Burger Controversy in Pinole

What happens when a popular, established local burger restaurant collides with a popular and growing burger chain that wants to open just a few hundred feet away? What about when elected officials unanimously oppose the new franchise but their vote doesn't matter?

Pinole is going to find out. The Original Red Onion has been a fixture on Pinole Valley Road for 17 years. Five Guys Burgers and Fries, the expanding national burger franchise with more than 400 locations, appears set to open at the Pinole Valley Shopping Center in a few months.

The Pinole City Council opposed developer TKG's plan to lease space to Five Guys at its Tuesday night meeting, but the 5-0 vote carries no official weight under the terms of a 1995 partnership agreement between the city and the developer.

The city is the ground lessor for the shopping center, and has the right to preview specific proposed tenants. However, the only legal ground for the council to stop a tenant is if the proposed use is not consistent with the approved type of business for the shopping center. Five Guys would lease 2,400 square feet at $36 per square foot for the first five years, $40.50 per square foot for a second five years, followed by two optional subsequent five-year leases.

The city owns the shopping center, but it is in the process of selling it to TKG. The deal is in escrow.

Council member Phil Green said Five Guys would be better suited at the Pinole Vista Crossings shopping center, which is on the opposite side of town on Fitzgerald Drive. Also, the council on Tuesday approved for Panera Bread to open in the Fitzgerald center.

Several residents spoke against the location of Five Guys and praised the Red Onion for being a community resource that has provided local jobs and that makes donations at community events. Some objected also to approving another burger restaurant for city.

"That's been an institution in our city," resident Andrew Wilke said. "Many people who live here have come up through patronage and through working there. I just don't think we shouldn't be hurting our small business owners by allowing corporations from out of town whose money will be going somewhere else. Red Onion is locally owned and locally operated."

Council members also suggested that the city should re-evaluate parking situation in the often gridlocked Pinole Valley Shopping Center.

But the city appears to be at the mercy of market decisions in the hands of TKG, which has negotiated lease terms with both Five Guys and with Panera.

"The reality is that legally we have no authority to stop them from applying for the necessary permits to put the business in the shopping center," Mayor Pete Murray said.

Murray asked city management staff to relay the council's concerns to TKG for consideration. He suggested that the city "notify TKG that we think this is a bad deal and it's not appropriate."

Earlier in Tuesday's meeting, Councilman Roy Swearingen said a vote to deny approval likely would have limited affect.

"They will go ahead and put this in anyway," Swearingen said. "Whether we vote yes or no on this is not going to make any difference on them coming in."

Councilwoman Debbie Long said some community pressure on TKG might help, but the root of the problem is the 1995 agreement.

"Unfortunately we may not be able to stop what's happening," Long said. "I would like TKG to re-think their position as well, but (the) bottom line is we can only send a message."

Long also said the situation is "a great example of why our partnership with TKG is not working. It was a very, very, very bad contract that was written with TKG."

Red Onion owner Johnny Yee was not available at the Pinole restaurant for comment and did not return a phone message message left for him at the Red Onion's Alameda location. Lee's lease expires in June and Five Guys could be ready to open for business before then, pending permit approvals.

Besides the Pinole location, Yee owns Red Onion restaurants in Vallejo and Alameda.