Anonymous wrote:Thanks a lot hippies!
Anonymous wrote:I hope they never close the Chevy Chase safeway. It may not be hip, but it's the right size. I can find what I need there and the parking is adequate.
Anonymous wrote:Anonymous wrote:
I don't see how these covenants are anything but clearly anti competitive positioning, and measured with something like a herschmann herfindal index I could see a powerful argument emerging that the stores have signicant power.
They're standard in the retail industry. Ever notice why that local strip mall has only one grocery store not two? Or only one Mexican fast-casual restaurant? Only one gourmet burger place?
Because the lessee made the owner of the shopping center agree to that.
As for Safeway, they're only asking for a covenant on one property in the Palisades, not every property in the Palisades. They should be allowed to ask for it, and the buyer can choose to accept or reject it. The government does not need to get involved. The free market is functioning perfectly well here.
Anonymous wrote:Anonymous wrote:Safeway will likely do one of a couple of options. 1) sue the city for unfair restriction of its property rights 2) hold out and sell to someone who is just planning on building condos or some non grocery store. 3) refuse to sell it and simply lease it with the provision that you can't operate a grocery store. Nothing in this law ensures that a grocery store will come to this spot. It doesn't actually compel Safeway (or Cerberus) to sell to anyone much less someone who will put up a grocery, and it doesn't compel them to keep that store open.
So the law won't likely serve it's desired purpose, but will probably have lots of unintended consequences. Like making it unlikely for a store to move to a bigger nicer space next door because it's worried a competitor will just move into their old space. Or something I can't anticipate.
Unintended consequences happen a lot with hastily written laws.
Covenants are attached to property all the time that are binding. How do you think HOAs get their power? It's because the developer put a covenant attached to the sale of the property. And this restricts the use of the property when they no longer own it, which is what people are squawking about Safeway doing. The covenant only gets recorded if some buyer accepts it, usually in exchange for a lower price. They are free not to buy the property with a covenant attached. So I don't see how covenants are unfair as everyone gets a chance to review and walk away.
And for people saying this is monopolistic, do you see how many grocery stores are within 2 miles of this place. Maybe not walkable, but how many people in the Palisades don't have a car? To say this area would become a food desert is beyond melodramatic and insulting to the people in many areas of this city and country where a food desert exists.
Me, me, pick me. One. There is one grocery stores within 2 miles. If you would have said 1.8 miles, there would have been zero.
Don't worry. They'll put up a cool 7 story mixed use building with a Five Guys and second CVS on the ground floor. A neighborhood can never have too many. CVS carries a good supply of convenience foods.
Yes this type of development is everywhere now. Cheap construction, everything looks the same. Has been going on in Moco for years. Soon downtown Bethesda will be indistinguishable from Rockville town center, Gaithersburg Rio center and Germantown and Hyattsville "Arts" district (PG) - there will be a CVS, Five guys, Chipotle, Uncle julios, tara thai, ben & jerry's and buffalo wild wings on every corner. You "urban planners" out there are doing a terrible job IMO (not worth much), sorry! All these investment groups that own the properties only care about one thing $$$$$ and unfortunately only big chains have deep enough pockets to cover a lease.
Urban planner work 20-50 years out and do get into designing buildings etc. Urban planner work on developing the over all plan and hand it off to architects, design boards, etc.
Right, but urban planners have no ability to assess needs 50years out and they aren't developers. They take no risk and they have no business designing buildings.
Buy a building, take some risk and lease it out to a tenant with no credit then tell me how that works out when they don't pay the bills.
If city government was the least bit interested (which they aren't), in neighborhood aesthetic, they would backstop leases for smaller, no credit tenants and try to build small business.
As long as the city isn't interested in it, there is no reason to blame the developers.
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In May 2005, Forterra created The Cascade Agenda as a call to action and an opportunity to envision the communities, natural environment and economy that will sustain us, our children and our grandchildren for the next 100 years....
Anonymous wrote:Safeway will likely do one of a couple of options. 1) sue the city for unfair restriction of its property rights 2) hold out and sell to someone who is just planning on building condos or some non grocery store. 3) refuse to sell it and simply lease it with the provision that you can't operate a grocery store. Nothing in this law ensures that a grocery store will come to this spot. It doesn't actually compel Safeway (or Cerberus) to sell to anyone much less someone who will put up a grocery, and it doesn't compel them to keep that store open.
So the law won't likely serve it's desired purpose, but will probably have lots of unintended consequences. Like making it unlikely for a store to move to a bigger nicer space next door because it's worried a competitor will just move into their old space. Or something I can't anticipate.
Unintended consequences happen a lot with hastily written laws.
Covenants are attached to property all the time that are binding. How do you think HOAs get their power? It's because the developer put a covenant attached to the sale of the property. And this restricts the use of the property when they no longer own it, which is what people are squawking about Safeway doing. The covenant only gets recorded if some buyer accepts it, usually in exchange for a lower price. They are free not to buy the property with a covenant attached. So I don't see how covenants are unfair as everyone gets a chance to review and walk away.
And for people saying this is monopolistic, do you see how many grocery stores are within 2 miles of this place. Maybe not walkable, but how many people in the Palisades don't have a car? To say this area would become a food desert is beyond melodramatic and insulting to the people in many areas of this city and country where a food desert exists.
Anonymous wrote:
I don't see how these covenants are anything but clearly anti competitive positioning, and measured with something like a herschmann herfindal index I could see a powerful argument emerging that the stores have signicant power.