The store, which would be located at 1133 Lincoln Ave. next to Subway, wants to have a public drinking establishment (wine and beer tasting area) with off-site sales of alcohol.

If Beverages & More's applications are approved, it will bring to four the number of stores selling liquor within 1,000 feet of each other. The others are Willow Glen Liquors, Kwik & Convenient Grocery and Liquors and Wine Styles. This is the maximum number allowed by the city, said Rebekah Ross, a San Jose city planner.

This high concentration of shops selling alcohol has become a hot topic among business owners and residents.

"I am really concerned about the clustering of like or similar businesses that don't necessarily add to the nightlife and traffic of downtown," Cara Finn, co-owner of Grapevine, said. "Having three wine stores that are trying to have similar business models begs the question: Will they increase traffic or just split business?"

Finn has been on Lincoln Avenue for six years and is planning to open a second location in downtown Campbell.

She was not surprised to learn about the proposed Beverages & More. Building owner Michael Mulcahy informed her of the company's plans to move into the former Barbarella space.

"I know Michael and have a deep respect for him," Finn said. "Michael and his family are deeply invested in the neighborhood, and [he] wants to bring in quality business."

Finn just isn't sure another wine provider is the answer.

"A little competition is not bad; it keeps us on our toes. But there is a saturation point," she said. "Behemoths like Beverages & More moving into the downtown is disturbing. But the customers will make the choice with their feet and their dollars."

Business owner Alvin Cachaper of Kubo Little House agrees with Finn the downtown needs more business diversity.

"This downtown has so much potential; it just needs the right variety of stores," Cachaper said.

He is concerned about the lack of variety and its effect on many longtime businesses.

"It's discouraging to see the icons of the avenue like Blaine's Lighting and Gold Star Jewelers close after so many years in business," Cachaper said. "It makes potential businesses interested in moving here question why they closed."

Cachaper's business has been open for less than a year, but other business owners, such as Alan Sauvin of Somewhair Salon, share similar sentiments.

"I've been here for 16 years, and I've seen plenty of things," Sauvin said. "Lots of great places have come and gone. It's kind of sad."

Sauvin has a few ideas on why local businesses are slowly disappearing, attributing some of the change to an increase in rents. "It's just that some landlords are not considerate of other businesses around them, no matter how long they've been around," Sauvin said.

He also cited a lack of local support.

"A lot of people, not all, don't support their local merchants," Sauvin said. "People are going to Los Gatos, Santana Row and Valley Fair for their shopping. People want diversity, but no one wants to support it."

Sauvin understands that building owners need to have their spaces filled in order to survive. He credits Mulcahy with doing the job well.

"I like that he is refurbishing the [Garden] Theater," Sauvin said. "It improves the way things look downtown. Anything that goes into the empty spaces to get us up and bustling again is a good thing."

But with new businesses coming in, most of them chain stores, Merel Heggelund, owner of Mann's Jewelers, fears one thing.

"My concern would be that Willow Glen loses its identity," Heggelund said.

Not everyone, however, opposes the idea of a Beverages & More.

Willow Glen resident Michael Knutson shops at the Beverages & More in Camden Park shopping center and said it is "not just another store selling alcohol."

"There's a real wide variety of gourmet foods, European products, cheese and wines," he said.

He still plans to frequent the other wine stores but likes having the choice.

"There are enough customers for everyone," Knutson said.

For Knutson, having the Beverages & More in Willow Glen means he won't have to drive to Camden Avenue for his shopping.

"I like to walk everywhere," said Knutson, who has put only 15,000 miles on his car in the last five years.

And he notes, "People have to realize that it's not easy to fill space these days. I'm just happy that the space will be filled by a high-quality merchant."

Longtime Willow Glen resident Sunday Marzano agrees with Knutson.

"We want nice stores, and I think the landlords are very cognizant of the neighborhood and the residents and what they want," Marzano said.

Beverages & More will hold a community meeting on March 2 at 6:30 p.m. at the Willow Glen Elementary School cafeteria, 1425 Lincoln Ave., to discuss the pending conditional use permit and alcohol beverage control liquor license exceptions permit. For more information, contact Rebekah Ross at 408.535.7842 or email at Rebekah.ross@sanjoseca.gov.