Summary

The Kwik Way property on Lake Park Avenue has been the subject of much neighborhood discussion in the past three years. The owners have a new proposal to lease the property to All-Pro Eateries to operate a Fatburger restaurant. Though this is not the development that some had hoped for, it is a definite improvement over the current blighted property.

I want to get a sense of what the neighborhood thinks about this, as neighborhood opinion may affect the outcome of the proposal. Should we encourage this development and see a definite improvement soon? Or should we wait - possibly many years - for the current owners to sell the property to a developer, and hope for something better?

The Recent History at the Site

The Kwik Way property has been owned by the Hahn family for about the past seven years. Three years ago, they proposed leasing it to McDonald's. The community organized massive opposition to the McDonald's, primarily because of the increased traffic and litter it would bring to an already congested area. Over 500 people attended the Oakland Planning Commission to oppose the McDonald's, and the application was turned down.

Following the McDonald's rejection, several neighborhood leaders and a local developer began working with the Hahn family to find a use that would be economically viable for the Hahns as well as a benefit to the neighborhood. The Hahns and the developer began a partnership to develop a mixed use building with small retail on the ground floor and several floors of residences above. In the process, the Hahns also acquired the Serenader property next door so that there would be enough land to make it feasible.

About two years ago, the partnership convened a community visioning process in order to arrive at a project that would be supported by the neighborhood. In that process many design and traffic flow ideas were debated, and the outcome was a general agreement that a four-story building covering the whole site would be acceptable. The idea was that an attractively-designed building with cafes or shops on the bottom would create a more pedestrian-friendly street than the current open parking lot. (Though the new design still had driveways in and out for the interior parking.) Unfortunately, the partnership between the Hahns and the developer dissolved.

Then there was a second try at a mixed use development. About a year ago, another local developer entered into an option to buy the property. The condition for final purchase was that he determine that it was economically feasible to build a mixed use project there. After six months of exploration, that developer decided not to go through with it. There were a number of difficulties, among them that the Bank of America's lease entitles it to 30 parking spaces on the Kwik Way property. Perhaps most significantly, the developer calculated he needed to build at least 5 stories high in order to make it profitable to build the project, given the price he was paying for the land. From the earlier planning process, he concluded that five stories would engender opposition from the neighborhood, and he didn't want to buy given the uncertainty of getting approval from the City.

Where we are today

The Hahns are losing money on the Kwik Way and they have given up on the idea of a mixed use development. They realize the neighborhood is tired of the blighted appearance of the property and the nuisance behavior that occurs in the parking lot, especially at night. So the Hahns are proposing to lease the property to a very reputable hamburger restaurant chain, Fatburger.

When the Hahns let me know of their new plan, I asked them and the new franchisee to meet with me and some of the people who had originally led the McDonald's opposition. They did, and the following list of pros and cons derives from that conversation.

POSITIVES:

• A Fatburger restaurant will be a big improvement over what is there now.
• The Fatburger company, despite the unfortunate name, is a very well-run business. In the realm of hamburger restaurants, it offers a high quality product. In addition to hamburgers, fries and handmade milk shakes, it also serves chicken sandwiches, a veggie burger and salad. They cook to order, so technically it is not "fast food" like a McDonald's. Fatburger started in 1952 in Southern California, and is very popular in many cities. See www.fatburger.com.
• The existing building will be renovated inside and out in a "retro" 1950's style, with a small addition on the back to store garbage out of sight. It will have about 27 seats for dining inside and is designed by a top flight architect. The surrounding parking lot will be cleaned up and re-landscaped.
• The franchisee is Chester McGlockton, owner of All-Pro Eateries, (and former Oakland Raider) who also operates a Fatburger in Pleasant Hill. Based on his other businesses, we can count on him to run a clean, very well-managed restaurant.
• Mr. McGlockton and team want to offer something positive to the neighborhood, serving local residents, especially Grand Lake movie-goers. They also plan to hire and train Oakland youth and young adults.
• This restaurant lease may be the best option attainable, as the Hahns are no longer interested in selling the property.

NEGATIVES:

• Many neighborhood residents were hoping for a bigger and better change for the Kwik Way property. It has the potential for a high quality mixed-use development that would eliminate the surface parking lot, and create housing, and a more pedestrian-friendly street.
• A lease to Fatburger would tie up the property for 15 to 20 years, thus foreclosing the opportunity for a different development for a very long time.
• The new Fatburger will likely attract more customers and hence cars crossing the sidewalk. Further, it would include a drive-through window. (Though the operators foresee it being used mainly for picking up orders that are phoned in. Their food takes too long to cook for true "drive through." They will have a "greeter" outside to manage traffic.) Nevertheless, we can assume a traffic increase for take-out orders.
• Current nuisance activities in the parking lot may continue late at night after the restaurant is closed.

The Choice

So, neighbors, we are faced with a "bird in the hand, two in the bush" situation. While a Fatburger restaurant may not be ideal, it certainly is a lot better than the status quo. And I believe that neighborhood reaction may affect the outcome. If there is widespread opposition, it will likely kill the deal. If that happens, what are we left with? The same old blighted property, with the uncertain hope that in four or five years when the housing market strengthens, the Hahns might be inclined to sell it to a developer. It's a tough choice. Please let me know your preference.

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