There could soon be a Walmart in Ocean Beach.
But if all goes to plan, not just anyone would be allowed to walk inside.
Instead, the idea — which city staff has already reviewed and said does not run afoul of any development restrictions — is for a “Walmart Depot,” a location for delivery drivers to pick up products to distribute nearby, but where no one else could walk in to buy anything.
A well-known developer in the beach neighborhoods is considering the project at the old Rite Aid location on Niagara Avenue. It is by no means a done deal, and the developer, who bought the property in January, is also considering a housing development.
Murfey Construction Company submitted a formal request on Jan. 21 called a “preliminary review” to the city’s development department to see if a Walmart Depot would even be possible at the site. City staff concluded that based on the information provided, no city laws preclude it, but that determination is not final.
Another city document obtained through a public records request indicated that a development team last year considered reviewing the Walmart Depot concept at a former Walgreens in North Park, which has since become a thrift store.
Together, the possible project in Ocean Beach and abandoned project in North Park reveal that businesses are exploring the concept of building delivery hubs in the heart of the city’s walkable neighborhoods.
How the OB Walmart Depot became a possibility
Earlier this year, CBRE, a large commercial real estate firm, announced Ocean Beach’s former Rite Aid had been sold.
Conor Brennan, who represented the buyer, told Times of San Diego he could not reveal the buyer, but said “it seems like it’s going to be a pretty big residential development.” But that would not take place for another 2 to 3 years, he said. In the meantime, he said it would most likely house a commercial tenant who would not make significant changes to the building.
That buyer was Murfey Construction Company, which completed the purchase on Jan. 20, records from the County Assessor’s Office show.
The next day, Kinetic Design and Development submitted to the city’s development services department an application outlining what a Walmart Depot is alongside limited information on how they plan to outfit the building for its operations.
The application describes Walmart Depots as non-branded facilities, stocked with high-demand delivery items. Based on the description, it would not be open to the public, instead serving only authorized delivery “drivers/shoppers.”
The preliminary review request primarily asked whether the project would be permitted by right, meaning it would be approved through a streamlined permitting process.
It also asked to be made aware of anything that could warrant additional permitting.
City staff said Kinetic’s description of a Walmart Depot seems like it would meet the definition for “Off Site Services,” which would be permitted by right at this location.
However, they said the project could require a coastal development permit — a more time-consuming and less certain process — in two circumstances.
One is if developers had to alter more than 50% of the building’s exterior walls. The other is if the new, delivery-focused use would drive more traffic to the area than had previously been permitted for the pharmacy.
The request for a preliminary review is not an application for a permit, and the city’s response is not legally binding.
Both Murfey Construction Company and Walmart declined to provide a comment on the record after receiving a request for a written description of the public records Times of San Diego obtained.
