Tessa Balc at the Times of San Diego dropped a stunning article on Sunday the 8th of March, by declaring there soon could be a Walmart at the former RiteAid property in Ocean Beach.
The new owner of the property is seriously considering putting in a Walmart Depot — but it wouldn’t be a “walk-in” store to buy anything but a location for delivery drivers to pick up wares and products to distribute nearby.
An application to install one was submitted to the City of San Diego recently and, as Balc reported:
“describes Walmart Depots as non-branded facilities, stocked with high-demand delivery items. Based on the description, it would not be open to the public, instead serving only authorized delivery “drivers/shoppers.” [Rag emphasis.]
Let’s back-up by returning to Balc’s article.
She reports that Murfey Construction Company is a developer who bought the RiteAid property in January, whom she also describes as “a well-known developer in the beach neighborhoods ….” (See below.) Balc in addition stated the company “is also considering a housing development.”
Balc also maintains the City staff is on board with this idea, having already reviewed the idea and reported back to Murfey that it did not run afoul of any development restrictions. More from her article:
Murfey Construction Company submitted a formal request on Jan. 21 called a “preliminary review” to the city’s development department to see if a Walmart Depot would even be possible at the site. City staff concluded that based on the information provided, no city laws preclude it, but that determination is not final.
Another city document obtained through a public records request indicated that a development team last year considered reviewing the Walmart Depot concept at a former Walgreens in North Park, which has since become a thrift store.
Together, the possible project in Ocean Beach and abandoned project in North Park reveal that businesses are exploring the concept of building delivery hubs in the heart of the city’s walkable neighborhoods.
Murfey Company is a local San Diego operation, headquartered at 2050 Hancock Street, Suite B, San Diego, CA 92110 and describes itself as “a leader in the real estate development and building industry.” Murfey was the general contractor for an 81-unit mixed-use project in the Midway 7 or so years ago, and a decade ago used to tout two local multi-use projects– The Point at Ingraham in Pacific Beach and Famosa Townhomes at the corner of Voltaire Street and Catalina Boulevard – as examples of the company’s accomplishments.
Another hurdle in any planned depot in OB was also outlined by Balc: “the project could require a coastal development permit — a more time-consuming and less certain process — in two circumstances.”
One is if developers had to alter more than 50% of the building’s exterior walls. The other is if the new, delivery-focused use would drive more traffic to the area than had previously been permitted for the pharmacy.
Here’s the balance of Tessa Balc’s article:
How the OB Walmart Depot became a possibility
Earlier this year, CBRE, a large commercial real estate firm, announced Ocean Beach’s former Rite Aid had been sold.
Conor Brennan, who represented the buyer, told Times of San Diego he could not reveal the buyer, but said “it seems like it’s going to be a pretty big residential development.” But that would not take place for another 2 to 3 years, he said. In the meantime, he said it would most likely house a commercial tenant who would not make significant changes to the building. [Rag emphasis.]
That buyer was Murfey Construction Company, which completed the purchase on Jan. 20, records from the County Assessor’s Office show.
The next day, Kinetic Design and Development submitted to the city’s development services department an application outlining what a Walmart Depot is alongside limited information on how they plan to outfit the building for its operations.
The application describes Walmart Depots as non-branded facilities, stocked with high-demand delivery items. Based on the description, it would not be open to the public, instead serving only authorized delivery “drivers/shoppers.”
The preliminary review request primarily asked whether the project would be permitted by right, meaning it would be approved through a streamlined permitting process.
It also asked to be made aware of anything that could warrant additional permitting.
City staff said Kinetic’s description of a Walmart Depot seems like it would meet the definition for “Off Site Services,” which would be permitted by right at this location. …
The request for a preliminary review is not an application for a permit, and the city’s response is not legally binding.
Both Murfey Construction Company and Walmart declined to provide a comment on the record after receiving a request for a written description of the public records Times of San Diego obtained.
There’s a lot of interest in OB about the future of this property — an understatement. Activists are looking at this process carefully and some are considering holding a town hall meeting about it all.
If we ever needed confirmation that logical zoning has died, one only needs look at this or Complete Communities. The foxes now guard our hen houses.
Turning OB into Industrial complex.
Traffic and air quality will be impacted by this pick-up and delivery idea. Exist on Sunset Cliff’s two land road? What could go wrong?
This is a stupid idea but that’s the caliber of ‘policy advisors’ at our city. A developer’s dream. Build whatever; wherever you want.
That would be very disappointing to have no walk-ins. Seems like expensive real estate to just operate as a mini warehouse.
As for the long term project, I can guarantee it will be some mid rise or high rise breaking the height limit using the state bonus density law, with the minimum number of affordable units required and possibly without any retail at all and under-parked. The Turquoise Tower in PB is a test-case for how much they can stretch this program.
As for the Complete Communities program, that’s a city program that was just greenlighted for OB. It caps buildings at 2.5 floor-area-ratio at this location, so it’s not practical to use it above about 4 stories.
On a positive note: Landscaping crews began work this morning on cleaning up the perimeter of the RiteAid property, which was looking worse by the day due to out-of-control weeds, untrimmed, thorny shrubbery encroaching on the sidewalk, a homeless encampment and the rubbish it generated, and fallen palm fronds. Longer term, I’m hoping for a sensitively designed, mixed-use (residential and commercial development) that doesn’t exceed thirty feet in height. We’ll see. I’ll be surprised if the Walmart Depot concept comes to fruition.
Absolutely sounds like a formal traffic study is in order to determine if a Walmart Depot would in fact drive more traffic in the area than what was originally approved for Rite-Aid, possibly as part of a larger CEQA review. These regional delivery hubs are a relatively newer business model and that’s just doing due diligence to ensure the project is ultimately compliant with the law. The community should demand that this takes place, IMHO.
I agree with you completely, Seth.
The rumor that most people smiled about for the old Rite Aid was a Trader Joes. I agree with kh above that no walk in commerce on site seems like a waste of space.
Here’s another idea, Western Division SDPD can relocate to the Rite Aid and be that much closer to patrolling OB. The life guards could park there too and be closer to the cliffs for rescues. I actually have fun shopping at Walmart but it is not to the taste of some locals. Or another idea, a second OB-Peninsula fire station. If OB is about to be packed with high density housing we might need more fire fighters in town.
Another useful business for a possible fire fighter lifeguard SDPD combo station would be an urgent care center. Maybe not space for a hospital at this location. So: Western Division SDPD can relocate to the Rite Aid and be that much closer to patrolling OB, the life guards could park there too and be closer to the cliffs and small beaches for rescues, and an OB-Peninsula fire station could be helpful for the other fire stations. If OB is about to be packed with high density housing we might need more fire fighters in town.
A mini Walmart warehouse?? Lots of people live in the 4800 Block of Niagara. The warehouse would have semi truck unloading in back at night and dozens of delivery vans coming and going in front during the day. That’s dumb as dirt!!
You want to piss of voters? Go ahead with that plan.
Well said, Ruth.
Agree! I hope neighbors, and all OB residents, study this (and any other) proposal(s) closely, and make their opinions known to the city council, and especially the candidates running for the open D2 seat. We need to get them on the record about what they think is acceptable (and not) development for this site.
: …Complete Communities program, that’s a city program that was just greenlighted for OB.”
Where’s the Major Transit Stops? Map the major transit stops in Ocean Beach.
” Major Transit Stop, as defined in Section 21064.3, means: “a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service of 15 minutes or less during the morning and afternoon peak commute periods.”
“Transit Priority Areas” are defined as “an area within one-half mile of a major transit stop that is existing or planned, if the planned stop is scheduled to be completed within the planning horizon included in a Transportation Improvement Program …”
and see San Diego Municipal Code §143.1001, et seq. It’s a tangled web – and it can be challenged. Stay alert. Stay informed.
The solution is simple – don’t order from Walmart.
The business idea collapses if 92107/92106 stop buying online from Walmart
Yeah, LOL, Walmart will really notice that.
In a world full of bad ideas, turning the former Rite Aid into a trucking warehouse is at the top of the list. Trucks large and small, traffic and pollution are not what should be happening two blocks from the beach in the heart of a quaint downtown area.
Better to place such uses in the Sports Arena east area, on the other side of Rosecrans, where there is light industrial and no residents.
This definitely requires a community meeting where residents and merchants can sound off on this terrible idea.
Ugh, I shall call it Walmart Despots! This is soul-crushing. I was optimistic OB could get a Sprout’s or Trader Joe’s in that spot, maybe with some affordable apartments on top, that could truly be an asset to our neighborhood. The thought of anything Walmart in OB, after we finally saw Starbuck’s exit, is demoralizing. The fact that it would be used as a non-public access shipping warehouse makes it even worse. I feel bad for the residents and small businesses around there, as having a place you can walk in, do some affordable grocery shopping, grab a coffee or a pastry nearby, and walk or bike home after, would be so much nicer than a ‘Made in China’ shipping hub.
When 8 units with parking morph into 20 units with little parking just before the permit was granted, that was only the beginning. Even in Coronado, a liquor license turns into a hotel. And a Walmart Depot might require NO modifications to the building, right up until it morphs into 700 units. And the question of “What next?” is one that has no answers. The old, quirky idea of Zoning restrictions is out the door. It is what next, what then, what next, what then?
They can put it in and when it doesn’t sell enough, they’ll pay to pull it out. Whoop dee do.
I can’t believe that this wlll pass the city’s review process. The base zoning for the site is CC-4-2. As I read the allowed uses in this zone distribution facilities are NOT an allowed use in this zone, as opposed to the CC-5 zone where distribution facilities are permitted. Of course, knowing our city they will probably decide that it is not really a distribution facility but something else allowed in the municipal code.
I’m disappointed in the Murfey Company. When I was on the PCPB and its project review committee I generally found that the Murfey Company was generally willing to listen to the community and modify their projects to address community concerns. I guess they’ve changed.
What if this could reduce vehicle traffic in O.B? Bike deliveries would work great from here and help reduce the vans parked in the middle of the street with their blinkers on. I would suspect this idea would not be out considered if there were not a lot of people currently ordering delivery through Walmart in O.B.