October 4, 2007

Shop ‘til you drop: Coming attractions

Retail survey, tax dollars top council members’ shopping forum

By Jeanne Carbone Lewis
Staff Writer

Shopping was the name of the game as more than 70 people attended “Retail Coming Attractions,” a forum hosted by District 10 Councilmember Nancy Pyle and District 9 Councilmember Judy Chirco.

District 10 Councilmember Nancy Pyle and Westfield Oakridge general manger J.B. Schutte answer audience members’ questions. Photo by Jeanne Carbone Lewis

“Retail Coming Attractions,” held Sept. 26 at Pioneer High School, highlighted District 9 and 10 residents’ shopping survey results and their concerns as well as Whole Foods Grocery Store news, a Via Valiente shopping center improvement update, and information about new retailers. The event featured Nanci Klein of the Office of Economic Development, Christine Velasquez and Angela Kelly of San Jose Redevelopment Agency and general manager J.B. Schutte and Jennifer Dacquisto of Westfield Oakridge Shopping Center.

“There is very little we can do about it [San Jose’s $125 million budget deficit] except keep our sales tax dollars here in San Jose,” said Pyle, who is a chair of the city’s Community and Economic Development Committee. “Every time you purchase goods or food for every $100 spent, $1 goes to the city. If you spend your money in San Jose, the dollar stays here. If you spend it in Cupertino or Los Gatos, that city will get the dollar.”

San Jose Office of Economic Development’s survey of per capita consumer sales tax lags rest of the valley in last place with $82 per person compared with Palo Alto, the highest, at $222. San Jose is still under-retailed by 14 percent, although it has improved from its previous 24 percent, according to the survey. The barriers are competing land uses, costs of development, traffic, access and circulation, visibility, site plan design, and co-tenancy [project or area].

San Jose’s per capita consumer sales tax lags rest of the valley.
Survey results requested Crate and Barrel, Nordstrom and Frye’s Electronics—the top three retailers that residents requested nearer their zip codes.
Retail demand areas indicate that food and are apparel are desired in the Almaden, Cambrian and Blossom Valley areas.

“Your sales tax represents $153 million a year to the city,” said Klein. “Four percent of the land is dedicated to retail use representing 20 percent of the city’s revenue, a high return on the investment. Retail tax gives the most revenue back to the city.”

The forum encouraged residents to buy their goods within the city and stressed the need for a retail landscape that will attract residents from other cities to San Jose to raise its sales tax dollars, which in turn benefits the community and pays for needed services.

In Almaden, the Office of Economic Development is in discussions with the Via Valiente Shopping Center regarding either a straight beautification with no expansion or Longs and PW Supermarket agreeing to enlarge their respective premises. The Big Lot Center [on Hillsdale] is privately owned and is not interested in spending any capital.

Velasquez presented a preliminary design of the Whole Foods Market and strip center in development at the corner of Almaden Expressway and Blossom Hill Road. The Whole Foods Market will be the second and largest in San Jose. Proposals are still in progress with a store size of 60,500 to 73,000 square feet, demolishing the existing strip center to the west of Rite Aid drug store with approximately 485 parking spaces and appropriate landscape. Office Max plans to stay at the site and may acquire more space. The project is privately funded.

Officials from Westfield Oakridge Shoppingtown were interested in the outcome of District 10’s retail survey. The 700 respondents overwhelmingly want more restaurants in the area with 92 percent casting votes as that item as their top priority. The survey also asked what new retailers residents would prefer. Crate and Barrel took top place at 57 percent followed closely by Nordstrom at 54 percent [See Shoppers Preference Survey]. An audience member requested that more “adult” retailers be considered at Oakridge.

“I was one of 17 children and my father kept instilling that you spend your money where you make it,” said Westfield Oakridge’s Schutte. “You’re voting every time you spend a dollar in your community on what you want. If you drive to Los Gatos, you’re telling that company that you will drive so they don’t need to build in your zip code.”

Westfield Oakridge also conducted an independent survey. Users cited parking as the number-one problem listed with 800 more spaces needed. Schutte is in discussion with corporate offices for a new parking garage as well as changing the two parking garages to one-way traffic.

“When I look at Blossom Hill or Santa Teresa or Almaden Expressway, this is a retail area that has been under utilized,” says District 9 Councilmember Judy Chirco. Photo by Peter Hamilton

A new parking space costs $20,000, but Schutte hopes to have the item added to the 2009 budget. Next spring, there will be a new formal entrance by Procession Salon and Target. Schutte also said that Valley Fair retailers want to come to Oakridge.

Westfield Oakridge is opening a Disney Store, Beard Papa [cream puffs and pastry], Mainland Skate, Dawgs and others. Halloween is covered with Gyro’s Store, a haunted house opening in mid-October with trick or treat candy handed out by the shopping center and retailers on Oct. 31.

Residents had various concerns. Among them are more independently owned restaurants with fewer chain eateries, no hotel, motel or bed and breakfast facilities available in the area, nonexistence retail or food in New Almaden, abandoned shopping carts to Blossom Hill appearing as one large strip mall for a 2-mile stretch with no sense of community. All forum presenters agreed that community meetings are necessary to address the concerns of a community and work together to solve the issues.

“When I look at Blossom Hill or Santa Teresa or Almaden Expressway, this is a retail area that has been under-utilized,” said Chirco. “We need to look at ways to better serve our community and generate sales tax dollars that would help the city do a better job of providing services for our community. Besides the convenience, there’s a sense of community, like the Cambrian Park Plaza. They become landmarks, part of our environment and our memories.”