Raley’s supermarket has broken ground at Tracy Boulevard and Valpico Road.
The Kitchell Development Co. received building permits last week for the 58,551-square-foot grocery store and four of six shops in the Red Maple Village center, said Tracy senior planner Victoria Lombardo.
The grocery store could open this year, though when is unclear. Dan Glatthorn of Kitchell could not be reached for comment.
Raley’s got its OK from the city more than a year ago, and officials expected a fight over the store that never materialized.
A group called Tracy First, which has some ties to Save Mart, sued the city over its approval of Winco about three years ago, and the city updated a study about the economic impacts of Raley’s.
And while that study by Bay Area Economics predicted that the presence of a Raley’s would likely mean an 11 percent decline for Save Mart’s three stores, there was no opposition when Raley’s was OK’d.
The study predicts Save Mart would close at least one of its stores in Tracy once Raley’s, Winco and Wal-Mart sell groceries.
Last December, Tracy First also sued the city over a vote to allow Wal-Mart to add 82,000 square feet, including 33,000 square feet for a grocery store, to its 130,000-square-foot store on West Grant Line Road.
