The applicant pursuing the construction of a new Grocery Outlet store at 42175 Big Bear Boulevard in Big Bear Lake has withdrawn their land use application, and will not construct a new store. The applicant, Tectonics Design Group / Main & Main Capital Group LLC, recently settled a legal challenge to the project and agreed to terminate the project as part of the settlement.

The City Council met in closed session at its meeting on December 6, and conditionally approved the same settlement agreement related to the proposed Grocery Outlet store. The City Council conditioned its approval of the settlement agreement on being reimbursed for the City's litigation-related fees and costs, which has since occurred, thereby making the settlement agreement final. The City Council motion to conditionally approve the settlement agreement, made by Mayor Pro Tem Putz and seconded by Council member Melnick, was unanimously approved by the City Council with all Council members present. 

As a result of the settlement agreement, litigation filed in San Bernardino Superior Court challenging the Grocery Outlet project has been dismissed with prejudice. The Petitioners who filed that action and Tectonics Design Group / Main & Main Capital Group, LLC, as the real party in interest defending the project’s approval, will each bear their own attorney fees and costs. Tectonics Design Group / Main & Main Capital Group LLC agreed to withdraw its land use application for the Grocery Outlet project, and the City Council agreed to take action to formally rescind the City's approval of the project (scheduled for January 3). All parties to the settlement agreement have agreed not to pursue any claims against the other parties pertaining to the project.

Tectonics Design Group / Main & Main Capital Group, LLC applied for and obtained Planning Commission approval of the proposed Grocery Outlet project on April 21, 2021. The City Council denied two appeals of the Planning Commission’s approval on August 2, 2021. The legal challenge was subsequently filed on September 9, 2021. Tectonics Design Group / Main & Main Capital LLC and Grocery Outlet ultimately decided not to pursue the project despite the City Attorney’s advice that Tectonics Design Group / Main & Main Capital LLC and the City would likely prevail in the litigation.

The land at 42175 Big Bear Boulevard on which the Grocery Outlet store was proposed will remain available for future development. The approximately 3-acre parcel is zoned C-2, Commercial General, and a wide range of commercial uses are permitted on the site as per the City's Development Code, including grocery stores, hotels and motels, restaurants, manufacturing activities, transitional housing, automobile sales, professional and medical services, other retail establishments, and many more. No alternative development proposals have been submitted for this site at this time, and any new proposals that are submitted in the future will be reviewed by City staff and the Planning Commission.