College Terrace Market
News Update – February 27, 2020
Starting on February 13, 2020, daily fines of $2,157/day began to be assessed against the property owner for its failure to have a grocery store in operation. This requirement for the continuous operation of a grocery store was established by PC Ordinance 5069 and was further amended by a restrictive covenant put in place in 2015. With Khoury’s Market recent closure, there is currently no grocery tenant in operation at this location as is required; therefore, the financial penalties for noncompliance will now begin until a new store has begun operations.
The recent closure of Khoury’s Market at College Terrace Centre has prompted a number of questions from the community, most particularly about the requirement of the property owner (AGB-Pact) to ensure that a grocery store continues to occupy the site. The City’s ordinances that provided the property owner the right to develop their site in the manner that they have, mandates a series of “public benefits”, one of which includes providing a grocery store with an area of 8,000 square feet. The owner is obligated now to find a new grocery store to occupy the grocery tenant space, and to ensure that the building continues to be used only for that purpose.
The PC ordinance (5069), and the associated Restrictive Covenant, require that a grocery store must be in continuous operation. If the grocery store ceases operations, a new grocery operator must be found. There is a six moth grace period for the property owner to find a new grocery tenant. The six month grace period only permits the closure of the grocery store for a cumulative six months within any five year period. The six-month period of store closure within a five-year period has already been exceeded due to the extensive time it took to replace the grocery tenant, College Terrace Market that originally occupied the site.
College Terrace Project Documents
Click here to view project documents.
For additional information, please contact the Code Enforcement Lead, Brian Reynolds at (650) 329-2358 or via email.