Most communities would be breaking out the Two-Buck Chuck and organic flaxseed chips at news that Trader Joe's is coming to town.

Not Berkeley.

In a city famous for its love of specialty gourmet food, irate neighbors are fighting a new Trader Joe's slated for University Avenue and Martin Luther King Jr. Way, now home to a Kragen outlet.

Residents are concerned about traffic, parking, the building blending in with the neighborhood, and the large volume of low-cost alcohol for sale just a few blocks from the UC campus, Berkeley High School and a number of homeless service agencies.

Not to mention the four stories of apartments that would be on top of Trader Joe's, making it one of the biggest housing developments in Berkeley.

Meanwhile, droves of Berkeleyans would love a Trader Joe's, if not necessarily so much housing at that spot.

The issue is headed for a showdown Nov. 9 at the zoning board, which is scheduled to vote on approving the $50 million project.

The Berkeley battle stands in contrast to last week's announcement that a new Trader Joe's is being warmly welcomed about 5 miles away in Oakland. Slated to replace a shuttered Albertsons on Lakeshore Avenue in the Grand Lake neighborhood, the Oakland Trader Joe's was sought in a campaign by local residents and Councilwoman Pat Kernighan.

If it's approved in Berkeley, Trader Joe's -- with its island decor and mix of basic food with organic and exotic imported foods -- would open in 2010. If it's not approved, the developers said, Trader Joe's likely will back out and the project will be resubmitted with more housing and less retail.

"Either way there will be a project there -- what we don't know is exactly what that will be," said Berkeley City Councilwoman Dona Spring, whose district includes the Trader Joe's site.

Developers Chris Hudson and Evan McDonald, proteges of Berkeley development mogul Patrick Kennedy, bought the 1-acre site in 2002 and have been haggling with the city and community ever since. The project began with 186 units of housing filling five full stories, 4,000 square feet of retail, 71 parking spots and almost no setbacks from adjacent houses. The proposal now has 146 units, four times as much retail as before, twice as many parking spots, landscaping around the perimeter and a stepped-back roof that goes from three stories to five.

"These are significant concessions we've made," said Hudson. "But the neighbors keep changing the bar. We're just looking at each other and scratching our heads because we've done everything they asked."

The neighbors most upset about the project live on Berkeley Way, a residential street parallel to University Avenue where the Trader Joe's parking lot entrance will be. A constant stream of cars and delivery trucks will dramatically change the character of their quiet street, they say.

"Trader Joe's is a nonunion store owned by a secretive German family that sells specialty food and low-cost alcohol," said Steve Wollmer, who lives 250 feet from the site. "Do we really need this in our neighborhood?"

Part of Trader Joe's popularity stems from its assortment of low-priced wine and spirits. It spawned the "Two-Buck Chuck" nickname when it sold Charles Shaw wine for $2 a bottle, though many of its other wine offerings fall into a higher price range. Wollmer fears that the availability of inexpensive wine will prove too tempting for the thousands of underage students and homeless people who live nearby.

A Trader Joe's spokeswoman would not release the company's alcohol sales figures, but a homeless advocate said the store's abundance of cheap wine is not an issue.

"I am convinced that the cost and distance of alcohol has nothing to do with people drinking. If a homeless person, or anyone, wants to drink, they'll know where to get it," said Boona Cheema, executive director of Building Opportunities for Self-Sufficiency in Berkeley. "I think it's great that Trader Joe's is coming to downtown."

Many in Berkeley agree with her, enticed by the prospect of affordable, high-quality groceries within walking distance of downtown, BART and the UC campus.

"For years, downtown residents and merchants have been wanting a supermarket downtown," said Michael Caplan, who worked on downtown development for the city and starts today as Berkeley's economic development director. "There are hundreds of new units downtown, and as it becomes more of a neighborhood, people want basic neighborhood amenities."

The nearest Trader Joe's are currently in Emeryville and El Cerrito. The Oakland outlet will open in early 2007.

Berkeley is hardly underserved by grocery stores, though no large markets can be found downtown, where Trader Joe's would go. Within its 10 square miles lie four Andronico's, Whole Foods, Safeway, Grocery Outlet, Berkeley Bowl and dozens of small specialty shops. A second Berkeley Bowl, which at 91,000 square feet will be Berkeley's biggest grocery store, is slated to open in West Berkeley by 2010.

Some in Berkeley say they welcome Trader Joe's, but it's the 146 units of housing they don't want. The units, most of which are one-bedroom apartments configured around a central courtyard, are too small to accommodate families, said Spring.

The developers say they feel they've made as many concessions as they can and still turn a profit.

"We think we have a great project here, and we're willing to invest in the long-term future of Berkeley," Hudson said. "But at some point, Berkeley's got to decide whether it wants to be Berkeley 1950 or Berkeley 2050."