By Ashly McGlone

SAN LEANDRO -- Plans to convert a downtown San Leandro parking lot into a vibrant shopping center may be back on track, with CVS planning to anchor the complex.

Innisfree Ventures II, developer of the Village Marketplace project, told the city it reached a tentative agreement with the convenience store chain to fill the lot's largest retail space, needed in order to obtain financing for construction.

Peets Coffee & Tea, AT&T and The Habit Burger are all still committed to opening up shop in the 25,000-square foot retail center, to be located at 1550 East 14th St., city officials said Friday.

Plans for the center were derailed late last year after the original anchor tenant, Fresh & Easy Neighborhood Market, terminated its agreement around the same time its parent company announced its plan to pull its stores from the U.S. market.

According to the city, CVS plans to close its store four blocks away at East 14th Street and Callan Avenue, and is expected to vacate its location on Washington Avenue when the lease is up in 2017, clearing the way for renovation and re-purposing of the parcels.

Innisfree officials will begin revising the site plan for the Village Marketplace, a process that will take a month, before submitting it to the city, city officials said.


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Public gathering space, outdoor dining areas and public art are still included in the center's plans. The property, originally owned by the city's now defunct redevelopment agency, was sold to Innisfree for $2.25 million.

Ashly McGlone covers San Leandro, San Lorenzo, San Ramon and the Washington Township Health Care District. Contact her at 510-293-2463. Follow her at Twitter.com/AshlyReports.