Steven Saylor thought it made sense to sell his Eagle Rock Pharmacy to Walgreen Co. after 37 years as an independent business. But the deal is another example of how a decade-old effort to preserve the independent nature of the community’s business mix has been undermined.

In 1992, the Los Angeles City Council enacted the Colorado Boulevard Specific Plan, meant to increase diversity in Eagle Rock’s business base and create a more pedestrian-friendly business district by preventing parking lots along Colorado Boulevard.

The plan “was an attempt to make it more difficult to take down very wonderful historic buildings and then turn them into these corner mini-malls,” said Hilary Norton Orozco, president of the Eagle Rock Association.

The group had hoped that Walgreens would restore the Streamline Moderne Shopping Bag building, a 1940s-era structure on Colorado Boulevard just west of Eagle Rock Boulevard. But the building, which most recently housed a One Day Paint & Body shop, was demolished and the pharmacy was built just outside the bounds of the Specific Plan, its parking lot accessible by Colorado Boulevard.

There are separate small buildings for Starbucks Coffee Co., which faces Colorado to shield the parking lot, Quiznos Sub and Jamba Juice Co. Walgreens opened Aug. 30, and the three smaller shops are to open in the coming weeks.

“It was a really frustrating loophole,” said Orozco. “When we talk about creating the highest and best use for a site, this is the lowest and worst. It’s another sea of parking and it’s one story, which is too bad, because we could have had residential there.”

But for Saylor, who now works at Walgreens, preservation of another sort was a consideration.

In a recent letter to the Eagle Rock Boulevard Sentinel, he wrote: “A special opportunity presented itself to me and I felt I couldn’t refuse it. A new Walgreens store opened directly across the street and offered to buy my pharmacy. Although the decision was obvious, I still had many sleepless nights. They encouraged me to bring my employees and join the staff at Walgreens.”

Carol Hively, a spokeswoman for the Deerfield, Ill.-based drug store chain, said she wasn’t familiar with the controversy over the Eagle Rock store, but noted that the pattern was familiar.

The process for third party payments such as workers’ comp becomes more complicated, she said, putting a paperwork burden on the independents. “It’s easier for larger chains that have more sophisticated computer systems,” she said.

Tucked into northeastern L.A. just off the Ventura (134) Freeway, Eagle Rock drew its name from the 50-foot rock overhanging Figueroa Street, which is said to resemble an eagle. It incorporated in 1911, but the need for schools, water and sewer systems prompted its consolidation into Los Angeles in 1923.

Colorado Boulevard, the community’s main artery, was paved in the early 1900s and for a time in the 1930s became part of Route 66. The stretch near the new Walgreens is still dominated by mom-and-pop shops, including Swork, a coffee shop, and the Juice Exchange, whose owners bought the business in June, knowing they would be facing competition from the Jamba Juice franchise that’s set to open.

Daniel and Viviana Andalon, who own Juice Exchange, insist that many of Eagle Rock’s 30,000 residents will continue to visit independent businesses partly because of the level of service they provide.

“The ingredients might be the same, but what’s different is the personal touch and attention we give to customers,” said Daniel Andalon. “We know the kids on a first-name basis.”

While the chains prepare to open, the Eagle Rock Association is working with the local Neighborhood Council to revamp the Colorado Boulevard Specific Plan to bolster support for independent businesses.

“We’re seeing if we’re making it too hard for local businesses to come in and open up, yet too easy for chain stores to ignore it,” Orozco said. “Cookie cutter doesn’t cut it in Eagle Rock, which is why we all work so hard to establish these guidelines. We want to get back to the history and the specialness of our community and encourage businesses that are going to really invest in things to make it unique.”