM Law Office of DB Mooney 5307587169 Ms. Randi johl January6,2009 Page 2 3. By providing the new and unprecedented comment and meeting procedures in advance to only some entities, the rules for public comment were not fair in violation cf Government Code section 54954.5(b). In addition, the selection of the 4 p.m. timd. to submit speaker/ attendance cards appears calculated to favor the paid Wal-Mart employees who packed the room to the exclusion cf other interests - i.e., those opponents of the project would have had to leave work without pay in order to ensure admittance to the meeting, 4. In violation of Government Code section 54956, the agenda for the December 10 special meeting lists the starting time of the meeting incorrectlyas 6:30 p.m. The meeting effectively started at 4:00 p.m. for members cf the public when they were required to submit speaker-/ attendance cards in order to ensure their attendance. Pursuant to the Government Code seetim54960.1 we demand that the Lodi City Council cure and correct the illegally taken action As follows: 1. The formal and explicit withdrawal and nullification of the action taken on Agenda Item B:1 at the December 10,2008 meeting. As provided by section 54960.1', you have 30 days from the receipt of this demand to either cure or correct the challenged action or inform this office of your decision not to do so. If you fail to cure or correct as demanded, such inaction may leave our client with no reeoursebut to seek a judicial invalidation of the challenged action pursuant to section 54960.1; in which case w e would seek the award of court costs and reasonable attorney fees pursuant to section 54960.5. Very truly yours, John L. Marshall Attorneys for Citizen. Open Government cc: Ann. Cerney p . 2 V ' L- ---------------------------'-'-------------^-------------------- _ � ! �.~n�ee~_~`-~-�=^^.__._~__~�_`_.--°o'~- ��^'°-=~��--��-^---- ---- -- -�--- | ^ __-____�_-_____�_ ........ .... cz---- Page 1 of 1 Kari Chadwick From: Mark Anaforian [mjanaforian@sbcglobal.netj Sent: Friday, December 12, 2008 1:28 PM To: Kari Chadwick Subject: Wal Mart project Miss Chadwick, I'm e -mailing this to you in the hopes you can forward this to the members of the planning commission. I could not find the needed information on the cities website (but than again it is Friday, so who knows). Dear Lodi City Planning Commission, I am writing this to urge you to vote "no" on the proposed Wal Mart project. I know this may be a little premature but there is no time like the present. After attending the city council meeting on the 10th, and standing outside in the cold for 4 hours, I was very disappointed with some of the council members. This has less to do with there votes than in their condescending attitude. Thirty minutes into the meeting I knew the vote would be 3-2 and some members seemed annoyed to be there. But enough of that. My main argument against the proposed Wal Mart is the effect on other businesses in town. A Super Wal Mart not only offers groceries, but tire service, pharmacy, garden, fast food and other items and services. Do not get me wrong I am all for free enterprise when it makes sense. From my economics classes at USC I know these facts. To increase your tax base without driving others out of business you need one of these truths to be true. 1. An influx of new residents into our city - With the housing market in the shape it's in and banks not giving out construction loan to home buyers as often as they use to, I do not see this being a viable reason. 2. Attracting customers from outside the area - With a Super Wal Mart on Hammer Lane, a now okay ed Wal Mart store in the Spanos development on Eight Mile Road, an approved Wal Mart in Weston Ranch and a Wal Mart coming soon to Galt, I do not see where these outside shoppers are going to come from. 3. People increasing their spending - Personally my family has a budget for groceries for the month that is based on my wife and my income. Unless money falls from the sky we have only so much we can spend on groceries. With unemployment at an all time high, uncertainty in the state and countries economic situation and people worrying about their investments in their retirement accounts, I do not see people spending more money just because a Super Wal Mart opens their doors. Lodi's tax revenue income is like a pie. It's not getting bigger. Instead Wal Mart is j ust trying to take a bigger piece of the pie. And if they do, and you think this will not affect other stores you are sadly mistaken. Responsible growth not only means for home building but for business building. Many towns across the U.S. have fallen for the pitch from Wal Mart and have regretted their decision later. In Nowata, Oklahoma a Wal Mart was opened in 1982 which caused half of the businesses in downtown to close. Then in 1984, they closed that store and one in a nearby town and opened a Super Center 30 miles away. Effectively killing not only the downtown of Nowata, but also the town's tax revenues. Do not be fooled by the grandiose promises from Wal Mart. They are always over inflated and at times not truthful. I strongly urge you to vote no on the proposed Wal Mart projects when it comes up for the next vote. Thank you for your time, Mark Anaforian 12/12/2008 Page 1 of 1 Kari Chadwick Subject: Wal-Mart Wolves Member(s) Bill Cummins Randall Heinitz Steven Hennecke Dave Kirsten Wendel Kiser Tim Mattheis Debbie Olson To our esteemed Planning Commission members: Do you folks really want to continue being a party to this outside "ambulance chasing" legal and financial support that is being used to hassle Lodi, Tracy, and other communities which run up city costs and become a consuming distraction? Idearly hope not. Enough is enough. Please see below. Thank you, Jim Locke 511 Willow Glen Drive Lodi, CA 95240 368-9009 To Our Honorable City Council and the Lodi News -Sentinel: (just read in the Lodi News -Sentinel that Tracy, which approved a Wal-Mart Supercenter last month, has been sued over claims that its impact studies are incomplete and inaccurate. The City was sued by the same law firm that sued Lodi over this project three years ago as well as on other Wal-Mart projects in several different California cities over the past few years. Interestingly enough, this law firm represented Reynolds Ranch in their dealings with the City, helped them get their approvals quickly and no litigation has been filed. Something is not right here. I would feel differently if litigation like this was motivated by local residents but that is clearly not the case in Tracy, Lodi or any of the other cities where this law firm has been active. If our Lodi elected officials feel that the studies and work done by City Staff and the consultants they have chosen is sufficient then I am personally offended that an outside law firm would file a suit like this. From what 1 have heard, this firm appears to go from city to city filing lawsuits like this against Wal-Mart projects as though they know what's best. But they don't know what's best for Lodi. t should be up to our elected officials and residents to decide and not for outside groups to turn to the courts to stop Council approved projects because they don't like Wal-Mart. They don't live here. We do and Iwant to have a Supercenter in Lodi. Jim Locke 511 Willow Glen Drive Lodi, CA 95240 368-9009 P.S. Note the name of the organization created to play the "front" First, quite similar to: Lodi First My, what a coincidence. 12/17/2008 (representation) like they are local Tracy people. e.g. Tracy Page I of I Kari Chadwick From: James Keller Dim.keller@sbcglobal.net] Sent: Wednesday, January 07,2009 1:25 PM To: Kari Chadwick Subject: Lodi Supercenter I might not be able to attend the upcoming meeting on Jan 14th, however, I want you to know that I would like you to vote NO on the final plans for the Supercenter. I was disappointed in the way the City Council failed to reschedule the hearing on Wa1Mart, as it appeared that the WalMart people were advised of the city managers decision, on the day of the meeting to have seat numbers handed out at 4pm. When I arrived at 5:30 for the meeting - thinking I was early - I found out about the seating decision and I was left out in the cold. Jim Keller 2429 Summerset CT Lodi, CA 95242 01/07/2009 Page 1 of 1 Kari Chadwick From: Cinclarke57@aol.com Sent: Monday, January 12,2009 8:05 AM To: Kari Chadwick Subject: (no subject) Please consider my vote a NO on the Walmart Supercenter I am not able to attend the meeting. Glenn Clarke 209-339-8177 New year ... new news. Be the first to know what is making headlines. 01/12/2009 Page 1 of l Kari Chadwick From: Cinclarke57@aol.com Sent: Monday, January 12,2009 8:04 AM To: Kari Chadwick Subject: (no subject) am unable to attend the meeting on January 14 but would like to voice my vote "NO" on the Walmart Supercenter Thank you, Cindy Clarke 209-339-8177 New year ... new news. Be the first to know what is making headlines. 01/12/2009 Page 1 of 1 Kari Chadwick From: russell young [young5084@sbeglobal.net] Sent: Saturday, January 10, 2009 10:24 PM To: Kari Chadwick Subject: Walmart Supercenter To Planning Commission members. My wife and I wish to let you know that we are in favor of having the Walinart Supercenter built in the proposed Shopping Center as the council voted for. We have been going to the Walmart in Stockton, but we would like our tax dollars keep in Lodi. Thank you for taking the time to read our vote. Mr & Mrs Russell Young 303 Cork Oak Way 01/12/2009 Page 1 of 1 Kari Chadwick From: Harry Stafford [teebagx2@hotmail.com] Sent: Monday, January 12,2009 1:34 PM To: Kari Chadwick Subject: Anti WalMart flyer Planning Commission, Herewith is rebuttal to a flyer delivered to my door: Wal Mart should NOT be required to fund a full time Lodi PD officer to the Supercenter parking lot unless every holder of a Lodi business license is required to do so. Wal Mart has the right to determine its store hours and delivery truck hours without oversight by any entity, governmental or otherwise. Wal Mart should NOT be required to fund a Lodi Code Enforcement Officer when local businesses close after the Supercenter opens. Operating any business is a risk that owners willingly take in order to provide a service and hopefully make a profit. Competition is the essence of our Capitalistic system and must remain so. I am not necessarily pro Wal Mart but the anti WM who delivered the flyers are biased against the company to the extreme. Harry I. Stafford 2405 Saint Moritz Drive Lodi, CA 95242 Windows LiveTm Hotmail@: Chat. Store. Share. Do more with mail. Check it out. 01/12/2009 LaA4 I Jo -41, A AL zl , ) -:� a�e i Page 1 of 1 Kari Chadwick From: Betty Peters [cutekitties@att.neq Sent: Friday, March 27, 2009 6:11 PM To: Kari Chadwick Subject: Super Walmart K. Chadwick: Please consider this as my vote in favor of the new Super Walmart. I am so tired of going in circles over this matter, can't we just approve this and get it done. The current Walmart is too small, the aisles are too small especially for disabled people in carts. They put the clothes racks close together because there isn't enough room. Plus, with the economy, we need a cheaper groceiy store and Lodi needs the tax dollars. Thank You, Betty Peters 03/30/2009 Page 1 of 1 Kari Chadwick From: Mark Watkins [watkins.mark@yahoo.com] Sent: Friday, March 27, 2009 6:58 PM To: Kari Chadwick Subject: Enough is enough Vote yes on the Super Walmart and end that ugly comer. Later, Mark 03/30/2009 Page 1 of 1 Kari Chadwick From: Ted McBrayer [tedmcbrayer@a yahoo.com] Sent: Saturday, March 28, 2009 6:27 AM To: Kari Chadwick Subject: WALMART SUPERCENTER IN LODIHH We will be unable to attend the meeting on April 8th, but do want our voices to be heard!! WE WANT A SUPERWALMART IN LODI! ! ! ! ! ! We never shop at the small business because they are too expensive and we are on a fixed income. In these hard times the senior citizen needs a WALMART SUPERCENTER more than ever. The small shops have been out for a long time. Just look at Lodi now ...2 car dealerships are gone not to mention all the other businesses gone. To keep money not being spend in Stockton you need to approve this SUPERWALMART OR DON'T COMPLAIN ABOUT LOST REVENUES TO MEM! Sincerely, Ted and Lynda McBrayer 6 Robin Court Lodi, CA 95242 03/30/2009 Kari Chadwick From: Bob & Jackie [bjhealy@att.net] Sent: Saturday, March 28, 2009 1:48 PM To: Kari Chadwick Subject: Walmart Super Center I am a concerned Lodi citizen who is in favor of putting in a Walmart Super Center at the corner of Kettleman and Lower Sac. I do not believe this will hurt the Mom & Pop stores in Lodi as folks who shop there will continue to shop their. They are loyal clientele who shop there for reasons other than price. I do not believe it will hurt Safeway or Raley's for the same reason. However, I do believe it will benefit the citizens of Lodi who are cost/value conscious. As you know, many, many, many items are more expensive at other stores when compared to Walmart. I could give you many examples, but I think it would better if you did some comparison shopping for yourself. Although a Super Walmart may not generate a lot more sales tax dollars than the current Walmart, as a community, we need all the additional revenue we can get. A Super Walmart will also create some additional jobs here in Lodi. In a nut shell, I support a Super Walmart at the corner of Kettleman and Lower Sac. Jackie Healy, Concerned Lodi Citizen 1 Page 1 of 1 Kari Chadwick From: shirleymikeburns@comcast.net Sent: Sunday, March 29,2009 10:45 AM To: Kari Chadwick Subject: Super Walmart March 29, 2009 Dear Planning commissioner, I support the Super Walmart Center. We have waited long enough. Please vote "Yes" on it now. Thank you. Shirley J. Burns 111 Applewood Dr. Lodi, CA 95242 (209)369-4643 03/30/2009 27 March 2009 Community Development Director P.O. Box 3006 Lodi. CA 95241-1910 RE: Walmart Super Center Gentlemen: This is regarding an email I received today from Kari Chadwick, regarding the above topic, Since my husband and I will not able to attend the meeting on April 8, 2009, we would like to express our thought and opinions on this subject by means of this letter. It appears to us that this delay has been going on way too long. What is the problem with Walmart building a Super Center on the outskirts of Lodi? We feel it will not only be a big convenience for many people, but will also provide employment, which is greatly needed in this economic downturn. The traffic issue has already been taken care of and there is plenty of land on which to build and provide parking for the store. Of course the large stores — namely Safeway's, Food 4 Less, and even Lowes - are going to take issue with Walmart; but if Walmart can provide a quality productfor less cost, then we see that as competition, not unfair business tactics. The construction cf this establishment will enable many unemployed construction workers to earn a living, plus older people to have shot at ajob when it is completed. Walmart is also a place that a person who has limited education to find gainful employment with benefits. Perhaps we can get some of the locals off of Welfare and unemployment benefits by allowing Walmart to build their store and get on with business. We do not feel this is going to jeopardize the "downtown" businesses, as most of the people who shop at Walmart can't afford to shop at the shops downtown, Beside someone has messed up the parking so badly downtown, I personally can't shop there as I have a hip problem which doesn't allow me to walk any distance. The trees have a much better parking spot than most customers Oust my personal opinion, sorry). Please make it possible for Walmart to continue with their Super Center and get this issue put to rest. I a m sure you all have better and more important issues that need dealing with than this one. Thank you for allowing me to express my thoughts and opinions. Sincerely, James and Alice Adkins 19261 Perryman Rd. Lodi, CA 95242 Page 1 of I Kari Chadwick From: craig diederich [craig.diederich05@gmail.com] Sent: Monday, March 30, 2009 10:39 AM To: Kari Chadwick Subject: lodi shopping center, walmart supercenter To whom it may concern: My name is Craig, my wife Kris. I would like to encourage you to support the supercenter. Kris is handicapped and we like to shop the supercenter in stockton. The problem is there is never any handicapped parking available unless we want to wait 20 minutes or more for someone to come out. There is also never a drivey cart. I feel that if the Current Walrnart moves to a new Supercenter, We will have the parking, the everyday low prices, and the convience. Thanks Craig A Diederich Kris L. Diederich 03/30/2009 Page 1 of 1 Kari Chadwick From: Jerry & Shirley Schmierer [evencouple@sbcglobal.net] Sent: Monday, March 30,2009 1:02 PM To: Kari Chadwick Subject: super walmart I am mailing our support for our new super walmart. IT IS TIME!!!!!!!! Please, please, please support this on April 8th at the meeting. Joanne Mounce is RIGHT!!! Listen to the people of Lodi .... We voted this in once and some small influencial group (ha) who knows, sold us out with their big attorney. What's that about???? Save us the gas driving to Stockton to shop superwalmart. Please be our voice. You know who needs to hear the support from the people of Lodi.... Thanking you in advance... Shirley Schmierer 646 N. Loma Dr. Lodi, CA 95242 2093398603 Lodi residents since 1977. We are seniors and need the savings 03/30/2009 Page 1 of 1 Kari Chadwick From: Robert Davis [bobbetty1271 @sbcglobal.net] Sent: Monday, March 30,2009 9:21 PM To: Kari Chadwick Subject: We want the Wal-Mart Super Center in Lodi We want the Wal-Mart Super Center in Lodi Bob & Betty Davis 03/31/2009 Page 1 of 1 Kari Chadwick From: Mark Washburn [markswashburn@gmail.com] Sent: Tuesday, March 31,2009 10:23 AM To: Kari Chadwick Subject: Wal-Mart Super Center Dear Ms. Chadwick, Thank you for all you and your colleagues in the City of Lodi do to keep the city functioning. Please let the members of the Commission know that as much as we appreciate their role and function looking out for us as a city, it is time to approve the Wal-Mart Super Center. As Mr. Johnson said at the last City Council Meeting, "If this were Costco or anyone else it would already be approved." Wal-Mart will employ hundreds of additional people at a time when our area needs jobs. Also, their prices are excellent and a Super Center has many items we can't get anywhere else in Lodi for a comparable price. Again, thanks to you and the other members of the Commission for your dedication and thank you for listening. Blessings! ! Mark and Beth Washburn 03/31/2009 Kari Chadwick Subject: Wall Mart Super Store From: louisereiswig@sbcglobal.net [mai lto:louisere iswig@sbcglobal.net] Sent: Saturday, March 21, 2009 11:07' AM To; City Council Cc: louisereiswig@sbcglobal.net Subject: Wall Mart Super Store I am firmly against building a Super Wallmart Store. There are plenty of grocery stores, pharmacies, fast food restraunts, meat markets, and the list goes on and on. We do need dining and dancing places, there is absolutely no decent places for singles of all ages to attend. For those of us older singles, as a widow, I would never go into a bar. But it would be nice to have a place to have a nice meal or just go dancing. We have all kinds of stores in which I feel would be hurt by building a huge store such as this. Personally, I buy most of my groceries at Safeway or Apple market. Lakewood Sausage on Ham Lane and Salisbury Meats are the best as far as a good quality of meat is concerned. Our Lodi is and always has been known as a small town community. We have already lost two nice dress shops and are forced to go to Lincoln Center, Macy's and Dillards to buy clothing and better cosmetics. Why do we need a huge market that has everything, I very seldom shop at Wall Mart on Kettleman. Please don't make it harder on other stores that would be hurt from this! Thank you. Louise Reiswig Page 1 of 1 Kari Chadwick From: Ken/Gail Gruszie [kengol23@softcom.net] Sent: Wednesday, April 01,2009 11:25 AM To: Kari Chadwick Subject: Wal-Mart Get us a super WalMart 04/01/2009 Aaron J. Rios Senior Manager Public Affairs & Government Relations March 10,2009 Via Email Honorable Larry Hansen Mayor City of Lodi 221 W. Pine Street Lodi, CA 95242 Re: Walmart Supercenter Tax Impacts Dear Mayor Hansen and Honorable City Council members, r71 t 1 44111 P.O. Box 750 Bryn Mawr, CA 92318 Phone 909.799.1853 Cell 559-274.8461 Fax 909.799.1876 www,walmartstores. co m www. walmartfacts. corn On behalf of Walmart Stores, Inc., I am pleased to provide you with the attached economic study recently completed by CB Richard Ellis. This study was conducted to determine the impact of the proposed Lodi Shopping Center, including the proposed Walmart Supercenter, on the City of Lodi's General Fund revenues. Walmart decided to undertake this study to respond to specific questions raised by some Planning Commissioners and City Council members, among others, about what the net gain is projected to be upon tax revenues specifically in the City of Lodi. All data used in the CBRE study was based on figures' in the Urban Decay Analysis prepared by Bay Area Economics (BAE) as part of the Environmental Impact Report (El R) for the Lodi Shopping Center and not internal projected sales figures. The study's key conclusions include: • The new Walmart is estimated to generate $1.08 million in sales tax revenue per year in 2005 dollars (see footnote 1) • The other stores in the Lodi Shopping Center are estimated to generate $308,000 in sales tax revenue per year in 2005 dollars • Including business and property taxes, the new tax revenue per year for the Lodi Shopping center is estimated to be $1.491 million in 2007 dollars • The existing Walmart store generates $548,000 in sales tax revenue to the City, and retenanting of the old Walmart is anticipated to generate $421,000 in sales tax revenue ' . The BAE report used 2005 dollars. As a result, many figures in the report are in 2005 dollars except where scaled using the Consumer Price Index to 2007 dollars. • The Lodi Shopping Center should result in an increase of $1.364 million ($1.491 — ($.548) + $.421 = $1.364) in 2007 dollars • The reduction in sales tax revenue from other stores in Lodi as a result of the Lodi Shopping Center is $550,000 (Note: This figure is based on the BAE economic report and is extremely conservative and therefore potentially very high because the BAE market area was defined to include stores outside of the City of Lodi.) • Using this conservative figure, the total net increase in sales tax revenue alone to the City is $814,000. • Once gains in property taxes and business license taxes are accounted for, and tax losses due to diverted sales are included, the net incremental tax gain for the City of Lodi is $1,000,169. Our team looks forward to answering any questions you may have about this report or any other issue at the March 11, 2009, hearing. I also want to take this opportunity to reiterate Walmart's previous statements concerning the procedures used at the December 10, 2008, hearing. I wanted to make abundantly clear that Walmart did not have any prior knowledge of the ticket distribution system for the December 10, 2008, hearing. City staff did not tell any member of our team that tickets would be distributed for seats inside the chamber, nor did they tell us what time city personnel would begin that distribution. These facts can be easily confirmed with city staff. Also, while we understand the Council's decision to re -hear the certification of the Draft EIR out of an abundance of caution, we do not believe that the procedures used by the city at the December 10, 2008, hearing, caused a Brown Act violation. Despite the many delays that the Lodi Shopping Center has encountered along the way, Walmart and Browman Development remain committed to building this important project. Both Walmart and Browman Development have been part of the successful fabric of Lodi for many years, and we hope that our mutual commitment to Lodi is self-evident. We believe, and we hope you will agree, that the Lodi Shopping Center will be an asset for the citizens of Lodi for many years to come. Resp-ectf illy, Aaron J. Rios Senior Manager Public Affairs & Government Relations Wal-Mart Stores. Inc. Attachments cc: Lodi City Council Blair King, City Manager Steve Schwabauer, City Attorney Radlam Bartlam, Interim Community Development Director CBRE CONSULTING, INC Date: January 12, 2009 To: City of Lodi CBMM11110ft SMI CB RICHARD ELLIS 4 Embarcodero Center, Suite 700 San Francisco, CA 94111 T 415 781 8900 F 415 733 5530 www.cbre.com/consulting MEMORANDUM From: Elliot R. Stein Senior Managing Director CBRE Consulting, Inc. Re: Proposed Lodi Shopping Center Sales Tax, Property Tax and Business License Tax Impacts CBRE Consulting, Inc. was asked to determine the impact of the development of the proposed Lodi Shopping Center ("the Center") on the City of Lodi's General Fund revenues. The Center will be anchored by a 226,868 square foot Wal-Mart Supercenter and an additional 113,098 square feet of other retail space (see Exhibit 1). CBRE Consulting relied upon certain information contained in the Economic Impact Analysis prepared by Bay Area Economics (BAE) in order to conduct this analysis.' Specifically, the BAE report was the source of the project description, square footages, and sales per square foot figures used to estimate sales and property tax revenues. In addition, CBRE Consulting obtained from the California Board of Equalization and the City of Lodi's Finance Department information on property tax, sales tax, and business license tax relevant to the City of Lodi. Findings are summarized below and presented in greater detail in the attached exhibits. Sales Tax Generated by the Center According to the California Board of Equalization, the City of Lodi receives 1.0 percent of taxable retail sales generated by businesses within the city. Since not all of the sales at the proposed Wal-Mart Supercenter or at the other retail businesses in the Center will be taxable sales (e.g. certain food items, prescription drugs, etc.), CBRE Consulting adjusted total projected sales by removing the non-taxable sales. The adjustments are explained in detail in Exhibit 2. Based on Bay Area Economics' sales estimates which were presented in 2005 dollars, sales tax revenue to the City of Lodi is estimated at $1,080,700 from the Wal-Mart Supercenter plus an additional $308,900 from the other stores in the Center, for a total of $1,389,600/year (in 2005 dollars), assuming stabilized sales. It would be reasonable to escalate these figures to reflect sales in current dollars. However, for the sake of consistencywith the BAE analysis, we did not escalate the numbers for this calculation. ' Bay Area Economics, "Economic Impact/Urban Decay Analysis for Proposed Lodi Shopping Center in Lodi, CA," October 2007. CBRE CONSULTING, INC. City of Lodi January 12, 2009 Page 2 Business License Tax Relying on the schedule of business license taxes provided by the City of Lodi Finance Department, CBRE Consulting estimated the annual taxes that would be payable by Wal-Mart and by the other tenants in the Center. Detailed assumptions are shown in Exhibit 3. Business license taxes are estimated at $128,000 per year from Wal-Mart plus approximately $17,000/year from the other stores in the Center, for a total of $145,225/year. Property Tax Property taxes generated by the Wal-Mart Supercenter will be a function of its assessed value. For the purpose of this analysis, it was assumed that the value will be determined based on the cost approach to value. That is, the sum of direct construction costs plus indirect costs (i.e. fees for architecture, engineering, other consultants, financing, interest, entitlements, permits, insurance, etc.) was used as the basis for calculating real property taxes. Cost estimates from Wal-Mart were used to estimate the potential assessed value of the property (see Exhibit 4). Development costs for the remainder of the Center were not provided to CBRE Consulting; therefore, this estimate of property tax revenue to the City of Lodi is limited to the Wal-Mart store only. It was assumed that property tax is already being assessed on the land and that taxes are already being received on that component of the property. Therefore, CBRE Consulting focused on the net property tax revenue that would result from the development of the Wal-Mart Supercenter. As shown in Exhibit 4, the net property tax generated by the Supercenter is estimated at $358,630, of which an estimated $40,920 represents the City of Lodi's share. Net Increase in Sales Tax CBRE Consulting was also asked to factor into the analysis of sales tax impact two additional considerations: the loss of sales tax resulting from the closure of the existing Lodi Wal-Mart store; and the new sales tax that could be expected from replacement tenants in the space Wal- Mart will be vacating. That analysis is presented in detail in Exhibit 5. It begins with the estimate of sales tax from the proposed Wal-Mart Supercenter ($1,389,568 in 2005 dollars). That figure was escalated to 2007 dollars (to $1,491,241) before adjusting for the closing of the existing Wal-Mart store and the addition of replacement tenants in order to have comparable numbers. The actual change in the Consumer Price Index from 2005 to 2007 was used to adjust to 2007 dollars (see Exhibit 5, footnote 5 for further detail). In summary, the closure of the existing Wal-Mart store would represent a loss of approximately $548,000 per year in sales tax revenue to the City of Lodi, while replacement tenants generating industry average annual sales of $350 per square foot would represent an estimated $421,000 of new sales tax revenue to the City. Overall, the net increase in sales tax is estimated at $1,364,000 in 2007 dollars, as shown below: Sales Tax Revenue from Lodi Shopping Center $1,491,241 Less: Sales Tax from Existing Lodi Wal-Mart Store (548,2 17) Plus: Sales Tax from Replacement Tenants 421,000 Net Increase in Sales Tax Revenue to the City of Lodi $1,364,024 CBRE CONSULTING, INC. City of Lodi January 12, 2009 Page 3 CBRE CB RICHARD ELLIS Among its conclusions, Bay Area Economics indicated that: "The net capture of sales from existing retail outlets in 2008 is estimated at approximately $55 million.112 In other words, there may be a diversion of sales from existing retail outlets in the trade area to the new Center, which would result in a decrease in sales tax to the City from those outlets. Because the trade area defined by Bay Area Economics is larger than the City of Lodi (it includes surrounding areas outside the city limits), not all of the $55 million in diverted sales will impact the City. However, for the purpose of this analysis, it is reasonable to note that since most of the existing trade area retailers are located within the City, one can conservatively estimate that if all of these diverted sales were at the expense of City of Lodi retailers, then the loss of $55 million in sales would equate to a loss of $55 million x 1% _ $550,000 in sales tax revenue to the City of Lodi. Conclusion The estimated net gain to the City of Lodi from property, sales, and business license taxes is summarized below. Total Taxes Incremental Type of Tax Generated Taxes Lost Tax Gain Sales Tax Lodi Shopping Center $1,491,241 Existing Lodi Wal-Mart ($548,217) Replacement Tenants $421,000 Diverted Sales ($550,000) Property Tax (Wal-Mart only) $40,920 Business License Tax $145,225 Total _ ___ _ $2,098,386 ($1,098,217) $1,000,169 Sources, CBRE Consulting z Ibid, p. 68. CBRE CONSULTING, INC. soft � CBMh City of Lodi CB RICHARD EELIS January 12, 2009 Page 4 ASSUMPTIONS AND GENERAL LIMITING CONDITIONS CBRE Consulting, Inc. has made extensive efforts to confirm the accuracy and timeliness of the information contained in this study. Such information was compiled from a variety of sources, including interviews with government officials, review of government documents, and other third parties deemed to be reliable. Although CBRE Consulting, Inc. believes all information in this study is correct, it does not warrant the accuracy of such information and assumes no responsibility for inaccuracies in the information by third parties. We have no responsibility to update this report for events and circumstances occurring after the date of this report. Further, no guarantee is made as to the possible effect on development of present or future federal, state or local legislation, including any regarding environmental or ecological matters. The accompanying projections and analyses are based on estimates and assumptions developed in connection with the study. In turn, these assumptions, and their relation to the projections, were developed using currently available economic data and other relevant information. It is the nature of forecasting, however, that some assumptions may not materialize, and unanticipated events and circumstances may occur. Therefore, actual results achieved during the projection period will likely vary from the projections, and some of the variations may be material to the conclusions of the analysis. Contractual obligations do not include access to or ownership transfer of any electronic data processing files, programs or models completed directly for or as by-products of this research effort, unless explicitly so agreed as part of the contract. This report may not be used for any purpose other than that for which it is prepared. Neither all nor any part of the contents of this study shall be disseminated to the public through publication advertising media, public relations, news media, sales media, or any other public means of communication without prior written consent and approval of CBRE Consulting, Inc. Exhibit 1 Sales Estimate and Distribution Proposed Lodi Shopping Center 2005 Dollars Store Characteristic/BOE Retail Category (1) Square Feet (2) Sales Per Square Foot (2) Projected Sales (3) Proposed Wal-Mart Supercenter Square Footage General Merchandise 176,313 $564 $99,510,918 Grocery 50,555 $564 $28,533,202 Total 226,868 $128,044,120 Other Stores Square Footage (1) Apparel 8,131 $300 $2,439,411 Drug Store 14,788 $478 $7,068,664 Eating and Drinking Places 17,190 $475 $8,165,250 Other Retail 59,829 $300 $17,948,589 Non -Retail Uses 13,160 N/A N/A Total 113,098 $35,621,913 Center Total 339,966 $163,666,033 Sources: California State Board of Equalization; Bay Area Economics; and CBRE Consulting (1) BCE is the State of California Board of Equalization, which collects sales taxes from retailers and provides public tabulations of the occurrence and level of taxable sales in the categories provided. (2) Square footages and sales for the proposed shopping center provided by Bay Area Economics, "Economic Impact/Urban Decay Analysis for Proposed Lodi Shopping Center in Lodi, CA," October 2007. (3)Totals may not add due to rounding. N:\Team-Sedwoy\Proiects\2008\1008135 Sheppard Mullin\Working docs\Exhibits 1008135 Version I Final Exhibit 2 City of Lodi General Fund Impacts Proposed Lodi Shopping Center Sales Tax Revenue 2005 Dollars Sales Tax Assumptions Amount Sales Tax Revenue from Proposed Wal-Mart Supercenter Non -Grocery Sales (1) Taxable Grocery Sales (2) Total Taxable Sales Local Tax Share to General Fund (3) Sales Tax Revenue from Wal-Mart Sales Tax Revenue from Other Stores in the Center Taxable Drug Store Sales (4) Other Taxable Sales (1) Total Taxable Sales Local Tax Share to General Fund (3) $99,510,918 $8,559,961 $108,070,879 1.0% $1,080,709 $2,332,659 $28,553,249 $30,885,908 1.0% Sales Tax Revenue from the Remaining Center $308,859 Total Sales Tax Revenue to the City of Lodi $1,389,568 Sources: California State Board of Equalization; and CBRE Consulting (1) Referto Exhibit 1. (2)The Wal-Mart Supercenter's total grocery sales are estimated at $28.5 million (referto Exhibit 1). Itis estimated that only 30.0 percent of grocery sales are taxable. (3) Information obtained from the California Board of Equalization. (4) It is estimated that only 33.0 percent of drug store sales are taxable. Exhibit 3 Proposed Lodi Shopping Center Business License Tax Revenue 2008 Dollars Business License Tax Assumptions (1) Amount Business License Tax Revenuefrom Proposed Wal-Mart Total Gross Receipts $128,044,120 Tax Rate (1) $1.00/$1,000 Estimated Total Business License Tax for Wal -Marl $128,044 Business License Tax Revenue from Other Stores Apparel (2) Total Gross Receipts Per Store $609,900 Tax Per Store $210 Estimated Total Business License Tax for 4 Stores $840 Drug Store Total Gross Receipts $7,068,664 Tax Rate $.60/$1,000 Estimated Total Business License Tax $4,241 Eating and Drinking Places (3) Total Gross Receipts Per Stores, 4 Fast Food $1,150,688 Total Gross Receipts Per Store, 2 Sit -Downs $1,781,250 Tax Per Store $450 Estimated Total Business License Tax $2,700 Other Retail (4) Total Gross Receipts Per Store $900,000 Tax Per Store $450 Estimated Total Business License Tax for 20 Stores $9,000 Non -Retail Uses (5) Total Gross Receipts, 8 Spaces N/A Tax Per Business $50 Estimated Total Business License Tax $400 Total for Other Stores $17,181 Total Estimated Business License Tax Revenue from the Center $145,225 Sources: City of Lodi Finance Department; and CBRE Consulting. (1) The City of Lodi Finance Department the Business License Tax Rate for the Retail and Services Group is as follows: Gross Receipts Tax or Tax Rate $0 to $200,000 $50 $200,001 to $500,000 $98 $500,001 to $900,000 $210 $900,001 to $3,000,000 $450 $3,000,001 to $10,000,000 $.60/$1,000 $10,000,001 and greater $1.00/$1,000 (no limit) (2) Gross receipts for Apparel estimated based on 4 stores at 2,033 square feet each. (3)Gross receipts for Eating and Drinking Places estimated based on 4 Fast Food and 2 Sit - Down restaurants at 2,423 and 3,750 square feet each, respectively. (4) Gross receipts for Other Retail stores estimated based on 20 stores at 3,000 square feet each. (5) Gross receipts for Non -Retail spaces conservatively estimated using 8 spaces at the minimum tax rate. Exhibit 4 City of Lodi General Fund Revenue Impacts Wal-Mart Supercenter Property Tax Revenue 2008 Dollars Wal-Mart Supercenter Total Direct Construction Costs (1) Indirect Cost Estimate (2) Land Cost (3) Total Project Costs Excluding Land Total Tax Basis (excluding Land) County Tax Rate (4) Total Tax to County City Share of the County Tax Rate (4) Net Property Tax Revenuefrom Wal-Mart Supercenter (4) Amount $26,800,000 $7,300,000 N/A $34,100,000 $34,100,000 1.0517% $358,630 11.41% $40,920 Sources: San Joaquin County Treasurer -Tax Collector; Wal-Mart Stores Inc.; California State Board of Equalization; Bay Area Economics; and CBRE Consulting. (1) Construction cost estimates provided by Wal-Mart Stores, Inc. (2) Indirect construction costs estimates provided by Wal-Mart Stores, Inc. (3) Net property tax revenue reflects tax on only the hard and soft costs of the project, excluding land cost. It is assumed that property tax is already being assessed on the land value; therefore, it is not incremental to this analysis. (4) Information provided by San Joaquin County Treasurer -Tax Collector. Exhibit 5 City of Lodi General Fund Impacts Net Increase in Sales Tax Revenue From Proposed Lodi Shopping Center Sales Tax Assumptions Amount LODI SHOPPING CENTER Sales Tax Revenuefrom Proposed Wal-Mart Supercenter Non -Grocery Sales (1) $99,510,918 Taxable Grocery Sales (2) $8,559,961 Total Taxable Sales $108,070,879 Local Tax Share to General Fund (3) 1.0% Sales Tax Revenue from Wal-Mart $1,080,709 Sales Tax Revenue from Other Stores in the Center Taxable Drug Store Sales (4) $2,332,659 Other Taxable Sales (1) $28,553,249 Total Taxable Sales $30,885,908 Local Tax Share to General Fund (3) 1.0% Sales Tax Revenue from the Remaining Center $308,859 Total Sales Tax Revenue to the City of Lodi 2005 Dollars $1,389,568 2007 Dollars (5) $1,491,241 [A] LESS EXISTING LODI WAL-MART STORE Sales Tax Paid to City of Lodi (2007) (6) $548,217 [B] PLUS: REPLACEMENTTENANTS AT EXISTING LODI WAL-MART STORE Taxable Sales (7) $42,100,000 Local Tax Share to General Fund (3) 1.0% Sales Tax Revenue from Replacement Tenants $421,000 [C] NET INCREASE IN SALES TAX REVENUETO CITY CF LODI [A $1,364,024 -B+C] Sources: California State Board of Equalization; State of California Department of Industrial Relations, Division of Labor Statistics and Research; Wal-Mart Stores, Inc.; and CBRE Consulting. (1) Refer to Exhibit 1. (2)The Wal-Mart Supercenter's total grocery sales are estimated at $28.5 million (referto Exhibit 1). It is estimated that only 30.0 percent of grocery sales are taxable. (3) Information obtained from the California Board of Equalization. (4) It is estimated that only 33.0 percent of drug store sales are taxable. (5) Escalation based on the State of California Department of Industrial Relations, Division of Labor Statistics and Research; annual CPI changes 3.9 percent from 2005-2006 and 3.29 percent from 2006-2007. (6) Information provided by Wal-Mart Stores, Inc. (7)This estimate is based on an industry sales per square foot standard of $350 multiplied by 120,352 square feet. COMMENT LETTERS RECEIVED BY CITY CLERK'S OFFICE Through 5/7/09 REMY, THOMAS, MOOSE and MANLEY, LLP ATTORNEYS AT LAW MICHAEL H. REMY 1944-2003 455 CAPITOL MALI., SUITE 214 SACRAMENTO, CALIFORNIA 95814 TINA A. THOMAS OF COUNSEL Telephone: (916} 443-2745 Facsimile: (9i6)443-9017 E-mail: info cet rtmmlaw.com JAMES G. MOOSE httpalwww,rimmlaw.Com WHITMAN F. MANLEY ANDREA K. LEISY TIFFANY K. WRIGHT SABRINA V. TELLER ASHLE T. CROCKER April 7, 2009 YIA ELECTRONIC & REGULAR MAIL Steve Schwabauer, City Attorney City of Lodi 221 W. Pine Street Lodi, CA 95240 JENNIFER S HOLMAN AMY R. HIGUERA HOWARD F. WILKINS III AMANDA R. BERLIN JASON W.HOLDFR LAURA M. HARRIS CHRISTOPHER J. BUTCHER JACK R. McKENNA BRIAN J. PLANT OF COUNSEL Re: Browman Development Company Request —Lodi Shopping Center Project Dear Mr. Schwabauer: This letter reconfirms, pursuant to Government Code section 66456. 1, that our client, Browman Development Company, will seek multiple final/phased maps for the above referenced project if reapproved by the City. The Vesting Tentative Map Lot Layout for Lodi —III (August 15, 2008), contained within the Planning Commission Agenda packet for April 8, 2009, should therefore continue to be considered in light of this request. If you have any questions or need anything further from our client please let me know. Thank you. Very tryjy yours, Cc: Darryl Browman Jon Hobbs Alexis Pelosi CBRE CONSULTING, INC. April 8, 2009 Mr. Wendell Kiser Chairman and Members of the Planning Commission City of Lodi 221 W. Pine Street Lodi, CA 95242 CBRE CB RICHARD ELLIS 4 Embarcadero Center, Suite 700 San Francisco, CA 94111 T 415 781 8900 F 415 733 5530 www.cbre.com/consulting Re: Additional Documentation to Clarify Information Presented at the March 11, 2009 Special Meeting of the Lodi City Council Regarding Tax Revenue Impacts of the Proposed Lodi Shopping Center Dear Chairman Kiser and Members of the Planning Commission: During the public hearing portion of the above referenced Special Meeting, I presented estimates of the sales tax, property tax and business license taxes that would be generated by the proposed Lodi Shopping Center project (the "Project"). My presentation was based on information included in a memorandum to the City of Lodi, prepared by CBRE Consulting, Inc., dated January 12, 2009. A copy of that memorandum is attached. Please note it contains all of the assumptions relied upon to estimate tax revenue to the City from the Project. This letter is intended to briefly summarize our findings and to respond to questions raised by Councilmembers Susan Hitchcock and Joanne Mounce about apparent discrepancies between the CBRE Consulting findings and those presented by other sources. Summary of Estimated Sales Tax Our analysis considered four components in order to estimate the net impact of the Project on sales tax revenue to the City of Lodi: ■ the gain of sales tax from the new Lodi Shopping Center including the 226,868 SF Wal- Mart Supercenter and an additional 113,098 SF of other stores; ■ the loss of sales tax from the closing of the existing Lodi Wal-Mart; ■ the gain of sales tax that could be generated by replacement tenants who occupy the existing Wal-Mart store after Wal-Mart vacates the premises; and ■ the loss of sales tax resulting from the diversion of sales from existing retail outlets in the trade area (as concluded by Bay Area Economics [BAE] in its report, "Economic Impact/Urban Decay Analysis for Proposed Lodi Shopping Center in Lodi, CA," dated October 2007, prepared for the City of Lodi as part of the Project EIR [the "BAE Report"]). CBRE CONSULTING, INC. CBRE Mr. Wendell Kiser, Chairman Members of the Planning Commission CB RICHARD ELLIS April 8, 2009 Page 2 As explained in the January 12, 2009 memorandum, the net increase in sales tax revenue to the City of Lodi was estimated to be $814,000 (in 2007 dollars) as shown below. Sales Tax to the City of Lodi Lodi Shopping Center $1,491,241 less: Existing Lodi Wal-Mart (548,217) plus: Replacement Tenants 421,000 less: Diverted Sales (550,000) Total 814,024 The figure shown above for the Lodi Shopping Center breaks down as follows: Wal-Mart Supercenter Other Stores Tota I 2005 Dollars 2007 Dollars $1,080,709 308,859 $1,389,568 $1,159,783 331,458 $1,491,241 At the Special Meeting, Councilmember Joanne Mounce stated that the CBRE Consulting estimate was inconsistent with a lower figure of $790,000 which had been previously presented by Wal-Mart. We inquired into this figure and learned that it appeared in an ad by Wal-Mart which stated, in part: "Wal-Mart is one of the top revenue generators in the City of Lodi — in 2006 nearly $600,000 in local sales tax revenue was generated from the Kettleman Lane store. The average California Supercenter contributes $790,000 in sales tax, representing a 35.9% increase in Lodi." The difference between the CBRE Consulting estimate and the $790,000 figure can be explained as follows: the $790,000 is an average for all Wal-Mart Supercenters in California and appears to be presented in 2006 dollars. the CBRE Consulting estimate relied upon sales per square foot estimates contained in the BAE Report prepared for the City of Lodi as a part of the EIR. According to the BAE Report, those sales were, "...based on a blend of national Wal-Mart average and estimated sales per square foot for [the] existing store." For the sake of consistency with the economic analysis contained in the EIR, CBRE Consulting used the sales per square foot figures in the BAE Report to calculate estimated sales tax revenues. In summary, the $790,000 figure (in 2006 dollars) is an average annual city sales tax for all California Wal-Mart Supercenters, while the higher figures appearing in the CBRE Consulting analysis reflect specific assumptions about sales per square foot projected in the EIR for the proposed Lodi Wal-Mart Supercenter. Also at the Special Meeting, Councilmember Susan Hitchcock stated that a report prepared for the City by another economic consultant reached the conclusion that the proposed Project would not generate any new sales tax revenue to the City of Lodi. At Council member CBRE CONSULTING, INC. CBRE Mr. Wendell Kiser, Chairman Members of the Planning Commission CB RICHARD ELLIS April 8, 2009 Page 3 Hitchcock's request, copies of two reports, both prepared by Applied Development Economics (ADE) in 2004, were provided to us.' The two reports are very similar; in fact the July 2004 report draws heavily on the contents of the June 2004 report. We found nothing in the ADE reports to indicate that the Project will not generate any new sales tax revenue to the City. It does conclude, however, "...that the proposed project will take $36.2 million of sales away from established business assuming that the superstore anchor tenant is relocated from across the street. "2. The remainder of the Project's demand would come from recapturing sales leakage and from "new sales earned by Proposed Project."' By comparison, the BAE report used in the EIR prepared for the City was more pessimistic in its estimate of diverted sales (i.e. sales the proposed Project would divert from existing retail outlets in the trade area). BAE concluded that the Project could divert $55 million in such sales, compared to ADE's lower figure of $36.2 million. CBRE Consulting relied upon the larger BAE estimate to estimate the downward adjustment that would need to be made to arrive at a net sales tax impact number. Therefore, as shown in the table above and in CBRE Consulting's January 12, 2009 memorandum, $55 million x 1% = $550,000 was netted out of the calculation in order to derive the next sales tax impact of the Project on the City. In other words, the assumption used by BAE in the EIR (and by CBRE Consulting) is more conservative than the assumption used by ADE with respect to diverted sales. A comparison of the 2004 ADE reports and the 2007 BAE Report also reveals a disparity between estimates of total sales for the Project. Both reports use the same square footage figures. However, ADE estimated total Project sales of $111.5 million while BAE estimated $163.7 million. The key difference in assumptions is that while ADE assumed Wal-Mart annual sales at $350 per square foot ("The proposed Wal-Mart Supercenter Store is estimated to earn at least $350 per SF of sales..."4), BAE estimated sales for the proposed Supercenter at $564 per square foot based on more current information including national sales data for all Wal- Mart stores and estimated sales per square foot for Wal -Mart's existing Lodi store.' For the sake of consistency with the EIR, CBRE Consulting used the BAE estimate of sales in order to calculate sales tax revenue to the City of Lodi. Summary of Estimated Property Tax The calculation of estimated property tax is straight -forward. It is based on a cost approach to value which would be used by the county assessor. Development cost estimates provided by Wal-Mart were used to estimate the assessed value of the property. It was assumed that property tax is already being assessed on the land and that taxes are already being received on that component of the property. Therefore, CBRE Consulting focused only on the net property ' Applied Development Economics, "Economic Impacts of the Proposed Lodi Shopping Center On Downtown Lodi," June 2004; and "Socio -Economic Impact Analysis of the Proposed Lodi Shopping Center," July 2004. 2 Ibid (July 2004 report), p. 18. s Ibid, p. 18, Table 10. 4 Ibid, p. 15. 5 Bay Area Economics, "Economic Impact/Urban Decay Analysis for Proposed Lodi Shopping Center in Lodi, CA," October 2007, p. 42. CBRE CONSULTING, INC. BRE Mr. Wendell Kiser, Chairman Members of the Planning Commission CB RICHARD ELLIS April 8, 2009 Page 4 tax revenue that would result from the development of the improvements for the Wal-Mart Supercenter. The City's share of property tax generated by the Supercenter is estimated at $40,900. See Exhibit 4 in the attached January 12, 2009 memorandum for the derivation of this amount. Summary of Business License Tax The City of Lodi's Finance Department was the source of business license tax rates. Those rates were applied to the Wal-Mart Supercenter and to the businesses that will occupy the remainder of space in the Project. Business license taxes are estimated at $128,000 per year from Wal- Mart plus approximately $17,000/year from the other stores in the center, for a total of $145,225 per year. See Exhibit 3 in the attached January 12, 2009 memorandum for all of the assumptions used. I hope this additional information is helpful. Please let us know if anything requires further clarification. Sincerely, Elliot R. Stein Senior Managing Director cc: Alexis Pelosi; Sheppard, Mullin, Richter & Hampton LLP N:\Team-Sedway\Projects\2008\1008135 Sheppard Mullin\Report\8Mar09 Letter to Lodi Planning Commission\ltr to planning commission 8Apr09.doc CBRE CONSULTING, INC. CBRE CB RICHARD ELLIS 4 Embarcadero Center, Suite 700 San Francisco, CA 94111 T 415 781 8900 F 415 733 5530 www.cbre.com/consulting MEMORANDUM Date: January 12, 2009 To: City of Lodi From: Elliot R. Stein Senior Managing Director CBRE Consulting, Inc. Re: Proposed Lodi Shopping Center Sales Tax, Property Tax and Business License Tax Impacts CBRE Consulting, Inc. was asked to determine the impact of the development of the proposed Lodi Shopping Center ("the Center") on the City of Lodi's General Fund revenues. The Center will be anchored by a 226,868 square foot Wal-Mart Supercenter and an additional 113,098 square feet of other retail space (see Exhibit 1). CBRE Consulting relied upon certain information contained in the Economic Impact Analysis prepared by Bay Area Economics (BAE) in order to conduct this analysis.' Specifically, the BAE report was the source of the project description, square footages, and sales per square foot figures used to estimate sales and property tax revenues. In addition, CBRE Consulting obtained from the California Board of Equalization and the City of Lodi's Finance Department information on property tax, sales tax, and business license tax relevant to the City of Lodi. Findings are summarized below and presented in greater detail in the attached exhibits. Sales Tax Generated by the Center According to the California Board of Equalization, the City of Lodi receives 1.0 percent of taxable retail sales generated by businesses within the city. Since not all of the sales at the proposed Wal-Mart Supercenter or at the other retail businesses in the Center will be taxable sales (e.g. certain food items, prescription drugs, etc.), CBRE Consulting adjusted total projected sales by removing the non-taxable sales. The adjustments are explained in detail in Exhibit 2. Based on Bay Area Economics' sales estimates which were presented in 2005 dollars, sales tax revenue to the City of Lodi is estimated at $1,080,700 from the Wal-Mart Supercenter plus an additional $308,900 from the other stores in the Center, for a total of $1,389,600/year (in 2005 dollars), assuming stabilized sales. It would be reasonable to escalate these figures to reflect sales in current dollars. However, for the sake of consistency with the BAE analysis, we did not escalate the numbers for this calculation. ' Bay Area Economics, "Economic Impact/Urban Decay Analysis for Proposed Lodi Shopping Center in Lodi, CA," October 2007. CBRE CONSULTING, INC. City of Lodi January 12, 2009 Page 2 Business License Tax CBRE CB RICHARD ELLIS Relying on the schedule of business license taxes provided by the City of Lodi Finance Department, CBRE Consulting estimated the annual taxes that would be payable by Wal-Mart and by the other tenants in the Center. Detailed assumptions are shown in Exhibit 3. Business license taxes are estimated at $128,000 per year from Wal-Mart plus approximately $17,000/year from the other stores in the Center, for a total of $145,225/year. Property Tax Property taxes generated by the Wal-Mart Supercenter will be a function of its assessed value. For the purpose of this analysis, it was assumed that the value will be determined based on the cost approach to value. That is, the sum of direct construction costs plus indirect costs (i.e. fees for architecture, engineering, other consultants, financing, interest, entitlements, permits, insurance, etc.) was used as the basis for calculating real property taxes. Cost estimates from Wal-Mart were used to estimate the potential assessed value of the property (see Exhibit 4). Development costs for the remainder of the Center were not provided to CBRE Consulting; therefore, this estimate of property tax revenue to the City of Lodi is limited to the Wal-Mart store only. It was assumed that property tax is already being assessed on the land and that taxes are already being received on that component of the property. Therefore, CBRE Consulting focused on the net property tax revenue that would result from the development of the Wal-Mart Supercenter. As shown in Exhibit 4, the net property tax generated by the Supercenter is estimated at $358,630, of which an estimated $40,920 represents the City of Lodi's share. Net Increase in Sales Tax CBRE Consulting was also asked to factor into the analysis of sales tax impact two additional considerations: the loss of sales tax resulting from the closure of the existing Lodi Wal-Mart store; and the new sales tax that could be expected from replacement tenants in the space Wal- Mart will be vacating. That analysis is presented in detail in Exhibit 5. It begins with the estimate of sales tax from the proposed Wal-Mart Supercenter ($1,389,568 in 2005 dollars). That figure was escalated to 2007 dollars (to $1,491,241) before adjusting for the closing of the existing Wal-Mart store and the addition of replacement tenants in order to have comparable numbers. The actual change in the Consumer Price Index from 2005 to 2007 was used to adjust to 2007 dollars (see Exhibit 5, footnote 5 for further detail). In summary, the closure of the existing Wal-Mart store would represent a loss of approximately $548,000 per year in sales tax revenue to the City of Lodi, while replacement tenants generating industry average annual sales of $350 per square foot would represent an estimated $421,000 of new sales tax revenue to the City. Overall, the net increase in sales tax is estimated at $1,364,000 in 2007 dollars, as shown below: Sales Tax Revenue from Lodi Shopping Center $1,491,241 Less: Sales Tax from Existing Lodi Wal-Mart Store (548,217) Plus: Sales Tax from Replacement Tenants 421,000 Net Increase in Sales Tax Revenue to the City of Lodi $1,364,024 CBRE CONSULTING, INC. City of Lodi January 12, 2009 Page 3 CBRE CB RICHARD ELLIS Among its conclusions, Bay Area Economics indicated that: "The net capture of sales from existing retail outlets in 2008 is estimated at approximately $55 million.i2 In other words, there may be a diversion of sales from existing retail outlets in the trade area to the new Center, which would result in a decrease in sales tax to the City from those outlets. Because the trade area defined by Bay Area Economics is larger than the City of Lodi (it includes surrounding areas outside the city limits), not all of the $55 million in diverted sales will impact the City. However, for the purpose of this analysis, it is reasonable to note that since most of the existing trade area retailers are located within the City, one can conservatively estimate that if all of these diverted sales were at the expense of City of Lodi retailers, then the loss of $55 million in sales would equate to a loss of $55 million x 1 % _ $550,000 in sales tax revenue to the City of Lodi. Conclusion The estimated net gain to the City of Lodi from property, sales, and business license taxes is summarized below. Total Taxes Incremental Type of Tax Generated Taxes Lost Tax Gain Sales Tax Lodi Shopping Center $1,491,241 Existing Lodi Wal-Mart ($548,217) Replacement Tenants $421,000 Diverted Sales ($550,000) Property Tax (Wal-Mart only) $40,920 Business License Tax $145,225 Total Sources: CBRE Consulting. 2 Ibid, p. 68. $2,098,386 ($1,098,217) $1,000,169 CBRE CONSULTING, INC. CBRE City of Lodi CB RICHARD ELLIS January 12, 2009 Page 4 ASSUMPTIONS AND GENERAL LIMITING CONDITIONS CBRE Consulting, Inc. has made extensive efforts to confirm the accuracy and timeliness of the information contained in this study. Such information was compiled from a variety of sources, including interviews with government officials, review of government documents, and other third parties deemed to be reliable. Although CBRE Consulting, Inc. believes all information in this study is correct, it does not warrant the accuracy of such information and assumes no responsibility for inaccuracies in the information by third parties. We have no responsibility to update this report for events and circumstances occurring after the date of this report. Further, no guarantee is made as to the possible effect on development of present or future federal, state or local legislation, including any regarding environmental or ecological matters. The accompanying projections and analyses are based on estimates and assumptions developed in connection with the study. In turn, these assumptions, and their relation to the projections, were developed using currently available economic data and other relevant information. It is the nature of forecasting, however, that some assumptions may not materialize, and unanticipated events and circumstances may occur. Therefore, actual results achieved during the projection period will likely vary from the projections, and some of the variations may be material to the conclusions of the analysis. Contractual obligations do not include access to or ownership transfer of any electronic data processing files, programs or models completed directly for or as by-products of this research effort, unless explicitly so agreed as part of the contract. This report may not be used for any purpose other than that for which it is prepared. Neither all nor any part of the contents of this study shall be disseminated to the public through publication advertising media, public relations, news media, sales media, or any other public means of communication without prior written consent and approval of CBRE Consulting, Inc. Exhibit 1 Sales Estimate and Distribution Proposed Lodi Shopping Center 2005 Dollars Store Characteristic/BOE Retail Category (1) Square Feet (2) Sales Per Square Foot (2) Projected Sales (3) Proposed Wal-Mart Supercenter 14,788 $478 $7,068,664 Square Footage 17,190 $475 $8,165,250 General Merchandise 176,313 $564 $99,510,918 Grocery 50,555 $564 $28,533,202 Total 226,868 $128,044,120 Other Stores Square Footage (1) Apparel 8,131 $300 $2,439,411 Drug Store 14,788 $478 $7,068,664 Eating and Drinking Places 17,190 $475 $8,165,250 Other Retail 59,829 $300 $17,948,589 Non -Retail Uses 13,160 N/A N/A Total 113,098 $35,621,913 Center Total 339,966 $163,666,033 Sources: California State Board of Equalization; Bay Area Economics; and CBRE Consulting. (1) BOE is the State of California Board of Equalization, which collects sales taxes from retailers and provides public tabulations of the occurrence and level of taxable sales in the categories provided. (2) Square footages and sales for the proposed shopping center provided by Bay Area Economics, "Economic Impact/Urban Decay Analysis for Proposed Lodi Shopping Center in Lodi, CA," October 2007. (3) Totals may not add due to rounding. N:\Team-Sedway\Proiects\2008\1008135 Sheppard Mullin\Working docs\Exhibits 1008135 Version I Final Exhibit 2 City of Lodi General Fund Impacts Proposed Lodi Shopping Center Sales Tax Revenue 2005 Dollars Sales Tax Assumptions Sales Tax Revenue from Proposed Wal-Mart Supercenter Non -Grocery Sales (1) Taxable Grocery Sales (2) Total Taxable Sales Local Tax Share to General Fund (3) Sales Tax Revenue from Wal-Mart Sales Tax Revenue from Other Stores in the Center Taxable Drug Store Sales (4) Other Taxable Sales (1) Total Taxable Sales Local Tax Share to General Fund (3) Amount $99,510,918 $8,559,961 $108,070,879 1.0% $1,080,709 $2,332,659 $28,553,249 $30,885,908 1.0% Sales Tax Revenue from the Remaining Center $308,859 Total Sales Tax Revenue to the City of Lodi $1,389,568 Sources: California State Board of Equalization; and CBRE Consulting. (1) Refer to Exhibit 1. (2) The Wal-Mart Supercenter's total grocery sales are estimated at $28.5 million (refer to Exhibit 1). It is estimated that only 30.0 percent of grocery sales are taxable. (3) Information obtained from the California Board of Equalization. (4) It is estimated that only 33.0 percent of drug store sales are taxable. Exhibit 3 Proposed Lodi Shopping Center Business License Tax Revenue 2008 Dollars Business License Tax Assumptions (1) Amount Business License Tax Revenue from Proposed Wal-Mart Total Gross Receipts $128,044,120 Tax Rate (1) $1.00/$1,000 Estimated Total Business License Tax for Wal-Mart $128,044 Business License Tax Revenue from Other Stores Apparel (2) Total Gross Receipts Per Store $609,900 Tax Per Store $210 Estimated Total Business License Tax for 4 Stores $840 Drug Store Total Gross Receipts $7,068,664 Tax Rate $.60/$1,000 Estimated Total Business License Tax $4,241 Eating and Drinking Places (3) Total Gross Receipts Per Stores, 4 Fast Food $1,150,688 Total Gross Receipts Per Store, 2 Sit -Downs $1,781,250 Tax Per Store $450 Estimated Total Business License Tax $2,700 Other Retail (4) Total Gross Receipts Per Store $900,000 Tax Per Store $450 Estimated Total Business License Tax for 20 Stores $9,000 Non -Retail Uses (5) Total Gross Receipts, 8 Spaces N/A Tax Per Business $50 Estimated Total Business License Tax $400 Total for Other Stores $17,181 Total Estimated Business License Tax Revenue from the Center $145,225 Sources: City of Lodi Finance Department; and CBRE Consulting. (1) The City of Lodi Finance Department the Business License Tax Rate for the Retail and Services Group is as follows: Gross Receipts Tax or Tax Rate $0 to $200,000 $50 $200,001 to $500,000 $98 $500,001 to $900,000 $210 $900,001 to $3,000,000 $450 $3,000,001 to $10,000,000 $.60/$1,000 $10,000,001 and greater $1.00/$1,000 (no limit) (2) Gross receipts for Apparel estimated based on 4 stores at 2,033 square feet each. (3) Gross receipts for Eating and Drinking Places estimated based on 4 Fast Food and 2 Sit - Down restaurants at 2,423 and 3,750 square feet each, respectively. (4) Gross receipts for Other Retail stores estimated based on 20 stores at 3,000 square feet each. (5) Gross receipts for Non -Retail spaces conservatively estimated using 8 spaces at the minimum tax rate. Exhibit 4 City of Lodi General Fund Revenue Impacts Wal-Mart Supercenter Property Tax Revenue 2008 Dollars Amount Wal-Mart Supercenter Total Direct Construction Costs (1) $26,800,000 Indirect Cost Estimate (2) $7,300,000 Land Cost (3) N/A Total Project Costs Excluding Land $34,100,000 Total Tax Basis (excluding Land) $34,100,000 County Tax Rate (4) 1.0517% Total Tax to County $358,630 City Share of the County Tax Rate (4) 11.41% Net Property Tax Revenue from Wal-Mart Supercenter (4) $40,920 Sources: San Joaquin County Treasurer -Tax Collector; Wal-Mart Stores Inc.; California State Board of Equalization; Bay Area Economics; and CBRE Consulting. (1) Construction cost estimates provided by Wal-Mart Stores, Inc. (2) Indirect construction costs estimates provided by Wal-Mart Stores, Inc. (3) Net property tax revenue reflects tax on only the hard and soft costs of the project, excluding land cost. It is assumed that property tax is already being assessed on the land value; therefore, it is not incremental to this analysis. (4) Information provided by San Joaquin County Treasurer -Tax Collector. Exhibit 5 City of Lodi General Fund Impacts Net Increase in Sales Tax Revenue From Proposed Lodi Shopping Center Sales Tax Assumptions Amount LODI SHOPPING CENTER Sales Tax Revenue from Proposed Wal-Mart Supercenter Non -Grocery Sales (1) $99,510,918 Taxable Grocery Sales (2) $8,559,961 Total Taxable Sales $108,070,879 Local Tax Share to General Fund (3) 1.0% Sales Tax Revenue from Wal-Mart $1,080,709 Sales Tax Revenue from Other Stores in the Center Taxable Drug Store Sales (4) Other Taxable Sales (1) Total Taxable Sales Local Tax Share to General Fund (3) Sales Tax Revenue from the Remaining Center Total Sales Tax Revenue to the City of Lodi 2005 Dollars 2007 Dollars (5) LESS: EXISTING LODI WAL-MART STORE $2,332,659 $28,553,249 $30,885,908 1.0% $308,859 $1,389,568 $1,491,241 [A] Sales Tax Paid to City of Lodi (2007) (6) $548,217 [B] PLUS: REPLACEMENT TENANTS AT EXISTING LODI WAL-MART STORE Taxable Sales (7) Local Tax Share to General Fund (3) Sales Tax Revenue from Replacement Tenants NET INCREASE IN SALES TAX REVENUE TO CITY OF LODI [A -B+C] $42,100,000 1.0% $421,000 [C] $1,364,024 Sources: California State Board of Equalization; State of California Department of Industrial Relations, Division of Labor Statistics and Research; Wal-Mart Stores, Inc.; and CBRE Consulting. (1) Refer to Exhibit 1. (2) The Wal-Mart Supercenter's total grocery sales are estimated at $28.5 million (refer to Exhibit 1). It is estimated that only 30.0 percent of grocery sales are taxable. (3) Information obtained from the California Board of Equalization. (4) It is estimated that only 33.0 percent of drug store sales are taxable. (5) Escalation based on the State of California Department of Industrial Relations, Division of Labor Statistics and Research; annual CPI changes 3.9 percent from 2005-2006 and 3.29 percent from 2006-2007. (6) Information provided by Wal-Mart Stores, Inc. (7) This estimate is based on an industry sales per square foot standard of $350 multiplied by 120,352 square feet. Page 1 of 1 Jennifer Perrin From: Randi Johl Sent: Monday, April 13, 2009 09:44 AM To: City Council Cc: Blair King; Steve Schwabauer; Jeff Hood; Rad Bartlam; Jennifer Perrin; Kari Chadwick Subject: Consumer Reports - Costco vs Walmart Attachments: Consumer Reports.pdf Attached please find a copy of a report that was provided to Council Member Mounce by a concerned citizen. It is being forwarded to the entire City Council upon request. 05/08/2009 COSTCO VS. NO -HASSLE WALMART LAWNS W 09 I CONSUMERREPORTS.ORG I RELIEVEYOUR BACK PAIN FEATURE ;.. - mil �: � less, on average, than national brands. The names stress value and shopping sav- vy: A&P's Savings Plus and Smart Price, Safeway's Basic Red, Bashas' Valu Time, and Food Lion's Smart Option. Expanded bonus -card programs. Next to purchasing store brands, using a bonus card is the surest way to save at most chains. According to the Food Mar- keting Institute, a trade group, half of re- tailers now offer customers savings through card programs, with discounts such as two-for-one sales, members -only specials, and reward points toward future Bydoinga little homework and adjusting your shopping habits. you could shave thousands of dollars offyouryearlygrocery bill. That's what Tod Marks, authoroithe Tightwad Tod money-savingblog at www. ConsumerReports.orgfound when he used different strategies to shop for the same 30 products at two stores over several days in February.As a savvy shopper, he sniffedout the bestdealson perishables and national brands; studied his local Stop&. Shop'sweekIv flyer: searched for coupons in Sunday newspapers, on manufacturers' Web sites, and at coupon sitessuchas SmartSollrCe.COm: and used his store bonuscard. Next. he played the role of an impulsive shopper, filling his cart with pricier products in the sarnecategoriesand in similar quantities. He didn't usecoupons orbuy the cheapest -sized package. Then Marks chose Stop 9,5hop's own store -brand alternatives to the big brands. again in the same quantities. Aftell at, he compared the u nit pricesforthesameitems at Costco Wholesale. a warehouse club known for day -in, day -out bargains, By payingattention to price, Marks cut his cost by as much as 45 percent. Here'swhathe spent for his 30 products: Impulsive atsupermarket: $288.26 Sawy at supermarket: $166.22 Warehouse club: $15616 Store brands at supermarket: $154.62 Thechartat right. I isting 70 items, gives an idea of how that pricegapgrewso big. Fora free look at the complete chart, go to www. ConsurrrerReports. org. Bottom line. Marks hit thejackpot by purchases. Giant Food Stores, for exam- ple, doubles the value of manufacturers' coupons for members. And during a re- cent promotion at Vons, cardholders who spent $100 received $1.50 off their gas pur- chase at participating stations. Of the 56 percent of survey respondents who belong to a shopper's club, 87percent were satis- fied with membership -related savings. More coupons. If you aren't clipping coupons for items you buy regularly, you're overspending. The average manu- facturer's grocery coupon had a face value of $1.08, according to NCH Marketing, a shoppingfor store brandsand buyingata club. But thosestrategiesalone won't be practical for everyone. Another approach: Plan menus and otherpurchasesaroundastore's coupon -processing firm. In 2008, 281 bil- lion manufacturers' coupons were distrib- uted, and 2.6 billion were redeemed. Yet about 30 percent of survey respondents said they hadn't used coupons within the past month. Most coupons are still to be found in newspapers andmagazines, but some manufacturers offer them through Web -site downloads. Procter & Gamble, for instance, has coupons on its own site and on those of participating retailers. Dedicated coupon sites at www.cool ings, Corn, ww.coupons.com, Www.smartsourcexom. Continuedonpagezz weeklyflyer,usea bonuscard and coupons, and opt for store brands as often as possible. Warehouse clubs can be good forstocking up on bulk items at low everyday prices. Select savings: 10 purchases compared $7„38 � $4.99 { $3.35 i $2.65 Mustard Maille, two75-oz. , urey Noupon. FID jar ' Grey POUPW jars Disinfectant ! $9.57 $4.81 Wile5 1 Lyscl, three Clorox. 105-5heet i 35-sheetcontainei contamer,sale Vegetable oil Cereal Premium pasta sauce Multivitamins $7.98 $5.29 Wesson, two 24 -oz Crisco, Q -oz, bott€es bottle, sale $1.44 $2 Clorox $2.34 $2.99 Crisco $8-98 $3 $3.10 $1.89 Frosted Flakes, Frosted Flakes,two Frosted Flakes two 14-0Z boxes 14 -oz boxes.card. coupon $8.99 $2.50 Rao's tomato basil Classicotornatobsn 24-oz.jar 24-oz.jar,sale $17.98 $4.99 OneADay. two Centrumsilver,loo 50 -tablet bottles tablets, sale. coupon Laundry) $14.99 . 'fideZ(l id, detergent l000z I Disposable;' $36.63 Huggies, three diapers � 3o-countpacl<s Cream $2.99 Cheese l Philadelphia, 8 oz. soft $70.99 Tide 2X liquid. 1Qo oz., card $21.49 Huggies, Iuo-pacK, coupon $2.50 Philadelphia, 9 -oz. bar $1.75 Classico $6.55 Centrum $13.09 Tide 2X liquid $18.30 Huggies $0.98 Philadelphia. bar $4.69 $5 $8.99 $16.99 $1.69 MAY 2009 WWWXONSUMERREPORTS,org 17 FEATURE SUPERMARKETS Continued from pagel7 and www.shortcuLs.com are worth a try, too. But they ask for personal information. Extra -value coupons. If you live in a fiercelycompetitive market such as the New York metropolitan area, you might benefit from a price war in which chains double eor triple manufacturers' coupons, usually those of up to 99 cents. Near our Yonkers, N.Y., headquarters, we've seenA&P, Wald- batim's, Pathmark (all owned by A&P), and ShopRite dangling such incentives. Website specials. Today's more so- phisticated sites let shoppers see the cur- rent store flyer, print out coupons, and create customized shopping lists. Price Chopper's site, for example, features reci- pes for feeding your family for around $5 per person per meal. Move your cursor over items in Hannaford's flyer and you'll see the regular price, sale price, and the savings between the two. Web sites are also making shopping more convenient. The Food Marketing Institute estimates that 44 percent of supermarkets let shop- pers submit orders electronically. At soma branches of chains such as Albertson and Hams Teeter, store employees will gather your groceries and load them into your car when you drive up. At select King Soopers, Hy -Vee, and others, they'll deliver. Pickup service typically costs $5 to $10; delivery, about twice as much. Longer salsas. Apart from their weekly specials, some chains have extended or frozen sale prices. Weis Markets, for in- stance, dropped the price of thousands of staples for 90 days this spring, Pathmark identifies its longer-term markdowns as "PriceHold" deals. Pathmark, in fact, un- veiled a whole new type of store last year aimed squarely at cost-conscious shop- pers. The chain's Price Impact format emphasizes those price -hold bargains, as well as less-expensive store brands, eco- nomical family packs, "yellow tag" sav- ings (5,000 weekly specials), and "power priced" goods that represent the deepest: discounts ofthe week. Drug discounts. This past winter, many chains with pharmacies, including Wegmans, stop & Shop, and Giant, of- fered consumers free generic antibiotics with a doctor's prescription. Year round, you'll discover a growing number of supermarkets selling low-cost generic drugs. Walmart, Target, Bashas', and Kroger are among The chains charging $4 for a month's supply of commonly pre- scribed generics. 22 CONSUMERREPORTS MAY2009 Ratings Supermarkets in order of ieaderscore. 1 Wegmans 0 0 O 2 Trader Joe's ® O O e 3 Publix e A O e 4 Raley's 0 e O e 5 Harris Teeter ® e ® e 6 Fareway e ® e O 7 Costco O 5 ® O Sam's Club Whole Foods 39 Ralphs Market 40 9 Market Basket O O ® O 10 winco Foods O 00 O 11 StaterBros. O O e O 12 Hy -vee e O O O 13 Piggly wiggly` e O O O 14 Aldi OG®O 15 Fry's Food Stores 0000 16 Fred Meyer 0000 17 Save Mart ® O 00 18 Kingsoopers 00 00 19 H -E -e 0000 20 SuperTarget O O e e 21 Hannaford 0000 22 SbepRite O O e O 23 Ingles Market5 0000 24 Schnucks 0000 25 County Market O O 00 26 Pillons 0000 27 PdceChopper O O 00 28 Cub Foods O O 00 29 Sav-a-Lot O C 04 30 BigY O O O O 'Ratings pertain tostores in Wisconsin. Iowa, and Illinois. Guide to the Ratings %' .G 4S n g 0 Bett{ e O O O wore d a ;a o luu 31 Bashas' 32 Meijer 33 Giant Food Stores 34 grrrgh's Food& 35 Bi -Lo 36 Vons 37 Kroger 38 Sam's Club 39 Ralphs 40 Weis Market5 41 IGA 42 BJ's Wholesale Club 43 Albertson 44 Safeway 45 Jewel -0x0 46 Giant Eagle 47 Aare 48 Stop & Shop 49 Pick'n Save 50 Dominick's 51 Tops Markets 52 Pathmark 53 Food Libn 54 Giant 55 Winn-Dixie 56 Walmart Supercenter 57 Shads 58 A&P 59 Waldbaum's Ratings are based on 32,599 responses to the Grocery Store Shopper Survey conducted by the Consumer Reports National Research Center. Respondents told us about their experiencesat one or two supermarkets, supe reenters, or wa rehouse clubs between April 2007 a nd Apri 12008. The survey covers a total of 48,831 visits. Findings reflect the experiences of our readers, notnecessariiythoseof the general population. Reader score reflects overall satisfactionwith the shopping experience and isn't limited to thecriteria listed in the table. A score of 100 would mean all respondents were completely satisfied; 80 would mean very satisfied, on average; 60, fairly well satisfied. Differences of fewer than 6 points are not meaningful. Other scores reflect how each store compared with the Overall average in several categories. Service reflects a combination ofstaffhelpf ilnesand checkout speed. Perishables pertainsto thequality of meat and produce. Readers alsojudged price and Cleanliness. UPFRONT Calorie-free,plant-based Truvia Is "a miracle of nature;' the manufacturer says. It combines thesweetener rebiana, from theleavesofthestevia plant; erythritol. a natural sweetener typicallyfound in grapes and pears; and natural flavors One packet is supposedto be as sweetas 2 teaspoons of sugar (32 calories). Rebiana had been'permitted as a dietary supplement;last December the Food and Drug Administration approved itsuseinfoodsand drinks despite earlier concerns. Here's what our panel oftastersfound: Coffeeand iced tea. The difference between Truvia and sugar was subtle, butsometasterssaid thecoffeewith Tfuvia was more bitter overall. The tea had a lingering sweet aftertaste. Cornflakes with milk. Both sugar and Truvia dissolvedniceiy in the milk, but Tmvia on cereal didn't taste quite like sugar and hada big, lingering sweet aftertaste. Strawberries. We dipped half of each berry in sugar,the other half in Truvia. Thelookandtexture of the sweetenerswere similar,butTruvia had an artificial flavor and bitterness. Shortbread cookies. We used a recipefromtheTruvia Web site. (Our real -sugar version incorporated confectioners'sugar.)The cookies made with sugarwere toasted, had a tendertextureand butteryflavor, and were slightlysweet.Truviacookies had some grittiness, alongwiththat lingering sweetness. Bottom lime. Truvia could be agood choice, especially in beverages. for someone on a sugar -restricted diet. B u t it may not makesenseifyou'reon a restricted budget: We paid the equivalent of 9 cents per packet of Truvia, compared with a penny for 2 teaspoons ofgranulated sugar. 8 CONSUMER REPORTS MAY 2009 I UP kp"Ow 9 it goo 7- If you're shopping at a big retailer, you'll probably be happiest at Costco and least happy at Walmart or Kmart. That's a key finding from our recent online survey of 6,903 subscribers to ConsumerReports. org. They told us about more than 13,000 experiences shopping for everything from clothes to electronics to car-careproducts during the previous year. We surveyed in October 2008, when the recession was ratcheting up. Only 20 percent of respondents said their shop- ping behavior had not changed in the pre- vious year. Fifty-eight percent said they were holding offon unneeded purchases; 46 percent said they were shopping less often; 42 percent said they saw lowprices, coupons, and sales as more important. Overall, respondents to the Consumer Reports National Research Center survey Ratings B� retailers Costco Eft Kohl's Target JCPenney Sears Sam's Club Ftp Macy's walmart Kmart [fes `Reflects satisfaction with all shopping experiences. Scores of 100 would mean all respondents were completely satisfied; 80 would mean very satisfied, on average; 60 fairly well satisfied. Differences of less than 4 points aren't meaningful. Respondents might not reflect the U.S. population. 34%. That's how many retail shoppers complained about too few open checkout lanes. were far more pleased with the quality of personal-careitems (77 percent rated them excellent or very good overall) than with that of clothes orjewelry(56 percent). But where you shop for those clothes or jewels makes a big difference: Subscribers buying at Costco were significantly more satisfied with the quality of clothes and jewelry than those buying at most of the other eight storeswe rated, including some better known for clothes, such as J (Penney. Subscribers also that said Costco (along with Sam's Club and Kohl's) provided espe- cially good value for its clothes and jewehy. The main complaints about the biggest retailers as a group: long lines and too few open checkout lanes. Fifty-eight percent of subscribers tried to return at least one item to the store in the previous year, and 16 percent had a problem with the return. Bottom line. Costco ranked highest overall in shopping satisfaction and was among the top choices for apparel. Abasic membership in this warehouse club costs $50, but according to our online subscrib- ers, it's money well spent. HERUM CRABTREE ATTORNEYS April 22, 2009 VIA ELMAIL Ms. Randi Johl, City Clerk 221 W. Pine Street Lodi, CA 95240 Brett S Jolley bjoiley@herumcrabtree.com Re: Lodi First: Corrected Appeal to City Council re Lodi Shopping Center Project DearRandi: Please accept this letter as correction of Lodi First's April 15, 2009 letter appealing the Planning Commission's actions on April 8, 2009 regarding the Lodi Slopping Center Project. The $300 appeal fee was paid by Check No. 19432, delivered to your office, along with the original appeal letter, on April 16, 2009. I recently discovered that the original appeal letter contained a typographical error listing the date of the Planning Commission hearing as April 8, 2008 rather than April 8, 2009. Although yourconfirming e-mail acknowledged the appeal related to the April 8, 2009 hearing date (thankyou), in orderto ensure an accurate record, this letter formally corrects that typographical error and, to ensure no issues arise regarding timeliness of the correction, the correction issubmitted within the appeal timeframe set forth in Lodi Municipal Code Section 17.88.060.A.1. All other information in the original appeal letter applies. Should you have any questions, please feel free to contact me. Very truly yours, Iff BR,ETrS. JOLLEY Attorney -at -Law cc: Client Don Mooney, Counsel for Citizens for Open Government Steve Schwabauer, City Attorney 2291 WEST MARCH LANE 1 SUITE 81001 STOCKTON, CA 952071 PH 209.472.77001 MODESTO PH 209.525.844-41 FX 209.472.7986 1 APC Lodi Shopping Center Applicant: Browman Development Company File No.: U-02-12 — Use Permit 03-P-001— Vesting Tentative Map 08 -SP -08 - SPARC Lodi Shopping Center • Background: • Planning Commission approval: December, 2004 • City Council approval: February, 2005 • EIR found deficient for cumulative urban decay and energy impacts: December, 2005 • City Council rescinds original approvals: May, 2006 • Planning Commission Denies Final Revised EIR: October, 2008 • City Council Certifies FREIR: March, 2009 • Planning Commission Denies project approvals: April 8, 2009 Lodi Shopping Center: Zoning & Vicinity Map / 1' ;L .. Z`■■■wire T. �'i/'//////// / City of Lodi Zoning Map / PD, Planned Development _ C -S, Commercial Shopping 0 R -C -P, Res. Comm. Professional R-1, Single Family Res. ® R -MD, Res. Medium Density / , R-2, Single Family Res. N PUB, Public Lodi Shopping Center ■ Use Permit: C -S, Commercial Shopping District plan review of the site as well as the sale of alcoholic beverages within Wal-Mart building. Vesting Tentative Map: Allows the subdivision of the property into 12 parcels. ■ Site Plan and Architectural Review: Required for all buildings in a C -S zone designation. Focus on architecture and site design. Lodi Shopping Center Use Permit: . Allows the sale of alcoholic beverages within the Wal-Mart building. The City has previously found that the sale of alcoholic beverages is incidental to a grocery store operation and that is what is being requested by the Wal- Mart. . The C -S zoning designation requires all plot plans to be approved by the City. . The plan presented is identical to that approved by the City Council in February, 2005. The plan meets or exceeds all requirements of the Lodi Zoning Ordinance including the Standards for Large Retail Establishments. Lodi Shopping Center: Site Plan 0 •� SffE NOTES � LJ x Q ne LL wk OW O Opq O O . -� 111111 %� `h' Q .yyq nWpr,+,a w 3 O TIDO 4� 0 0 O O <od O OW O§ O O O O O .0 .0 ON Oy O O O 4 b 175 �a�i ix'��-ra. rCa. prsmttysMwwu M f r f rco o bl b o 0 0 0 PA4 2 I PA 50511 Ss F I 10.0 5P 0 ' �M.se.s lon ,n xlewelwa aw ro. an rx..ve. 7,4 0 SF ' - 1 1 mm IIS. � � •iii I l l � I .,ua.c�'•11 I , 11= I �II� I aroAy I am wiesl vu,rA oms) I III I I III iir i i yil 1 f•. 1 �'• i I, I ` -- L ---Z--'1-----.L-..1-.--.-L.--�.-�.-J L — 1 I 1 J 44 Lodi Shopping Center: Site Plan e ■ O 10 �O O O 4 q oo oW�oo o b 9 O 0-0 O O O ko IJP 0 •� I C ®� a� a� o �O b � LJ x Q ne LL wk OW O Opq O O . -� 111111 %� `h' Q C, 3 O TIDO 4� 0 0 O O <od O OW O§ O O O O O .0 .0 ON Oy O O O 4 b 175 M f r f rco o bl b o 0 0 0 PA4 2 I PA 50511 Ss F I 10.0 5P 0 7,4 0 SF 44 I i Y PAD 6 14,7 $( ; 1i = O O I F ix ' Q O I ll 11 —1r---.•--�.---- SF j � -42b 'I 1 e ■ O 10 �O O O 4 q oo oW�oo o b 9 O 0-0 O O O ko IJP 0 •� I C ®� a� a� o �O b � LJ x Q ne LL OW O Opq O O . -� 111111 %� `h' Q C, 3 O TIDO 4� 0 0 O O <od O OW O§ O O O O O .0 .0 ON Oy O O O 4 b M f r f rco o bl b o 0 0 0 PAD 11 5.D00 Sr I I I IIMM 8.59fi Sf --- Ij I PAD 11 I 35.DOD sr I a a a Lodi Shopping Center . Tentative Map: . The proposed Vesting Tentative Map includes 12 parcels which range in size from the largest lot at 18.3 acres to the smallest at .53 acres. .All 12 buildings are on their own lot with associated parking. Lodi Shopping Center: Vesting Tentative Parcel Map Vat,E,W Tentative 91iap Got Layout for Loi - III A'PXs: 058-030-01 OZ 05&030-02 Comity ofSangoagr* Cafifomia AWW 1S, 2008 Shiest 2 of 2 VA. Lodi Shopping Center . Site Plan and Architectural Review: . The proposed project includes the construction of a new Wal-Mart building which is approximately 216,710 square feet. The Wal-Mart building would be located on the southwestern portion of the project site, and the building entrance would face east toward Lower Sacramento Road. • Architectural materials such as concrete masonry block, metal awnings, and exterior plaster finish will be utilized on the exterior of the building. Lodi Shopping Center . SPARC cont.: . There will be three entrances/exits from Lower Sacramento Road, one from Kettleman Lane (Hwy. 12), and two from Westgate Drive. . The main parking lot is located on the east side of the Wal- Mart building. There will be smaller parking areas to serve the free-standing commercial pads. For the Wal-Mart building, a total of 965 parking spaces are proposed . The proposed landscape plan calls for various large shade trees, smaller trees, shru s and ground covers. A total of 478 larger shade trees will be provided within the parking lot interior, along the southern and western edges the property line, and throughout the site. This total number of trees exceeds what the City code requires. Lodi Shopping Center: Landscape Plan 1 t - r I VailDinI Mille Val MI _III as9 , . C, . . r� � � S r'.4ti ��► "!C � lu, P $o ` I` I''.!M GROUND COVERS: A LLM LLL__L_LLiI 11 Ill 11 ���....,..�� __.a.�.®... 7..o..-. 0 SITE PLAN .a .....m o ba «...� ..... SCALE' 1"=BV-R' Lodi Shopping Center: Elevations LAST ELEVATION NORTH ELEVATION WEST SOUTH ELEVATEON a — w1y 9A.. - Low Prices �" 7 fl ^ 4F 9 s J• _ AL 011 WAIS*MART - e - Meat Bakery Dell .. Low Prices .. XL M F 911111 ICIIINitl -W :-, -da Lodi Shopping Center • Conclusion: . Based on the action of the City Council to Certify the Final Revised EIR, the plans submitted and the policies and previous actions of the City, staff recommends that the City Council make the appropriate findings and: Approve Use Permit U-02-12, Approve Vesting Tentative Map 03-P-001 Approve Site Plan and Architectural Review 08 -SP -08 ** BLUE SHEET COMMENT LETTERS RECEIVED BY CITY CLERK'S OFFICE Through 3 p.m, on 5/13/09 Jennifer Perrin From: Kari Chadwick Sent: Monday, May 11, 2009 04:45 PM To: Randi Johl cc: Jennifer Perrin Subject: FW: Vote No on Proposed Lodi Wal-Mart Supercenter Kari Chadwick Administrative Secretary Community Development Department (209) 333-6711 -----Original Message ----- From: Steven Jones [mailto: sj ones 0 145@gmail. com] Sent: Monday, May 11, 2009 4;46 PM To: Bob Johnson; Larry Hansen; Phil Katzakian; JoAnne Mounce; Susan Hitchcock; Kari Chadwick Subject: Vote No on Proposed Lodi Wal-Mart Supercenter Dear Lodi Mayor and Council, I am one of many voices in opposition to the proposed 24-hour Wal-Mart Supercenter in Lodi. Our city should focus on protecting Lodia€'s existing businesses, particularly our locally owned businesses, and our quality of life. Businesses throughout Lodi are struggling in this difficult economy, even without the added pressure of a 24-hour Wal-Mart Supercenter. Our country is in the worst recession in 27 -years! Lodi Is multiple shopping districts are littered with vacancies and more stores will certainly close. Look at what happened to Geweke Dodge! The Lodi Shopping Center will provide no needed services to Lodi. The center will only serve to swap Wal -Marts, leaving one vacant big box store. We encourage you to remember what happened in Stockton when Wal-P4art closed their old store for a new Supercenter. THE OLD BIG BOX STORE REMAINED VACANT FOR YEARS! Further, Wal-Mart has already gone back on its word with Lodi officials once. What makes our officials feel they will keep their word in the future? Lodi is a beautiful community with a unique downtown and thriving wineries! Our city should be more creative in approving developments and generating revenues. Please listen to your constituents and vote to deny the EIR certification for the Lodi Shopping Center! Thank you. Steven Jones 2029 Petersburg Way Lodi, California 95242 Phone: 7038507791 p,s, Delivered by CitizenSpeak! Report abuse to abuse 4citizenspeak.org [1504] 1 Four Embarcadero Center I i 701 Floo, I San Francisco, CA 941 11-4109 415-434-9100 uffice I 415-434-3947 tax I www.sheppordmullin.com r T O R N E Y A L A W Writer's Direct Line: 415-774-2974 ape1osi@sheppardmu1Iin.can May 12,2009 Our File Number: 15CM-130407 VIAE -MAIL AND U.S MAIL Honorable Larry Hansen Mayor City of Lodi 221 W. Pine Street Lodi, CA 95242 Re: Additional Documentation to Support Appeal of Planning Commission's April 8, 2009, 3-3 Vote on the Lodi Shopping Center Project Approvals. Dear Mayor Hansen and Honorable City Council Members: This letter is submitted on behalf of Wal-Mart Stores, Inc. ("Wal-Mart") and Browman Development Company (`Browman") in support of their joint appeal of the Lodi Planning Commission's three to three (3-3) vote on April 8,2009, on Use Permit (U-02-12), Vesting Tentative Parcel Map (03-P-001), and Site Plan and Architectural Review (08 -SP -08) for the Lodi Shopping Center project (collectively referred to as "Project Entitlements"). It has been over seven (7) years since the Lodi Shopping Center Project was first proposed in the City of Lodi. Since that time there have been two lawsuits, numerous appeals and public hearings, and volumes of public comment. We know that this has been a long road and'wewant to thank the City and its staff for its years of hard work on this Project. We truly appreciate the City and the public's patience and input and look forward to what will hopefully be the final Project hearing on May 13, 2009. That said, we are writing to ask the City Council to re -approve the Project and make the required findings and statement of overriding consideration under the California Environmental Quality Act (CEQA). SUMMARY The Lodi Shopping Center Project is projected to bring approximately $1 million in annual increased tax revenue to the City of Lodi. This revenue can help fund much needed public services for the businesses and residents of the City. The issue of whether the Project will cause significant adverse indirect impacts by causing urban decay, as that term is defined under CEQA, has been discussed and analyzed extensively. On March 1 1,2009, by certifying the SHEPPARD MULLIN RJOITER & IJAMPTON LLP Honorable Larry Hansen May 12,2009 Page 2 Final Environmental Impact Report for the Project, the City Council found that substantial evidence supported the conclusions reached and no further discussion or analysis is needed or warranted, including for purposes of the return to the writ. With regard to the Project's impact to prime agricultural farmland, the City of Lodi does not have an adopted policy on this issue. City practice, however, is to require development to obtain permanent conservation easements over an equal amount of farmland lost. Here, the Project is required to obtain an agricultural conservation easement over 40 acres of prime farmland in San Joaquin County. This is consistent with City practice and fully mitigates any direct impacts of the Project on agricultural lands. Finally, because the Project will have significant adverse impacts that cannot be avoided or substantially lessened, the City Council will be required to adopt a statement of overriding considerations. The six (6) statements of overriding considerations included in the City Council Resolution approving the Project are supported by substantial evidence in the record and satisfy the requirements of CEQA. I. The Project Will Contribute Significant Tax Revenue to the City of Lodi. At the December 10, 2008, City Council meeting on the Revised Environmental Impact Report for the Project (State Clearinghouse No. 20030421 13) ("Revised EIR" ), the City Council voiced questions and concerns regarding the tax revenue that would be generated from the Project. As a result, Wal-Mart commissioned CB Richard Ellis ("CBRE') to prepare a tax revenue analysis of the Project. That analysis was prepared on January 12,2009, and presented to the City for the March 11,2009, City Council hearing on the Revised Environmental Impact Report ("EIR") for the Project. At that hearing, Councilmembers Susan Hitchcock and Joanne Mounce expressed concerns regarding CBRE's findings. As a result, CBRE prepared a written response to those concerns that was submitted to the Planning Commission for their April 8, 2009, hearing on the Project Entitlements. A copy of that letter is attached as Attachment A. The concerns raised at the March 11,2009, City Council hearing focused on the wide disparity between the various estimates of tax revenue estimated to be generated by the Project, if re -approved, to the City. CBRE estimates that the net increase in sales tax revenue to the City from the Project is approximately $814,000 (in 2007 dollars). The total net incremental tax gain to the City from the Project is approximately $1 million dollars. See CBRE Consulting, Inc., January 12,2009, Memorandum to City of Lodi, pg. 3. As explained in the CBRE January 12,2009, memorandum, this $1 million dollar figure is based on the net increase in sales tax revenue as well as increases in property tax and business license tax payments. It also takes into consideration the re -tenanting of the existing Wal-Mart Store as well as estimated diverted sales from other retailers. SHEPi?4RD MULLIN RICHTER& ILAKPTON LLP Honorable Larry Hansen May 12,2009 Page 3 The discrepancies between the various tax benefit figures can be explained in part by the fact that previous estimates were based on "average annual city sales tax for all California Wal-Mart Supercenters, while the higher figures in the CBRE Consulting analysis reflect specific assumptions about sales per square foot projected in the EIR" for the Project as unique to the City. CBRE Consulting, Letter to the Planning Commission, April 8, 2009, pg. 2. Regarding the discrepancies with the 2004 Applied Development Economics ("ADE") reports, CBRE found that these reports used a lower annual sales per square foot ($350 per square foot) as well as a lower diverted sales figure ($36.2 million). See id at pg. 3. Bay Area Economics (BAE), which prepared the economic analysis for the Revised EIR — and was independently hired by the City — estimated $564 square feet with $55 million in diverted sales. See id CBRE's analysis was correctly based on the most recent economic analysis prepared under CEQA for the Project — the BAE analysis. The approximately $1 million the Project is estimated to bring to the City of Lodi does not include the value to the City of the additional investment the Project is required to make in Downtown Lodi. Under condition 4 -HH, the Applicant and Wal-Mart voluntarily agreed to the following: "The developer shall invest in a building and/or capital improvements within the Downtown area, as defined by the Community Development Director, but no smaller than the area described in the June 1997 Downtown Development Standards and Guidelines plus the Pine Street Corridor extending to Washington. Investment shall be defined as supporting construction, rehabilitation, acquisition, tenant improvements and other improvements. The developer may make or support improvements to commercial buildings or property it owns or rents independently or in partnership with others, or to commercial property owned by others in partnership with owners and/or tenants. The downtown investment must be made no later than seven and a half (7.5) years from the issuance of final certificate of occupancy for the largest retail tenant. The total aggregate value of the capital improvements resulting from developer's investment must exceed $700,000." In addition, the approximately $1 million estimate does not include the indirect tax benefits to the City from the increase injobs that will be created from the Project. As stated in our March 10, 2009, letter to the City Council, it is estimated that up to 866j obs will be created from the Project. While a portion of these jobs will be a relocation of jobs from the existing Wal-Mart (i.e., approximately 300 existing employees), more than fifty (50%) will be SHE PARD NIULLIN RICHTER & HAMPTON LLP Honorable Larry Hansen May 12,2009 Page 4 new j obs at the Wal-Mart Supercenter and other retailers in the shopping center. Thus, the net true fiscal benefit of the Project to the City of Lodi exceeds $1 million. II. The Project Will Not Cause Urban Decay. As discussed previously in our November 24,2008, January 12,2009, and March 10, 2009, letters, substantial evidence exists to find that the Project will not result in significant adverse impacts, either direct or cumulative, to the physical environment from urban decay. Over 100+ pages of tables, analyses, surveys, investigations, etc., exist to support a finding that the Project would not cause urban decay. Any potential for the Project to cause urban decay has been thoroughly analyzed. On March 11,2009, BAE submitted a memorandum to the City Council that, among other things, analyzed whether the current housing and economic situation impacted its previous analysis. BAE concluded the current market situation did not "affect its findings regarding urban decay." BAE, Memorandum to City of Lodi, March 11,2009, pg. 7. It stated that "the turmoil in the economy makes any kind of long term prediction difficult, and any further analysis by BAE could be subj ect to a 'moving target' problem, where the updates to the analysis would not be able to keep pace with events." Id. at pg. 6. BAE also pointed out that the opening and operation of the Project is unlikely to occur until 2011 or 2012 and that by that time the economy is "likely to have come out of even this serious recession." Id. at pg. 7. Thus, BAE stands by its analysis and conclusions regarding the lack of substantial evidence showing that the Project, if re -approved, would cause urban decay. Substantial evidence exists in the record to support the less -than -significant impact conclusions. The City Council can rely upon that information and other evidence in the record to reach the same conclusion, make the required findings, and adopt the statement of overriding considerations under CEQA. III. The Project Will Comply with City Practices Regarding Offsets for Conversion of Prime Farmland The Project site has been zoned and designated for commercial uses for over 10 years. The Proj ect is consistent with the zoning and general plan designation and only requires a use permit, vesting tentative map, and site plan and architectural review. However, because the Project will convert approximately40 acres of prime agricultural land to urban uses, it will be required to obtain a permanent agricultural easement over 40 acres of prime farmland in San Joaquin County. See Final Revised EIR, March 2008, pg. 116. According to the Draft Revised EIR, the City does not have an adopted policy or General Plan requirement to offset the loss of prime farmland. See Draft Revisions EIR, October 2007, pg. 57. Over the last few years the City has implemented a practice of imposing farmland offset or mitigation requirements on developments approved by the City. 8HEPPARD MULLIN RICHTER & H TFON LIX Honorable Larry Hansen May 12,2009 Page 5 Any requirement to offset or mitigate a Project impact must include a nexus between the "mitigation" required and the impact identified. CEQA and constitutional requirements dictate that there be an "essential nexus (i.e., connection) between the mitigation measure and a legitimate governmental interest." Nollan v. California Coastal Commission, 483 U.S. 825 (1987); CEQA Guidelines, § 15126.4(a)(4). Moreover, "[w]here the mitigation measure is an ad hoc exaction, it must be `roughly proportional' to the impacts of the project. Ehrlich v. City of Culver City (1996) 12 Cal. 4th 854." (CEQA Guidelines sec, 15125.4(a)(4)(B).) Any requirements for offsets or mitigation that impose additional requirements beyond established programs and/or regulations will result in the measure being excessive and unnecessary. Here, the proposed offset or mitigation required to address the impact from the loss of prime farmland meets the "essential nexus" and "roughly proportional" test. This is evidenced not only by the language in the Draft Revised EIR, but also by the fact that other recent development projects were also required to mitigate, or offset, agricultural losses on a 1:1 ratio. See Draft EIR, pg. 57; see also Ordinance No. 1785, City of Lodi, adopted on September 6,2006, § 6.4. l l,pg. 14 referencing Exhibit I. Contrary to the assertion of those economically motivated to oppose the Project, no justification or evidence exists to support a higher ratio of agricultural land preservation than proposed. Thus, any proposal to require greater than a 1:1 ratio for agricultural mitigation would be excessive and unnecessary and would not be supported by substantial evidence. IV. The Statement of Overriding Considerations is Supported by Substantial Evidence in the Record. A statement of overriding considerations under CEQA is required when a project will result in significant impacts that cannot be avoided or substantially lessened. CEQA Guidelines, § 15093(b). In this instance, the decision-making agency can balance the °`economic, legal, social, technological or other benefits of a proposed project against its unavoidable environmental risk" and approve a project if the benefits outweigh the unavoidable adverse environmental effects. CEQA Guidelines, § 15093(a). Any statement of ovemding considerations must be supported by substantial evidence in the record. CEQA Guidelines, § 15093(b). The Environmental Impact Report prepared for the Lodi Shopping Center found that the Project would have significant and unavoidable impacts. Asa result, the City Council will be required under CEQA to adopt a statement of overriding considerations as part of any Project approvals. The resolution drafted for the March 13,2009, City Council hearing on the Project Entitlements included the following overriding considerations: Project Will Generate City Taxes; and, SHEPPARD MULLIN RICHTER, & HAMPTON LLP Honorable Larry Hansen May 12,2009 Page 6 2. Project Creates Employment Opportunities for City Residents; and, Project Will Implement Vital Municipal Infrastructure Improvements; and, 4. Project Implements Adopted City Plans; and, Creates High Quality Design at Western Gateway to the City; and, 6. Project Features Numerous Energy Conserving Measures. Each of these considerations is supportedby substantial evidence in the record. For example, after each consideration there is a detailed explanation of the reasons and evidence to support the assertion that the stated benefit outweighs the unavoidable impact. In addition, the following are a few of the many examples of substantial evidence included in the record to support the various statements of overriding considerations: • Letter to the City of Lodi from J. Kelly Collier, Senior Design Manager for Wal-Mart Real Estate and Design, dated October 6, 2008 and presented to the Planning Commission at its October 8, 2008, meeting. • Memorandum to City of Lodi from Elliot R. Stein, Senior Managing Director CBRE Consulting, Inc., dated January 12,2 009, presented to the City Council at its March 11, 2009, hearing. • Memorandum to Rad Bartlam, City of Lodi, from Raymond Kennedy, Vice Present, BAE, dated March 11,2009, presented to the City Council at its March 11, 2009, hearing. • Letter to Wendell Kiser, Planning Commission, City of Lodi, from Elliot R. Stein, Senior Managing Director CBRE Consulting, Inc., dated April 8, 2009, presented to the Planning Commission at its April 8, 2009, hearing. • Draft Revised EIR, pages 79-84, listing various energy conserving measures that will be incorporated into the Project. Substantial evidence exists in the record to support the City's statement of overriding considerations. In closing, we would like to thank the City and its staff for the years of hard work on this Project. We appreciate the time that the City Council has taken over the last three and a SHEP13ARD MULLIN RICHTER & HAMPTON LLP Honorable Larry Hansen May 12,2009 Page 7 half years to hear and consider all of the information presented about the proposed re -approval of the Lodi Shopping Center. It has been a long road, with many bumps, but we are now at the finish line and respectfully request that the City Council re -approve the Lodi Shopping Center Project Entitlements and adopt the findings and statement of overriding considerations. Very truly yours, Alexis M. Pelosi for SHEPPARD, MULLIN, RICHTER & HAMPTON LLP Attachments Very truly yours, 0 � is e Andrea K. Leisy for REMY, THOMAS, MOOSE & MANLEY LLP cc: Lodi City Council Blair King, City Manager Steve Schwabauer, City Attorney Radlam Bartlam, Interim Community Development Director Attachment A CBRE CONSULTING, INC. April 8, 2009 Mr. Wendell Kiser Chairman and Members of the Planning Commission City of Lodi 221 W. Pine Street Lodi, CA 95242 CBRE CS RICHARD ELLIS 4 EmbarcaderoCenter, Suite 700 San Francisco, CA 94111 T 415 781 8900 F 415 733 5530 www.cbre.com/consulting Ra Additional Documentation to Clarify Information Presented at the March 11, 2009 Special Meeting of the Lodi Ciiy Council Regarding Tax Revenue Impacts of the Proposed Lodi Shopping Center Dear Chairman Kiser and Members of the Planning Commission: During the public hearing portion of the above referenced Special Meeting, I presented estimates of the sales tax, property tax and business license taxes that would be generated by the proposed Lodi Shopping Center project (the "Project"). My presentation was based on information included in a memorandum to the City of Lodi, prepared by CBRE Consulting, Inc., dated January 12, 2009. A copy of that memorandum'is attached. Please note it contains all of the assumptions relied upon to estimate tax revenue to the City from the Project. This letter is intended to briefly summarize our findings and to respond to questions raised by Councilmembers Susan Hitchcock and Joanne Mounce about apparent discrepancies between the CBRE Consulting findings and those presented by other sources. Summary of Estimated Sales Tax Our analysis considered four components in order to estimate the net impact of the Project on sales tax revenue to the City of Lodi: the gain of sales tax from the new Lodi Shopping Center including the 226,868 SF Wal- Mart Supercenter and an additional 1 13,098 SF of other stores; ■ the loss of sales tax from the closing of the existing Lodi Wal-Mart; ■ the gain of sales tax that could be generated by replacement tenants who occupy the existing Wal-Mart store after Wal-Mart vacates the premises; and ■ the loss of sales tax resulting from the diversion of sales from existing retail outlets in the trade area (as concluded by Bay Area Economics [BAE] in its report, "Economic Impact/Urban Decay Analysis for Proposed Lodi Shopping Center in Lodi, CA," dated October 2007, prepared for the City of Lodi as part of the Project ER [the "BAE Report"]). CBRE CONSULTING, INC. CBRE Mr. Wendell Kiser, Chairman Members of the Planning Commission CS RICHARD ELLIS April 8, 2009 Page 2 As explained in the January 12, 2009 memorandum, the net increase in sales tax revenue to the City of Lodi was estimated to be $814,000 (in 2007 dollars) as shown below. Sales Tax to the City of Lodi Lodi Shopping Center $1,491,241 less: Existing Lodi Wal-Mart (548,2 17) plus: ReplacementTenants 421,000 less: Diverted Sales 1550,000) Total 814,024 The figure shown above for the Lodi Shopping Center breaks down as follows: 2005 Dollars 2007 Dollars Wal-Mart Supercenter $1,080,709 $1,159,783 Other Stores 308,859 331,458 Total $1,389,568 $1,491,241 At the Special Meeting, Councilmember Joanne Mounce stated that the CBRE Consulting estimate was inconsistent with a lower figure of $790,000 which had been previously presented by Wal-Mart. We inquired into this figure and learned that it appeared in an ad by Wal-Mart which stated, in part: "Wal-Mart is one of the top revenue generators in the City of Lodi — in 2006 nearly $600,000 in local sales tax revenue was generated from the Kettleman Lane store. The average California Supercenter contributes $790,000 in sales tax, representing a 35.9% increase in Lodi." The difference between the CBRE Consulting estimate and the $790,000 figure can be explained as follows: • the $790,000 is an average for all Wal-Mart Supercenters in California and appears to be presented in 2006 dollars. ■ the CBRE Consulting estimate relied upon sales per square foot estimates contained in the BAE Report prepared for the City of Lodi as a part of the EIR. According to the BAE Report, those sales were, "...based on a blend of national Wal-Mart average and estimated sales per square foot for [the] existing store." For the sake of consistency with the economic analysis contained in the EIR, CBRE Consulting used the sales per square foot figures in the BAE Report to calculate estimated sales tax revenues. In summary, the $790,000 figure (in 2006 dollars) is an average annual city sales tax for all California Wal-Mart Supercenters, while the higher figures appearing in the CBRE Consulting analysis reflect specific assumptions about sales per square foot projected in the EIR for the proposed Lodi Wal-Mart Supercenter. Also at the Special Meeting, Councilmember Susan Hitchcock stated that a report prepared for the City by another economic consultant reached the conclusion that the proposed Project would not generate any new sales tax revenue to the City of Lodi. At Council member CBRE CONSULTING, INC. AM Mr. Wendell Kiser, Chairman �.BRE Members of the Planning Commission CB RICHARD ELLIS April 8, 2009 Page 3 Hitchcock's request, copies of two reports, both prepared by Applied Development Economics (ADE) in 2004, were provided to us.' The two reports are very similar; in fact the July 2004 report draws heavily on the contents of the June 2004 report. We found nothing in the ADE reports to indicate that the Project will not generate any new sales tax revenue to the City. It does conclude, however, "...that the proposed project will take $36.2 million of sales away from established business assuming that the superstore anchor tenant is relocated from across the street.'". The remainder of the Project's demand would come from recapturing sales leakage and from "new sales earned by Proposed Project. 13 By comparison, the BAE report used in the EIR prepared for the City was more pessimistic in its estimate of diverted sales (i.e. sales the proposed Project would divert from existing retail outlets in the trade area). BAE concluded that the Project could divert $55 million in such sales, compared to ADE's lower figure of $36.2 million. CBRE Consulting relied upon the larger BAE estimate to estimate the downward adjustment that would need to be made to arrive at a net sales tax impact number. Therefore, as shown in the fable above and in CBRE Consulting's January 12, 2009 memorandum, $55 million x 1% = $550,000 was netted out of the calculation in order to derive the next sales tax impact of the Project on the City. In other words, the assumption used by BAE in the EIR (and by CBRE Consulting) is more conservative than the assumption used by ADE with respect to diverted sales. A comparison of the 2004 ADE reports and the 2007 BAE Report also reveals a disparity between estimates of total sales for the Project. Both reports use the same square footage figures. However, ADE estimated total Project sales of $1 11.5 million while BAE estimated $163.7 million. The key difference in assumptions is that while ADE assumed Wal-Mart annual sales at $350 per square foot ("The proposed Wal-Mart Supercenter Store is estimated to earn at least $350 per SF of sales...""), BAE estimated sales for the proposed Supercenter at $564 per square foot based on more current information including national sales data for all Wal- Mart stores and estimated sales per square foot for Wal -Mart's existing Lodi store .5 For the sake cf consistency with the EIR, CBRE Consulting used the BAE estimate of sales in order fo calculate sales tax revenue to the City of Lodi. Summary of Estimated Property Tax The calculation of estimated property tax is straight -forward. It is based on a cost approach to value which would be used by the county assessor. Development cost estimates provided by Wal-Mart were used to estimate the assessed value of the property. It was assumed that property tax is already being assessed on the land and that taxes are already being received on that component of the property. Therefore, CBRE Consulting focused only on the net property ' Applied Development Economics, "Economic Impacts of the Proposed Lodi Shopping Center On Downtown Lodi," June 2004; and "Socio -Economic Impact Analysis of the Proposed Lodi Shopping Center," July 2004. 7 Ibid (July 2004 report), p. 18. 3 Ibid, p. 18, Table 10. ° Ibid, p. 15. 5 Bay Area Economics, "Economic Impact/Urban Decay Analysis for Proposed Lodi Shopping Center in Lodi, CA," October 2007, p. 42. CBRE CONSULTING, INC. CBRE Mr. Wendell Kiser, Chairman Members of the Planning Commission CB RICHARD ELLIS April 8, 2009 Page 4 tax revenue that ,would result from the development of the improvements for the Wal-Mart Supercenter. The City's share of property tax generated by the Supercenter is estimated at $40,900. See Exhibit in the attached January 12, 2009 memorandum for the derivation of this amount. Summary of Business License Tax The City of Lodi's Finance Department was the source of business license tax rates. Those rates were applied to the Wal-Mart Supercenter and to the businesses that will occupy the remainder of space in the Project. Business license taxes are estimated at $128,000 per year from Wal- Mart plus approximately $17,000/year from the other stores in the center, for a total of $145,225 per year. See Exhibit 3 in the attached January 12,2009 memorandum for all of the assumptions used. I hope this additionat information is helpful. Please let us know If anything requires further clarification. Sincerely, Elliot R. Stein Senior Managing Director cc: Alexis Pelosi; Sheppard, Mullin, Richter & Hampton LLP N:\Team-Sedwoy\Projects\2008\1008135 Sheppard Mu1lin\Report\8Mor09 Istber to Lodi Planning Commission\ltr to planning commission 8Apr09.doc CBRE CONSULTING, INC. Date: January 12, 2009 To: City of Lodi VWX CBR= CB RICHARD ELLIS 4 Emborcadero Center, Suite 700 San Francisco, CA 94111 T 415781 8900 F 4157335530 www.cbre.com/consulting MEMORANDUM From: Elliot R Stein Senior Managing Director CBRE Consulting, Inc. Re: Proposed Lodi Shopping Center Sales Tax, Property Tax and Business License Tax Impacts CBRE Consulting, Inc. was asked to determine the impact of the development of the proposed Lodi Shopping Center ("the Center") on the City of Lodi's General Fund revenues. The Center will be anchored by a 226,868 square foot Wal-Mart Supercenter and an additional 113,098 square feet of other retail space (see Exhibit 1). CBRE Consulting relied upon certain information contained in the Economic Impact Analysis prepared by Bay Area Economics (BAE) in order to conduct this analysis.' Specifically, the BAE report was the source of the project description, square footages, and sales per square foot figures used to estimate sales and property tax revenues. In addition, CBRE Consulting obtained from the California Board of Equalization and the City of Lodi's Finance Department information on property tax, sales tax, and business license tax relevant to the City of Lodi. Findings are summarized below and presented in greater detail in the attached exhibits. Sales Tax Generated by the Center According to the California Board of Equalization, the City of Lodi receives 1.0 percent of taxable retail sales generated by businesses within the city. Since not all of the sales at the proposed Wal-Mart Supercenter or at the other retail businesses in the Center will be taxable sales (e.g. certain food items, prescription drugs, etc.), CBRE Consulting adjusted total projected sales by removing the non-taxable sales. The adjustments are explained in detail in Exhibit 2. Based on Bay Area Economics' sales estimates which were presented in 2005 dollars, sales tax revenue to the City of Lodi is estimated at $1,080,700 from the Wal-Mart Supercenter plus an additional $308,900 from the other stores in the Center, .for a total of $1,389,600/year (in 2005 dollars), assuming stabilized sales. It would be reasonable to escalate these figures to reflect sales in current dollars. However, for the sake of consistency with the BAE analysis, we did not escalate the numbers for this calculation. ' Bar Area Economics, "Economic Impact/Urbon Decay Analysis for Proposed Lodi Shopping Cerrter in Lodi, CA," October 2007. CBRE CONSULTING, INC. City of Lodi January 12, 2009 Page 2 Business License Tax C B R E CB MCHARD ELLIS Relying on the schedule of business license taxes provided by the City of Lodi Finance Department, CBRE Consulting estimated the annual taxes that would be payable by Wal-Mart and by the other tenants in the Center. Detailed assumptions are shown in Exhibit 3. Business license taxes are estimated at $128,000 per year from Wal -Mort plus approximately $17,000/year from the other stores in the Center, for a total of $145,225/year. Property Tax Property taxes generated by the Wal-Mart Supercenter will be a function of its assessed value. For the purpose of this analysis, it was assumed that the value will be determined based on the cost approach to value. That is, the sum of direct construction costs plus indirect costs (i.e. fees for architecture, engineering, other consultants, financing, interest, entitlements, permits, insurance, etc.) was used as the basis for calculating real property taxes. Cost estimates from Wal-Mart were used to estimate the potential assessed value of the property (see Exhibit 4). Development costs for the remainder of the Center were not provided to CBRE Consulting; therefore, this estimate of property tax revenue to the City of Lodi is limited to the Wal -Mort store only. It was assumed that property tax is already being assessed on the land and that taxes are already being received on that component of the property. Therefore, CBRE Consulting focused on the net property tax revenue that would result from the development of the Wal-Mart Supercenter. As shown in Exhibit 4, the net property tax generated by the Supercenter is estimated at $358,630, of which an estimated $40,920 represents the City of Lodi's share. Nef Increase in Sales Tax CBRE Consulting was also asked to factor into the analysis of sales tax impact two additional considerations: the loss of sales tax resulting from the closure of the existing Lodi Wal-Mart store; and the new sales tax that could be expected from replacement tenants in the space Wal- Mart will be vacating. That analysis is presented in detail in Exhibit 5. It begins with the estimate of sales tax from the proposed Wal-Mart Supercenter ($1,389,568 in 2005 dollars). That figure was escalated to 2007 dollars (to $1,491,241) before adjusting for the closing of the existing Wal-Mart store and the addition of replacement tenants in order to have comparable numbers. The actual change in the Consumer Price Index from 2005 to 2007 was used to adjust to 2007 dollars (see Exhibit 5, footnote 5 for further detail). In summary, the closure of the existing Wal-Mart store would represent a loss of approximately $548,000 per year in sales tax revenue to the City of Lodi, while replacement tenants generating industry average annual sales of $350 per square foot would representan estimated $421,000 of new sales tax revenue to the City. Overall, the net increase in sales tax is estimated at $1,364,000 in 2007 dollars, as shown below: Sales Tax Revenue from Lodi Shopping Center $1,491,241 Less: Sales Tax from Existing Lodi Wal-Mart Store (548,217) Plus: Sales Tax from Replacement Tenants 421.000 Net Increase in Sales Tax Revenue to the City of Lodi $1,364,024 CBRE CONSULTING, INC. City of Lodi January 12, 2009 Page 3 'OmBRE t� CS RICHARD ELLIS Among its conclusions, Bay Area Economics indicated that: 'The net capture of sales from existing retail outlets in 2008 is estimated at approximately $55 million." ' In other words, there may be a diversion of sales from existing retail outlets in the trade area to the new Center, which would result in a decrease in sales tax to the City from those outlets. Because the trade area defined by Bay Area Economics is larger than the City of Lodi (it includes surrounding areas outside the city limits), not all of the $55 million in diverted sales will impact the City. However, for the purpose of this analysis, it is reasonable to note that since most of the existing trade area retailers are located within the City, one can conservatively estimate that If all CE these diverted sales were at the expense of City of Lodi retailers, then the loss of $55 million in sales would equate to a loss of $55 million x 1% _ $550,000 in sales tax revenue to the City of Lodi. Conclusion The estimated net gain to the City of Lodi from property, sales, and business license taxes is summarized below. Total Taxes Incremental _Type of Tax Generated Taxes Lost Tax Gain Sales Tax Lodi Shopping Center $1,491,241 Existing Lodi Wal-Mart ($548,217) Replacement Tenants $421,000 Diverted Sales ($550,000) Property Tax (Wal-Mart only) $40,920 Business License Tax $145,225 Total $2,098,386 ($1,098,217) $1 ,000,169 Sources: CBRE Consulting. 2 Ibid, p. 68. CBRE CONSULTING, INC. C B R E City of Lodi CB RICHARD ELLIS January 12, 2009 Page 4 ASSUMPTIONSAND GENERAL LPdn[ING CONDITIONS CBRE Consulting, Inc. has made extensive efforts to confirm the accuracy and timeliness of the information contained in this study. Such information was compiled from a variety cf sources, including interviews with government officials, review cf government documents, and other third parties deemed to be reliable. Although C BRE Consulting, Inc. believes all information in this study is correct, it does not warrant the accuracy of such information and assumes no responsibility for inaccuracies in the information by third parties. We have no responsibility to update this report for events and circumstances occurring after the date of this report. Further, no guarantee is made as to the possible effect on development of present or future federal, state or local legislation, including any regarding environmental or ecological matters. The accompanying projections and analyses are based on estimates and assumptions developed in connection with the study. In turn, these assumptions, and their relation to the projections, were developed using currently available economic data and other relevant information. It is the nature of forecasting, however, that some assumptions may not materialize, and unanticipated events and circumstances may occur. Therefore, actual results achieved during the projection period will likely vary from the projections, and some of the variations may be material to the conclusions of the analysis. Contractual obligations do not include access to or ownership transfer of any electronic data processing files, programs or models completed directly for or as by-products of this research effort, unless explicitly so agreed as part of the contract. This report may not be used for any purpose other than that for which it is prepared. Neither all nor any part of the contents of this study shall be disseminated to the public through publication advertising media, public relations, news media, sales media, or any other public means of communication without prior written consent and approval of CBRE Consulting, Inc. Exhibit 1 Sales Estimate and Distribution Proposed Lodi Shopping Center 2005 Dollars Sales Per Projected Store Characteristic/BOE Retail Category(1) Square Feet (2) Square Foot (2) Soles (3) Proposed Wal-Mart Supercenter Square Footage General Merchandise Grocery Total Other Stores Square Footage (1) 176,313 $564 $99,510,918 50,555 $564 $28,533,202 226,868 $128,044,120 Apparel 8,131 $300 $2,439,411 Drug Store 14,788 $478 $7,068,664 Eating and Drinking Places 17,190 $475 $8,165,250 Other Retail 59,829 $300 $17,948,589 Non -Retail Uses 13,160 N/A N/A Total 113,098 $35,621,913 Center Total 339,966 $163,666,033 Sources: California State Board of Equalization; Bay Area Economics; and CBR_ Consulting. (1) EM is the State of California Board of Equalization, which collects sales taxes from retailers and provides public tabulations of the occurrence and level of taxable sales in the categories provided. (2)Square footages and sales for the proposed shopping center provided by Bay Area Economics, "Economic Impact/Urban Decoy Analysis for Proposed Lodi Shopping Center in Lodi, CA," October 2007. (3)Totals may not add due to rounding. N:\Team-Sedwoy\Projects\2008\1008135 Sheppard Mullin\Working docs\Exhibits 1008135 Version I Final Exhibit 2 City of Lodi General Fund Impacts Proposed Lodi Shopping Center Sales Tax Revenue 2005 Dollars Sales Tax Assumptions Amount Sales Tax Revenue from Proposed Wal-Mart Supercenter Non -Grocery sales (1) Taxable Grocery Sales (2) Total Taxable Sales Local Tax Share to General Fund (3) Sales Tax Revenue from Wal-Mart Sales Tax Revenue from Other Stores in the Center Taxable Drug Store Sales (4) OtherTaxable Sales (1) Total Taxable Sales Local Tax Share to General Fund (3) $99,510,918 $8,559,961 $108,070,879 1.0% $1,080,709 $2,332,659 $28,553,249 $30,885,908 1.0% Sales Tax Revenue from the Remaining Center $308,859 Total Sales Tax Revenue to the City of Lodi $1,389,568 Sources: California State Board of Equalization; and CBFRE Consulting. (1) Refer to Exhibit 1. (2)The Wal-Mart Supercenters total grocery sales are estimated at $28.5 million (referto Exhibit 1). It is estimated that only 30.0 percent of grocery sales are taxable. (3) Information obtained from the California Board of Equalization. (4) It is estimated that only 33.0 percent of drug store sales are taxable. Exhibit 3 Proposed Lodi Shopping Center Business License Tax Revenue 2008 Dollars Business License Tax Assumptions (1) Amount Business License Tax Revenuefrom Proposed Wal-Mart Total Gross Receipts $128,044,120 Tax Rate (1) $1.00/$ 1,000 Estimated Total Business License Tax for Wal-Mart $128,044 Business License Tax Revenue from Other Stores Apparel (2) Total Gross Receipts Per Store $609,900 Tax Per Store $210 Estimated Total Business License Tax for 4 Stores $840 Drug Store Total Gross Receipts $7,068,664 Tax Rate $.60/$1,000 Estimated Total Business License Tax $4,241 Eating and Drinking Places (3) Total Gross Receipts Per Stores, 4 Fast Food $1,150,688 Total Grass Receipts Per Store, 2 Sit -Downs $1,781,250 Tax Per Store $450 Estimated Total Business License Tax $2,700 Other Retail (4) Total Gross Receipts Per Store $900,000 Tax Per Store $450 Estimated Total Business License Tax for 20 Stores $9,000 Non -Retail Uses (5) Total Gross Receipts, 8 Spaces N/A Tax Per Business $50 Estimated Total Business License Tax $400 Total for Other Stores $17.181 Total Estimated Business License Tax Revenue from the Center $145,225 Sources: City of Lodi Finance Department; and CBRE Consulting. (1)The City of Lodi Finance Department the Business License Tax Rate for the Retail and Services Group is as follows: Gross Receiuls Tax or Tax Rate $0 to $200,000 $50 $200,001 to $500,000 $98 $500,001 to $900,000 $210 $900,001 to $3,000,000 $450 $3,000,001 to $10,000,000 $.60/$1,000 510,000,001 and greater $1.00/$1,000 (no limit) (2) Gross receipts for Apparel estimated based on 4 stores at 2,033 square feet each. (3) Gross receipts for Eating and Drinking Places estimated based on 4 Fast Food and 2 Sit - Down restaurants at 2,423 and 3,750 square feet each, respectively. (4) Gross receipts for Other Retail stores estimated based on 20 stores at 3,000 square feet each. (5) Gross receipts for Non -Retail spaces conservatively estimated using 8 spaces at the minimum tax rate. Exhibit 4 City of Lodi General Fund Revenue Impacts Wal-Mart Supercenter Property Tax Revenue 2008 Dollars Amount Wal-Mart Supercenter Total Direct Construction Costs (1) $26,800,000 Indirect Cost Estimate (2) $7,300,000 Land Cost (3) N/A Total Project Costs Excluding Land $34,100,000 Total Tax Basis (excluding Land) $34,100,000 County Tax Rate (4) 1.0517% Total Tax to County $358,630 City Share of the County Tax Rate (4) 11.41% Net Property Tax Revenue from Wal-Mart Supercenter (4) $40,920 Sources: San Joaquin County Treasurer -Tax Collector; Wal-Mart Stores Inc.; California State Board of Equalization; Bay Area Economics; and CBRE Consulting. (1) Construction cost estimates provided by Wal-Mart Stores, Inc. (2) Indirect construction costs estimates provided by Wal-Mart Stores, Inc. (3) Net property tax revenue reflects tax on only the hard and soft costs of the project, excluding land cost. It is assumed that property tax is already being assessed on the land value; therefore, it is not incremental to this analysis. (4) Information provided by San Joaquin County Treasurer -Tax Collector. Exhibit 5 City of Lodi General Fund Impacts Net Increase in Soles Tax Revenue From Proposed Lodi Shopping Center Sales Tox Assumptions Amount LODI SHOPPING CENTER Sales Tax Revenue from Proposed Wal-Mart Supercenter Non -Grocery Sales (1) $99,510,918 Taxable Grocery Sales (2) $8,559,961 Total Taxable Sales $108,070,879 Local Tax Share to General Fund (3) 1.0% Sales Tax Revenuefrom Wal-Mart $1,080,709 Sales Tax Revenue from Other Stores in the Center Taxable Drug Store Sales (4) $2,332,659 Other Taxable Sales (1) $28,553,249 Total Taxable Sales $30,885,908 Local Tax Share to General Fund (3) 1.0% Sales Tax Revenue from the Remaining Center $308,859 Total Sales Tax Revenue to the City of Lodi 2005 Dollars $1,389,568 2007 Dollars (5) $1,491,241 [A] LESS: EXISTING LODI WAL-MART STORE Sales Tax Paid to City of Lodi (2007) (6) $548,217 [B] PLUS. REPLACEMENTTENANTSAT EXISTING LODI WAL-MART STORE Taxable Sales (7) $42,100,000 Local Tax Share to General Fund (3) 1.0% Sales Tax Revenue from ReplacementTenants $421,000 [C] NET INCREASE IN SALES TAX REVENUE TO CITY (F LODI [A $1,364,024 -B+C] Sources: Californio State Board of Equalization; State of California Departmentof Industrial Relations, Division of Labor Statistics and Research; Wal-Mart Stores, Inc.; and CBRE Consulting. (1) Refer to Exhibit 1. (2)The Wal-Mart Supercenters total grocery sales are estimated at $28.5 million (referto Exhibit 1). It is estimated that only 30.0 percentof grocery sales are taxable. (3) Information obtained from the California Board of Equalization. (4) It is estimated that only 33.0 percent of drug store sales are taxable. (5) Escalation based on the State of California Department of Industrial Relations, Division of Labor Statistics and Research; annual CPI changes 3.9 percent from 2005-2006 and 3.29 percentfrom 2006-2007. (6) Information provided by Wal-Mart Stores, Inc. (7) This estimate is based on an industry sales per square foot standard of $350 multiplied by 120,352 squarefeet. Page 1 of 1 Jennifer Perrin From: Randi Johl Sent: Tuesday, May 12,2009 03:59 PM To: Jennifer Perrin Subject: FW: Walmart From: Dan Wolcott [mailto:dan@downingpaint.com] Sent: Tuesday, May 12, 20091:17 PM To: Randi Johl; Susan Hitchcock; Bob Johnson; JoAnne Mounce; Phil Katzakian; Larry Hansen Subject: Walmart Again we are facing the Wal-Mart issue in a meeting on Wednesday. I am amazed that you all have kept your council jobs, which at some point I voted for you all and that will not continue, It seems to me that over the years the people of Lodi (or the voting majority) have said no to the Wal-Mart super center and yet we continue to be dealing with that same issue. If you look at the vacant retail space that is in Lodi Oust look across the street from the proposed Wal-Mart development) adding more makes no sense. What you gain you lose, as an example my wife owns a business in the Vintners Square (Lowe's) shopping center and the addition of the Wal-Mart development and what it will bring will shut her down. She is a life time (born and raise) Lodian and a women owned business that can not compete against the corporatefunded competitors. The hope as I see it, based on the councils decision to continue to support bad growth is that she only has 2 years left on her lease and can then walk away and open her business in Galt. I think what totally amazes me is that the planning commission say no, the people say no and still three out of five council members continue to say yes. Although I may have a personal stake in this decision I have tried to understand this from a unbiased point and even then I can not get a hold of the reason we would consider bad growth. With Reynolds Ranch already approved and the fact that there are a large number of vacant building within the proposed project area there is noway this is a good decision. Wal-Mart already exist within a quarter mile of the new project and all they want is to expand their grocery lines on a corner that now has two other large grocery stores. You are not gaining resale dollars you are trading. Someone needs to help me understand why this make sense I just don't get it and therefore have a hard time supporting those I helped put in office. Please help me understand and for once do the correct thing that the people of Lodi have asked you to do. Dan Wolcott Juice It Up 05/12/2009 Ann M. Cerney 900 W. Vine Street — Lodi, CA 95240 Hand -delivered May 12,2009 Mayor Larry Hansen City of Lodi 221 W. Pine Street Lodi, CA 95240 Re: Lodi Shopping Center Project Hearing, May 13,2009 Dear Mayor Hansen: This is written to express my continued opposition to the above -captioned project. My objection is based on the same grounds previously articulated at numerous City Council meetings and Planning Commission meetings. Please consider my objection along with those of other opponents and adopt the NO PROJECT alternative. Thank you for your attention to this matter. Sincerely, ANN M. CERNEY Attorney at Law Page 1 of 1 Jennifer Perrin From: Rebecca Wallace [rlwallace72@yahoo.com] Sent: Tuesday, May 12,2009 07:38 PM To: Randi Johl; Susan Hitchcock; Bob Johnson; JoAnne Mounce; Phil Katzakian; Larry Hansen Subject: Super center Good Evening Everyone, My name is Rebecca Wallace. I've worked for Wal-Mart for 12 years. (was a cashier for 1 year. Iwas promoted to a Customer Service Manager and held that position for 4 years. After that 1 needed a change of position/hours so 1 became a Garden Cashier. While Iwas in that position Iwas asked if Iwas interested in coming to Stockton and helping them open the Supercenter and work in Personnel. It was a huge opportunity for me and Itook it. Iwas there 2004 to 2007. The best time of my career at Wal-Mart. Ilearned so much about FMLA,hiring,legal matters,etc.. The position Iwas in at Stockton opened in Lodi. (jumped at the chance to take it because it was closer to home and Iwas looking to the future when we get a Supercenter. (will have the knowledge and experience to know what needs to be done, what to look for in potential associates etc.. So I've been back in Lodi since 2007. I've added Community Involvement to my title since coming back. I'm telling you it has been a great feeling to give to the community 1 live in and my children are growing up in. I'm given a dollar amount each month to give out at a store level. I give in the form of Gift Cards, raffle baskets, pallets of water, and so on. lalso have an amount each year to give out for grant money. We have given to World of Wonders, Big Brothers Big Sisters, Salvation Army, Relay for Life, Lodi Memorial, Foster Care facilities, and Make a Wish Foundation. We will be taking 10 foster kids to go see a Monarchs game on June 6th, something that those kids would not normally be able to see.This is just to name a few things. I f we were to go Supercenter I would recieve more money to give to the Community. The Stockton store recieves $5,000 more money than we do in grant money. We need that money for Lodi to help people with fundraisers and give to the organizations. Please consider this as just one reason the Supercenter should be built. We have great people who work here. I love going to work everyday. Please don't stop the growth of such a great place to work. Let it expand to what it needs to be. Also, another quick point. We are still hiring in this economy. Can many other places say that?? Thank you for your time, Rebecca Wallace Training Coordinator, ......... Community Involvement Coordinator........ Since 1997 and counting!! #1789 Lodi, Ca 05/13/2009 Jennifer Perrin From: Don Mooney[dbmooney@dcn.org] Sent: Wednesday, May 13,2009 11:49 AM To: Randi Johl Subject: Wal-Mart Hearing Attachments: 2009-05-13_11_15_54.pdf 2009-05-13-11-15 _54. pdf (2 MB) ... Ms. Johl, Attached is a letter on beha f Citizens for open Government regarding the hearing tonight. Also, please send me any recent submittals to the Council, including anything received this afternoon so that I may have an opportunity to review them prior to the hearing this evening. Don Mooney Law Office of Donald B. Mooney 129 C Street, Suite 2 Davis, CA 95616 530-758-2377 530-758-7169 (fax) LAW OFFICES OF DONALD B. MOONM 129 C Street, Suite 2 Davis, California 95616 'rely phone' (530) 758-2377 F:.wslinile ON)) 75S-7167 dbm,,)onev@dcn.org May 13,2009 VIA ELECTRONIC MAIL AND HAND DELIVERED 01V C"OUnC11 Melnbers City of Codi 22 l West Pine Street I.,odl, California 95241-1910 Re: Consideration of the Lodi Shopping Center State Clearinghouse No. 2003042113 Dear Citi' Council Members: On beha, l F of the Citizens for Open Government ("Citizens"), we urge you to deny the Lodi Shopping Center/Wal-Nlart Supereentel. project (or the "Project"). In October 2008, the Planning Commission deterin ined that the Final Environmental Impact Report ("I, IR") for the Project was inadequate and denied certification under the California Environmental Quality Act ("CEQA"). On appeal by Wal-Mart and Browman Development Company, the City Council reversed the Planning Commission's S decision and.ccrtified the F IR as complete. The Project then came before the Planning Commission fora decision on the merits of the CEQA hidings and the Project approvals themselves. In April 2009, the Planning Corninisslon rejected the findings and denied the project on a split vote. after multiple appeals; the matter comes back before the City C:OUnCil to n'lake a number of necessary project specific Endings under CEQA and For consideration of the Project itself. The City Council should reject the Project on the fol low ing grounds. Alternative Analysis Was A Sham The City Council is being asked to find tinder CEQA that it has been presented with a range of feasible alternatives and to reject each and every alternative. (Findings at 30-33.) However, the City Staff states that the City Council possesses little discretion regarding the project approvals. (Staff Report at Conclusion.) Given that the City maintains that it lacks discretion to consider alternatives, the City Council cannot make the findings regarding a reasonable range of alternatives. iL3. Feasible Mitigation O naortunities Remain for Farmland Destruction The City Council is being asked to find that no further feasible mitigation exists for significant project and cumulative loss ol'prime agricultural farmland. (CEQA City Council LVlembers May 13, 2009 Page 2 o 1'4 Findings at 2-3.) Ilowever, multiple additional feasible mitigation opportunities exists to further reduce significant impacts, including but not limited to increasing the ratio of uonserw tttion easements to greater than I :l (indeed, no argument to the contrary, is Presented) or locating previously disturbed prime lands to rehabilitate. The Council therefore cannot Lind that all feasible mitigation measures for signilleant impacts to :hgricultural resources have been exhausted. No Rational Basis E:xists,to Find Urban Decay Tess `]'hall Sit llifieant The City Council should examine closely the proposed CEQA finding {at 24-26) that approval ofthe Pro ect will definitively cause no significant urban decay. This iinditlU is wV-holly, unwar-i-anted by the record. First, the analysis is premised on economic conditions existing in 2006. Without a doubt, the present.dadicaIly different conditions wvill exacerbate the ecanonhia impacts associated with the Project, Consumer spending is dow'n, thus the pre, to be divided among downtow3-11 existing retailers and the new Wal - M,11 -t Supercenter/retail space, has shrunk substantitiIIy. Not only are consumers holding onto their money but also the tough economic times have resulted in decreased consumer resources. Nest, comnhercinI credit markets are exlraordinarihJ tight nraiting existing business much less able to adapt to losses in reventie. l"inally, the trade area has slhrtutk given new competitors in adjacent communities further reducing consumer dol lars available to keep all existing business afloat. These sour economic conditions arc exacerbated by the City recent approval and then redesign of the Reynolds Ranch project to place additional competitors near downtown and other retailers. Moreover, while the City intends to count over S421.000 in tax revenue from retena.tine the existing Wal-Mart site, it does not include in its economic/urban impacts analysis the additional draw away From existing business of the retenated retail space. l Hie City's economic consu.Ittint brushes aside al I concerns with naive speculation and presumptions. In a recent letter, BAE' states that no change in its rosy economic analysis isnecessary given the "unanticipated" economic downturn because the consultant considers it to be "difficult." (March 11, 2009 BAB letter at 6.) 1 he City's consultant also speculates that the Wal-Mart w -ill not be built fool several years, the economy may improve in that time and all will be well. (Id. at T) Given the enormous consecJttenccs to the existing business and local residents, the Citizens would hope that prior to approving, major new retail space, that will have a confirihred adverse and substantial economic impact, that the City preformed a good Faith analysis under these new economic conditions even if it proves to be difficult. Simply relying on hopes that the economy ww ill turn around provides no sound basis to affirmatively conclude that tine Project will have no significant Urban decay impacts, i We also n o — h Project Conditions R(b) (restricting sale to a retailer) and FF seem to be contradictory as the latter requires sale of the existing Wal-Mart property Without precondition as to who the purchasers may be. Cite Council Members -Tay 13, 2409 PaLre 3 of 4 To avoid taking a hard look at the economic impacts for the proposed Projcct, the City has consistently fallen back on "aggressive enforcement" of nuisance ordinances as its urban decay failsafe regardless of the impacts to its local businesses. (See e.g., March 11, 2000 BAE letter at 7). The evidence before the Council, howe\ cr, renders this reliance displaced, For example, from the existing conditions decayed downtotivn and elsewhere, the City has not been at all successful in avoiding such conditions in the past. Moreover, the City points to no evidence the; since its adoption several years ago o.f.'a resolution addressing code enforcement that its has "aggressively" remedied any existing conditions of urban decay. Next, the City is suffering from major budgetary shortfalls resulting in staff furloughs and firing freezes. Ill times of reduced budgets and personnel, the City`shope ol""aggressive" enf rce.ment is not based on any hard facts indicating it has the capacity or changed past practice in flush times to address the likely business failures resulting from approval of the Projcct. In short, no conditions seem too adverse for the City's consultant to dismiss out of hand. 4. Global Warming,indings lna wn z•itite Hie City Council is asked to hind that "it is not required to conduct analysis of globad warming." (C EQA Findings at 29.) The Citizens disagree. The City miscd global ca-arn1Ilia and energy concerns in its revisions to the FEIR and cannot now CIucic the consequences of all adequate analysis. In addition, Council members are free to choose to reelc a full disclosure in a C1QA contest of the global warming impacts of the Project prior to making findings regarding its environmental impacts. In this vein, Wal -Mart's yel I' serving global warming "Climate Change" report should not be accepted as a ubstitute for a non -partial report whose preparation was overseen by staff and subject to rigorous pub] is review and comment. Statement of Overridiniz Considerations Inadecivate The City Council is being asked to override all allegedly significant but unavoidable environmental impacts and approve the Project based on a lists of slaeculati.ve project benefits. (CEQA Findings at 34-35.) Ili order to approve, a statement of ov=erriding considerations, the City Council must be fully informed its to all impacts and exhausted all reasonably feasible alternatives and mitigation measures. As detailed above, the. City has not exhausted available mitigation nleastu•es (e.g., for prime f:armland), conducted an holiest look at alternatives, or disclosed to the full impacts of the project (e.g., urban decay, global warming). Thus, on the environmental impacts side, the Council should refuse to override impacts until the City conducts the necessary analysis. Turning to the benefits side (to be balanced against the disclosed environmental impacts), the City has not revealed to the Council the true nature of the economic consequences of the Project. The City claims a substantial sales tax increase expected from approval of the Project. However, as noted above, that projection was based not on City Council Members May 13, 2000 Page 4 of 4 current economic conditions. Moreover, the impact to existing business will be more seN ere than anticipated under rosy economic times so the actual net economic beatefit to the City has not been disclosed to the Council or the public. Moreover, the other benefits allcgedly gained do not outweigh either the identified significant environmental impacts of the project or the adverse consequences to existing Lodi retailers and local businesses. For example, employment benefits cannot be tied to Lodi residents were as exiting job loses wiII adversely affect Lodi citizens. Similarly,do "infrastructure improvements" and it Wal-Mart as a "high quality„ gateway to Lodi really outweigh (he known consegLienccs? In conclusion, the City Council should reject the: l..,odi :Shopping Center for tile reasons set forth above. Sincerely, onak 1,.1 gooney John 1— Marshall Attorneys for Citizens for Open. Government ALM& E V V OOD ' ESS. Tn1 PM' tock#on, Lod4 Manteca, Los Bano% ya s, Ceres, Atascadero, Stockton, Lodi San Luis Obispo, Paso Robles Randi Johl CITY CLERK May 13 2009 CITY OF LODI y City Clerk 221 W. Pine Street Lodi, CA 95240 v�mEs Oahu Subject: Lodi ShoppingCenter/Wal-Mart Supercenter May 13,2009 City Council Hearing. Disclosure Regarding Gift of Tickets Dear Ms. Johl, PAQ Inc. (doing business as Food 4 Less and Rancho San Miguel supermarkets), is one of the appellants opposing the Lodi Shopping Center/Wal-Mart Supercenter project which the City Council will consider on May 13, 2009. PAQ, Inc. prides its self on positively impacting the communities it serves and demonstrating good corporate citizenship at all times. Due to the potential implications of the following events, and in abundance of caution, PAQ, Inc. feels necessary to disclose the following on the record. PAQ, Inc. owns various season tickets to professional sporting events, including floor seats to Sacramento Kings' basketball games. On April 2"d Councilman Katzakian's wife phoned PAQ, Inc.'s Marketing Director, Chris Podesto, and asked Mr. Podesto to provide tickets to an upcoming Kings' game. The Councilmember's wife and Mr. Podesto are distant relatives ( grandparents of each were siblings). In response to her request, on April 3rd Mr. Podesto provided two front row tickets to Mrs. Katzakian for the April 5th, 2009 Kings' home game at Arco Arena. The face value of each ticket provided was $960. These tickets are often used for corporate marketing events. As PAQ, Inc. understands the situation, the tickets were ultimately used by the Councilmember's daughter and a friend. Because the Councilmember's wife is a distant relative, Mr. Podesto didn't perceive the potential for a conflict of interest by giving Mrs. Katzakian the tickets; however, upon subsequent review by our corporate advisors, PAQ, Inc. believes it necessary to disclose this information to you and the Council. This situation is complicated by the fact that PAQ, Inc. filed an appeal of the Planning Commission's April 8d` action regarding the proposed Supercenter — after providing the tickets to Mrs. Katzakian. The Planning Commission reached a tie vote regarding whether to approve the project, and because no discussion was given as to how the tie would be resolved, PAQ, Inc. appealed. Despite the embarrassment that may result to all involved, the company believes it prudent and necessary to disclose this matter in the midst of the appeal process before the Council. We desire to see this process operate in complete transparency and, accordingly, make this disclosure to avoid any problems that may arise from that gift. Unfortunately, this perfect storm of events 8014 LOWER SACRAMENTO ROAD, SUITE I, STOCKTON CA 95210 • (209) 957-4917 • FAX(209)956-8525 FoaDdLus. 0 Stockton, Lodi, Manteca, Los Banos, v� Salinas, Ceres, Atascadero, San Luis Obispo, Paso Robles Oahu makes the present situation entirely uncomfortable for PAQ, for Mi-. Podesto, and we assume for the Councilmember and his family. This obviously was not Mr. Podesto's intent in agreeing to Mrs. Katzakian's request, and accordingly Mr. Podesto and PAQ, Inc., as a whole, are truly embarrassed by the situation. We do not offer a legal conclusion on whether this transaction creates a conflict of interest precluding the Councilmember from voting on PAQ's appeal, but we do know that these events create a very uncomfortable perception of conflict and bias and, realize that this public disclosure may even trigger a backlash from the Councilmember to vote "against" this perceived conflict or bias. Accordingly PAQ, Inc. encourages the Councilmemberto avoid the potential conflict and excuse himself from voting on the appeals. I would appreciate your assistance in this matter and look forward to your advisement should it be warranted. Thank you, President/CEO 8014 LOWER SACRAMENTO ROAD, SUITE I, STOCKTON CA 95210 • (209) 957-4917 • FAX(209)956-8525 Page 1 of 1 Jennifer Perrin From: MABEL MARTIN [mmm32mom@yahoo.com] Sent: Wednesday, May 13,2009 01:46 PM To: City Council Subject: Wal Mart I urge you to vote NO on Wal Mart. We do not need it or want it. I am a Lodi resident. Do the right thing. Vote NO Mabel Martin 05/13/2009 Page 1 of 1 Jennifer Perrin From: Russ In Lodi [russemartin@yahoo.com] Sent: Wednesday, May 13,2009 01;52 PM To: City Council Subject: No on Super Wal-Mart, Lodi resident, thank you. 05/13/2009 Page 1 of 1 Jennifer Perrin From: Philip King [pking@sbcglobal.netj Sent: Wednesday, May 13,2009 01:58 PM To: RandiJohl cc: Brett S. Jolley; skingl @pacific.edu Subject: Replyto Commenston my earlier Report concerning the proposed Wal-Mart Supercenter in Lodi Attachments: WM response May 2009 Lodi with vitas.pdf Ms. Johl: Please provide the attached memo to the City Council for tonight's hearing on the Lodi Shopping Center Project. Thanks Dr. Philip King 05/13/2009 May 13,2009 To: City of Lodi From: Philip King, Associate Professor of Economics, San Francisco State University Sharmila King, Associate Professor of Economics, University of the Pacific Re: Response to Allegations in Recent Wal-Mart Submissions Introduction It is come to the authors' attention that Wal-Mart recently submitted documents to the City accusing the authors of exhibitingbias against Wal-Mart and being "consistently wrong" in urban decay analyses prepared for other communities."' These statements are untrue and inaccurate. Neither author is biased against Wal-Mart or any other particular retailer. However, we do have expertise in this field (as evidencedby the numerous communities in which we have been asked to consult on the impacts of various big -box retail projects including Wal-Mart, Home Depot, Lowe's, and Target). Dr. Philip King also served as an expert consultant to the City of Stockton on its adoption of a big box ordinance in 2007 and co-authored the 2003 economic impact study relied upon by the court in Bakersfield Citizens for Local Control v. City of Bakersfield to overturn Bakersfield's treatment of urban decay from two Supercenter -anchored shopping centers. Dr. Sharmila King is an Associate professor of Economics at the University of the Pacific in Stockton and has a strong understanding of the local economies of Stockton and surrounding communities in San Joaquin County, such as Lodi. Neither CBRE nor BAE can claim these credentials. And, unlike CBRE or BAE, the authors derive the vast majority of their incomes from their professorships, rather than from occasional consulting. Therefore contrary to the accusations, we are not professional"hired guns" like CBRE and BAE, but rather economists and academics concerned with what we perceive, in our professional opinions, as the over -retailing of smaller California communites, ultimately leading to signficnat negative economic climates in these communities. We are not -anti growth. We are not even anti -retail. However, we do recognize that impacts from over -retailing a community will ultimately have a negative impact on both the economy and the environment. While we are not fortune-tellers,we do have experience analyzing the data and making fact -based predictions of urban decay impacts. In our professional opinions, this Project is j ust such an example of over - retailing that will lead to significant and unhealthy retail vacancies, increased store closings, and decay that must be addressed now rather than later. Summary of Points Our collective experience has established a strong foundation on the topic of big -box - related urban decay in California and from that knowledge the authors recognize that certain types of retail development is more likely to cause and contribute to increased vacancies and urban decay. At the forefront are "Supercenters" which based on their size, ' As we understand these documents were submitted to the City in March and April of this year, and were provided to Counsel for Lodi First by the City on April 29,2009. hours of operation, and compilation of nearly every type of retail item (and several service items) tend to collect sales dollars from existing retail -- rather than by providing new retail spending -- in tun cannibalizing other stores in the community. This cannibalization,particularly in this economic climate, leads to business closures and potential urban decay. Of course, this must be determined on a case-by-case basis which the authors have done on several occasions. In this case, it is our professional opinion that the EIR process has not adequately addressed this impact because it fails to consider existing blight in Lodi (which will be exacerbated rather than alleviated by development of this project), omits relevant sales data, and significantly overstates the fiscal benefits of the project. We believe the personal attack levied by Wal-Mart is inappropriate. To bolster this point, we demonstrate herein that our prior analyses of urban decay in cities in which Wal-Mart claims wrong, are in fact consistent with the current conditions on in those communities.z The appendix to this memo contains a more complete response to these allegations.. Here are the key points: • To our knowledge, neither CBRE nor BAE (Wal -Mart's preferred consultants) has ever concluded significanturban decay from a Supercenter or other big -box store anywhere in California. • The Wal-Mart attach cherry -picked a few cities and caricatured our analysis. Nevertheless: o In three of the five cities Wal-Mart discusses, a former Wal-Mart store was closed, just as one will be in Lodi. In all of three cities, the EIR's predicted that the Wal-Mart stores would be retenanted and our obiections were rebuffed as "gloom and doom." All three of these former Wal-Mart stores are still closed and the shopping: centers they anchor are crippled with vacancies and poor maintenance. o These cities3 have seen increased vacancies, deteriorating downtowns, and urban decay. ■ Vacancies in Anderson have skyrocketed. Wal-Mart states that the Outlet center has benefited from the Supercenter, but vacancies have increased to 30%, the level at which a center is considered to be a "greyfield," in serious trouble. The center anchored by Safeway is close behind, with a 29% vacancy rate and even the center anchored by Wal-Mart has over a 20% vacancy rate. Urban decay has significantly increased in downtown Anderson. Most of the stores that the authors predicted would close have, in fact, closed, including the Holiday (Super)market. ■ An analysis we conducted two years ago in Hanford indicated that urban decay had significantly encroached on the downtown, which 2 Interestingly, this attack is similar to one produced by CBRE in another community in 2007. 3 In the case of American Canyon the urban decay is in Vallejo next door, as Dr. Philip King predicted. 4 Vacancy rates are measured by the number of closed stores vs. total number of stores. was once praised, and in centers anchored by the closed former Wal-Mart and the Monte (Super)market, closed after the Supercenterwas built—adding over 330,000 square feet of empty and deteriorating space in Hanford. Since then, Mervyns has closed, Gottschalks will close along with many other stores. The Supercenter in American Canyon exacerbated urban decay in Vallejo as we predicted. Sonoma Blvd., just down the road from the Supercenter, is loaded with deteriorating shopping centers with high vacancy rates. The former Wal-Mart which relocated from Vallejo to American Canyon remains closed; a Mervyns is now closed, and dozens of other stores are closed. The vacancy rate is well above the 10%uhhealthy threshold at most of these centers. Although we did not have time to visit Gilroy or Yuba City since receiving Wal -Mart's claims, , we have spoken with knowledgable sources in these communities who explain that vacancies have risen substantially and the downtown in Gilroy continues to deteriorate. Marysville, right next to Yuba City, suffers from serious urban decay exacerbatedby Supercenters in Yuba City and Marysville. o Finally, Wal -Mart's claim that Supercentersboost other business is fallacious. While Supercentersmay boost some businesses, overall they take sales away from most businesses. And the "Navigant" report completed in late 2008 does not support Wal -Mart's conclusions. o The original study for the City of Lodi was deeply flawed and was thrown out by ajudge. We do not relish going over these issues again and again. Ultimately it is the city's decision as to whether to approve a Supercenter or not, but CEQA does require that a good faith, objective analysis be conducted so that citizens can make an informed and reasoned choice. As explained in our December 2008 report submitted to the Council (incorporatedherein by reference), this requirement simply has not been satisfied. Conclusion Wal-Mart claims that we are biased while CBRE and BAE are somehow objective. It is clear that CBRE and BAE each has a long term relationship with many developers and big box stores, including Wal-Mart and that CBRE and BAE values these relationships. The developerpays for these reports and clearly expects a certain outcome. This is not the purpose of CEQA or the EIR process. If Lodi wants a Wal-Mart Supercenter, that is ultimately up to the City and its citizens. This process has dragged on largely due to Wal -Mart's failure to accurately assess the situation. The original urban decay report was thrown out by the Court because it omitted one million square feet of new retail! That is a large oversight and inexcusable give the resources that CBRE had at its disposal. As explained previously, the current EIR's urban decay analysis is also materially flawed in several ways: (1) It omits existing blight in east Lodi identified by the City Council and fails to accurately describe the economic environmental setting (2) it concludes "insufficient evidence" exists to determine whether significant urban decay will occur from the project (where, as here, Lodi has existing decay and blight, declining retail spending, and the EIR admits several store will close this is, in fact, substantial evidence that the likelihood of urban decay is significant); (3) the EIR omits the considerationof an additional 100,000 square feet of retail from the Reynolds Ranch project -- a significant omission representing a substantialpercentage of eminent and approved Lodi retail development which will add to decay impacts in Lodi if this project goes forward, and (4) assumes the Project will generate significant tax revenues but relies on inconsistent and unsupported overstatements of sales tax benefits provided by the developer and Wal-Mart without considering the offsets from loss of revenue from other retailers in Lodi -- including closing the existing Wal-Mart store which, history shows, is likely to remain vacant (and non -tax -producing) for a number of years. These errors and omissions are not inconsequential. Instead, when the necessary information is included, the significance of the impact is realized and the EIR must address this through mitigation or overriding considerations. The EIR and consultant reports fail to follow this requirement. Instead, the EIR plays "hide the ball" with the data to avoid findings of significance, to avoid mitigation, and ultimately to avoid disclosingthe true impacts of the project. The appendix to this memo documents these issues in more detail. Appendix to Memo responding to Wal-Mart and CBRE This appendix will respond in more detail to specific allegations made in the memo proffered by Wal-Mart and CBRE. Response to Claims Regarding Urban Decay in other Communities: Anderson Contrary to allegations made by Wal-Mart, vacancies and store closings have increased considerably in the years since the Supercenterwas built. Wal-Mart argues that the outlet center across the street has benefited, yet the vacancy rate is now at 30%, a threshold rate which indicates a decaying center. Most of the stores we predicted would close have indeed closed. Overallbusiness traffic is poor and many stores are struggling. Figure 1: One of many closed stores at the Shasta Outlet Center in Anderson Figure 2: Downtown Anderson has struggled with many vacancies. Signs of urban decay near North and Center Street near downtown Anderson. Figure 3: One of many closed stores downtown. Figure 4: One of many closed stores at the center anchored by Safeway. Although the shopping center is not that old, it shows signs of poor maintenance already Downtown Anderson is filled with marginal businesses such as thrift stores and check - cashing stores. The existence of these stores indicates very low rents, which leads to lack of maintenance and urban decay. The center anchoredby Safewayhas a 29% vacancy rate and many buildings already show signs of deterioration (see Figure 4) above. Overall, Anderson is far from what WAL-MART has depicted. There are clear signs everywhere that stores are struggling due to sales displacementby the Supercenter. American CanyonNallejo Dr. Kin 's original declaration for the Supercenter in American Canyon specifically mentions urban decay in Vallejo, which is immediately adiacent to the site, not in American Canyon. WAL-MART's memo implies that the declaration predicted urban decay in American Canyon, when it did not. In Vallejo it is clear that numerous shopping centers on Sonoma Blvd. (the main shopping areajust down from the Supercenter) are experiencing poor maintenance and high vacancies —the precursors of serious urban decay. Further, the condition of these stores has deteriorated significantly since the Supercenterwas built several years ago. Urban decay does not happen overnight. It is a long process, but once it sets in, it is very difficult to eliminate. CBRE claimed that in Lodi the blighted buildingsjust east of the downtown area were due to landlord neglect, but the story is simplerthan that. Landlords only neglect property when it doesn't pay to maintain the property. In our opinion, this is the situation now in many shopping centers on Sonoma Blvd. in Vallejo. The former Wal-Mart store, which CBRE claimed would be retenanted. has been vacant since its closing and vacancies in the shopping center it co-anchors are rising while maintenance is falling. Figure 1: The Wal-Mart in Vallejo closed soon afterthe American Canyon store opened and has remained closed for years. Many stores nearby are also vacant and the shopping center is deteriorating. Figure 2: The closed Mervyns in Vallejo just down the road from the closed Wal-Mart. The cumulative impact of these closures is serious. Figure 3: One of many closed stores on Sonoma Blvd. Hanford Dr. King's 2007 memo included a detailed description of store closings in Hanford at the time, which were substantial. Since then, Mervyns has closed and Gottschalks are slated to close and we are told that the downtown has shrunk further. It should also be pointed out that in 1985, downtown Hanford was chosen as "Best of the State" in a competition sponsored by the League of California cities. Hanford (unlike Lodi) has an ordinance which requires furniture stores to locate downtown, and this has helped slow the deterioration and shrinkage downtown, but has not prevented it. The full 2007 report is attached. Here are the most salient facts: • The Monte Mart, a large (55,000 square foot) independent grocery store in the Hanford Towne Center, closed soon after the Supercenter opened and the store has not been retenanted. Proponents of the Supercenterhave argued that the store would have closed anyway, but its sales were very healthy before the opening of the Supercenter; even if the owners had wanted to close the Monte Mart store, someone else could have been found to take over the business, a commonpractice when an owner of a successfulbusiness retires or closes a store. The entire shopping center anchoredby the Monte Mart, is seriously underutilized and had an additional 15,000 square feet of vacant space in 2007. • When the Supercenter opened, the existing Wal-Mart in the Centennial Plaza shopping center was closed. It is still vacant today (May 2009) and the rest of the shopping center is struggling. • In 2007, although the core of Hanford's downtown contained many businesses, the periphery of the downtown area suffered from urban decay, with many closed and deterioratingbusinesses. Hanford's historic Chinese stores were badly deteriorating, despite efforts to retenant some of the stores. • The 2007 memo took an inventory of closed stores in Hanford and estimated the total square footage of closed stores in downtown Hanford and at the two shopping centers anchored. Over 330,000 square feet of vacant retail space existed, including a large number of closed and dilapidated buildings in or near downtown Hanford. Please keep in mind that Hanford is a small city, about 2/3 the size of Lodi or Elk Grove or 1/7 the size of Stockton, so this is a significant overhang of closed stores. Figure 4: The Closed Monte Mart in Hanford Figures 5 and 6: The old Wal-Mart has closed in Hanford and not been retenanted. Figure 7: This old awning and tarp store in downtown Hanford was closed and falling apart. Figures 8 and 9: More urban decay downtown. Table 1: Closed Stores in Hanford with Estimated Square Feet (From 2007 Study) Location Est Square Feet 312 Sixth St. 1,000 210 Sixth 3,000 100 Sixth 61000 116 Sixth 25,000 Fifth/Douty 2,000 601 Seventh St. 1,500 520 Seventh 21000 410 Seventh 21000 407 Seventh 1,000 333 Seventh 5,000 203 Seventh 8,000 125 Haris at Seventh 400 Seventh Douty 40,000 110 Seventh 3,000 120 Douty at Seventh 800 118 Seventh (closing) 1,500 Eighth (across from Sears) 2,000 Eigth and Irwin 4,000 312 Seventh (Old Sears) 40,000 130 Eight 1,000 Montemart 55,000 Space next to Monte Mart 2,000 2 stores in front of Monte Mart 15,000 Closed Wal-Mart 110,000 Store next to Wal-Mart 2,000 Tntal 333.200 Gilroy We were not able to visit Gilroy. However, I spoke to people in the commercial real estate business downtown area in Gilroy continues to deteriorate and vacancies are rising. The closed Wal-Mart in Gilroy continues to be closed. Yuba City Vacancies in Yuba City have risen substantially including a closed Mervyns and a soon to be closed Gottschalks. However, like in American Canyon, the most significant decay has occurred in neighboring Marysville, which suffers from serious urban. These "twin cities" are adjacent and hence should be examined together, which the WAL- MART memo did not do. Other Cities: Woodland Since the WAL-MART memo has accused us of bias against Wal-Mart and cherry - picked examples of "successful" Supercenter development, we believe it is only fair to offer a couple of counterexamples —involving CBRE reports for Home Depot. In an urban decay report prepared for a Home Depot in Eureka this year, CBRE referred to the City of Woodland as a success story integratingbig box stores. Like Lodi, Woodland is a medium sized city in the central valley near a larger city (Sacramento as opposed to Stockton). Like Lodi, Woodland has experienced a substantial increase in retail over the last 5-10 years along with growth in residential development which has now slowed to a crawl. In addition to the Home Depot, a new Wal-Mart (non Supercenter), a new Costco, and a new Target (replacing an existing store) have been built and other stores are planned. The downtown in Woodland is not thriving, as stated in the urban decay report prepared by CBRE, but has continued to stagnate even in the boom years of 2000-2004. The "antique stores" that the EIR mentioned are in fact, second hand stores which have very low sales per square feet and operate in low rent buildings which have continued to deteriorate over the past ten years. Other retail in Woodland has also stagnated and many stores are now stagnating. The western end of Main St. in Woodland—Main street is essentially "downtown" Woodland—has a large number of store closures and deteriorating stores and shopping centers. At one of these centers on 117 W. Main in Woodland Dr. King was physically threatened and escaped by car. He was pursued for 25 minutes (and dialed 911) before the police were able to intervene (in Sacramento). Make no mistake, this is a dangerous area. We have been shopping in Woodland regularly for 12 years and used to visit a dentist not far from this area, so we were shocked. Figure 10: This store in central downtown Woodland is one of many stores that has been closed and "For Lease" for some time now. This is the beginning of urban decay. Figure 11: The former Long John Silver's on Main St.. in Woodland is now boarded up. Most significant, the County Fair mall in Woodland, which before the recent developments, was the main regional shopping mall in Woodland is rapidly becoming a "ghost mall." On a recent visit I counted 30+ vacancies out of a total of 65-70 spaces —indicating an almost 50% vacancy rate. In addition to obviously any stores still had merchandise but were closed midday indicating they would probably close soon. The mall was anchored by Mervyns and Gottschalks. The Mervyns has closed and Gottschalks will follow soon. The former Target store also left. The spec was retenanted by a Burlington coat factory. Significantly, this store fronts main entrance is outside of the mall. Figure 12: One of many, many closed stores at the County Fair Mall in Woodland. Eureka CBRE also recently prepared an urban decay report in Eureka. The report: • Systematically ignored urban decay and 127 vacancies in central Eureka. (Eureka is a small City.) • Dismissed severe problems at Eureka's Bayshore Mall, which is now in bankruptcy. • Assumed that there would be no leakage outside of Humboldt County—that is that folks would do all of there shopping in the County, even though it does not contain a single, GAP, Macy's, Nordstrom, Ann Taylor, or many other mainstream stores that can be found across the US. • Despite CBRE's Omissions, the EIR concluded that in many retail categories it will take more than 10 years to "mitigate" impacts, yet CBRE concluded there would be no urban decay impacts. Figure 13: This store on 15`h Street in Eureka is boarded up and starting to deteriorate. Figure 14: This store at 3d and Jacobs in Eureka is vacant and suffering from lack of maintenance. maintenance—without tenants and with few prospects of future, landlords have little incentive to upkeep property. Vacancies at Bayshore Mall in Eureka The Eureka EIR and urban decay report prepared by CBRE briefly discussed the Bayshore mall and discussed some of the major vacancies, but the entire discussion served to dismiss what is clearly a failed shopping center where conditions are going from bad to worse. Since the report was filed, the Bayshore Mall's owner, General Properties, has filed for bankruptcy and this bankruptcy includes the Bayshore Mall. The Bayshore mall has lost most of its anchor tenants and prime draws—Old Navy, the Gap, Mervyns and now Gottschalks has declared bankruptcy and will leave Bayshore as well. This leaves very few anchor tenants and the remaining ones such as Sears and Borders have also been experiencing difficulty and may very well close.. A very partial list of store closings includes the following stores: 1. Arbys 2. Sweet River Grill. 3. Campost Casual 4. Old Navy. 5. JC Penney outlet. 6. Site for Sore Eyes. 7. Vitamin World. 8. Suncoast movies. 9. Rocxco furniture. 10. Hot dog on a stick. 11. Gottschalks other store outlet they own in the mall. 12. Bayshore mall cinema 13. KB toys. 14. Candy factory 15. Wilson's Leather Indeed, people have described the mall as a "ghost town." Figure 17: One of many storefronts closed in the Bayshore Mall Conclusion Wal-Mart claims that we are biased while CBRE is somehow objective. It is clear that CBRE has a long term relationship with many developers and big box stores, including Wal-Mart and that CBRE values this relationship. The developer pays for these reports and clearly expects a certain outcome. This is not the purpose of CEQA or the EIR process. If Lodi wants a Wal-Mart Supercenter, that is clearly up to the City and its citizens. This process has dragged on largely due to Wal -Mart's failure to accurately assess the situation. The original urban decay report was thrown out because it omitted one million square feet of new retail! 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LL PHILIP G. KING Economics Department, San Francisco State University E-mail: pking@sbcglobal.net Cell: (530)-867-3935 Education: July, 87 Ph.D. in ECONOMICS CORNELL UNIVERSITY Fields: Applied Microeconomics, Economic Development, International Economics Dissertation:Bargaining between Multinational Corporations and Less Developed Countries over Mineral Concessions Contracts. May, 78 B. A. in PHILOSOPHY & ECONOMICS WASHINGTON UNIVERSITY Nominated to Omicron Delta Epsilon (EconomicsHonor Society.) Work Experience: 1/ 06 -present ASSOCIATE PROFESSOR SAN FRANCISCO STATE UNIVERSITY 9/02-12/05 CHAIR, ECONOMICS DEPARTMENT SAN FRANCISCO STATE UNIVERSITY 9/ 93 -present ASSOCIATE PROFESSOR SAN FRANCISCO STATE UNIVERSITY 9/87-9/93 ASSISTANT PROFESSOR SAN FRANCISCO STATE UNIVERSITY 9/83-5/85 ASSISTANT PROFESSOR, ECONOMICS S.U.N.Y. at CORTLAND Policy Papers prepared for Government and Non -Profit Organizations: Contributed Economics portion of Regional Sediment Master Plan for BEACON (Beach Erosion Authority for Clean Oceans and Nourishment—Santa Barbara. and Ventura Counties), February 2009, with Noble Consultants. ESTIMATING THE POTENTIAL ECONOMIC IMPACTS OF CLIMATE CHANGE ON SOUTHERN CALIFORNIA BEACHES, prepared for the California Energy Commission (Energy Commission) and the California Environmental Protection Agency (Cal/EPA), with Linwood Pendleton, Craig Mohn, D. G. Webster, Ryan K. Vaughn, and Peter Adams. Prepared for the City of Stockton: Economic Analysis of A Proposed Ordinance to Limit Grocery Sales at Superstores in Stockton, California, May 10,2007 Contributed Economics Portion of "The ARC GIS Coastal Sediment Analysis Tool: A GIS Support Tool for Regional Sediment Management Program: White Paper, Draft Technical Report for U.S. Army Corps of Engineers, by Ying Poon (Everest Consultants), Los Angeles District, April 2006. Contributed Economics Portion of "Coastal Sediment Analysis Tool (CSBAT) Beta Version --Sediment Management Decision Support Tool for Santa Barbara and Ventura Counties," Draft Technical Report for U.S. Army Corps of Engineers, by Ying Poon (Everest Consultants), Los Angeles District, June 2006. "TheArcGIS Coastal Sediment Analyst: A Prototype Decision Support Tool for Regional Sediment Management, John Wilson et. al., USC Geography Department, 2004 (contributed economic analysis for paper). "The Economic of Regional Sediment Management in Ventura and Santa Barbara Counties," prepared for the California State Resources Agency, Final draft (refereed) , Fall 2006, prepared for the Coastal Sediment Management Work group (CSMW). "The Potential Loss in GNP and GSP from a failure to Maintain California's Beaches," with Douglas Symes, prepared for the California State Resources Agency, 2002, http://userwww.sfsu.edu/ —pgking/pubpol.htm. "The (Economic) Benefits of California'sBeaches," prepared for the California State Resources Agency, 2002, http://dbw.ca.gov/beachreport.htm. "The Economic and Fiscal Impact of Beach Recreation in San Clemente," presented as part cf Hearings on CongressionalAppropriations for California Coastal Projects, US House of Representatives, April 2002. Also completed similarprojects for Cities of Carlsbad, Caspinteria, Encinitas, and Solana Beach. San Francisco's Economic Growth 1995-2000: The Fiscal Health of the City and Implications for the Future," prepared for the San Francisco Committee on Jobs Summer 2001. This report was widely cited in the San Francisco press including front page articlesby the Chronicle and Examiner. "The Demand for Beaches in California," prepared for the California Dept. of Boating and Waterways, Spring 2001. "Cost Benefit Analysis of Shoreline Protection Projects in California," prepared for the California Dept. of Boating and Waterways, Spring 2000. "The Fiscal Impact cf Beaches in California," prepared for the Public Research Institute, San Francisco State University, Fall 1999, available at http://online.sfsu.edu/—pgking/beaches.htm. "An Economic Analysis of Coastal Resources on the Majuro Atoll," prepared for the United Nations Development Program ProjectMAS 95/001/DO1/99 and the Majuro Atoll Local Government, September, 1997. "The Economic Impact of California'sBeaches," prepared for the Public Research Institute, San Francisco State University, Summer, 1997 (with Michael Potepan.) "The Revenue Impact cf the Proposed Marine Link Pipeline System in Richmond, California," prepared for the Public Research Institute, San Francisco State University, Spring, 1997 (with Ted Rust.) "The Economic Impact cf California's Ports and Harbors," prepared for the Public Research Institute, San Francisco State University, Spring, 1997 (with Ted Rust). Books: International Economics and International Economic Policy, 5th Edition, McGraw-Hill, 2009. International Economics and International Economic Policy, 4th Edition, McGraw-Hill, 2004. International Economics and International Economic Policy, 3rd Edition, McGraw-Hill, 2000. International Economics and International Economic Policy, 2nd Edition, McGraw-Hill, 1995. International Economics and International Economic Policy, 1 stEdition, McGraw-Hill, 1990. Published Papers: "Potential Loss in GNP and GSP from a Failure to Maintain California's Beaches", Fall 2004, with Douglas Symes, Shore and Beach (Refereed). "Do Beaches Benefit Local Communities?: A Case Study cf Two California Beach Towns," Fall 2002, Proceedings cf the Conference on California and the World Oceans. "The Economic Value cf California's Beaches," Fall 1997, Proceedings of the Conference on California and the World Oceans (with Michael Potepan.) "William Simon: Treasury Secretary," in Biographical Dictionay of the United States Secretaries of the Treasuy:1789-1995, edited by Bernard Katz and C. Daniel Vencill, GreenwoodPress, 1996. "The Multinational Corporation: Pro and Con," in International Economics and International Economic Policy, McGraw-Hill, 1990. "Negotiations over Mineral and Petroleum Contracts in Developing Countries: a new explanation," Winter 1987,Journal of Economics and International Relations. "A Political Theory of MNC-LDC Negotiations over Mineral Concessions Contracts," 1988, International Interactions. Public Testimony: Testified and prepared report to the California Coastal Commission in San Diego on the economic loss due to a proposed seawall at Las Brisas, Solana Beach, California. PERSONAL University Address: SHARMILA KUMARI KING Department of Economics University of the Pacific 3601 Pacific Avenue Stockton, CA 95211 Citizenship: US and UK EDUCATION E-mail: sking 1 @pacific.edu Office Phone: (209) 946 2293 • Ph.D. Economics, University of California, Davis, 2001 Dissertation: The Formulation of Monetary Policy and the Transmission Mechanism in Europe (Chair: Professor Kevin Hoover) Major Fields: Monetary Economics, International Finance, and Econometrics • M.A. Economics, San Francisco State University, San Francisco, 1996 • B.A. Economics (Honors), University of York, York, England, 1992 TEACHING APPOINTMENTS Associate Professor, University of the Pacific, Fall 2007 present Assistant Professor, University of the Pacific, Fall 2001 -Spring 2006 • Introductory Macroeconomics (ECON 55, ECON 55H) • Intermediate Macroeconomics, Theory and Policy (ECON 103, ECON 103L) • Money and Banking (ECON 14 1) • International Finance (ECON 123) • Computer Applications (ECON 16 1) • Mentor2 PAPERS and BOOKS • "Bank Efficiency and the Effectiveness of Monetary Policy" with Michael Jonas, ContemporaryEconomic Policy, Vol. 26, No. 4, October 2008 • Philip King and Sharmila King International Economics and Globalization, and Policy: A Reader, 5rh ed. McGraw-Hill Publishers, 2008 • Sharmila King "China's Controversial Exchange Rate Policy" in International Economics and Globalization, and Policy: A Reader, 5th ed. McGraw-Hill Publishers, 2008 • Sharmila King "Currency Boards" in International Economics and International Economic Policy: A Reader, Philip King and Sharmila King (Eds.), McGraw-Hill Publishers 2005 • Philip King and Sharmila King International Economics and International Economic Policy: A Reader, McGraw-Hill Publishers, 2005 • "Do Symmetric Shocks Matter? The Monetary Transmission in the Euro Area," with Philip King, Jean Monnet Chair ConferenceProceedings, 2003 • "Tax Evasion and Equity Theory: An Experimental Investigation", with Steven Sheffrin, International Tax and Public Finance, 9, 505-521, August 2002 • "The Effects of Off -Balance Sheet Lending and Monetary Policy Outcomes in the U.S." Manuscript. • "A Lending Channel in Europe: Evidence from Bank Balance Sheets", under revision. PRESENTATIONS • "Bank Efficiency and the Effectiveness of Monetary Policy" at the WesternEconomic Association International Conference, Vancouver, July 2004 • Economics Department Colloquium Presentation: "Bank Efficiency and the Effectiveness of Monetary Policy", April 2004 • "Do Symmetric Shocks Matter? The Monetary Transmission in the Euro Area," at the Jean Monnet Chair "Regional Integration Compared" Conference in Bordeaux, France, July 2003 • "Do Symmetric Shocks Matter? The Monetary Transmission in the Euro Area," at the Western Economic Association International Conference in Seattle, July 2002 • Economics Department Colloquium Presentation: "Do Symmetric Shocks Matter? The Monetary Transmission in the Euro Area," April 2002 • "A Credit Channel in Europe: Evidence from Firm Balance Sheets" presented at the WesternEconomic Association International Conference in Vancouver, July 2000 UNIVERSITY SERVICE • College of Pacific Council -present • College of Pacific: Curriculum Committee 2007-2008 • Department of Economics Webmaster, Fall 2004 -Fall 2008 • Omicron Delta Epsilon Faculty Advisor 2006-2008 • The Pacific Investment Group Faculty Advisor 2007—present • College of Pacific: Courses and Standards 2003-2005 • University Parking Taskforce Committee 2004 PROFESSIONAL SERVICE • Peer Reviewer for Southern Economic Journal • Economics Analysis of MOA between the City of Stockton and the Sierra Club, 2008 • Economic Analysis of a Proposed Supercenter Wal-Mart in Tracy, California 2006 • Economic Analysis of a Proposed Supercenter Wal-Mart in Stockton (Eight Mile Road), California 2005 • Economic Analysis of a Proposed Supercenter Wal-Mart in Lodi, California 2005,2008 • Book Review on Krugman and Well's Macroeconomics, Worth Publishers, 2004 • Chapter Review Stiglitz and Walsh's the Phillips Curve in Principles of Macroeconomics, W. W. Norton Publishers, 2004 COMMENT LETTERS RECEIVED BY CITY CLERK'S OFFICE At or after the public hearing on May 13,2009 Jennifer Perrin From: Randi Johl Sent: Thursday, May 14,200912:54 PM To: Jennifer Perrin Subject: FW: Wal-Mart Supercenter -Vote NO! ----- Original Message ----- From: essage----- From: Butch England [mailto: laf fert67 @yahoo. coml Sent: Wednesday, May 13, 2009 3:38 PM To: City Council Subject: Fw: Wal-Mart Supercenter -Vote NO! Just as a reminder of a letter I sent last December. Downtown Lodi and the Lowe s shopping center have lost businesses and there are still plenty of vacancies at Reynolds Ranch. Please take into consideration the EIR. I am not a member of any'activist organization just a concerned private citizen on this matter. thank you, Laffert "Butch" "England 1940 Providence Way Lodi, CA 95242 --- On Wed, 12/10/08, laffert@prodigy.net <laffert@prodigy.net> wrote: > From: laffert@prodigy.net <laffert@prodigy.net> > Subject: Wal-Mart Supercenter > To: lhansen@lodi.gov > Cc: jniounce@lodi.gov, bjohnson@lodi,gov, pkatzakian@lodi.gov, letters@lodinews.com > Date: Wednesday, December 10, 2008, 4:15 PM > Dear Council members, > my name is Laffert "Butch" England. I am a > registered voter and have lived in Lodi for over 7 years. I > am writing to express my opposition to the Wal-Mart > Supercenter. > When my wife and I got married in 2001, we were looking for > a place to live that would suit both our commutes. We were > going to look at three cities but after just going to Lodi, > we knew it was (and is) the place for us. The locals call > it "livable lovable Lodi" for good reason. Lodi, > to me, is a unique city with its contolled growth, wine > industry, and downtown ambiance. I am very comfortable here > even wishing that I had grown up here instead of Antioch, > If you want to look at how to ruin a community, look there > with its oversized unplanned growth. > This leads me to the Wal-Mart Supercenter. Lodi will lose > much of its charm if this opens. More and more downtown > businesses will close up only to replaced with either > nothing or a bunch of "antique" shops. Martinez > has a cute downtown but it's mostly "antique" > shops. > I don't want to see Lodi become just like any other > city here in the San Joaquin Valley. I would like to see > Lodi keep its unique aura. Sadly, a Supercenter would take > that away. With many of the towns stripsmalls already > losing tenants (Lakewood comes to mind), I think the > Supercenter would compound this problem. hitchcock@lodi.gov, > I understand the need for revenues. Let's get creative > and find some other means. I, for one, will NEVER set foot > in the Supercenter. > I will admit to you that I am no fan of Wal-Mart to begin > with due to their business tactics with vendors and > underhanded labor practices. > But even if I did like Wal-Mart, I still don't like > what it will do to this town if they get their Supercenter. > Laffert "Butch" England > 1940 Providence Way > Lodi, CA 95242 > 209-367-4585 > 209-663-7485 (cell) 2 Jennifer Perrin From: Randi Johl Sent: Thursday, May 14,2009 12:55 PM To: Jennifer Perrin Subject: FW: No to the Walmart Supercenter - - - --Original Message ----- From: Maria [mailto: zentara@ yahoo. coml Sent: Wednesday, May 13, 2009 3:07 PM To: City Council Subject: No to the Walmart Supercenter Good afternoon, I know at tonight's Lodi City Council meeting you will be considering approving the Walmart Supercenter project. This is a bad idea and I am again asking you all to vote no. Our city continues to loose business downtown, and the shopping center at Lowe Is can t even fill it empty spaces. If the project is approved then what are we going to do with the empty Walmart store across the street? Downtown is looking like a ghost town and even Starbucks is leaving. The Reynolds Ranch project is big enough for our town at this time. Legs get that up and running first. We are stretching ourselves too thin. Please listen to the voters of Lodi rather than the special interests of Walmart. The voters want a small town feel. Not to mention I don't see how Caltrans is going to approve the project with its potential impact on highway 12. PLEASE VOTE ......................... Thank you, Maria England 1940 Providence Way Lodi, CA 95242 1 HERUM C RABTREE ATTORNEYS Brett S. Jolley bjolley@herumcrabtree.com May 13,2009 VIA HAND DELIVERY Mayor Larry Hansen Honorable Members of the Lodi City Council City of Lodi 221 W. Pine Street Lodi, CA 95241 Re: Appeals of Planning Commission's Actions Regarding Lodi Shormina Center Proiect Dear Mayor Hansen and Honorable Members of the Lodi City Council: This office represents Lodi Fist in its appeal of the Planning Commission's actions on the Lodi Shopping Center Project ("Project"). Lodi Fist incorporates is prior objections to the EIR and the Project herein, as well as those of others throughout the administrative process, but also addresses the following three issues in this letter: 1. No Action by Planning Commission The Council lacksjurisdiction to consider the appeals. Lodi Municipal Code § 17.88.030 A., regarding appeals to the Council, states, "The council may choose to review a decision rendered by the commission." This condition precedent has not yet occurred and the Council cannot yet consider the merits of the project because the Planning Commission did not make a "decision" on the Project. During the Planning Commission hearing a motion to approved the Project as presented failed 3-3. Thereafter, a Commissioner attempted to discuss the matter further but was cut off by staff, who advised that the 3-3 tie resulted in a denial and the hearing was complete. This conclusions incorrect. Although a 3-3 tie on a motion to approve cannot be an approval of that motion, such result is not a decision to deny of the entire application. Accordingly, the process was truncated at the Planning Commission. Specifically, Lodi Fist had advocated for an additional, independent fiscal impact study and Citizens for Open Government had advocated for the Commission to approve the "no -project alternative." By truncating 2291 WEST MARCH LANE\ SUITE B 100 \ STOCKTON, CA 95207 \ PH 209.472.7700 \ MODESTO PH 209.525.8444 \ FX 209.472.7986 \ APC Lodi City Council May 13, 2009 Page 2 of 4 the process, the Commission never made a final decision, took action, or established an irreconcilable deadlock in reaching any decision. In short, the decision making process was not exhausted to give rise to an appeal. To the extent the Council is asked by the proponents to reverse the Commission's decision, no final decision occurred and the appeal is premature. Moreover, this truncated process leaves the Council without the benefit of knowing the Planning Commission's final decision or reasoning on this project. Ths result prejudices the approval process. To the extent the Commissionwere to adopt one of the project alternatives and articulate its reasonsfor doing so, order the preparation of an independent fiscal impact study, or add conditions to the Project, the Council would be reviewing the appeal with the benefit of that information. Likewise, were the Commission to affirmatively deny the project and make findings to that effect (an option not allowed in the process),the Council and the public would have a better understanding on the record of the basis for denial which would influence the decision on appeal. Indeed, "at 'every level of the planning process' -the Legislature - 'recognizes the importance of public participation."' Environmental Defense Projectof Sierra County v. County of Sierra (2008)158Cal.App.4th 877, 891 [holdingfast track permitting process that provided notice of Council Hearing without benefit of Planning Commission recommendation violated public participation and informed decision making principles.] Simply stated an appeal may only be taken from a decision and no decision was made by the Commission. Accordingly the Council lacks jurisdiction to consider the appeals and the project cannot be approved. 2. Project Design The Project violates the Lodi Major Retail Design Ordinance three material ways. First, Section 17.58.030 B. 1. states "Facades greater than one hundred feet in length, measured horizontally, shall incorporate wall plane projections or recesses having a depth of at least three percent of the length of the facade and extending at least twenty percent of the length of the facade. No uninterrupted length of any facade shall exceed one hundred horizontal feet." The design plans attached to the staff report reveal that the south facade of the Supercenter is over 300' feet in length and is unbroken as required by the ordinance. The southern portion of the rear (west)facade also appears to have an uninterrupted wall of greater than 100'. The Staff report even notes "The west and south elevations do not feature the same detailed architectural treatment. The west (rearelevation) is a continuous wall with little architectural treatment to breakup the elevation of the building...The southern elevation will feature nearly identical architectural treatment as the west elevation." \\2003-prolaw\ProLaw\documents\9001-5402\BSJ\94234. doc 'Lodi City Council May 13, 2009 Page 3 of 4 Second, Section 17.58.0306.2. provides "Ground floor facades that face public streets shall have arcades, display windows, entry areas, awnings, or other such features along no less than sixty percent of their horizontal length." The rear (west)face of the Supercenter abuts (faces)Westgate Drive but does not appear to have any such features identified above. These requirements also to apply to all sides of a building visible from adjoining properties (Section 17.50.090) -which includes the south side of the Supercenter. Third, Section 17.58.1 10 states, "No more than sixty percent of the off-street parking area for the lot, tract or area of land devoted to the large retail establishment shall be located between the front facade of the large retail establishment and the abutting streets (the Front Parking Area).Tl-e front parking area shall be determined by drawing a line from the front comers of the building, parallel with the building sides, straight to the public street forming a ninety degree angle with the front facade." When we do this on the Preliminary Landscape Plan diagram attached to the staff report, we see that the "Front Parking Area" of the Supercenter Project contains approximately 664 of 978 spaces on the Supercenter lot or 67.9%. -ft percentage of stalls in the Front Parking Area creeps even higher to 68.8%when the compared against the staff report's statement that "a total of 965 sparking spaces are proposed." In either case, the Project does not comply with the mandatory language of the Zoning Ordinance. Therefore, contrary to the conclusion in the staff report, the Project does not comply with the City's Design Standards for Large Retail Establishments and, as a matter of law, cannot be approved. Instead, the Council must deny the Project, send the Project back to Staff and the Planning Commission for design revision, or consider a variance from these Zoning Ordinance requirements. 3. Overriding Considerations Inappropriate Prior to approving the Project, the Council must make mandatory CEQA findings (Guideline§ 15091) including a statement of overriding considerations which finds that specific benefits of the project outweigh the environmental burdens (Guideline§ 15093). Although the Statement of Overriding reflects a policy decision, it must be supported by substantial evidence in the record. The evidence in the record does not support these findings. Specifically, the resolution lists 6 overriding considerations; (1) tax generation; (2) employment creation; (3) municipal infrastructure development; (4) plan implementation: (5) high quality design; and (6) energy saving features. Of these six, the later four only benefit development of the property but do not provide citywide benefits and therefore are of no consequence as over6ding considerations. The first two, tax generation and job creation, are relevant to the discussion. Only if the Council finds that the project will create sufficient taxes and jobs, based on substantial evidence, it may approve the project. In this case, that evidentiary foundation is lacking. \\2003-prolaw\ProLaw\documents\9001-5402\BSJ\94234. doc Lodi City Council May 13,2009 Page 4 of 4 Regarding tax benefits, as discussed in detail during the March City Council hearing on this project, Wal-Mart has been all over the board on its tax benefit numbers: from as low as $1 35,000 to as high as $1.3 million. In 2004 the City's consultantADE concluded the City would see a tax increase of about $135,000 from the Project. In October Wal- Mart indicated the Projectwould generate approximately$1 90,000 ($790,000minus $600,000 from existing Wal-Mart). A December 2008 report Economic Professors Philip (SFSU) and Sharmila King (UOP)concluded that the Project would likely generate a net $143,000, which 's offset by other closed businesses and resulting loss of revenue. In March, Wal-Mart presented a report from its consultant CBFRE concluding the Project would produce a $1.364 million sales tax benefit to the City. In this case, the $1.364 million is extreme and wholly inconsistent with the $135,000 to $190,000 suggested by others including Wal-Mart. Thus the Council must decide which figures - if any - it believes and must determine whether the net gains offset by costs of additional police service, additional code enforcement, and lost business in Lodi. A similar problem exists with the overriding consideration for job creation. The employment benefits from the Project are unknown. We are told anywhere from 600 to 1000+ jobs will be created by the project. However, this 's an unacceptably broad range and the record does not reveal the source of these conclusions. More pointedly, the record does not disclose how many of these jobs will be relocated (and lost)from the existing Wal-Mart store, as well as from existing retailers in the community who may close or engaged in lay-offs due to the Project's decrease in revenues. In short, assuming forsake of argument the Project will create 800 jobs, if 400 of these come from the existing Wal-Mart store, and three existing grocery stores close (losing an additional 400), you are down to a zero netjob creation. Following this line of reasoning, the Project could actually contribute to negative job creation. Simply stated the Council does not have sufficient information to support the findings and therefore cannot make the mandatory findings of overriding consideration. For these reasons, the Council should deny the Project. Very truly yours, 219� / Attorney -at -Law \\2003-prolaw\ProLaw\documents\9001-5402\BSJ\94234.doc Mt � :..: _ �, �� , J �t .�aysx �.,_ NOTICING REQUIREMENTS SUBJECT: Please immediately confirms ript of th is fax 6y calling -1 3 3- 0' UZ CITY OF LODI P. O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS PUBLIC HEARING TO CONSIDER APPEALS FILED REGARDING THE LODI SHOPPING CENTER PUBLISH DATE: THURSDAY, APRIL 30,2009 TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: DATE[: TUESDAY, APRIL 28,2009 ORDERED BY: RANDI JOHL CITY CLERK N',ER PERRIN, CMC SISYANT CITY CLERK RANDI JOHL, CITYCLERK City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 MARIA BECERRA ADMINISTRATIVE CLERK � �N$ fib �i :. t . x +Amp fomis\advins.d— DECLARATION OF POSTING PUBLIC HEARING TO CONSIDER ALL OF THE APPEALS THAT HAVE BEEN FILED REGARDING THE DECISION OF THE PLANNING COMMISSION TO DENY USE PERMIT (U-02-12), VESTING TENTATIVE PARCEL MAP (03-P-001), AND SITE PLAN AND ARCHITECTURAL REVIEW (08 -SP -08) CONCERNING THE LODI SHOPPING CENTER LOCATEDAT 2640 WEST KETTLEMAN LANE; AND FURTHER CONSIDER ADOPTING THE FINDINGS AND STATEMENTS OF OVERRIDING CONSIDERATIONS PURSUANTTO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT On Friday, May 1, 2009, in the City of Lodi. San Joaquin County, California, a Notice of Public Hearing to consider all of the appeals that have been filed regarding the decision of the Planning Commission to deny Use Permit (U-02-12), Vesting Tentative Parcel Map (03-P-001), and Site Plan and Architectural Review (08 -SP -08) concerning the Lodi Shopping Center located at 2640 West Kettleman Lane; and further consider adopting the findings and statements of overriding considerations pursuant to the California Environmental Quality Act (attached and marked as Exhibit A) was posted at the following locations: Lodi Public Library Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum declare under penalty of perjurythat the foregoing is true and correct. Executed on May 1, 2009, at Lodi, California. JENIFER MOPERRIN, CMC ASSISTANT CITY CLERK N:1A&rAnistratian%CLERK\Forrm\DECPOSTCD. DOC 1XV901:1497:3'ii RANDI JOHL CITY CLERK MARIA BECERRA ADMINISTRATIVE CLERK DECLARATION OF MAILING PUBLIC HEARING TO CONSIDERALL OF THE APPEALS THAT HAVE BEEN FILED REGARDING THE DECISION OF THE PLANNING COMMISSION TO DENY USE PERMIT (U-02-12), VESTING TENTATIVE PARCEL MAP (03-P-001), AND SITE PLAN AND ARCHITECTURAL REVIEW (08 -SP -08) CONCERNING THE LODI SHOPPING CENTER LOCATEDAT 2640 WEST KETTLEMAN LANE; AND FURTHER CONSIDER ADOPTING THE FINDINGSAND STATEMENTS CF OVERRIDING CONSIDERATIONS PURSUANTTO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT On Wednesday, April 29, 2009, in the City of Lodi, San Joaquin County, California, I deposited in the United States mail, envelopes with first-class postage prepaid thereon, containing a Notice of Public Hearing to consider all of the appeals that have been filed regarding the decision of the Planning Commission to deny Use Permit (U-02-12] ,Vesting Tentative Parcel Map (03-P-001), and Site Plan and Architectural Review (08 -SP -08) concerning the Lodi Shopping Center located at 2640 West Kettleman Lane; and further consider adopting the Findings and Statements of Overriding Considerations pursuant to the California Environmental Quality Act, attached hereto marked ExhibitA. The mailing list for said matter is attached hereto marked Exhibit B. There is a regular daily communication by mail between the City of Lodi, California, and the places to which said envelopes were addressed. I declare under penalty of perjury that the foregoing is true and correct. Executed on April 29,2009,at Lodi, California. JtAN4FER PERRIN, CMC ASSISTANT CITY CLERK Forms/decmail.doc ORDERED BY: RANDIJOHL CITY CLERK, CITY OF LODI MARIA BECERRA ADMINISTRATIVE CLERK CITY OF LODI 1WHatchings Street Square 125 S. Elutchins St., Lodi NOTICE OF PUBLIC HEARING Date: May 13,2009 Time: 6:30 p.m. r information regarding this notice please contact: RandiJohlfBII:T City Clerk Telephone: (209) 333-6702 . NOTICE OF PUBLIC HEARING NOTICE IS HEREBYGIVEN that on Wednesday, May 13,2009.at the hour of 6:30 p,m., or as soon thereafter as the matter may be heard, the City Council will conduct a public hearing at Hutchins Street Square, 125 South Hutchins Street, Lodi, to consider the following items: a) Appeals filed by Wal-Mart Stores, Inc., Browman Development Company, Lodi First, and PAQ, Inc. regarding the decision of the Planning Commission to deny Use Permit (U-02-12) concern i ng the construction of a commercial center in a C -S, Commercial Shopping District, and the sale of alcoholic beverages at the proposed Wal-Mart Supercenter; Vesting Tentative Parcel Map (03-P-001) concerning the creation of 12 parcels for the project; and Site Plan and Architectural Review (08 -SP -08) concerning site plan and architectural review of a proposed Wal-Mart Supercenter at the proposed Lodi Shopping Center located at 2640 West Kettleman Lane (collectively "the Project'); and further consider approval of the Project and consider adopting findings and statements of overriding considerations pursuant to the California Environmental Quality Act. Information regarding this item may be obtained in the Community Development Department, 221 West Pine Street, Lodi, (209) 333-6711, All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk, City Hall, 221 West Pine Street, 2nd Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral statements may be made at said hearing. ff you challenge the subject matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Clerk, 221 West Pine Street, at or prior to the close of the public hearing. r of the Lodi City Council: City Clerk Dated: April21,2009 CLERK\PUBHEARINOTICESINOTCDD_Wal-Mat42.DOC 4128109 May 13, 2009 Special City Council Meeting PH mailing List for Wa1Mart Su er Center Pro ect r TIT B APN OWNER ADDRESS CITY STATE ZIP 02741007 SACRAMENTO 1954 MT WALNUT CA 94596 KETTLEMAN DIABLO CREEK LLC ETAL BLVD #A 02742001 GEWEKE PO BOX LODI CA 95241 FAMILY PTP 1420 02742003 IN N OUT 13502 BALDWIN CA 91706 BURGERS HAMBURGER PARK CORP LN 02742013 GEWEKE PO BOX LODI CA 95241 VIII LP 1210 ETAL 05803005 VAN RUITEN PO BOX 520 WOODBRIDGE CA 95258 RANCH LTD 05603009 REICHMUTH, 2541 LYNCH LODI CA 95242 THOMAS E WAY TR 05603011 BDC LODI 100 SWAN OAKLAND CA 94621 III LP WAY SUITE 206 05803012 WAL MART MAIL STOP BENTONVILLE AR 72716 REAL EST 0555 BUSINESS TRU 05803013 BDC LODI 100 SWAN OAKLAND CA 94621 III LP WAY STE 206 05814001 TESORO 300 SAN ANTONIO TX 78216 SIERRA CONCORD PROPERTIES PLAZA DR LLC 05814004 FRAME, 212 LODI CA 95242 DEAN K & RUTLEDGE SHARON L DR TR 05814006 HERRMANN, 1200 LODI CA 95240 CHARLENE K GLENHURST TR ETAL DR 05814007 DEL RIO, 15315 N LODI CA 95240 SANTIAGO M HOERL RD & RAMONA T 05814011 GREVER, 1432 PARK LODI CA 95242 ZANE M & ST PATSY R TR 05814012 PETERSON, PO BOX 473 LOCKEFORD CA 95237 M BILL 05814014 PETERSON, PO BOX 331 BUTTER CA 95685 RUTH SUSAN CREEK 05814042 BARBER 2595 AUTO FAIRFIELD CA 94533 VALLEJO MALL PKWY PROPERTIES LP 05814044 FIRST LODI 1556 WALNUT CA 94596 PLAZA PARKSIDE CREEK ASSOCIATES DR 02705021 GEWEKE 2475 LODI CA 95240 FAMILY LTD MAGGIO CIR PTP EXHIBIT B APPEALS REGARDING DECISION OF THE PLANNING COMMISSION TO DENY USE PERMIT, VESTING TENTATIVE PARCEL MAP, AND SITE PLAN AND ARCHITECTURAL REVIEW FOR LODI SHOPPING CENTER Mailing List Alexis M. Pelosi Sheppard Mullin Richter & Hampton LLP Four Embarcadero Center, 17th Floor San Francisco, CA 94111 Andrea K. Leisy, Esq. Remy Thomas Moose & Manley LLP 455 Capitol Mall, Suite 210 Sacramento, CA 95814 Chris Podesto, Director of Marketing PAQ Inc. (dba Food 4 Less/Rancho San Miguel Supermarkets) 17935 Murphy Parkway Lathrop, CA 95330 Brett Jolley Herum & Crabtree 2291 W. March Lane Stockton, CA 95207 Kari ChadWidt-- Distribution List Name: Lodi Shopping Center EIR redo Members Alex Aliferis aaliferis@ahiworld.org Alexis Pelosi APelosi@sheppardmullin.com Amy Kaida akaida@tusd.net Barbara Spencer BSpencer@BrowrnanDevelopment.com Barbara Transon btranson@sbcglobal.net Bill Selling bselling@comcast.net Brett Jolley BJoiley@herumcrabtree.com Briein Kortuern briankortuem@hotmail.com Bruce & Connie Schweigerdt schweig2@comcast.net Chades Wasmuth chuckw2901 @sbcglobal.net Claire Lima jazborenis@cs.com DaffneyHillis daffney_hillis@hotmail.com Deb Bacon debbacon@sbcglobal.net Don Mooney dbmooney@dcn.org Gerry & Jane Gandt gerjane@sbcglobal.net James &Alice aaacompsvc@sbcglobal.net Jamie Cunningham j_cunningham@pacific.edu Jeanette Bedford sjrnrnbedford@yahoo.com Jerry& Shirley Schmierer evencouple@sbcglobal.net Jim & Betty Mae Locke jnblocke@sbcglobal.net Joe Joeo1212@yahoo.com Joe & Olivia Trifiro ntrifiro@hotmail.com John Marshall johnrnarshall@charter.net John Wixon johnwixon@sbcglobal.net Jon Hobbs jhobbs@kmtg.com Linda Hamrnons Ijhammons@sbcglobal.net Liz Galbreath Iiz.Galbreath@genmills.com Lucille Schnabel deelucys@earthlink.net Luis Cornejo Luis.Cornejo@doucet-ce.com Mark anaforian mjanaforian@sbcglobal.net Maxine Shear swetpea@softcom.net Michael Kost gomichaell @sbcglobal.net Michael Scanlan mscanlanl@gmail.com Parnala L e y paloule@corncast.net Pat & Paul Underhill patundpaul@comcast.net Robert Lewis rlewis@pdgcenters.com Roger Priest 445dir@raleys.com Ron Werner ronwerner@comcast.net Scott Turner sturner@retailwestinc.com Shelley Toy srctoy@sonic.net Sue McCombs osrnccombs@sbcglobal.net Susan Williams Susan.Williams@doucet-ca.com Travis Beckett t.beckett@gmx.com Ty Murphy Tymurphy001 @yahoo.com