HomeMy WebLinkAboutAgenda Bill 5.C 05/03/2004CITY OF PETALUMA, CALIFORNIA
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AGENDA BILL MAYO 3 ZUR "�. J
Agenda` Title Discussion and Action Adopting a Resolution.
the City, Enter
Meeting Date May 3, 2004
,Authorizing ,Manager to 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 one) ❑Consent Calendar ❑ Public Hearin New `Business
El Unfinished Business ❑ Presentation
Department
Director
Contact Person
Phone,'Number
ED & Redevelopment
Paul 1Vlarangella
Paul Marangella
778= 45:81
Cost of Proposal 0
Account Number NA
Amount Budgeted 0
Name of Fund NA
Attachments to Agenda Packet,Item
1. 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
Adj acent,Property
2. Excerpt of Retail: Strategy Pertaining to Kenilworth/Fairgrourid 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 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 10 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 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 City Council Action /Suggested Motion
It is recommended that the City Council approve the attached resolution authorizing execution of an
Exclusive Negotiating Agreement.;
Reviewed �bv Finance Director:
Rev' e ° ; orne :
e:
Aipproyefifixv City Mana er:
Date:
Date:
Today7s Date
Revision # an ate Revised:
File , de:
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04%26/04
orth
FairgroundsCStaffReportKenilworthENA050304.doc
CITY OF PETALUMA, CALIFORNIA
MAY 3, 2004
AGENDA REPORT
FOR,
DISCUSSION AND ACTION ADOPTING A RESOLUTION AUTHORIZING THE
EXECUTION OF AN EXCLUSIVE. NEGOTIATING RIGHTS AGREEMENT WITH
REGENCY REALTY GROUP; INC. REGALING TIIE POSSIBLE SALE OF
PETALUMA SWIM CENTER AND ADJACENT LAND
1. 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 anew 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 o p tion to P to the City of
purchase the.-site; Petaluma Schools then fumed
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 agreement to purchase the Kenilworth site, agreeing to complete its due
diligence within 90 days. PR,R s option to purchase :the site will lapse on May 10 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 allowRRG 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 (EN—RA) 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 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 2003, 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,
2 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 'Exclusivel.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 Ahis 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 R.RG determine that the Kenilworth site cannot be
successfully developed without a commercial gateway.
4. FINANCIAL IMPACTS
There are no financial impacts to the ENR1A. Once negotiations begin, the City Council would b
advised of the cost/benefits of�redeveloping the Swim Center site.
5. CONCLUSION
As part ` of a comprehensive redevelopment project related to the sale , of'the Kenilworth site, RRG has,
expressed interest 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 sellin_ g; or
.leasing the site.
6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESSOR COMPLETION:
Should the Council consent to an ENRA, a progress report would be provided in l20 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 I
0
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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.
EI
Lt
IES`OLUTION # 2004
AUTHORIZING EXECUTION OF AN EX C LUSIVE
NEGOTIATING RIGHTS AGREEMENT WITH REGENCY
REALTY ,GROUP, INC. REGARD °I11.G THE- POSSIBLE SALE OF
PETALUMA SWIM CENTER AND ADJACENT LAND
WHEREAS, Regency Realty Group, Inc. (RRG) las an option to purchase the
Kenilworth School Site from Petaluma Schools;
WHEREAS, RRG'spurchase 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 1.1
attached hereto (the "Swim'Center Site') is outdated. and in: need of "i mprovements; 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 possibleamendment ( "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 Exh B to Attachment 1.1
( "Skateboard and Solar Collector Area")t 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 thatwould be exercisable upon the: satisfaction of certain
conditions, including without limitation, execution ofthe Lease and environmental
review of the project proposed for the Kenilworth School Site;
WHEREAS., Regency.beiieves 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 Propert y 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
Burin c, ear ens Attachment 1.1 pursuant to which RRG shall obtain the exclusive right
h
g y period to :negotiate with the City regarding the terms and conditions for'the
possible pease 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
•
no
a�
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 Realty Group, I nc, a Florida corporation ( "Regency "). City
and Regency are hereinafter collectively referred to as' the "Parties."
WHEREAS, Regency has pan option to; purchase reatpropertylocated at Kenilworth Court
( "Kenilworth School Site ")''from the Petaluma Joint Union High School District ( "School District");
WHEREAS purchase of the Kenilworth School Site will enable the School District to
construct ,,a new junior high school Ito 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 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 amew swim, center at a different location may betterz serve the needs of
the Petaluma community;
WHEREAS, the. Parties are currently negotiating,with:the.Fourth District Agricultural Association
( "Association ") regarding a possible amendment ( "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;
AS, the redevelopment -of the Kenilworth School Ste'and the.Property will be of benefit to
the Cit y of Petaluma and the• Community Development Project Area ( "Project Area "), and will be
consistent with the, redevelopment plan adopted for the Project Area;
WHEREAS, at its meeting of May _, 1004, the Petaluma City Council directed staff 'to pursue
negotiations with Regency regarding 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 the: :Kenilworth School Site or the Property, nor does this Agreement obligate the
City to sell the Property to Regency or'to, any other party;
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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
his Agreement-
lease, or the grant of easements ef over, or he transfer of any other interest other
the entity regarding the sale or
Property and 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 zany 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 reasonab'1y 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
joint venturers. and seller, or of partners or
_ _
5. Re envy's Studies During the Term, Regency shall re are at Regency's sole;ex expense, any studies
g y p p P , y ,
surveys,, plans, specifications and reports ( "Regeney's Studies ") Regency deems necessary nor desi"rd ' in
Regency's sole discretion,. to determine te' suitability of the Property for development: City is entering into
this Agreement without monetary cornpensation...In lieu of such compensation, if City and Regency are
unable to reach agreement:upon:the terms and conditions for sale or other disposition ofthe Property!to
Regency, Regency shall provide City with copies of Regency's Studies within 10 days ; following' expiration
of the Term or earlier termination, of this Agreement.
6. Menses Except as otherwise expressly provided.herein, all costs and expenses incurred in
connection with this Agreement and the activities contemplated hereby shall be paid by Party incurring
the same; provided however, Regency shall reimburse the City for its reasonable attorneys' fees and
expenses incurred -in connection with the negotiation and preparation of a purchase and sale or other
agreement conveying the Property or any interest therein to Regency.
7. Confidentiality _During the term of thisAgreement, each.Party shall obtain the consent of the other
Party prior to issuing or permitting any of it officers, employees or agents to issue an ypress release or .other
information to. the press or any °third party with respect . the negotiations undertaken pursuant 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 arei 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 entityor authority pursuant to a legal requirement or from complying with its legal or
contractual obligations.
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8: Execution of Purchase and Sale A Bement 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
P p PP pertaining pursuant to the Petaluma Municipal Code and other a licable law `ning to the disposition of City
property; including without limitation, °the publication of notice ,and the conduct of public hearings.
9. Termination This Agreement may be terminated ,at any time by mutual. consent of the Parties.
City shall have the right,to terminatethis 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 the foregoing, 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 1.0 days' written notice, to .City, if the results of its investigation of
the Property are unsatisfactory with respect to Regency's desired development activities. Notwithstanding
anything to the contrary contained herein, this Agreement shall lerminate'.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 negotiated'a�purchase and sale agreement, this
Agreement shall forthwith be void, and there shall be no further liability o' 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 16 (No. Brokers) shall survive such termination.
O 1. Notices Except as otherwise specified 'in this Agreement, all.notices to be sent pursuant to this
greement shall be made in writin and
g sent to the Parties at their respective addresses specified below or
;
to such other address as a Part m desi gnate Party y grate 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 sn all ,_return receipt requested, in:which case notice shall be deemed
delivered on receipt if delivery is confirmed, by a return receipt;
(iii) nationally (� � •) atronall redo zed overnight courier, with charges prepaid or .charged: to the sender's
account, in which case notice is effective, on deliver if deliv
ry 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 accurate transmission
thereof business day if t is r e ven,'by pshall e considered to have been received on the next
-Y 5 Oil pient'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
Telephoner
Facsimile:
With copy to: Hanson Bridgett Marcus Vlahos Rudy LLP
80 E. Sir Frances Drake Blvd Suite 3E
Larkspur, CA - 94939
Attri' :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,
ffi
ocers, agents representatives . and employees ( "Indemnitees ") from and against all claims; demands,
liabilitiesJudgrrients, awards expenses (including without limitation reasonable. attorneys' fees and
litigation
costs) losses; damages, costs and (collectively Claims) arising out: of or inconnection with this
Agreement except to the extent the same is the result of the <gross negligence or willfiil'misconduct of any
Indemnitee.
13. gr .
Seve_ rability If any term or provision of this. Agreement or the application thereof shall, to any
extent, be -held to be invalid or'unenforceabl'e such term or provision shall be ineffective to the extent of
such invalidity or unenforeeability without invalidating or °rendering unenforceable the terms and
provisions; of this Agreement or the application of such terms and provisions to circunstanees other than
those as to which it is held invalid 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;, Counterparts 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 is
subject matter. This Agreement may be amended only by a written instrument executed by the Parties or
their successors :in' interest. This Agreement may be executed, in multiple counterparts each of which shall
be an original and all. of which together shall constitute one agreement.
15 . Successors, and Assigns; No Assi ent Without Consent - No Third -Part Benefi
A Bement shall be bindinn and inure to, the Parties and their respective succe This
� g. upo the benefit 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 ent 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: perm- mitted successors and assigns.
16. No Brokers Each Part y warrants and represents to the other that no brokers have been retained or
consulted in connection with this transaction otherthan 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 Secti-on,shall
survive the expiration or earlier termination of this Agreement.
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• Govem, ing Law This Agreement shall be governed by.and construed in accordance with the laws of
the State of California.
SIGNATURES ON"FO ,LO ING PAGE.
10 EG
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:
0s:
•
Thomas K. Engberg,
Senior Vice President
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Exhibit B
SKATEBOARD ANDSOLAR COLLECTOR AREA
(Attach legal description of Skateboard and Solar Collector Area.)
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Attachment 2
Excerpt of Draft Retail Strategy
Pertaining to Kenilworth /Fairground Site
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El.
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.10.6 KENILWORTH & FAIRGROUNDS SITE:
RETAIL POSITIONING & STRATEGIES
Recommended Position'ina &
Pormat
LJ Regional Qestina-ti . Ph .Power C6nter.
❑ Large. Formcif & Baby ,Box R0
El Total of 4,00.000 to 42.0;000 sq. ft.
Anehored BY-.-
Zoning Direction
. Home Electrphict/Cbrimpters
• Home Furnishings I ,i$t Accessories. ➢ Highway Commercial .
. Pad Restd.u.rants
Development Direction
Retail Mix
Assemble
. House & Home > - and �deiyreiopl
. Value & Mid-Priced Apparel as a Regional Large
• Format Retail Node to
Appliances
• Toys, Hobbies & Crafts !introduce m issing
. Sporting Goods retailers of regional
proportion.
Key Retail Development .99221r_tu�wlt
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 complem . ent
Downtown and stimulate
regional attraction and cross-shopping within Petaluma, this is 'seen
to be. the best location for a "Regional Large 'Format Retai
Destination" within Petaluma.
Site Strengths /Weak
+ Large linea,r exposure & frontage to Hwy 101.
+ Ex6ellent access to Petaluma via Washington Street & to
region vim Hwy 101 interchange:
+ At geographic center of Petaluma.
+ Gatewa to Downtown Petaluma.
+ Washington Street is already established as City's retail
corridor.
- Potential traffic c issues along Washington Street.
- Interchang of Washington Street & Hwy 701 may become
congested.
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TABLE 10.6
PROJECTED
CATEGORY j20�
Alcohol & T o b acco
P.-n.1 care
Personal. Services
Pharmacy
GroperVISPacialty. Food
0
SALES & TARGET CAPTURE RAT
Hom.:Electnomics & c
Home Furnishin & Accessories
Home Improvement & Gardening
Housinieira & S ma lf'A pp ij ances
J e waJeryA Access
Riajor Appliances
Mull m4a g- ks & Music
Specialty .Retaii
SP-MnRGpods
Toys &'Hobbies
Restsumni a Caf
TABLE 10.7
RECOMMEIiI
3960.061
0 6
ustu
1 C"
1!8_
- 1 91-
S
sl;563. 19
3 9
0
S 8 54 . 543
1 � .,6
_
1.6%
2 14
2,942.7
S 41
2 7
3 D
IS .685
13.,
3
��.23 1r,S,
%229
'
2 0
S 3 3 6 :192
' 7%
10.1
p
-
6 7
$6.778 �29
6,166
4 - -
34,404.19
9 8
7
7.0%
4
$1 143: 812
3
1%
2
3.2%
S11;527.69i
1 0 .0
1.0%
S 5211
5 . 1 %
S S
3 5
n 521.6f
' '4 4 .8 -
5 14:432JL08
4
47�1%
I
516 I
20 .�%
'
I
S3.
S30,64V5je
S 3 fl� 4 -
7:302.'s56
6
20
200%
51 0 .50 6 .06 1
11.3%
3
_I 7
517 808;517
5.0%
S , _
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Personal ' Care'
ustu
8,178
8.286
8.259
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9.361
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95.823
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116:1%
64.758
65.838
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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
Tar et
g
Convenience Retail
Mix %
Capture Rate
_Capture Rate
Sales Yr.
>r
Comparison Retail
10%
81 %
2.8%
1. -
$1:$ million
tct
Resurants &. Leisure
9%
18.0 %,
8.2 %,
Total
1006/0
10:2
2.2 %0
4.5%
13 million
$;14& mil
Phasing/Timin
Immediate overt to 3 year horizon.
Impf ementation La `out & Streetsca" Strategie
I - Goal �Is to 'create a "Re Tonal Sh opping pping 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.
y
g y tender to; joint venture retail
3. Cit could consolidate lands and then offer b
developers on a Ion 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 p `aced deep Into south end of site, with
exposure from Hwy 10I to induce circulation through project.
5. Restaurants should be along Washington St. frontage.
6. Baby Boxes and smaller in -line retail tenants should have exposure from Hwy,
101, and placed between the megabox tenants and Washington St.
7. Although. built cis. 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
° $14':8 million in trade area Annual Retail Sales or more.
$1.5' million in Sales Tax Revenue to City, /year or more.
° 1,03;8 TotalNe.w,DirectEmployees.
Target sales performance of $367 psf /yr.
Target Market Inflow Segments
• PTA, STA. & Regionaf'Residents & Tourists.
° Value to Moderate price points.
0 •
FIGURE 10.9
E,CTED SPACE 9 FLOORSPACE
CONVENIENCE
RETAIL
1 0% t 6 'G'A
$
M
Highway
"
•
• Fry''s Electronics Linens N" Things
Inter np
F
Dress Barn
Toys 'R Us
The North Face patogonia
f/
S
ficby tloxe �O -
a x®rr
Strategy Study,
>r
r
CPU,
� y
CR�y
x
c
A
_
Taraet'Tenant Profiles
"
•
• Fry''s Electronics Linens N" Things
Sketchem .
Old Navy
• IKEA: Bed, Bath & Beyond '
• Pier 1
Dress Barn
Toys 'R Us
The North Face patogonia
Golf Galaxy
Best Buy
Petaluma Leakage & - Sustainable Retail
Strategy Study,
RESTAURANTS &
LElSU.RE
ROUNDS
V..
• Mocaroni Grill
McDonalds
• Houston's Steakhouse
Staples
• Circuit City
January. 2004 a 86
COMPAR'1SON RETAIL
RETAIL