A legal battle sparked by a new San Mateo office development more than year ago ramped up this month when owners of a nearby shopping center filed a lawsuit Feb. 16 alleging construction of the two four-story office buildings caused land across the street to sink.
The owners of a complex containing a Rite Aid, a Trader Joe’s grocery store and a Ross Dress for Less store, among other businesses clustered at the corner of Delaware Street and Concar Drive, are claiming costs in excess of $5 million for damages their property sustained after nearly 43 million gallons of groundwater was extracted during the construction of two office buildings at 400 and 450 Concar Drive.
Their claims against the office building developer Pearlmark Hines will join those of Thrifty Payless, owner of the Rite Aid at 666 Concar Drive, which estimated damages to the building it is leasing to be at least $2.5 million in a similar suit filed in 2016. As tenants of the shopping center, Thrifty Payless and Ross Dress for Less are included as defendants in the property owners’ suit for allegedly not performing needed repairs and maintenance after they received notice of their rights and obligations.
Since cracks in drywall, sticking doors, and extensive cracking and unevenness of floors were identified among the building damages to the Rite Aid and Ross Dress for Less in 2016, similar developments have been noted at other buildings, such as the Trader Joe’s and TJ Maxx stores. The extent of those and scope of the damage is still under investigation, according to the suit.
The suit also outlined floor elevation differences of nearly 10 inches in some places and sinking of concrete and asphalt pavement outside the buildings, believed to be the result of soil settlement caused by the groundwater extraction at the office building site across the street.
To create the complex with more than 275,000 square feet of office space at 400 and 450 Concar Drive, Hines drained millions of gallons of groundwater to create two levels of underground and one level of at-grade parking, according to the suit. The suit also alleges Hines should have known the soils at the office project and shopping center sites are moderately to highly compressive, which means they are susceptible to settlement when groundwater levels are reduced.
The San Mateo City Council originally approved the Hines redevelopment in 2010, before construction began in early 2015.
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Looming over the ongoing litigation is a preliminary proposal to demolish the shopping center and create a mixed-use transit-oriented development aiming to create an “alternative urban” community with 935 residences. Dubbed the Passage at San Mateo, the mixed-use transit-oriented development is expected to take advantage of the site’s location near the Hayward Park Caltrain Station by including 35,000 square feet of retail space, a transit hub, art gallery, dining hall and 1-acre park in the plans, according to Brian Myers, a partner with the developer California Coastal Properties.
Currently home to the Peninsula Ballet Theatre, 7-Eleven and TJ Maxx, the 14.5-acre site could still include a Trader Joe’s and 7-Eleven in two new locations on the site as part of the neighborhood — with 35,000 square feet of new retail if the plans go through, according to the developer.
Also adjacent to the San Mateo juncture near the intersection of Highway 101 and State Route 92 is the mixed-use Station Park Green project set to make 599 units available on 12 acres north of the office complex.
Alleging the damages related to the groundwater extractions have prevented its tenants from reasonably operating their businesses, the suit is also seeking compensation from any issues related to structural damage to the buildings and any fees and costs related to the repairs.
A representative of Thrifty Payless and a legal representative of the shopping center owners did not want to comment on pending litigation. Representatives from Pearlmark Hines could not be reached.
This suit is moronic. Anyone living in the area knows how terrible these stores have been for the last few decades. The entire area was built with primitive fill technology decades ago. The Hines Development isn't responsible.
This is so pointless, the shopping center was already in bad shape even before the construction began. Ross and Rite Aid were already in poor condition, Rite Aid would rather just close down, this is just putting band aid on broken glass. This lawsuit isn't worth it.
Ouch. Something tells me that the cost of construction on this project is going to be going up. This is why development is so risky, these lawsuits slow construction and are capable of taking any profit a developer might have been counting on.
Well, yes and no. The profits these guys make is enormous. I was in construction for 30 years and saw many million dollar bills not make anyone blink. Trust me, they knew that pumping the ground would cause problems. No more pumping since the below ground parking is done and sealed, probably? Or is there constant sumping of the area? The adjoining shopping mall should just tear it all down, old anyway, and take advantage of the ground water pumping and build a mega complex on the site, I would. I do believe there is damage to the area, as it is low lying anyway and prone to liquefaction. I hope the pilings go down to solid bedrock, unlike the Millinium Tower, which I worked on.
Some of these stores sustained damage after the 1989 earthquake. Payless (Rite Aid) was closed for months. Other stores in the same shopping center were also closed.
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(6) comments
This suit is moronic. Anyone living in the area knows how terrible these stores have been for the last few decades. The entire area was built with primitive fill technology decades ago. The Hines Development isn't responsible.
This is so pointless, the shopping center was already in bad shape even before the construction began. Ross and Rite Aid were already in poor condition, Rite Aid would rather just close down, this is just putting band aid on broken glass. This lawsuit isn't worth it.
Ouch. Something tells me that the cost of construction on this project is going to be going up. This is why development is so risky, these lawsuits slow construction and are capable of taking any profit a developer might have been counting on.
Well, yes and no. The profits these guys make is enormous. I was in construction for 30 years and saw many million dollar bills not make anyone blink. Trust me, they knew that pumping the ground would cause problems. No more pumping since the below ground parking is done and sealed, probably? Or is there constant sumping of the area? The adjoining shopping mall should just tear it all down, old anyway, and take advantage of the ground water pumping and build a mega complex on the site, I would. I do believe there is damage to the area, as it is low lying anyway and prone to liquefaction. I hope the pilings go down to solid bedrock, unlike the Millinium Tower, which I worked on.
Sometime you just can't fool with Mother Nature.
Some of these stores sustained damage after the 1989 earthquake. Payless (Rite Aid) was closed for months. Other stores in the same shopping center were also closed.
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PLEASE TURN OFF YOUR CAPS LOCK.
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