The Sunnyvale Sun

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Gas-only is the rule for stations now selling food

One Chevron station owner has asked patrons to sign a petition

By JASON GOLDMAN-HALL

In the 99 years since the first Standard Oil of California filling station opened, gas stations have evolved from places to fill up the tank to full-service shopping centers, with fast-food restaurants, tune-up garages and carwashes.

But in Sunnyvale, an old part of the city code prohibits gas station owners from selling grocery items, defined as "typical food-market products stored on shelves or in refrigerated cases."

While this seems like little more than an inconvenience to motorists, it's a major financial hurdle for owners. Many rely on the sale of market items and the revenue from auto shops and carwashes to survive.

"All of our customers are used to going to stations with food marts," said Hassan Lajevardi, owner of the new Chevron station at Mary Avenue and El Camino Real.

To show the community's support, Lajevardi has started collecting signatures on a petition to get the ordinance changed. In one day, he collected 600 customer
signatures.

Fuel prices--even at current high levels--do not provide much money to the station b

ecause it is not sold for much more than is paid to suppliers.

"The profit margin on gas is pennies at most," Lajevardi said.

But stations losing money is not just a concern for owners. More sales at gas stations would mean more sales tax revenue to a city thirsty for money.

"If they passed a new law, it would be so good for the city of Sunnyvale," he said.

Lajevardi said he and his partners purchased the station in 2003, knowing that the ordinance existed but hoping it would be addressed by the city. They rebuilt the site in early 2005 and opened it this past December.

He knew the council was considering the item, and hoped that it would be cleared up before the station opened.

Since 2003, the item has been up for consideration but continuously ranked so low on the priority list that it never gets addressed.

"It hasn't been corrected because it hasn't been brought up by council," said Sunnyvale deputy communications officer Adam Levermore-Rich.

Levermore-Rich said he and the Sunnyvale planning officers discussed the ordinance, but were not able to find information as to why the ordinance exists.

And even though the law is on the books, Lajevardi said he and many other gas station owners in Sunnyvale still sell prohibited grocery items because the law is not enforced.

"If everyone's circumventing the law, it's time we got it changed," Lajevardi said.

Although he does sell some items, Lajevardi said he only stocks about one-sixth of the items that his 1,700 square-foot store could. If allowed, he said he could easily turn his $10,000 in monthly sales into $60,000.

But until the law changes, Lajevardi said he and other gas station owners are left to just petition the council and attempt to spark enough interest that the issue is addressed. On April 25, he stood before the council to express his concern, and he is currently trying to meet with Mayor Ron Swegles.

"The people in the city have been very kind to us, but their hands are tied. It's the law that needs to change," Lajevardi said. "If it doesn't change, stations are going to be forced out of Sunnyvale."