The Empty Lucky Store: Could a Vacancy Tax Help?

More than three years after Lucky Supermarket closed on Magnolia Avenue, its vacant building remains a source of frustration—and a difficult question for Larkspur: how can the city encourage productive use while preserving the possibility of a downtown grocery store?

A July 20 SFGATE investigation identified seven vacant California grocery properties owned by Albertsons, including Larkspur’s former Lucky. Albertsons says it is working to fill vacant stores. Locally, residents continue to weigh the loss of a neighborhood market against opportunities for housing. See the full article HERE.

A commercial vacancy tax is one possible response. San Francisco taxes certain vacant ground-floor commercial spaces, while Oakland’s broader vacancy tax also covers undeveloped parcels. That distinction matters: if the Lucky building were demolished, a tax limited to buildings could leave the empty land outside its reach. San Francisco’s rules and Oakland’s ordinance illustrate these different approaches.

The challenge is designing a policy that encourages action without unfairly burdening smaller property owners facing legitimate delays. Its impact would depend on the properties covered, vacancy thresholds, and exemptions.

Private Ownership Limits the City’s Options

Residents may want a particular grocer to take over the Lucky site, but the city generally cannot compel a private owner to sell or lease to a preferred buyer or business. Zoning can regulate permitted uses, and lawful incentives can encourage redevelopment, but neither guarantees agreement on price, timing, or an operator.

Compulsory acquisition through eminent domain is a separate legal process requiring statutory authority, qualifying public use, and just compensation. It is not a routine shortcut for placing a preferred business in a privately owned building. California’s eminent domain requirements

finding a solution also involves multiple property owners in the surrounding shopping center.

Meanwhile, the Lucky parcel appears in Larkspur’s Housing Element, and the city’s housing overlay rules tie streamlined residential approval at the site to including a grocery store. Negotiations must balance housing opportunities, grocery access, and private property rights.

Join Tonight’s Discussion

The vacancy tax issue is on tonight’s City Council agenda as Item 8.2, a public workshop.



The regular meeting begins Wednesday, October 21, 2026, at 6:00 p.m., at Larkspur City Council Chambers, 400 Magnolia Avenue, Larkspur.

Attend in person or watch and participate via Zoom https://us06web.zoom.us/j/88038757649 .

View the meeting agenda below.