Planning commission approves TNT supermarket and ABC license requests for 45 Merchesen Drive

The Millbrae City Planning Commission on April 6 approved a conditional use permit (CUP) and a public convenience or necessity (PCN) determination allowing TNT Supermarket to reopen the former Lucky supermarket at 45 Merchesen Drive and to apply for California Department of Alcoholic Beverage Control (ABC) Type 21 (off‑sale general) and Type 86 (instructional tasting) licenses.

Brian Albini, contract senior planner for the city, told commissioners the project would remodel an existing 51,795 square‑foot commercial building to create a 27,987 square‑foot grocery sales floor with a 689‑square‑foot outdoor seating area, deli, bakery, food‑prep spaces, e‑commerce staging and supporting staff areas. The site has 149 existing parking spaces; under the city’s parking requirement for supermarkets (one space per 200 square feet) the proposed floor area would require 140 spaces. Albini said the revised conditions require a dimensioned parking plan be submitted before a building permit is issued to verify compliance with Milbrae Municipal Code parking standards.

Albini said staff received 20 neighbor consultation forms during outreach; 18 expressed support and two raised concerns. An opposition letter received March 12, 2026 cited truck and vehicle traffic, parking, loitering and safety; staff pointed to conditions of approval addressing site security, lighting, cleanliness and graffiti abatement and retained the authority to impose additional conditions if problems arise.

On the ABC license question, Albini said the site lies in a census tract where three off‑sale licenses are permitted without a PCN determination, but staff records show seven active off‑sale licenses in the tract (four Type 20, three Type 21 and one Type 86), requiring a PCN for additional Type 21 sales. Staff also reported a review of police calls between Jan. 1, 2023 and March 1, 2026 that identified a low incidence of alcohol‑related crime in the immediate area and noted the nearest sensitive use identified — Milbrae Bible Church — is more than 950 feet from the site.

Mark Loper, attorney for TNT Supermarkets, said TNT would reuse the existing building without expansion, refresh the façade, provide indoor and outdoor seating, and operate with on‑site security, 24/7 surveillance cameras and wheel‑lock shopping carts. Loper described TNT as a Canada‑founded grocery chain that sells specialty Asian products and prepared foods and is expanding into the U.S.

During questions commissioners pressed the applicant and staff on truck routing, delivery hours, parking management, cart containment and potential light and noise impacts. An applicant representative told the commission TNT plans to replace the existing rooftop refrigeration equipment with a lower‑noise, more environmentally friendly system; the applicant declined to commit to a full acoustical study but said plan review and building permit submittals would include equipment details and that staff would follow up.

Resident Ming Chen, who lives on the fifth floor behind the site, testified that rooftop refrigeration noise from the prior tenant made his balcony unusable, urged an acoustical analysis, and suggested enclosure and mitigation measures. Staff and the applicant agreed to continue discussions during plan review and recommended adding a condition requesting the applicant consider acoustical mitigation as part of the building permit submittal.

After discussion, a commissioner moved to approve a resolution granting the CUP for supermarket use at 45 Merchesen Drive and to approve the PCN for Type 21 and Type 86 ABC licenses, subject to the conditions in the staff packet. The motion was seconded and passed 4–0 (Commissioners Davis, Chan, Qu and Vice Chair Choy voting yes; Commissioner New excused). Staff said the decision is final pending a 10‑day appeal period and payment of a required appeal fee and provided the clerk’s contact information for appeals.

Next steps include final design and signage review under the design review and sign ordinance provisions, submittal of a dimensioned parking plan and coordination on building permit review items including equipment specifications and any required mitigation measures.