HomeMy WebLinkAboutAgenda Bill 5.C 05/03/20041co
CITY OF PETALUMA, CALIFORNIA
AGENDA BILL MAY 0 3
Agenda` Title: Discussion and Action Adopting a Resolution Meeting Date: May 3, 2004
WAuthorizing the City. Manager- to Enter into an Exclusive
Negotiating Rightsi Agreement' with Regency Realty Group, Inc. Meeting Time: .3:00 PM
Regarding the Possible, Sale of Petaluma, Swim Center and- Adjacent ❑ 7:00 PM
Property .
Category (check onel:. ❑ Consent. Calendar ❑ Public Hearing - ® New Business
❑ Unfinished Business T❑ Presentation
Department: Director:
ED & Redevelopment I Paul 11 lVMrangella
Cost of Prouosal: 0
Amount Budgeted: 0
Contact Person: Phone Number: -
Paul Marangella 7784581
,Account Number: NA
Narime of Fund: NA
Attachments to ALienda Packet;Item:
l . Resolution Authorizing, the City Manager to Enter into ;an Exclusive Negotiating Rights Agreement
With Regency Realty Group, Inc. Regarding the Possible Sale of Petaluma Swim Center and
Adjacent Property
2. Excerpt of Retail. Strategy Pertaining to Kenilworth/Fairground Site.
Summary Statement:
Over the past several years, Petaluma Schools has attempted to sell the Kenilworth School site in order to.
raise funds for the, construction of a new school on the East side of town, near the G&G Market.
Originally,, the HUB, made 'a_successful'bid to.purchase Kenilworth. But with a decline in the economy, the
HUB failed to exercise, its option, to purchase the site. Petaluma Schools then turned to the City of
Petaluma for assistance. While the City was unable to meet Petaluma. Schools' financial objectives, it was
able to find an interested buyer.for the site, Regency Realty Group (RRG).
RRG then entered into an agreeinentto purchase the Kenilworth site,.agreeing to complete its due diligence
within 90 days. RRG's option to purchase the site will lapse on May IV". In the meantime, as part of
their due - diligence, RRG has advised the City staff that, in order to accommodate development on the
Kenilworth site, certain prospective tenants would prefer retail development at the entrance to their center.
Therefore, RRG is interested in negotiating with .the .City regarding the possible purchase or lease of the
Swim Center site, located at 900 East'Washington. As one of the,conditions to the disposition of the site,
the City would require the Swim Center to be relocated at the developer's .expense.
The purpose of this item 'is to allow RRG to pursue a comprehensive approach to the redevelopment of the
Kenilworth site by creating a retail gateway.. An Exclusive Negotiating Rights Agreement (ENRA) would
allow the City Council to consider the feasibility of redeveloping the :Swim Center site to its highest and
best use.
Recommended Citv Couneil.Action/Suggested Motion:
It is recommended. that „the City Council approve the attached resolution authorizing execution of an
Exclusive Negotiating Agreement_.
Reviewed by Finance Director: Revi a orne ADDroyed)vv Citv Manager:
Date- e: � p 1I6� Date:
Today7s Date:' Revision # and liat Revised: File ,ode:
04/26/04 # HAW/ord\Kenilworth-
FairgroundsCStaffReportKenil worthENA050304.doc
' CITY OF PETALUMA, CALIFORNIA
MAY 3, 2604
• AGENDA REPORT
FOR,
DISCUSSION AND ACTION ADOPTING A RESOLUTION AUTHORIZING THE
EXECUTION OF AN EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT WITH
REGENCY REALTY GROUP, INC. REGARDING THE POSSIBLE SALE OF
PETALUMA SWIM CENTER AND ADJACENT LAND
EXECUTIVE .SUMMARY:
Over the past several years;. Petaluma Schools has attempted to-sell,the Kenilworth School site in order
to raise funds for the construction of a new school on the East side of town, near the G&G Market.
Originally, the HUB, made a.successful bid to purchase Kenilworth. But with a decline in the economy,
the HUB failed ,to exercise 'its option to purchase the .-site: Petaluma Schools then turned to the City of
Petalumafor assistance. While- the City was unable to meet Petaluma Schools' financial objectives, it
was able to find an interested buyer for the site; Regency Realty Group (RRG).
RRG then entered into an agreement to purchase the Kenilworth site, agreeing to complete its due
diligence within 90 days. RRG's option to purchase the- site will. lapse on May loth. In the meantime,
as part of their due diligence, RRG has advised the City staff that in order to accommodate development
on the Kenilworth site; certain prospective tenants would prefer -retail development at the entrance to
• their center. Therefore, RRG is interested in negotiating with the, City regarding the possible purchase
or lease of the Swim Center,site; .located at,900 East Washington, together with a portion of the existing
Skateboard Park and Solar Collector area if such land becomes available. As one of the conditions to
the disposition of'the site, the City would require the Swim. Center to be relocated at the developer's
expense.
The purpose of this item is to 411owRRG to pursue a comprehensive approach to the redevelopment of
the Kenilworth site by .negotiating with City regarding the. creation of a retail gateway at the Swim
Center Site. Execution of the Exclusive Negotiating Rights Agreement (ENRA) would provide a one-
year period during which :RRG and the City could negotiate the terms and conditions governing
disposition of the site and its ;redevelopment and would concurrently allow the City to negotiate
regarding relocation of the Swim Center. Execution of the ENRA does'not obligate RRG to acquire the
property, nor does it obligate the City to convey,.the Swim Center- Site to RRG or any other party or to
grant any approvals in connection with development of the Kenilworth site or the Swim Center Site.
Any such disposition would require the further approval of the City Council.
2. BACKGROUND:
On January 1, f972,. the •City of Petaluma leased, the current fair site to the 4th District Agricultural
Association. Over the years since, there have been several modifications to the lease. The Swim Center
was excluded from lthe:lease and remained in City control.
• In November 200.3, the Petaluma Community Development Commission (PCDC) received a draft Retail
Strategy in which the Kenilworth/Fairgrounds site was recommended for retail uses that would reduce or
eliminate the retail leakage to adjacent cities. Attachment 2 ,consists of the relevant section of the Draft
Retail Strategy.
a
In separate negotiations, the City and RRG are in discussions with the Fourth District Agricultural,
Association regarding a possible amendment to the lease of the Fairgrounds pursuant to which certain
property would be excluded from the lease in order to provide RRG with an easement that would allow
for pedestrian and vehicular access to the Kenilworth Site. The location of the easement would
partially cover the existing location of the Skateboard Park and solar collectors located adjacent to. t�
Swim Center site. The proposed Exclusive' Negotiating Agreement would cover the Swim Center si
together with the portions of the Skateboard Park and solar collector area which are outside the
boundary of the proposed easement. (A separate staff report discusses the proposed easement and
fairgrounds lease amendment in greater detail.)
3. ALTERNATIVES:
A. Enter into ENRA: Under this .option, the City Council would authorize the City Manager to
execute an agreement to negotiate exclusively with RRG during a: one-year ,period regarding
potential disposition of the Swim Center site and adjacent property, and to determine the feasibility
of relocating the Swim Center and developing retail uses on the Washington Street corridor. `The
City would have no obligation to convey the property or to grant any approvals in connection with
its development.
B. Decline to. Enter into an ENRA: Under -this option, the City Council_ would, defer consideration of
redeveloping the Swim Center site until a later time. This alternative may have consequences with
regard. to .the sale of the Kenilworth site, should RRG determine that the 'Kenilworth site cannot be
successfully developed without a commercial gateway.
4. FINANCIAL IMPACTS:
There are no financial impacts to the ENRA. Once negotiations begin; the, City Council would b_
advised of the cost/benefits of redeveloping the Swim Center site.
S. CONCLUSION:
As part of a comprehensive redevelopment project related to the sale ,of the Kenilworth site, RRG has,
expressedinterest in `redeveloping the Swim Center site as an attractive commercial gateway to their
development. Entering into an ENRA allows the City Council to determine the feasibility of selling or,
.leasing the site.
6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR COMPLETION:
Should the Council consent to an ENRA, a progress, report would be provided in 120 days.
7. RECOMMENDATION:
It is recommended that, the City Council approve the attached resolution authorizing execution of an
Exclusive Negotiating Rights Agreement.
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Attachment 1
Resolution Authorizing the Execution of an Exclusive Negotiating Rights
Agreement with Regehey Realty Group, Inc. Regarding the Possible Sale of
Petaluma Swim Center and Adjacent Land.
El
a]
RESOLUTION # 2004
AU'TI -ORIZING EXECUTION OF AN EXCLUSIVE
NEGOTIATING RIGHTS AGREEMENT WITH REGENCY
REALTY GROUP, INC REGARDING THE POSSIBLE SALE OF
PE'TALUMA SWIM CENTER AND ADJACENT LAND
WHEREAS, Regency Realty Group, Inc. (RRG) has an option to purchase the
Kenilworth School Site from Petaluma Schools;
WHEREAS, RRG's purchase of the Kenilworth School Site will enable the School
District to construct a new junior high school to replace the dilapidated school facilities currently
located on the Kenilworth School Site;
WHEREAS, the City -owned swim center located,on-the property commonly known as
900 East Washington Boulevard and more particularly described in Exhibit.A to Attachment 1.
attached hereto (the "Swim Center Site") is outdated and in:need of 'Improvements, repairs and
updated equipment, and the City wishes to, explore whether the,construction of a new swim
center at a different location may better serve the needs of the Petaluma community;
WHEREAS, the City and RRG are currently negotiating with the Fourth District
Agricultural Association ("Association") regarding a possible arnendment ("Amendment") to
tthe lease of the Fairgrounds (the "Lease") execuied;by and between the City and the Association
in order to exclude from the Lease the area depicted in Exhibit B to Attachment 1.1
("Skateboard and Solar Collector Area") and the area depicted in Exhibit C to Attachment
1_1 ("Easement Area");
WHEREAS, the City and Regency are currently negotiating_ regarding the possible
provision of an option pursuant to which Regency would have the right to acquire an access
easement across the Easement Area that would be exercisable upon the, satisfaction of certain
conditions, including without limitation, execution of the Lease -Amendment and environmental
review of the project proposed for the Kenilworth School Site;
WHEREAS, Regency believes that the Swim Center Site and the Skateboard and Solar
Collector Area (hereafter, collectively, the "Property") may serve as a useful gateway to
commercial development on the Kenilworth School Site; .
WHEREAS, the redevelopment of the Kenilworth School Site and the Property will be of
benefit to the City of Petaluma and the Community Development Project Area ("Project Area"),
and will be. -consistent with the redevelopment plan adopted for the Project Area;
WHEREAS, execution of an Exclusive Negotiating Rights Agreement will enable the
City and RRG to plan -for the orderly development and reuse of the Kenilworth School Site and
the Property; and
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WHEREAS, the proposed Exclusive Negotiating Agreement does not obligate the
Developer to purchase the Kenilworth School Site or the Property, nor does the Agreement
obligate the City to sell the Property to Developer or to any, other party;
NOW THEREFORE BE IT RESOLVED, the Petaluma City Council hereby authorizes
the City Manager t'o execute an Exclusive Negotiating.Rights Agreement substantially in the
form attached hereto as Attachment -l.1 pursuant to which RRG shall obtain the. exclusive right
during a ,one-year period to .negotiate with the City regarding the terms and conditions for the
possible lease or sale of the Property to RRG.
Adopted, this 3rd day of May, 2004 by the following vote:
Glass
Canevaro
Harris
Healy .
Moynihan
O'Brien
Torliatt
ATTEST`:
Gayle Petersen, City Clerk
Councilmember Aye No Absent
David Glass, Mayor
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Attachment 1.1
THIS EXCLUSIVE, NEGOTIATING„RIGHTS AGREEMENT (this "Agreement") is entered into
effective as of. , 2004. ("Effective Date") by and'between the City of Petaluma, a
municipal corporation (°.`City"), and Regency Reatty, Group,. Ihc:;. a Florida corporation (".Regency"). City
and Regency are hereinafter collectively -referred to as the "Parties."
WHEREAS, Regency has ,an option to: purchase real'property located at Kenilworth Court
("Kenilworth School Site")' from the Petaluma Joint Union High School District ("School District");
WHEREAS, Regency'Is purchase of the Kenilworth School Site will enable the School District to
construct a new junior high school to replace the dilapidated school facilities` currently located on the
Kenilworth School Site;
WHEREAS, the City=ownedswim center located on the property commonly known as 900 East
Washington Boulevard and more, particularly described in Exhibit A attached Hereto (the "Swim Center
Site") is outdated and in need of improvements, repairs'and updated equipment, and the City wishes to
explore whether the construction of anew swim, center at a different location may betterz serve the needs of
the Petaluma community;
WHEREAS, the, Parties ,are currently negotiaiing:with.the.Fourth District Agricultural Association
("Association") regarding a possible amendmerit,("Amendment") to the lease of the Fairgrounds (the
"Lease") executed by and between the City%and the Association.in order to exclude from the Lease the area
depicted in.Exhibit B ("Skateboard and SolarCollector Area") and - the area depicted in Exhibit C
`Easement Area");
WHEREAS, the City and Regency,. are currently negotiating regarding the possible provision of an
option pursuant to which Regency would have the right to. acquire an,access easement across the Easement
Area that would-be exercisable, upon_ the satisfaction of certain conditions, including without limitation,
execution of the Lease Amendment and environmental review of the project proposed for the Kenilworth
School Site;
WHEREAS, Regency believes that the Swim Center Site and the Skateboard and Solar Collector
Area (hereafter, collectively, the "Property") may serve as a useful gateway to commercial development on
the Kenilworth School Site;
WHEREAS, the redevelopment -of the Kenilworth School Site -and the.Property will be of benefit to
the City of Petaluma and, the• Community Development Project Area ("Project Area"), and will be
consistent with the, redevelopment plan adopted for the Project Area;
WHEREAS,, iat its meeting of May 2004, the Petaluma: City Council directed staff to pursue
negotiations with. Regency.regardirig Regency's proposed development of the Property, and authorized staff
to prepare,, and the. City.Manager to, sign, an agreement granting Regency exclusive rights to, negotiate with
City regarding the terms and conditions for- the possible sale of the Property to Regency;
WHEREAS, the purpose of this Agreement is to enable the Parties, to plan for the orderly
elopment and reuse of the Kenilworth School Site and the Property, and this Agreement does not obligate
Regency to purchase theXenilworth School Site or the Property, nor does this Agreement obligate the
City to sell the Property to Regency or'to. any other party;
7 - I
NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties agree as follows.
1. Good Faith Efforts to Negotiate. During the term of this Agreement, the Parties shall diligently and
in good faith negotiate the terms and -conditions governing the possible disposition of the Property to
Regency. This Agreement does not'obligate Regency, to acquire any interest in. the Kenilworth School Site.
or in the Property, nor does this Agreement obligate City to convey -any interest in the Property to Regency
or any other'party or. to.grant any approval or authorization.required for development of the Kenilworth
School Site or the Property.
2. Regency's -Exclusive Right .to Negotiate With City. City agrees that it will not, duringthe� term of,
this Agreement -,solicit other offers or engage in negotiations with.any other entity regarding the sale or
lease, or the grant of, easements over, or the transfer- of any other interest in, the, Property acid the buildings
located thereon.
3. Term; Evidence' of 'Site Control. The term of this Agreement_ -("Term")-shall commence on the
Effective Date, ,and shall terminate one .year thereafter, unless earlier terminated as provided herein.
Notwithstanding -any contrary provision contained herein; .this Agreement, shall terminate and be of no
further effect if by June 30, 2004, Regency has not acquired title to the Kenilworth School"Site. �On or
before June 30, 2004, Regency shall provide'evidence reasonably acceptable to City that'Regency possesses
title to the Kenilworth School Site,
4. Relationship of Parties. The Parties agree that nothing in this Agreement shall be deemed or
interpreted to create between them.- the relationship of lessor and. lessee, of buyer and seller, or of partners or
joint venturers. •,
5. Regency's Studies. During the Term, Regency shall prepare; at Regency's sole expense, any studies,
surveys, plans, specifications and reports ("Regency's Studies") Regency deems necessary or desirable in
Regency's sole discretion,.to determine the suitability of the Property for development. City is entering into
this Agreement without monetary compensation... In lieu of such compensation, if'City andRegency are
unable to reach agreement. upon:the terms and conditions for sale or other disposition of 'the Property -to
Regency, Regency .shall provide City with copies. of Regency's Studies within 10 days ,foh'owing' expiration
of the Term or earlier termination of this Agreement.
6. Expenses. Except as otherwise expressly provided herein, all costs and expenses -incurred in
connection with this Agreement and the activities contemplated hereby -shall be paid'bythe Party incurring
the same; provided however, Regency shall reimburse the City for its: reasonable attorneys' fees, and
expenses incurred 'in cbraibetion with the negotiation pd'preparation of a purchase and sale or other
agreement conveying the Property or any interest therein to Regency.
7. Confidentiality. During the term of this,Agreement, each.Party shall obtain the consent of the other
Party prior to issuing or perrriitting any of its officers, employees or agents to issue any, press release or .other
information to. the press or anyt_hird party with respect:to the negotiations undertakenpursuant to this
Agreement; provided however, no Party shall be prohibited from, supplying any information to, its
representatives, agents, attorneys, advisors; financing sources and others to the extent necessary to
accomplish the activities contemplated hereby so long as: such representatives, agents, attorneys, advisors,
financing sources and others are made aware.of.the terms of this :Section. Nothing contained in this i
Agreement shall prevent either Party at any time from furnishing any required information to any
governmental entity or authority pursuant to a legal requirement or from complying with its legal or
contractual obligations.
8
8: Execution ,of Purchase and Sale Agreement. If the Parties successfully negotiate the terms of a
purchase and sale agreement, prior to execution of such,agreement, City shall.,follow all procedures required
pursuant to the Petaluma Municipal Code and other applicable law pertaining to the disposition of City
property, including without limitation,°the publication of riotice,and the conduct of public hearings.
9. Termination. This Agreement may be terminated at any time -by mutual. consent of the Parties.
City shall havethe'right,to terminate�this Agreement upon its good,faith determination that Regency is not
proceeding diligently and in good faith to carry out its obligations pursuant to this Agreement. City shall
exercise such right by providing at least ..ten (10) days' advance written notice to Regency which notice shall
describe the nature of Regency's default hereunder. Notwithstanding�thelforegoing, if Regency cures such
default within such 10-day period,. this Agreement shall remain in effect. Regency shall have the right to
terminate this Agreement, effective upon 14 days' written notice, to .City, if the results of its investigation of
the Property are unsatisfactory with respect to Regency'& desired development activities. Notwithstanding
anything to the contrary contained herein, this Agreement shall 'terminate.without notice and shall be of no
further force and effect on such date that Regency ceases to have an ownership interest in the Kenilworth
School Site. Neither Party shall, have -the right to seek an award of damages as a result of the termination of
this Agreement pursuant to this Section.
10. Effect of Termination. Upon termination as provided herein, or upon the expiration of the Term and
any extension thereof without the Parties having successfully negotiated'a�purchase and sale agreement, this
Agreement shall forthwith be void, and there shall be no further liability or obligation on the part of either of
the Parties or their respective officers, employees, agents or other representatives;, provided however, the
provisions of Section 5 (Regency's Studies), Section-6 (Expenses),Section 7 (Confidentiality), Section 12
(Indemnification) and Section l'6. (No.Brokers) shall survive such termination.
*1. Notices. Except as otherwise specified 'in .this Agreement, all.notices to be. sent pursuant to this
greement shall be made in writing, and sent to the Parties at their respective addresses specified below or
to such other address as a Party may, designate by written notice delivered to the other parties in accordance
with this Section. All such notices shall be sent by:
(i) personal delivery, in ,which case notice is effective upon delivery;
(ii) certified or registered mail, -return receipt requested, in which case notice shall be deemed
delivered on receipt if delivery is confu-med,by a return receipt;
(iii) nationally recognized overnight courier, with charges prepaid or charged to the sender's
account, in which case notice is effective on delivery if delivery is confirmed by the delivery service;
(iv) facsimile transmission; in which case notice shall be deemed delivered upon transmittal,
provided that (a) a duplicate copy �of the. notice is promptly delivered by first-class, or certified mail or
by overnight delivery, or (b) a transmission report is generated reflecting the accuratetransmission
thereof. Any ,notice given: by facsimile shall be considered to have been received on the next
business day 'ifit.is received'after 5:00 p.m. recipient's time or on a nonbusiness day.
City: City of Petaluma
11 English Street
Petaluma, CA 94952,
Attn:
Regency: Regency Realty Group, Inc.
1850 Mt. Diablo Blvd., Suite 225
Walnut Creek, CA 94596
Attn: Tom Engberg
9
Telephone:
Facsimile:
With copy to: Hanson Bridgett Marcus Vlahos Rudy LLP
80 E. Sir Frances Drake Blvd, Suite 3E
Larkspur, CA - 949.39-
Attn:.Mary K. McEachron
12. Indemnification.: Regency hereby covenants, on behalf of itself and'its permitted, successors and
assigns, to indemnify, hold harmless and defend the- City of Petaluma and its elected and, appointed officials,
officers, agents, representatives :and employees ("Indemnitees") from and against all claims; demands,
liabilities,, judgments, awards, expenses (including; without limitation reasonable. attorneys' fees and
litigation costs), losses; damages, costs and (collectively "Claims") arising out of or in,connecti'on with this
Agreement except to the extent the same is the result, of the gross negligence or willful'misconduct of any
Indemriitee.
13. Severability: If any, term or provision of this. Agreement or the application thereof shalt, to any
extent, be held to be invalid or'unenforceable, such term or provision shall be ineffective to the extent of
such invalidity or unenforceability without invalidating or°rendering unenforceable the�remaining terms and
provisions of this Agreement or the application of such terms and provisions to circumstances other than
those as -to which it is held�inval'id or unenforceable -unless an essential purpose of this. Agreement would be
defeated by loss of the invalid or unenforceable provision.
14. Entire Agreement: Amendments in Writing; Counteroafts. This Agreement contains the entire
understanding of the Parties with respect to the subject matter hereof and supersedes all prior°and
contemporaneous .agreements and understandings; oral and written, between the Parties with. respect to, such
subject matter: 'This Agreement may be amended only by a written instrument executed by the Parties or
their successors iir interest. This Agreement may be executedin multiple counterparts, each of which shall
be an original and all of which together shall. constitute one agreement.
15. Successors, and Assigns; No Assignment. Without Consent; No Third-Partu Beneficiaries: This
Agreement. shall be binding. upon and inure to, the benefit of the Parties and their respective successors and
assigns; provided however, Regency shall not transfer or assign any of Regency's rights hereunder by
operation of law or otherwise without the prior written consent :of the City; and any such transfer or
assignment without, such consent shall be void. Subject to the immediately preceding, sentence, this
Agreement is not intended to benefit, and shall not run to the benefit of or be enforceable by, any other
person or entity other than'the Parties and their permitted successors and assigns.
16. No Brokers. Each Party warrants and represents to the other that no brokers have been retained or
consulted in connection with this transaction other,than as disclosed in writing to the other Party. Each Party
agrees to defend, indemnify and hold harmless the other Party from any claims, expenses, costs or liabilities
arising in connection with a breach of this warranty and representation. The terms of this Section.shall
survive the expiration or earlier termination of this Agreement.
17. Captions. The captions of the sections_ and articles of this Agreement are for convenience only and
are not intended to affect the interpretation or construction of the provisions hereof.
18. Governing Law. This Agreement shall be governed by.and construed in accordance with the laws of
the State of California.
SIGNATURES' ONTOLLOWING PAGE.
10 f�
IN WITNESS, WHEREOF, the Parties have executed this Agreement as of the date first written above.
CITY OF PETALUMA
0y:
Name:
Title:
APPROVED AS TO FORM:
By:
City Attorney
ATTEST:
By:
City Clerk
REGENCY REALTY GROUP, INC.,
a Florida corporation
By:
Thomas K. Engberg,
0s: Senior Vice President
is
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Exhibit B
SKATEBOARD) AND SOLAR COLLECTOR AREA
(Attach legal description of Skateboard and Solar Collector Area.)
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Excerpt of Draft Retail'.Strategy
Pertaining to Kenilworth/Fairground Site
Attachment 2
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10.6 KENILWORTH & FAIRGROUNDS SITE:
RETAIL POSITIONING & STRATEGIES
Recommended Positionina & Format
❑ Regional Destination .Power Cenfer. .
❑ Large Format & Baby .Box Retail,.
❑ Total of 4,00,000 to 42.0,000 sq. ft.
Anchored Bv:
• Home' Electronics f Corii,puters
• Home Furnishings & Accessories:
• Pad Restaurants
Retail Mix
• House & Home
• Value & Mid -Priced Apparel
• Appliances
• Toys, Hobbies & Crafts
• Sporting Goods
Zoninq Direction
➢ Highway Commercial .
Development .Di`r.ection
Assemble and develop
as a Regional Large
Format Retail Node to
introduce missing
retailers of regional
proportion.
Kev Retail Development.OoDortunity
This site is at Petaluma's most important interchange of Washington
Street with Highway 101. In conjunction with Washington Street, this
interchange forms the gateway and, approach armature for
Downtown. Accordingly, to complement Downtown and: stimulate
regional attraction and cross -shopping within'. Petaluma, this is seen
to be, the best location for a "Regional Large 'Format Retail
Destination" within Petaluma.
Site Strenaths/Weaknesses
+ Large linear exposure & frontage to Hwy 101.
+ Excellent access to Petaluma via Washington Street & to
region via& Hwy 101 interchange.
+ At geographic center of Petaluma.
+ Gateway to Downtown Petaluma.
+ Washington Street is already established as City's retail
corridor.
Potential traffic capacity issues along Washington Street.
Interchange of Washington Street & Hwy 101 may become
congested.
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TABLE 10.6
PROJECTED SALES & TARGET CAPTURE RATES
CATEGORY'.=,j26D3j,�;�s:=�T,�,�;,:_:,�r�;
. a�r';�'===e�r�.rniiG�rszres:er'aer�iri•='>=�`-
~;;s;�_:,�;,
�•rorai:ir:ADE;':;;';.,i
..,�`-,'rr.:.. -- :.�.:�;..".,;,�r.z =.•_ „"..
':;�'P7A'Yf�:>^t?fiiGieiiiil:�^`;�(•.'-'�-^ST1l`:":c;�l<rsfi�aiettiwe:•(NiEAS11tfS
>tiic.vniae':
Alcohol& Tobacco
$2,235,380
5.0%
S2.592.713
'2.3%
S4,826094
3.0%
P.rs-1 Care
S501,238
30%
544722E
1D%
S946.464
1.6%
Personal Services
S960.061
3 0%
$854.543
1 0%
$1.014.603
1 6%
Pharmacy
s1:563.199
3.0%
51,668.685
1.3%
53,231;.884
1.7%
GmcerylSpecialty Food
$2,942.741
2 0%
$3,836:192
1.0 %
56.778.933
1.3%
1.1.{•46"1e�
Apparel'
$4,404,198
7.07,
$8,143.812
'S.1%
S12.548.01,1
5.6%
Footwear
S1,527,091
10.0%
S1.997.525
5,1%
.S3,524.616
6-v%
Home'Elearonip& computers
514;432,a08
47:1%
S16.2139.131
20!7%
S30.641-,539
28.1%
Home Fumishmgs&Accessories
57;302.456
,200%
S10.506.061
11.3%
S17,808,517
137%
Home Improvement & Gardening
'S1,174,Sa5
50%
S713.295
1.3%
St',827.840
2.3%'
Housewares & Small Appliances
S11,176,901
25.0%
S12.963.567
11'4%
S24,1a0,468
15 2%
Jeweleryd Accessories
St.4t18,241
.1-00%
S1.362.778
3.6%
- SY.851;019
75.2%
Major Appliances
270%
S2.941,869
113%
$5.707, er4
16.7%
Mullimedla gooks & M_ usic
$1,280.159
a.0"/
$1,266.036
3 1%
S2,546:194
4.5 %
Specialty Retail
$1,376.039
6.1%
$2.076.270
50%
S4.252,909
5.3%
Sp-,Lng Goods
S2.386.792
2729.
S1:821.962
8.1%
S4.208,755
13.5%
Toys&'Hob Was
S4,627.827
31.3%
$2.928.332
7.8%'
'$7,556.159
144%
Entertainment
$960.332
10.0%1
$524.819
2.1%
St 485.151
14
Restaurant &Cates
S6.&91,26t
8.0-4
S4,808.a77
2.27,
St1.699,338
3.8%
TOTAL.SALES.:,�-
TABLE 10.7
RECOMMENDED RETAIL -MIX & FLOOR•AREA'(IN SQUARE,FEET)
As�`�''173_�•.
�J.'s.'�-1��.A
T1,
Alcohol&--1T1,-ro
2.0%
8,047
8,178
8.304
'8,286
8.259
Personal Care'
1.2%
4,742
4.827
4.910
4.902
4.891
Personal Services
2.2%
9.073�
9:229,
9.380
'9.361
91333
Pharmacy •-
1.5%
6,156
6.268
6,379
6.370
6.356
GrocerylSpeaalty Food
3.2%
12.912
13,109'
13.381
.13,519
13.730
,., � , •, y � tJ' l N3W4-}��.�.a+�-a�a..as.t4..:..1„�.g�iii11i�4t�:y1->y.3'>�
'xrutlikSf>�
krsa><1�,�A'ck'i'��1-Y,};rawwi'1�i.'ePiitd
Apparef
12.0%
48,262 Y
48974
49.663
49.574
49,442
Footwear
2-9T.
17,749
1.1.939
12.126
12.108
12,081'
Honig electronics Computers
23:4%
94282
95.823
97,328
97.157
96.905
Home Furnishings & Accessories
16:1 %
64.758
65.838
66,899'
66.797
66.647
Home Improvement& Gardening
2.0%
8.124
8,278
8.429
9.412
8.387
Housewares ,& Small Appliances
0.0%
54
55
55
55
55
Jewelery & Accessories
1 4%
5.702
5,807
5.912
590.
5395
Mayor Appliances -
6.3%
25,366
25.619
26,268
26.230
26'.174
Mummed3a Hooks & Music
2 1 %
8487
8,618
8,745
S.729
8,703
Specialty Retail
4.2%
17.009
17,231
17.444
17,411
17.364
Spprtmg Goods
3.8%
15,305
15.590
15.877
15.864
15.846
Toys & Hobbies
6.8%
27 471
28.030
28.591
28 569
26,539
Emertainment
2 5%
9.901
10.089
10.271
10 249
10:217
Restaurant & Cates
6.4%
25.999
2645E
26.900
26,841
26.755
TOTALfLOORSPACE:'': -t b" = :'s.: 1"'':'-; 100iD°X:I':- 4D3,404-•c% :.:4t0.159s";--dt6;862:;.:416;339'.' ?, 4i5;5i8'
Petaluma Leakage & Sustainable Retail Strategy Study, January 2004 Page 85
KENILWORTH & FAIRGROUNDS SITE:,
RETAIL POSITIONING
& STRATEGIES -(CONTINUED)
2003 TARGETS:
Retail
Target PTA
Target S'TA
Target
Mix %
Capture Rate
Capture Rate
Safes/Yr.
Convenience Retail
10%
2.8%
1,.3% -
$1,8 million
Comparison Retail
81 %
1 8.0%,
8.3%
$1 18, million
Restaurants &. Leisure
9%
8.2%.
2.2%
$13 million
Total
1100%
10.2%
4.5%
$14& mil
Phosina/Timinq
Immediate over 2 to 3 year horizon.
Implementation. Layout & Streets caae.Sfrateaies
1. Goal -Is to create a "Regioricil Shopping Destination" that will draw from the
Secondary Trade .Area and beyond.
2. Anchor with either an Electronics/Computers/Home Entertainment Equipment
Megastore or a Home. Furnishings Megastore.
3. City could consolidate lands and then offer by tender to joint venture retail
developers on a 'long term lease, or to sell or long term lease major anchor
parcel to. an .anchor tenant :attractive, rates/values, to attract other higher
paying retail tenants/developers to project.
4., Megastore anchor. retailers should be placed deep .into south end of site, with
exposure. from Hwy 101,. to induce circulation through project.
5. Restaurants should be along Washington St. frontage.
6. Baby Boxes and smaller in -line retail tenantsshould have exposure from Hwy,
101, and placed between the megabox tenants and Washington St.
7. Although built as. a larger format retail center, a contrived street through the
parking area, with, landscape and water features should be created to
provide a "sense of place" and ensure safe pedestrian movement throughout..
Direct Economic Impacts
$148 million in trade area Annual Retail Sales or more.
$1.5''million in Sales Tax Revenue to City/year or"more.
• 1,03,8 Total Ne.w.,Direct Ernployees.
Target safes performance of $367 psf/yr.
Taraet Market..& Inflow Seaments
• PTA, STA & Region'al Residents & Tourists.
Value to Moderate price points.
FIGURE 10.9
PROJECTED' SPACE & FLOORSPACE.ALLOCATI.ON
CONVENIENCE RESTAURANTS &
RETAIL 'LEISURE
10%$`18M _..:........_ 4e :. -. 9%$:13M
COMPARISON RETAIL
RETAIL
81 1,81 M
-
inter nge
CkLh
_na
'"'
FAIRGROUNDS
FIGURE 4U1.0
StTEYOVEIMEW'.:'<
Target'Tenant Profiles •
Sketchersr. •
Macaroni Grill
• Fr,y's Electronics Linens N" Things
Old Navy
McDonolds
• IKEA. Bed, Bath & Be,yond
Dress Born
Houston's Steakhouse
• Pier- 1 Toys `R Us
Golf Galaxy
Staples
• The orth Face • Patagonia
Best Buy
Circuit City
Petaluma Leakage &-Sustainable Retail
Strategy Study, January 2004 a 86