Gas station ignites public controversy

For most drivers, cheaper gas is a welcome offer. But city officials and local gas station owners have raised concerns about a 16-pump Safeway gas station and convenience store proposed where Pepper's Restaurant is located on South McDowell Boulevard.

After several local station owners brought up the matter at a recent City Council meeting, council members discussed the potential for added traffic congestion that could come with the project.

Traffic on South McDowell Boulevard has become increasingly heavy over the past few years. The newly opened East Washington Place Shopping Center has likely contributed to longer commutes in the area. And the soon-to-open Deer Creek Shopping Center just up the road on North McDowell Boulevard is sure to add to the congestion.

On top of the commercial developments, the Petaluma Planning Commission recently recommended approving a 144-unit apartment complex on Maria Drive - just minutes from the proposed Washington Square Shopping Center gas station. Safeway has not yet submitted a traffic study, but several City Council members and station owners worried about the effects on the area.

"You already have people who are so frustrated with the gridlock going on (Maria Drive)," said City Councilwoman Teresa Barrett. "Each effect is cumulative and together, it makes an already bad situation worse."

Safeway, which is currently working on the traffic study, did not respond to several requests for comment.

As a county representative on the Bay Area Air Quality Management District Board, Barrett also worried about potential greenhouse gas emissions in an area with a nearby school, day care center and little league ball fields.

"There's a similar station in Novato that I recently visited after hearing of this project," she said. "There were cars at every single pump, plus two additional cars idling and waiting to get in. We have a ban on drive-through businesses in our general plan and this business model certainly seems to have a drive-through quality. It's really not what we've intended for our city."

Barrett wasn't the only council member who had looked into Novato's Safeway gas station. Councilmember Mike Healy said he has spoken with Novato's city staff, who he said had some regrets over allowing Safeway to open a gas station in their city.

"Their feeling was that they hadn't adequately estimated the traffic that would be going through it," said Healy. "They said it's always crowded and that major tanker trucks are always there."

Healy added that he's heard from Petaluma city staff that the traffic concerns may not be a major issue, but that more details will be known after the pending traffic study is complete.

Petaluma attorney Jim Dombroski is watching this proposed station with particular interest. A longtime anti-trust litigator, he has been suing Safeway since 2009 over what he calls the company's unfair business practices of selling gas below market cost.

"We've been able to show lots of gas stations that went out of business because of a nearby Safeway station in Dixon, Concord, Livermore and San Jose," said Dombroski. "Once they've run competitors out of business, then they can up the price."

Dombroski said that in his opinion, there's no question that a Safeway gas station in Petaluma would force several other stations out of business. Local station owners agreed.

"What this really means is that four small gas station will close completely," said Petaluma Valero station owner Kim Gutzman.

According to Gutzman, Safeway is expecting to sell 700,000 gallons of gas per month. Since many of Petaluma's existing 16 gas stations only sell about 100,000 gallons of gasoline each month, Safeway's proposal means a large portion of Petaluma's gas needs could be met with at this one particular station - potentially putting several others out of business through lower prices, Gutzman said.

Baywood Drive Valero station owner Bert Lathrop said that he understands customers wanting cheaper gas.

"I get that completely," Lathrop said. "But ultimately we need to look at the long-term effects on Petaluma's lifestyle and the benefits for the community in general."

City staff said that once the traffic study has been completed, the project application will go before the Planning Commission, most likely later this year or early in 2014.

(Contact Janelle Wetzstein at janelle.wetzstein@arguscourier.com)