ALAMEDA -- Safeway officials have signed a letter of intent to open a supermarket at Alameda Landing, the mixed-use project in the city's West End that will also feature a Target store.
The 45,000-square-foot supermarket would be what Safeway officials call a "lifestyle" store and would help anchor the retail portion of the project, which will also feature up to 300 homes.
Catellus Development Corp., which is behind the project, initially ruled out having a grocery store at Alameda Landing because the West Alameda Business Association said it hoped to secure a supermarket to help revitalize nearby Webster Street.
But since then it has become clear that a suitable site for a grocery store does not exist on the street, which has prompted Catellus officials to revise their retail strategy, according to city officials. The City Council will consider approving the update during a special meeting Tuesday.
"It's good news," said Debbie Barletta, 34, who lives off Webster Street, about the possible opening of Safeway. "It will help people who live in the neighborhood and create jobs. It will probably have a good spinoff effect on nearby businesses, too."
Safeway also wants to build a gas station as part of its store, which Catellus officials have proposed for property adjacent to Willie Stargell Avenue and Mariner Square Loop, said Lori Taylor, the city's community development director.
Alameda Landing is located on 77 acres near the Oakland-Alameda Estuary that were once a supply center for the former Alameda Naval Air Station. It borders Bayport housing near College of Alameda. The project calls for 275 homes -- including condominiums and single-family homes -- and an apartment building with 23 affordable units.
The housing will be built in a four-block grid, with each block having its own park, bike lanes and walking paths. The goal is to create an area that blends with nearby neighborhoods and can be easily traveled, especially since 400,000 square feet of office space is also planned.
Along with allowing a grocery store, the revised retail strategy by Catellus identifies Target as the primary anchor tenant of the project's 285,000-square-foot retail center. The Target store is set to open in October and will employ about 200 people.
The Alameda Landing retail center is expected to generate about $786,000 annually in sales tax revenue for the city when it is fully occupied, Taylor said.
Reach Peter Hegarty at 510-748-1654 or follow him on Twitter.com/Peter_Hegarty.
The City Council will meet at 7 p.m. Tuesday in the Council Chambers at City Hall, 2263 Santa Clara Ave.