Trag’s Market plans for new development: Downtown San Mateo grocer owner submits proposal for housing, office and retail building

For months, the owners remained tight-lipped as rumors swirled about the site along the northern border of downtown possibly being redeveloped. This month, a pre-application was submitted to the city, solidifying the owners’ desire to refocus their asset.

Four generations of the Tragoutsis family have worked in the San Mateo grocery business, with the family buying its current downtown Trag’s site in the 1970s, according to the grocer’s website.

Now, the family is partnering with a local real estate developer to create a nearly 135,000-square-foot mixed-use building.

Ann Fienman, executive director of the Downtown San Mateo Association, said the proposal embodies an ideal mixed-use proposal for a business district.

“It would be transformational for downtown. It’s a large parcel in a central location, right next to the train station, and the fact that it’s entirely mixed use. It really has all the elements; it has the retail, it has the housing, it has the office space. All of those things are desirable for downtown,” Fienman said.

The proposal includes nearly 65,000 square feet of office space on the first four levels, 17,000 square feet of retail space on the ground floor, and 47 housing units spread between each of the five stories, according to plans submitted to the city.

The commercial and office space would stretch along the property’s North B Street frontage overlooking the Caltrain station, while the residences would be tucked behind lining North Ellsworth Avenue, according to the plans.

Accommodating residents and prospective employees will include 278 parking spaces spread among four levels of underground parking, as well as 80 spots to park a bicycle. Prometheus Real Estate Group submitted the pre-application to the city May 10, which is being reviewed by staff. The preliminary plans would eventually undergo a study session with the Planning Commission and further community vetting.

The pre-development process can take years, so it’s likely Trag’s shoppers can keep their routines for at least the near future.

Although the site would no longer hold a grocer, Fienman noted downtown San Mateo certainly isn’t lacking. There are several thriving markets sprinkled throughout the area, which is a benefit as business districts can sometimes struggle to maintain groceries, she said.

The North Central neighborhood on the outskirts of downtown will also be served by the new Mi Rancho Market, which is currently expanding a few feet up B Street from Trag’s.

The Tragoutsis’ mixed-use proposal comes as a flurry of new construction and redevelopment has reverberated along the outskirts of downtown. Two office projects were recently completed at Third Avenue and El Camino Real, at what locals have dubbed the “three-corners site.” All former gas stations, a third parcel on the western side of El Camino Real is being sought for a small residential and office building.

What was once considered the sleepy side of downtown, east of the Caltrain line is also expected to undergo significant change in the coming years. The former Endo Automotive building and a neighboring lot are in the process of being reviewed for a mixed-use office and “micro” housing unit redevelopment.

Immediately to the south, San Mateo is considering what to create at the city-owned redevelopment lots straddling Fifth Avenue. Known as the Worker Resource Center and former Kinko’s lots, the council has expressed an interest in using the parcels to create affordable housing.

A similar reaction to other redevelopment proposals in the area, residents in the adjacent Central Neighborhood have expressed concerns about parking, traffic and density. It’s not immediately clear whether residents in the North Central community will have a similar reaction to the Trag’s proposal.

The city is also in the midst of updating its Downtown Specific Plan, a comprehensive land use document that will guide future developments in the city’s hub.

Fienman said she sympathizes that change can be difficult, but noted finding new uses for the site near transit could bolster a thriving downtown.

“I know Trag’s is a beloved retailer with a long history downtown and I’m sure that people will be sorry to see the existing use disappear, but I do think it’s a unique opportunity for change in the downtown and a direction that will be beneficial in the long term,” Fienman said. “Certainly when you have such a demand for real estate in downtown areas on the Peninsula, it’s not surprising to see large parcels like that turn over.”

samantha@smdailyjournal.com

(650) 344-5200 ext. 106

Twitter: @samantha_weigel