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Proposed housing plans spark concerns among small Sunnyvale businesses

Proposed development plans may threaten small Sunnyvale businesses
Proposed development plans may threaten small Sunnyvale businesses 03:16

The city of Sunnyvale is weighing several development proposals which would add much needed housing but possibly at the expense of a number of beloved, long-running neighborhood businesses.

"There's not a lot of grocery stores around here," says John Augustine, the third-generation owner of Sunnyvale's Western Pacific Filipino Grocery.

For more than 40 years, first his grandmother, then his parents, and now John himself, have run a neighborhood grocery store, specializing in staples of Filipino culture and cuisine.

"We're a small grocery store. But the things at my store, you probably won't see at your local Safeway," he said.

The problem is the family-owned business now faces an uncertain future and a potential existential threat from redevelopment.

"Losing grocery stores, losing restaurants that are walkable to your neighborhood, obviously that's concerning for residents," says Richard Mehlinger, a Sunnyvale City Councilmember who represents the neighborhood.

Mehlinger said the city had a vision for redeveloping older shopping centers, replacing them with modern, mixed-use developments combining office space, housing and retail.

sunnyvale-shopping-center-duane-ave-071224.jpg
Shopping center on Duane Avenue in Sunnyvale where a proposed mixed-use development would be built. CBS

"The original vision for these village centers was to have these live-work-play environments. Sort of medium-density, with mixed-use retail on the ground floor," he said.

Developers, however, have submitted plans to the city that are heavy on housing and light on retail. John fears that he and other businesses may be squeezed out and uprooted.

"It's just really a great location. And if I could, I would really love to stay in this plaza," Augustine said.

And because of a new state law, SB 330, designed to fast track housing, the city has limited options to reject or push back against the proposals.

"There are not enough grocery stores in North Sunnyvale. So, to see an outcome where we would be losing more, that could be a really tough pill to swallow," Mehlinger said.

John simply hopes the rush to build desperately needed housing does not ultimately come at the expense of businesses and business owners who have long considered this community their home as well.

"I've seen everything change here. And I would consider a way to save small businesses somehow," he said.

The projects, located on Duane Avenue and Lawrence Expressway, are still in the early design phase and nothing has been approved.

CBS News Bay Area has reached out to the developers but have not heard back.

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