Walmart rumors spark city policy discussion

Banning or limiting superstores that offer groceries in South San Francisco is an option the City Council will consider Wednesday after hearing the results of an impact study from such a store opening.

Rumors that Walmart is interested in moving into South San Francisco at the Lowe’s location east of Highway 101 sparked the City Council to request an impact analysis. On Wednesday, the council will hear the results of the study. And, it will consider whether to change the zoning requirements to either prohibit or restrict the number of superstore sites, bar grocery use from the area east of Highway 101 or make no changes.

Mayor Richard Garbarino explained that without any proof that the rumors are true, the real question before the council is whether it’s appropriate to have a grocery store in an area that is not close to residents.

Requests to Walmart’s corporate offices have been met with a response that there are no "projects to announce” in South City. No permits have been pulled for Walmart either. If Walmart were to go into the Lowe’s location, it would generally be considered under the same type of retail, unless the store added groceries.

Garbarino is hopeful that representatives for South San Francisco grocery stores will attend the meeting Wednesday to discuss the possible impact of the opening of a superstore that also sells food.

Opening a superstore that includes groceries could create an average decline of 5 percent to 9 percent from existing stores in South San Francisco, according to the analysis completed by Seifel Consulting. The greatest impact would be to businesses within a two-mile radius of any new store. Specialized stores will be more competitive due to the products offered, according to the analysis.

Taking the possible impacts in mind, the council will consider giving direction to draft a zoning amendment to prohibit or limit the number of superstores within South San Francisco, remove all grocery use from the area east of Highway 101, or leave the remaining rules in place, according to a staff report by Assistant City Manager Marty Van Duyn. Currently, the city allows large retail stores with a conditional use permit. Few locations within the city are large enough for such a store given the parking restrictions, Van Duyn wrote.

At the same meeting, the council will consider how to fill the vacancy that will occur once Kevin Mullin takes his new position in the Assembly.

Last week, Mullin was elected to represent the 22nd Assembly District. Once he leaves to take the new seat, the council will need to decide how to fill the opening. Mullin, a local businessman, was born and raised in South San Francisco. He first joined the council in 2007 and was re-elected in 2011. When he leaves the council, there will still be two years left in his term.

There are a few options before the council: Appoint someone to fill the remainder of the term, through 2015; appoint someone until the next regular election in 2013; or hold a special election.

The council meets 7 p.m. Wednesday, Nov. 14 at the Municipal Services Building, 33 Arroyo Drive, South San Francisco.

Heather Murtagh can be reached by email: heather@smdailyjournal.com or by phone: (650) 344-5200 ext. 105.