||City Of San Leandro
||City of San Leandro
Public Information Office
835 East 14th Street
San Leandro, CA 94577
|FOR IMMEDIATE RELEASE
|PRESS RELEASE CM2012-05-22
|Village Marketplace Project To Revitalize Downtown San Leandro Advances
$8 Million Project Will Create 500 Construction Jobs and Over 110 Permanent Jobs
||Cynthia Battenberg (510) 577-3353
|Last night, the San Leandro City Council unanimously approved a Disposition and Development Agreement (DDA) with developer Innisfree Ventures II authorizing the sale of 1550 East 14th Street for development of the Village Marketplace retail center.
A Mediterranean-style retail center of roughly 28,000 square feet consisting of superior construction materials and incorporating public art, Village Marketplace will be anchored by specialty grocer Fresh & Easy Neighborhood Market with an adjacent Peet's Coffee & Tea and Chipotle Mexican Grill. The project also includes an AT&T retail store and a full-service sit-down restaurant. The tenant for the restaurant will be announced at a future date.
"Village Marketplace will help revitalize our downtown by converting a large parking lot into an attractive focal point for shopping, dining or simply having a cup of coffee and enjoying conversation with friends and neighbors," stated Mayor Stephen Cassidy. “By bringing more residents and visitors to San Leandro’s downtown, Village Marketplace will positively impact surrounding restaurants and retail shops, as well as create 500 temporary construction jobs, over 110 permanent new jobs, and generate nearly $850,000 in annual total tax revenue that will be divided among the state, county, our schools and city.”
Economic and Community Benefits of Village Marketplace
The $8 million construction project will create 113 permanent jobs and 500 construction jobs, over $100,000 in annual sales tax revenue to San Leandro and $650,000 to the state and county. The property tax revenue expected to be generated from the development on an annual basis for taxing agencies is estimated to be of approximately $97,500. The DDA includes a local hire provision to promote the use of local construction trades so local businesses can benefit from the 500 construction jobs.
City staff worked closely with Innisfree and the community in the development of the project, starting with creation of the Transit Oriented Development Strategy for our downtown, followed by a downtown retail web survey and a retail attraction letter writing campaign. The Village Marketplace project includes the following features:
In addition to an engaging and attractive water feature in the plaza, Village Marketplace will include public art in the form of a large mural along the east parking lot wall. Kaiser Permanente, during demolition at the former Lucky distribution center on Merced, discovered a large Raymond Loewy mural of a repeating design of identical 4’ by 4’ painted metal panels. Kaiser had the foresight to salvage the mural and place the tiles in storage. Kaiser generously offered the mural to the City. Village Marketplace, home to the first Lucky store, is an ideal opportunity to display the tiles. Not only is there the connection with Lucky, but Raymond Loewy represents industry which is an import part of San Leandro’s past, present and future. Loewy is a famous industrial designer known for designing the Cola-Cola bottle, the Studebaker logo and the Avanti passenger car, the Coldspot refrigerator and much more. Innisfree has agreed to pay for reinstallation of the Loewy tiles and creation of a new mural and will work in collaboration with the San Leandro Arts Council on the design and installation.
- Quality retailers and a specialty grocery store
- Outdoor dining opportunities and a generous plaza for people to gather
- Retail activity along East 14th Street with parking behind the buildings
- Superior architecture, building materials, landscaping and a public art component
- $500,000 in off-site improvements, to be funded by the developer
Because the property was owned by the San Leandro Redevelopment Agency, which was dissolved due to changes in State law on February 1, 2012, the DDA must also be approved by the former Redevelopment Agency’s Oversight Board. The Oversight Board is scheduled to consider the matter on May 23, 2012.
Valuation of the Site and Anticipated Construction Schedule
The Redevelopment Agency purchased the Site in 2007 for $6 million and required the demolition of the building prior to closure of escrow. The decision to demolish the building was made in order to clear the way for future development aligned with the vision of the Transit Oriented Development Strategy. It also enabled the City to repurpose the Site for temporary replacement parking during the construction of the downtown parking garage. The garage is scheduled to open in September 2012 just in time for the Developer to start construction in November 2012 as scheduled. The doors of Village Marketplace are scheduled to open as early as September 2013.
The $2.25 million sales price was less than the price of acquisition mainly due to the demolition of the building. City requirements, such as prevailing wage, off-site improvements, a full-service restaurant and quality architecture and materials as well as spacious outdoor dining areas all added to the developers cost to construct the project. The City retained Keyser Marston, a financing consulting firm that specializes in public-private transactions to determine the land value. The sales price was based on the income approach to valuing commercial property, the same approach used to determine the initial purchase price.
Background on the Site
In 1947, the first Lucky grocery store was opened on the site. In September 2005 the grocery store, which had changed to an Albertsons, closed due to underperformance. Norcal, the property owner, installed a chain link fence around the property which sat blighted for four years until the City of San Leandro Redevelopment Agency purchased the site in 2009. The City then constructed a temporary replacement parking lot to be used during construction of the downtown parking garage. With garage construction wrapping up, the timing of the Village Marketplace is ideal.
For more information, call Cynthia Battenberg, Business Development Manager, at (510) 577-3352.
About San Leandro
A diverse community of nearly 85,000 residents, San Leandro maintains a safe, small town feel while offering a wide range of shopping, dining, recreation amenities, miles of shoreline, and easy access to nearby regional parks and nature areas.
Located in the center of the San Francisco Bay Area, San Leandro enjoys close proximity to the Oakland International Airport and Port of Oakland, and is served by two major freeways and two BART stations. Through a public-private partnership known as Lit San Leandro, an eleven-mile fiber optic loop is under construction in the city's large industrial and commercial zone. Lit San Leandro will assist a new set of businesses to leverage San Leandro’s assets and become industry leaders in the data revolution. Further information about Lit San Leandro can be found at http://www.litsanleandro.com.
Visit the City’s website at www.sanleandro.org for more information on the City’s programs and services. To register to automatically receive press releases, meeting agendas or other electronic notifications, go to http://www.sanleandro.org/portal/default.asp.