Dimond Neighborhood Oakland, CA

[danielswafford]

I spoke this afternoon with David Elliot, representing the Little Caesar's franchise owner at 6447 International. After that conversation, I spoke with Lovkesh Karwal, operator of the International Ave franchise. Below are my notes from these conversations.


RR: Please tell me what's on your mind.

DE: I've noted Julie's concerns and feel we have a misunderstood product. We are not exclusively a fast-food franchise ... We have quite a few supporters who want a quality product ...

RR: The neighborhood wants a sit-down restaurant.

DE: I've processed large and small restaurants and can tell you that Little Caesars presents a low risk. A mom & pop restaurant is riskier and the property is likely to be vacant. We have heard from neighbors who want a simple, good, quick meal.

RR: Can you tell me about your client?

DE: He owns a Little Caesars on International Ave. There is another restaurant nearby that has not suffered. If we knew that there was going to be opposition, we would not have gone to the "huge expense" o planning for

this outlet.

RR: The neighborhood is concerned about granting a variance. We already have MacDonalds, Giant Hamburger and two pizza places. The neighborhood is on the upswing and we work hard to encourage businesses that fit our business plan to come in. We successfully started this process by welcoming Farmer Joes--a business that could have moved into any vacant Albertson's in the Bay Area.

As well, our successful application for transportation enhancement funds will continue this process of neighborhood improvement. If we allowed a variance, we would forever take a potential business location out of the limited mix of properties that the neighborhood could offer to prospective businesses. During our transportation enhancement grant application the neighborhood conducted a survey. The results identified a sit-down restaurant that serves reasonably priced meals as our primary goal.

Something along the lines of an Italian pasta bar and grill.

DE: It sounds like you would be receptive to a model that offered sit-down seating.

RR: Yes, as long a variance is not involved. We would welcome giving your client a tour of the neighborhood.

DE: Thanks, I'll let him know your concerns and let him get back in touch

with you.



******** Lovkesh Karwal, (408)497-5984*************************

(15 minutes following conversation with David Elliot


LK: LC is different than other pizza businesses ... no delivery, no alcohol,

no late night operation.

RR: The neighborhood does not support granting a variance. We would like to

entertain a higher-end restaurant.

LK: You mean like a sit-down restaurant.

RR: Yes, we would like for the owner to aspire to being listed in Zagats.

Are you familiar with Zagats?

LK: No. We currently co-exist near another pizza business. We are compatible

because we offer different products. Plus we contribute to local schools and

churches and hire locally.

RR: Are you the manager at International?

LK: My wife is the manager.

RR: Who would manage the Dimond outlet?

LK: My wife would manage Dimond.

RR: I'm confused, you just told me your wife is the manager at

International. Do you intend to keep that outlet?

LK: Oh yes, we have already hired a manager for International.

RR: OK, so what do you intend for the Dimond?

LK: We would divide the property into two storefronts with two addresses.

Little Caesars would occupy 1400 sq ft.

RR: That does not sound like it would allow much room for seating.

LK: I would like to meet with you.

RR: I would be happy to give you a tour of the Dimond.

LK: I am familiar with the Dimond. I have watched it for several years, even

before Farmer Joes arrived.

RR: I will need to speak with the others to see if they want a meeting and I

can reply by next Monday. What we need to hear is that you have business

plan that would not need a variance.

LK: I will check with Little Caesars.

Lovkesh Karwal, (408) 497-5984

- Robert Raburn, Board Member

[danielswafford]

Summary of Meeting with Lovkesh Karwal on Friday May 30, 2008 at 6:30 pm:

We met Mr. Lovkesh Karwal and his architect, Mr. David Elliot (of David J. Elliott and Associates, Salinas, CA) at the Little Caesar’s location at 6447 International Blvd in Oakland.

The attendees from the DEDC were: Julie Johnson, Tim Chapman, Owen Li, Daniel Swafford, and Carrie Campbell (summary).

Lovkesh presented to us the floor plan of the proposed build out. He explained that the business would be divided into two separate food-preparation areas divided by a common wall. One of the areas would be devoted to the preparation of pizzas for the Little Caesar’s Pizza business. The other area would be a separate kitchen preparation area for the “Dimond Kitchen”, which Lovkesh explained “is my side of the business.” This second business would operate under the same roof as Little Caesar’s. It will be a casual sit-down restaurant in which he and his wife have complete control of all menu items. He told us his wife would run the Dimond Kitchen business. The two businesses (Little Caesar’s and Dimond Kitchen) would share a common eating area. Lovkesh said “It will have an open floor plan. Think of it like a food court – you buy different things to eat, but share a common eating area.”

Both Lovkesh and his architect, David, said the impetus for the development of this hybrid business (Little Caesar’s Pizza – Dimond Kitchen) was a telephone conversation with Robert <Last Name> in which Robert stressed the desire of the Dimond residents and customer base to have a local restaurant serving Italian food. (Thank you Robert!) “Also” David said, “We knew we’d never get that variance” (And thanks to the Dimond community who expressed a strong desire to the City NOT to grant a variance for another fast-food business within 1000 ft. of another fast-food business.)

Lovkesh had a list of food items that are proposed for the menu of the Dimond Kitchen. In addition to a salad bar, he will offer hot menu items “cooked to order.” The proposed Dimond Kitchen menu will be finalized with time depending on customer input and comment. Lovkesh will be the sole proprietor for “his” side of the business and be able to choose his own suppliers. We expressed to him our preference for local suppliers with sustainable and organic food items. For the Little Caesar’s side, he must use the food items as supplied by Little Caesar’s.

Tim Chapman, expressed a desire for a restaurant that served breakfast, and Lovkesh replied that in time, maybe he could provide a breakfast menu and open earlier. Julie wanted to confirm that the tables and chairs in the business could be moved around to accommodate families and groups – The architect said the seating would not be fixed in place (like at Taco Bell or MacDonald’s.)

Daniel discussed with Lovkesh and David the letter we were sending to the City Planning department about the proposed business. He went over the list of conditions, point-by-point, and invited Lovkesh and David to comment on each item. Lovkesh agreed to almost all and put his initials by each item. There were two points (providing a living wage and contributing a percentage of profits to community organizations) that were noted as items for further research. Lovkesh took this opportunity to give examples of how he and Little Caesar’s had given back to the East Oakland community over the last few years by donating in-kind services (free pizzas) or contributing money.

Lovkesh lease arrangement is for a 5-year lease, with two sequential 5-year options - for a total of 15 years. His hours will be approx. 10am – 10pm, staying open later on Friday and Saturday and closing earlier on Sunday. He has been looking in the Dimond business area for 2-3 years and was surprised that so few businesses were open along that stretch of MacArthur on the weekend and in the evenings.

Lovkesh is a very smart, articulate, and sincere business person. In addition to running the Little Caesar’s franchise, he is a software engineer for IBM. He has taken a few years to research the Dimond area and to engage the services of an architect to design what he feels is a business solution that will meet his needs as well as respect the desires of the community. He is also opening another Little Caesar’s in the city of Alameda.

[danielswafford]

WHAT HAPPENED Summary to Date:
- Courtesy Owen Li

Also visit the 22x Economic Development Group site at: www.Oakland22x.org

As you probably remember, the Little Caesar's was slated to be nothing
more than two pick-up windows. After our vocal community response, the planning department told the owner that the application would be rejected based on zoning laws regulating fast food restaurants. The applicant then changed the restaurant to double in size, include seating, and offer a full menu with diverse entrees, then renamed the restaurant to "Little Caesar's Dimond Kitchen."

Planning then indicated to DIA/NCPC econ dev committee that they would approve the application since it was not a "fast food restaurant." We could have appealed this decision
to the Planning Commission, but given the resources it would take
(money for the
appeal and people's time to pressure planning commissioners) and the
weaker
regulatory hurdles to justify stopping the restaurant, we instead met
with the
owner to ensure as much as possible that it would be a full-menu sit-
down
restaurant. We also had
the owner agree to a list of conditions that would mitigate many of
the
negative impacts an additional fast food restaurant would create.
These
conditions are listed below.

WHAT IT MEANS:

Obviously, this was not the ideal outcome for a lot of people - we
must make
sure that any future fast food restaurant has a much harder time
getting through
the planning department. At the same time, the basic change in the
nature of the
proposed restaurant (this is perhaps the only Little Caesar's
franchise in the
country with such a menu) and list of conditions we imposed reflect
the fact
that our community has a vision for our neighborhood. By getting
organized,
speaking out, and engaging city government, we made sure that our
vision is
respected. We reinforced our vision when a new store attempted to
open, making
sure that the approval of the store was only possible if the owner
followed
strict guidelines which ensured it would not be a convenience store.
However,
unlike the store, the promises from the Little Caesar's owner will be
more
difficult to enforce, and may require more organizing. But I want to
point out
that the owner has thus far
demonstrated good faith efforts to follow through on his promises.

THE CONDITIONS:

These conditions came from brainstorms at meetings announced on this
email list
and attempts to address the reasons why people oppose additional fast
food
restaurants in our area. Each point helps mitigate any negative
impacts. There
was also a sample menu and floor plan we reviewed with the owner.

* Business must join the Dimond Merchants Association and
maintain
membership for the duration of its tenancy.
* Business must schedule deliveries between 6 am and 8 pm,
avoiding morning
and evening rush hours. This is both to prevent disturbance to nearby
residential neighbors from delivery trucks at early or late hours and
to prevent
traffic problems at busy times.
* Business must have a written clean-up and maintenance plan for
its
property including regularly scheduled steam cleaning of sidewalks and
washing
of exterior and interior windows.
* Business must have a written graffiti removal plan.
* Business must have a written plan to prevent loitering.
* After the first three 3 years of business operation, if the
business is
profitable, employees will be paid at least 80% of Oakland's living
wage based
on the following criteria:
a) Employee is working from one year with a minimum of 25 hours per
week.
b) Employee has a satisfactory employment record with no major
violation.
c) Total labor percentage of business operation is not exceeding
21%.
* Business will attempt to hire locally, particularly local youth
and young
adults if possible and appropriate.
* Business will attempt to buy supplies from local suppliers,
wherever
possible.
* Businesses providing disposable utensils and dishware must use
biodegradable products only.
* Business must abide by City of Oakland laws and regulations
regarding the
ban on plastic carry-out and take-away bags.
* Business will donate $500-$1000 per year to local community
groups such as
Save Sausal Creek, the Dimond Improvement Association or 22X
Neighborhood Crime
Prevention Council, not including in-kind donations.
CONCLUSION:

Anyone on this email list can see that as people living in this
neighborhood, we
care deeply about its well-being - coordinating events, supporting the
library,
restoring the creek, raising money for schools or a tot lot,
addressing public
safety, removing blight and trash, or any number of other things. It
is all of
us coming together that accomplishes these goals. I simply want to
emphasize
that we need to be organized to get closer to our vision, and this
requires that
we all be engaged with multiple priorities and donate our time, even
if it's
just an hour to plant daffodils or five minutes to send an email. For
example,
in the last couple months, some folks have been trying to improve
safety at the
intersection of Boston and MacArthur, which has a bad sight line and
is often
used by seniors going from their apartments in Lincoln Court to the
bus stop. A
crosswalk has been repainted thanks largely to Pat Raburn and Richard
Cowan's
efforts, but more
is needed to slow down the cars coming from the direction of
Fruitvale. This is
just one of many efforts resulting from NCPC discussions which may
require
greater involvement by folks in order to move closer to our vision for
our
community. Stay tuned!