The City of Clearlake Planning Commission is upholding a staff recommendation that the Rite Aid Corporation pay for a traffic signal and road improvements as a condition of building a new store on the corner of Old Highway 53 and Olympic Drive. “Rite Aid has to put the signal in and as development comes in, you reimburse them,” said Interim City Engineer Bob Galusha, explaining to the commission on Tuesday, May 16, the workings of a zone of benefit that could be established in the future. While Rite Aid would initially bear 100 percent of costs for signal and roadway improvements, it could eventually be reimbursed for 85.2 percent through a zone of benefit. Rite Aid would be required to pay the cost of forming the zone of benefit, which would be included in the amount of money that the zone of benefit would be designed to reimburse. Jeff Moss with Rite Aid Corporation reiterated the company”s position, which had been summarized in a city staff report, that they do not believe Rite Aid will be reinbursed 85.2 percent of costs in the future. “We”re willing to pay our fair share and put the money into an account,” Moss said. Proceeding with the store”s construction without making roadway improvements was eliminated as an option, however, due to the project”s projected impacts. A study commissioned by Rite Aid developer RHL Design Group initially concluded that any increases in traffic resulting from construction of the store would not be sufficient to affect the intersection”s level of operating capacity. But after being submitted to peer review, the firm that created the report issued an amended report indicating that traffic signal warrants had been met. “In the past, the city has backslid,” said Commissioner Chuck Leonard. “But we can”t put development in if we don”t handle traffic improvements now.” A previous zone of benefit, established in 1998, was set at a half-mile radius but that zone of benefit has since lapsed. Galusha said that when defining a new zone of benefit that radius could be looked at, and that it could be larger than one half-mile. Commissioner Curt Giambruno agreed, saying he felt one half-mile was not far enough. Interim Community Development Director Angela Basch suggested establishing a zone between one mile and a mile-and-a-half in order to capture more properties. Leonard also suggested setting the term of the zone for a period of 10 years. “If we could give them a longer time in which to recoup more expenses, it might make it much easier to swallow,” Leonard said. Moss said that Rite Aid Corporation budgets a certain amount for store construction projects and if costs exceed the amount budgeted, the corporation either cannot go forward or must raise prices to an extravagant level. But Dr. Mark Cooper, co-partner in the adjacent Clearlake Dental, said, “My personal feeling is that this is one of the most prime real estate locations in Clearlake,” and that Rite Aid would face competition from other pharmacies to build in the area in question. Cooper encouraged the commission to “stick to the code” in rendering its decision. Other requirements imposed as conditions for construction of Rite Aid”s new store include installation of two loading docks in compliance with city standards and submitting a letter from Lake County Transit that describes necessary improvements to public transit at the store”s location. Richard Dugie, who represents RHL, also indicated to the commission on Wednesday that a meeting had been scheduled with the local water district, the Highlands Mutual Water Company, concerning water main improvement requirements that are included in permit conditions. Contact Cynthia Parkhill at cparkhill@clearlakeobserver.com.
Conditions attached to Rite Aid”s permit
Originally Published: