Draeger’s proposal approved in San Mateo

Richard Draeger, the co-owner of Draeger’s Market, said he favored the project and the major upgrade it brings downtown. He has worked with the developers to design a store that represents the same format and amenity options as its Los Altos location, which will also reduce operating costs.

“This gives the grocer the opportunity to shed some of these high costs of operating in downtown San Mateo,” Draeger said. “Of all of our stores, San Mateo has the highest cost of operation. It has nothing to do with occupancy costs. It has to do with the cost of being in a city, in an urban environment.”

The project from applicant Lane Partners at 222 E. Fourth Ave. is called B Street South and would have 104,554 square feet of office use and two levels of underground parking. The new building would be 74 feet because state law allows a height increase beyond the local ordinance limit of 55 feet for developments with 100% low-income housing and within a half-mile of a major transit stop, according to a staff report. The site is also a quarter of a mile away from the San Mateo downtown station, a key transit corridor. A staff report said 221 parking spaces would be on the ground floor and on two levels below. City staff also said the proposed project would generate fewer car trips at the new development than the current one because grocery stores generate more trips than office and residential uses.

The development is at East Fourth Avenue to the north, South B Street to the east, East Fifth Avenue to the south, and South Ellsworth Avenue to the west. The site is near commercial spaces and multifamily buildings, like The Gramercy apartment complex and The Stratford residential senior home. The Planning Commission recommended project approval to the council with a 3-2 vote, with dissenting members calling for more housing at the site. At its Dec. 1 meeting, the City Council voted 4-0 to pass approval, with Councilmember Eric Rodriguez not in attendance. The first pre-application submittal came in May 2020, with several changes made during the ensuing years.

Council discussion at the Dec. 1 meeting focused on how much residential parking could be allowed at the site for the low-income units. The applicant proposed six residential spaces, while the Planning Commission and city asked for 10, one for each resident. The council asked staff to update its ordinance code language around security gates to ensure it was not a burdensome regulation for the developer to build 10 residential parking spots.

Some public speakers spoke in support of the project, pleased that Draeger’s was coming back and that housing would be included with a redevelopment improvement. Throughout the project and during public comment, several expressed concern about the downgrade in size of the grocery store and neighborhood concern about noise, traffic during and after construction, and air quality.