2008-11-18 6-B SubmittalYOLANDE JURZYKOWSKI
November 12, 2008
The Honorable Mayor and Members ofthe City Council
City of Alameda
2263 Santa Clara Avenue
Alameda CA 94501
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Re: Petition for Appeal from a denial caused by a tie vote} by the City of
Alameda Planning Board on September 22, 2008, of an Application to
Amend the General Plan to permit an office use at 2400 Mariner Square
Drive, Alameda, CA ~"Property"} -Planning Board Number - PLN-O8-0153
Dear Mayor and Members of the City Council:
My name is Yoiande Jurzykowski and I am the owner of the Prvperty which is the
subject ofthis appeal from a tie vote of the Planning Board on my application to
amend the General Plan of the City of Alameda to permit an office use of my
Property. Thank you forallowing me to presentthis appeal far your
consideration. f respectfully request your support of an amendment to the
General Plan to increase the area for office use in the MU-2 zoning area of
Mariner Square from 5,000 to 10,000 square feet.
1. HISTORY GF THE PROPERTY
~ purchased the Property on December 29,1992, subject to a lease dated June
16,1975, with an initial term ending August 31,1996. The lease contained two
ten-year options for renewal. The lessee was Chevys, inc., a California
corporation, dba Chevys. The Chevys restaurant chain was then owned by an
experienced restaurateurldevelaperWarren L. Simmons and his son, Warren L.
Simmons, Jr. The Property was the first location of the Chevys restaurant chain
which was started by the Simmons in 1986.
Soon after my purchase, the Chevys restaurant chain was sold by the Simmons
to the first of a series of successive operators: Chevys #1 (Simmons), Chevys #2
(PepsiCo), Chevys #3 (Chevys, Inc.) and Chevys #4 (Chevys Restaurants LLC).
Each owner acquired the chain subject to my lease and continued to operate the
chain under the Chevys name.
On October 14, 2003, Chevys #3 filed a Chapter 11 petition in the Oakland
Bankruptcy Court and continued to operate in bankruptcy under the Chevys
name until 2005 when the Bankruptcy Trustee sold the Chevys chain to Chevys
#4, including the lease of my Property.
On November 28, 2005, Chevys #4 notified me of its desire to exercise the
P.O. BOX 1150 • FAIRFAX • CA 94978
TELEPHONE 4151457-695 • TELEFAX 4151457-0546
The Honorable Mayor and Members of the City Council
November 12, 2008
Page 2
second option to extend the lease for an additional 10 years commencing
September 1, 2006. When Chevys #4 was informed that I expected it to address
significant deferred maintenance of the Property which had occurred during
bankruptcy and before, Chevys #4 withdrew the exercise of its option to extend
the lease and the lease terminated on August 31, 2006. Upon termination,
Chevys #4 removed all of the restaurant's operating equipment having any value,
and departed without addressing its deferred maintenance obligations.
Annual gross revenue from the operation of Chevys fell steadily from 1992, the
year I purchased the Property, through August 31, 2006, when Chevys closed.
Please see attached Exhibit A.} In the Chevys #3 bankruptcy praceeding, I
learned that the monthly rent paid by Chevys#3 for the Property was the lowest
rent paid by Chevys #3 on any of the 106 restaurants in the Chevys' chain of
restaurants. Please see attached Exhibit B, which is a pleading filed in Chevys
#3 bankruptcy proceeding to which is attached a schedule of all Chevys #3's
leases and the monthly rent payable on each lease. My Property is listed first
because of its location in Alameda.}
Notwithstanding the below-market lease rent payable on my lease, none of the
four experienced restaurant operators was able tv increase revenues at 2400
Mariner Square Drive during the 14 years prier to the closure of Chevys on
August 31, 2006. In 1992, the year I purchased the Property, gross restaurant
revenue was $2,551,261, In 2006, the year in which the restaurant closed, gross
restaurant revenue annualized}was $1,843,590. In 14 years the decrease in
annual gross restaurant revenue amounted to $1,013,311. During this same
period, the Consumer Price Index ~"CPI"}for San Francisco-Oakland-San Jose
for all Urban Consumers increased 46%, thus the decline in gross revenue was
in fact $1,501,849 inconstant dollars. Please see attached Exhibit C entitled:
"US Department of Labor, Bureau of Labor Statistics, Consumers Price Index
CPI}All Urban Consumers, San Francisco-Oakland-San Jose covering the
period December 1992 through August, 2006.}
2. HISTORY OFTHE MU-2 AREAZONING
The Property is located in an area designated MU-2 in the General Plan adopted
in 1991, which according to the Planning Department staff report contained,
"...an eclectic mix of uses that included maritime retail, offices, restaurants,
marinas, and even some residential components."
The 1991 General Plan permitted an additional 5,000 square feet of office uses
in the entire MU-2 area. A 1999 Amendment to the General Plan reallocated this
5,000 square feet of office uses to that portion of the MU-2 area east of Mariner
Square Drive, As the Planning Board Staff Report states, "With the approval of
the Cardinal Point development, the approximately 20,000 square feet of office
The Honorable Mayor and Members of the City Council
November 12, 2008
Page 3
on the west side of Mariner Square Drive was removed from the MU-2 area to
make room for the Cardinal Point development and boat storage facility."
In 2003 the City approved a replacement structure for the Carriage House, a
three-story mixed-use structure at 2402 Mariner Square Drive which is adjacent
to my Property, which had been destroyed by fire a year earlier. The original
structure housed a restaurant on the fiirst floor. The replacement structure
approved by the City included 4,590 square feet of office uses, some of which
were preexisting on the upper floors. This 2003 approval used up more than half
of the 5,000 square feet of permitted new offices uses east of Mariner Square
Drive. Perhaps unknowingly, the adoption by the City of the 1999 Amendment to
the General Plan reduced existing and permitted office uses in the MU-2 Area
from the approximately 25,000 square feet permitted prior to approval of the
Cardinal Point project to a mere 5,000 square feet restricted to the area east of
Mariner Square Drive.
According to the staff of the Planning Board, the limitation of 5,000 square feet of
new office uses in the MU-2 area was adopted in 1991 for the purpose of
preventing office uses from displacing marine, water, and visitor serving uses in
this area. My proposed amendment requesting an increase in permitted office
uses from 5,000 to 10,000 square feet under Policy 2.6.b, will not displace any
existing marine uses inthe MU-2 zone, will recognize the changes that have
occurred in the MU-2 zoning area since 1991, and will also recognize that a
significant decrease in existing office uses occurred as a result of the approval by
the City of the Cardinal Point project.
My proposed amendment also requests the deletion of Policy 2.6.g which fur#her
limits office uses east of Mariner Square Drive. The Zoning Compliance
Determination ~PLN07-0058: 2400 Mariner Square Drive} dated February 3,
2008 could be interpreted as limiting additional office uses east of Mariner
Square Drive to 520 square feet. If such an interpretation is correct, both this
Property as well as the adjacent Carriage House would be precluded from an
office use. Amending Policy 2.6.b to change permitted new office uses in the
entire MU-2 zoning district from 5,000 to 10,000 square will effectively prevent
any significant increase in office uses and eliminate the need for Policy 2.6.g.
The office use for the adjacent Carriage House building and the office use
proposed for 2400 Mariner Square Drive will together result in 1,724 square feet
ofi new has opposed to preexisting} office uses in the MU-2 area. There will
remain an additional 2,216 square feet of future new office uses that would be
permitted in the MU-2 area. Granting my proposed amendment to the General
Plan will not eliminate any existing marine or visitor serving uses currently in
operation.
3. EFFGRTS TG FINDA RESTAURANT QPERATOR FGRTHE PROPERTY
The Honorable Mayor and Members of the City Council
November 12, 2008
Page 4
Despite well-documented changes which have transformed the MU-2 area since
1991, three members of the Planning Board took the position that because the
Property had been a restaurant for approximately 30 years until it closed in 2005,
it must continue as a restaurant. I request that you, the members of the City
Council, revisit this issue and determine whether in your opinion a restaurant use
remains a viable use of the Property in today's economy.
In 1993, the year following my purchase of the Property, it was announced that
the Alameda Naval Air Station was on the list of proposed bases to be closed.
The closure finally occurred in 1991. A combined civilianlmilitarytyork force of
over 18,000, many of whom had been regular customers of Chevys, was
significantly reduced as the Navy began turning the base over to the pity of
Alameda. In 2003 the construction of Cardinal Point brought a large senior
citizen residential project to the center ofthe MU-2 area directly across the street
from my Property which significantly changed the eclectic mix of uses in this
area. Cardinal Point serves at least 2 meals a day to its residents and their
guests. As the Planning Department staff report indicates, the Cardinal Point
project also removed almost 20,000 square feet of office space, which further
eliminated a large restaurant customer base. Marine uses still operate in the area
east of Mariner Square Drive, but they are limited to boat storage, yacht berths
and the offices of Commodore Cruises, which operate dinner cruises departing
from lacks in front of Cardinal Point. A single licensed yacht broker remains in
Mariner Square who also owns the Carriage House, the Mariner Square marina
and berths, and the sole remaining restaurant in Mariner Square known as the
Pasta Pelican,
There is no longer water taxi service to Jack London Square from the dock in
front of 2400 Mariner Square Drive. There are no longer 15,000 employees of the
Alameda Naval Air Station to drop by for lunch or an their way home from work.
Most tourists to the MU-2 area now park in a lot behind Cardinal Point to board
dinner cruises. These tourists are not present to eat at a restaurant, as they are
booked to dine on board Commodore cruise boats. Since 1999, tourist-oriented
restaurants and related uses have significantly increased in Jack London Square,
which does not require driving through the Webster or Posey Tubes. The
adjacent Carriage House located at 2402 Mariner Square Drive housed four
successive restaurants Larry & Della's Waterfront Restaurant, Commodore
Sports Bar and Grill, the Carriage House, and the Barge Inns, all of which opened
and quickly closed. They were followed by a fire which burned the Carriage
House to the ground in 2002. As of this date it has not been rebuilt, and there
remains today a burned out shell next to my Property. The few tourists currently
visiting Mariner Square, who are not taking a dinner cruise, can dine at the Pasta
Pelican Restaurant, located on the water in front of Cardinal Point. Despite being
one of oldest and best known local restaurants, Pasta Pelican has suffered
The Honorable Mayor and Members of the City Council
November 12, 2008
Page 5
diminished business. Other than the Pasta Pelican, no other restaurant in
Mariner Square continues to exist.
To operate a restaurant on the Property, the building's deferred maintenance
must be addressed, new kitchen equipment installed, and both the exterior and
interior public areas would need to be upgraded appropriately. The cost of these
renovations and upgrades is estimated to be in excess of $1,000,000 and closer
to $2,000,000. An investment of this magnitude in today's economy is totally
unrealistic. I am increasingly anxious that if I am limited to using the Property for
a restaurant, it will remain vacant for many years into the future and further
impact the Mariner Square MU-2 area as has the burned out Carriage House for
the past 6 years.
For more than two years, I have searched for an experienced and financially
qualified restaurant operator willing to lease the Property. As part of this search,
the following qualified commercial leasing agents were contacted: ~1 }Loh Realty
& Investments, Oakland, California; ~2} Colliers International --Oakland,
California; ~3} Metrovation, Oakland, California; ~4}Wolfe Commercial, Inc., San
Francisco, California; ~5} LCB Associates, Oakland, California; and ~6} CB
Richard Ellis, Inc., Oakland, California. Ail these brokers are familiarwith the
Property and its availability for lease to an experienced and financially capable
restaurant operator. In the more than two years since Chevys #4 departed on
August 31, 2006, not a single offer to lease from an experienced and financially
capable restaurant operator has been received from any of these brokers. To
suggest, as expressed by one member of the Planning Board, that 1 intentionally
let this Property deteriorate to make it less attractive to prospective restaurant
operators is absurd. That suggestion evidenced a lack of understanding of the
current economy and a failure to appreciate the changes that have impacted the
MU-2 area during the past 17 years since I purchased the Property. It also
ignores my holding costs that have exceeded $100,000 while the Property has
remained vacant.
I sincerely request your supportfior this Application to Amend the General Plan to
permit an economically viable office use of 2400 Mariner Square Drive. I am
requesting your support for this Amendment of the General Plan because there is
no longer sufficient customer traffic to support a restaurant at this location. Last
year, a City ofi Alameda native and resident entered into an agreement with me
to relocate her woman-owned small business with 25 full-time employees from
the City of San Leandro to 2400 Mariner Square in the City of Alameda. She was
informed by the staff of the Planning Department that the General Plan would
prevent her from obtaining a permit for her business at this location due to the
fact that the square footage available for office use east of Mariner Square Drive
had been granted to the Carriage House in 2003. Not only has the burned out
shell of the Carriage House impacted my Property fvrthe past 6 years, but it also
The Honorable Mayor and Members of the City Council
November 12, 2008
Page 6
appears to have captured and now holds the limited square footage available for
an office use east of Mariner Square Drive under the current General Plan.
!n approving my request for an Amendment to the General Plan, the tax revenue
to the City of Alameda will have an opportunity to increase, there will be no
change in or impact on public access to the shoreline trail or public access
across my Property, and the bicycle path, public benches and the view corridor
will remain for public enjoyment, exactly as they exist today.
1 respectfully ask your support for the requested Amendment to the General Plan
to increase permitted new office uses in the entire MU-2 area from 5,004 square
feet to 10,000 square feet. Although the amount of square footage involved is
minor, the issue is a complex one and forgiving your time to address my appeal
offer you my sincere thanks.
Respectfully submitted,
Yol e Jur owski
Gwner, 2400 Mariner Square Drive
City of Alameda, California.
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EXHIBIT A
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2$
RICHARD L• VVYNNE (SBN 120349)
MICHAEL I. GOTTFRIED (SBN 146689)
MATTHEW D. A. FOSTER (SBN 205423)
I~RKLAND & ELLIS LLP
777 South Figueroa Street
Los Angeles, California 90017
Telephone: (213) 680-8400
Facsimile: (213) 680-8500
Attorneys for Debtors and
Debtors-in-Possession
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UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
. OAKLAND DIVISION
Ire re
Case No. D3-45879 RN
CHEVYS, INC., a California corporation,
CHEVYS HOLDINGS, INC., a Delaware
corporation, CHEVYS OF GREENBELT,
INC., a Maryland corporation, CHEVYS NEW
YORK, IlVC., a California corporation,
CHEVYS OF PAI~SIPPANY, INC., a New
Jersey corporation, RIO BRAVA
ACQUISITIONS, INC., a Delaware
corporation, RBA KANSAS, INC., a Kansas
corporation, KA U CREATIONS,
INC., , a California cvrporat~on, and
wR.APwORKS, INC., a California
corporation.
Debtors,
Federal Tax Y.D. Nos. 33-0572629, 04-
3360959, 94-3219315, 94-33091 DD, 22-
3624995, 94-3322115, 94.3324125, 94-~
3267693, 94-3267692
Jointly admuaistered with D3-45S$2, D3-
45$$6, 03-45583, D3-45889, U3-45891, 03-
45894, 43-45895, 03-45895} .
Chapter 11 .
NOTICE OF PROPOSED CURE
AMOUNTS FaRNON-RESIDENTIAL
REAL PROPERTY LEASES
[No heazing set]
TO THE OFFICE OF THE UNITED STATES TRUSTEE OFFI
CO~TTEE DF UNSECURED CREDITORS T
HE PREPETITION BANK GROUP,
THE POSTPETITION BANK GROUP, THEIR RESPECTIVE COUNSEL
OF RECORD,
ALL PARTIES REQUESTING SPECIAL NOTICE, AND ALL PARTIES T
O THE NON
RESIDENTIAL REAL PROPERTY LEASES:
969837b l.DQC
EXHIBIT 3
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EXHIBIT B
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2g
pLEASE TAKE N~]TICE that on Au t 30 •
gus , 2444, at 2.00 p.m. ~n Courbroam 224, of
the United States Bankruptcy Court, located at 1340 •
Clay Street, Qakland, Cal~forn~a,- .the
Honorable Randall J. Newsome held an omnibus h ~~ ~~ ~ .
~g the Cmn~bus, H~ ~ wherein
certain procedures were established for fixin cure .
S amounts for non-residential real grope
rtY
leases which the Debtors may assume ursuant to then
. p plan of reorganization or otherwise• this
notice is prodded in accordance with those ~rocedures• .
A ,
PLEASE TAKE NOTICE that attached as E
xhibxt A hereto ~s a Iist of the Debtors non-
residential real pro ~ leases ar~d ro
ICY p posed cure amounts for each,
pLEASE TAKE FURTHER NOTICE that an art w
y p y ho disagrees with the Debtors
proposed cure arnowat must subnut their suggested cure amour .
t and supporting detail to the
Debtors clo Matt Foster, Esq,, Kirkland & Ellis LLP b i
y ~ } ema~I at mafoster rkland.com, or
~u} fax at X213} 548-5147, no later than Tuesda Se to
y, , p tuber 7, 2004 at 5:40 p,m, PST;
PLEASE TAIL FiJRTHER NOTICE that an cur ~~
Y e amount not contested w
accordance with the proceeding paragra h will be deemed
p tb~e f naI cure amount far' the
applicable non-residential real property lease u~t to
.p I 1 U.S.C. § 365~b}~1)~a}, to be paid in
accordance with the Debtors' plan of reorganization or other a
ppl~cable orders of the Court;
PLEASE TAKE FURTHER NOTICE that an cur •
Y e amount which xs not
consensually resolved between the Debtors and the a ~Iicable Iand
pp lord shall be resolved by the
Court pursuant to a hearing to be set by Debtors.
Dated: August 31, 2004
KIl~LAND & ELLIS LLP
By
MATTHEW D. A. FO TER
Attorneys for Debtors and
Debtors-in-Possession
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1
DECL,ARATIpN pF SERVICE
I am over the age of ei teen ears
~ y and not a party to the wrthrn action. I '
an office that em Io a member of am employed in
P . Ys the bar of this Court, at whose direction the wrthrn '
was made. My business address rs KIRKLAIVD & ELKS sernce . .
3704 LLP, 777 South Figueroa Street, Suite
Los Angeles, California 94417.
Cn Augus# 31, 2004 I served '
the following NpTICE pF PRpP4SED CURE
AMpUNTS FCR NpN-RESIDENTIAL RED, p .
RpPERTY LEASES on the anterested
parties in this actlon.by placing true co ies thereof enclo
P sed m sealed envelopes,
The above-descn~ed pleading was transmittcd to the ' ~ .
described below: ~ndxcated parties set forth above m the manner
XX~x By Uvernlgbt Mail TQ: ALL NDT~CES LIST Ius Th
~ e Parh~s Listed 4n The Attached
Landlord Lists
By causing the foregoing docuu~ent to be dclivered to the addre
following business morain b Federal E ssee~s~ vn the
g Y xpress Corporation or Express Mail.
XXXX By Facsimile: ~I'o The Pales Listed b FacsinWe 4nI
y y1
Sy telecopy for immcdiatc receipt on the samc day ~of this
Declaration on the partylparpes as indicated on the Service
List,
I declare under penally of perj under the la '
. m'Y ws of the United States of America that the
.. foregoing rs true and correct,
Executed on August 31, 2004 at Las An eles Califo .
~ ~ rxua,
I declare that I am employed in the office of a •
direction member of the Bar of this Court at whose
the service was made.
Marcella Caldwell
EXHIBIT R ~ a^~
EXHIBIT C
Bureau of Labor Stat~stxcs Data
~~
U.S. Department of Labor
www.b/s.gov Search: All BLS,gov
~ Bureau of Labor Statistics
Page 1 of 2
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Consumer Pr~ca index - AEI Urban Consumers
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EXHIBIT C
RecoveryResources
P. 4. Bax I347 Alameda, CadifarlTia 9~50I
The Honorable Mayor and Members of the City Council
City of Alameda
2263 Santa Clara Avenue
Alameda CA 94501
9
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NOS ~ ~ ?~~ ~~ 1~.
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Re: The Petition for Appeal from a denial by tie vote by the City of Alameda Planning
Board on September 22, 2008. of the Application to Amend the General Plan to permit an
office use at 2400 Mariner Square Drive, Alameda, California ~"Property"~, Planning
Board No. PLN-OS-0153
Greetings;
This letter is written in strong support of the above-referenced Petition for Appeal.
My name is Cheryl Canaday. I am alife-long resident of the City of Alameda and I am
the founder, President and sole owner of Recovery Resource, Inc. The company employs
25 people and it is currently located in San Leandro. In the fall of 2007 Recovery
Resources, Inc. attempted to purchase the Property and remadel it to use as its off ce. I
planned to move my entire business and aII 25 employees to the Property. we were
unable to complete the purchase because Alameda's current General Plan will not allow
the Property to be used as an office.
Recovery Resource, Inc. is still very interested in purchasing the Property and
moving ali of its operations and employees to that site. we are prepared to remodel and
maintain the Property in a first class manner.
Recovery Resources, Inc. plans no alterations or modifications which would in
any way limit the current public access to the shoreline trail or public access across the
Property. We will maintain the bicycle path, the view corridor and public benches. we
have already had preliminary discussions with the San Francisco Bay Conservation and
Development Commission staff. we understand that BCDC's approval maybe
conditioned on improved public access to the waterfront.
I started Recovery Resources, Inc, 1 S years ago. I am proud that it is a successful
woman-owned business. I would dearly like to move my business to my hometown and
add to the employment base here.
Thank you for your kind consideration of this letter. I would be happy to answer
any questions you have and I intend to attend the meeting on November 1$, 2005.
espectfully submitted,
U~
Cheryl Canaday
President, Recovery Resources, Inc.
~ 51x.569.0755 FAx 5I0.569.I045 e-mail recoveryC~recres.cota~ website www.recres.cam