Sunnyvale plans a makeover in the form of ‘Village Centers’ — but displaced businesses face a difficult future

Years before John Agustin took over Western Pacific Filipino Grocery he was just a kid playing in the parking lot of Fair Oaks Plaza He and the other kids from neighboring mom-and-pop shops the dry cleaners the liquor store the Japanese restaurant would play tag and skateboard in the parking lot Sometimes they would place a can far out in the lot and compete to see who could hit it with a slipper Nowadays Agustin runs the grocery store his family has owned for three generations But soon the plaza itself will be gone The view of Fair Oaks Plaza from inside of Western Pacific Filipino Grocery in Sunnyvale Calif on Tuesday July Nhat V Meyer Bay Area News Group The shopping center located on E Duane Ave in North Sunnyvale is one of seven sites the city of Sunnyvale designated in for transformation into Village Centers walkable hubs of housing retail and outdoor space New advance standards passed on July for the Village Centers sought to preserve retail by designating commercial space but these rules will not save stores like Agustin s A enhancement proposal for Fair Oaks Plaza has been pending since Though it initially envisioned only housing on the site that plan has since been revised to include commercial space comprising of the lot area according to the city Lakewood Shopping Center on Lawrence Expressway another Village Center site in historically underserved North Sunnyvale was approved in May for a -unit townhome progress In interviews District City Councilmember Richard Mehlinger and city staff both pointed to state housing laws that they say restrict the city s ability to change the plans for Fair Oaks Plaza and require additional retail from the developer Under SB the city must evaluate projects based on the rules in place when they re submitted While Sunnyvale originally planned to create zoning for the Village Centers after applications came in state law now lets developers sidestep zoning and build under the broader General Plan opening the door to housing-only projects which are often much more profitable than mixed-use plans A customer looks through shelves at Western Pacific Filipino Grocery in the Fair Oaks Plaza in Sunnyvale Calif on Tuesday July Nhat V Meyer Bay Area News Group Developers are also allowed to request concessions that override local zoning such as reducing required commercial space if they include a small percentage of affordable units Furthermore the city must enforce the same standards on all housing developments which means that it cannot reject individual projects based on region interests Mehlinger stated Mehlinger commented these legal factors have allowed a large number of rise proposals that do not align with the original Village Center vision which he is personally frustrated with Developer Nicholas Gera could not be reached for comment The proposed Fair Oaks project has not yet been scheduled for populace hearing according to the city Himanshu Sethi and Phil Harvey were among a group of residents that met with Mehlinger this past March to discuss preserving retail at the plaza A petition Sethi spearheaded to exempt North Sunnyvale plazas from Village Center enhancement and prioritize food access in the area has received almost signatures While they recognize the city s current limitations the residents also believe the city had ample time to create objective standards and update its General Plan prior to the passage of these state laws At the end of the day it doesn t erase those cities long window to act or the consequences of not doing so Sethi disclosed What s happened has happened but I think what we need is help from the city moving forward Harvey announced a lot of residents he spoke with were not even aware of the plans for redevelopment and are very very upset This is very much part of the public he noted of Fair Oaks Plaza Sethi emphasized the value of the minority-owned businesses that serve the requirements of the area s diverse immigrant communities Pakistani immigrant Saifullah Memon has run South Asian grocery store Taj Mahal Fresh Region for nearly years He stocks fresh goat and lamb meat tropical fruit like star apples and dragon fruit and pantry staples rarely uncovered outside the region His customers come from as far as Monterey and San Ramon Once the plaza is redeveloped he doesn t know where he ll go Taj Mahal Fresh Region in the Fair Oaks Plaza in Sunnyvale Calif on Tuesday July Nhat V Meyer Bay Area News Group When Memon and Agustin individually reached out to city staff to ask for aid as instructed in City Council meetings staff explained them there was nothing the city could do Dependably the same thing The landlord has the power they say Land belongs to the landlord Memon reported What can you do Nothing We cannot do anything Once improvement begins Agustin and Memon announced relocation of their businesses will not be easy They are not able to start planning yet because they don t know when the city will approve the evolution proposal All of us are just trying to figure out what s our best play without having a timeline Agustin stated When does the clock end He has been visiting buildings that are available for lease planning to talk to his bank about a business loan and speaking with other business owners in the plaza about potentially combining their businesses in a new location All of this comes at a cost Replacing freezers and refrigerators obtaining new permits from the city and retaining employees is a challenge for any business forced to move Teresa and Sergio Lopez who own Angelou s Mexican Grill in downtown San Jose relocated the restaurant after they were forced to leave their previous longtime location in which was planned for evolution into housing for seniors They had to keep the restaurant closed for a year while their new permit was pending digging into savings and credit cards Little by little it s like we started a new business again Sergio announced Trudi Ryan the city s society progress director noted city staff proactively held meetings with and went door-to-door to the businesses in Fair Oaks Plaza to listen to their business necessities and concerns about the proposed project She noted they encouraged affected businesses to reach out to the city for patronage such as help with site selection and the permitting process Mehlinger added that he plans to put forth two budget proposals one to create a relocation assistance fund for businesses in the affected complexes and another to increase staffing specifically focused on retail retention and progress in the city s Office of Economic Maturation and propose a investigation issue to develop a citywide retail strategy The staffing proposal and scrutiny issue would both specifically focus on underserved areas such as North Sunnyvale Mehlinger disclosed He plans to propose the budget measures at the end of this month but all three proposals would be for fiscal year - John Agustin owner of Western Pacific Filipino Grocery points to a small business certificate he received from the city of Sunnyvale while talking to The Mercury News in his store in the Fair Oaks Plaza in Sunnyvale Calif on Tuesday July Nhat V Meyer Bay Area News Group Produce used for Filipino cooking on sale at Western Pacific Filipino Grocery in the Fair Oaks Plaza in Sunnyvale Calif on Tuesday July Nhat V Meyer Bay Area News Group Figurines at the front of Western Pacific Filipino Grocery in the Fair Oaks Plaza in Sunnyvale Calif on Tuesday July Nhat V Meyer Bay Area News Group Western Pacific Filipino Grocery in the Fair Oaks Plaza in Sunnyvale Calif on Tuesday July Nhat V Meyer Bay Area News Group Show Caption of John Agustin owner of Western Pacific Filipino Grocery points to a small business certificate he received from the city of Sunnyvale while talking to The Mercury News in his store in the Fair Oaks Plaza in Sunnyvale Calif on Tuesday July Nhat V Meyer Bay Area News Group Expand Reflecting on the situation Agustin of Western Pacific recalled a society member emphasizing to other residents how during the COVID- pandemic neighborhood groceries like Western Pacific and Taj Mahal were the ones that held it down for the whole area At Western Pacific the shelves were stripped utterly clean Agustin was at the store non-stop working to keep the shelves stocked which he stated even placed a personal strain on his family life He also recalled receiving a certificate from Mayor Larry Klein at a City Council meeting in honor of Small Business Saturday in To have the mayor say Look we re here to preserve small businesses only to be one of the businesses affected by this that s maybe one of the worst things to feel on my end Agustin disclosed That kind of stings