Since our last report we continue to look for a location to build a DI facility and are not finding much. Then in December we identified a potential property located at 2085 Burroughs Ave in San Leandro (about 30,00 sq feet). We submitted an initial letter of intent just before Christmas. In mid-January, we received a response, which although not giving us everything we asked for, it appears we can negotiate a mutually agreeable deal. But, there is a “however”, so read on.



Zoning: Our zoning designation would not require us to submit a conditional use permit (yeah!) but this designation does not permit alcohol (boo!). Based on discussions with the planning department, it appears the best path forward is to revise the current zoning regulations. The planning department has been working on a major revamping of zoning regulations for this Fall and would include our situation as part of it. The challenge is that there are no assurances of outcome. We agreed next steps would be to reach out to members of the planning commission to see if we can get a read on whether they have any strong objections to such zoning changes. We intend to start these discussions next week. Wish us luck!



Parking: City regs would require about 1 parking spot for every 150 sq feet (200 spots for 30k sq ft, and there perhaps is space now for around 50). Exceptions can be granted, and the planners we talked to seemed not too worried. But nonetheless, we would need to get guidance from the city earlier than later if there will be an issue.



BADG: The Bay Area Derby Girls have expressed their interest in the space, but there is an issue with how the city views them from a zoning perspective. We are pretty confident the city will classify the Derby Girls the same as us, but some discussions need to take place.



So next steps are to work on all of the above issues over the next few weeks. Stay tuned!

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