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2012-11-07 SACIC Minutes.doc MINUTES OF THE SUCCESSOR AGENCY OF THE COMMUNITY IMPROVEMENT COMMISSION (SACIC) OF THE CITY OF ALAMEDA MEETING WEDNESDAY- -NOVEMBER 7, 2012- -7:01 P.M. Chair Gilmore convened the meeting at 8:02 p.m. ROLL CALL – Present: Members Bonta, deHaan, Johnson, Tam and Chair Gilmore – 5. Absent: None. ORAL COMMUNICATIONS, NON-AGENDA None. AGENDA ITEM (12-001) Recommendation to Approve the September 2012 Alameda Landing Retail Tenanting Strategy. The Housing Programs Manager gave a brief presentation. Sean Whiskeman, Catellus, provided handouts and gave a brief presentation. Amy Herman, ALH Urban & Regional Economics, gave a presentation. The City Manager inquired why household appliances and electronics disappeared from leakage since 2006. Ms. Herman responded the household appliances and electronics are collapsed into the furniture and home furnishings category; there has been a shift in how the Board of Equalization (BOE) categorizes retail sales; stated both the 2006 and 2012 strategies indicate a lot of leakage remains for most retail categories on the Island. Councilmember Tam inquired if the amounts would be after the development of Target, to which Ms. Herman responded in the affirmative. The City Manager inquired why the appliances category went away, to which Ms. Herman responded the category did not go away; stated the current analysis has a broader characterization of the retail categories. The City Manager stated it approving a retail tenanting strategy that does not include a major appliance store would not be in Alameda’s interest because appliances are a major sales tax generator that people cannot buy in town. Meeting of the Successor Agency of the Community Improvement Commission November 7, 2012 1 Ms. Herman responded the matter is a labeling issue; stated the furniture and home furnishings category in the 2012 strategy is inclusive of appliance stores. The City Manager stated the 2006 study included 62,500 square feet for furniture, home furnishings and appliances; in 2012, the space has been reduced to 10, 000 to 15,000 square feet for furniture, home furnishings and appliances; the Council direction was for stores that generate tax revenue. Councilmember Johnson stated she was disinclined to add grocery, which is a lower sales tax generator than other types of retail. Ms. Herman stated that she completed an urban decay analysis for Alameda Landing identifying the extent to which grocery stores are, or are not, damaging to the existing retail base of the community; the study found that development of a grocery store at the site would not be detrimental. Councilmember Johnson stated Alameda has an adequate supply of grocery stores; the focus should be on underserved retail which generates more sales tax. Ms. Herman stated the Target store analysis identified strong anticipation of people coming from outside Alameda to support the Alameda’s retail base. Councilmember Tam inquired why stores with high ticket items, such as appliances, are not identified in the strategy. Ms. Herman responded the strategy evaluated the retail categories with leakage and identified the types of retailers that are active in the marketplace which would meet the category; stated a trend occurring in the marketplace is that many retailers are using less space than previously; in the 2006 strategy, the two prospective retailers were electronic retailers: CompUSA and Circuit City. The City Manager stated that he recommends sending the strategy back and including the categories which generate high sales taxes; said products cannot be purchased on the Island. Ms. Herman responded the furniture and home furnishing categories is inclusive of appliances as classified by the State BOE; there is a reasonably sized category of other retail which is a broad category encompassing many different types of retailers; an appliance store could easily fit within the definitions of both categories. Mayor Gilmore inquired if retailers active in the marketplace are grocery store types and not appliance types; stated a grocery store is Catellus’s priority, not the City’s; requested an explanation as to why the City would approve the grocery store as a priority. Meeting of the Successor Agency of the Community Improvement Commission November 7, 2012 2 The Housing Programs Manager stated Ms. Herman is the economist hired to conduct the leakage analysis; stated that Mr. Whiskeman from Catellus and Matt Kircher from Terranomics could better answer the question. Vice Mayor Bonta inquired if the Target would have a grocery component and if it complies with the City’s big box ordinance, less than 10% of floor space is reserved for non-perishable items, to which Mr. Whiskeman responded in the affirmative. The City Manager inquired whether 40,000 to 50,000 square feet in the category where the City would get some of the things wanted, to which Mr. Whiskeman responded the ranges were hypothetical. The City Manager stated the amounts are not hypothetical because the Council is going to vote on the matter and Catellus would be able to say the study reflects what the City wants; the CIty would not benefit from improved sales tax revenue and decrease in leakage as was anticipated all these years; he did not think the Council was being unreasonable in inquiring why approving the strategy is in the City’s best interest; the City is not refusing a grocery store, but does not want a grocery store in lieu of leakage categories of interest to the Council. Councilmember Johnson inquired how the grocery store would impact the existing grocery store nearby. Ms. Herman responded that the urban decay analysis reviewed the extent to which new grocery stores would increase grocery sales on the Island; stated the finding was that some of the existing stores might have some sales decline as people shift shopping habits but declines were not severe enough to cause any of the existing stores to close. Councilmember Johnson stated opportunities are being lowered for categories that are a priority for the City; stated the Council was disappointed with the retail mix at Bridgeside; great intentions and a lot of work were put into the project, which did not end up with what was envisioned. Mr. Whiskeman stated one of the major differences between the categories listed under the 2006 strategy and the 2012 strategy is the introduction of a general merchandiser, which is the Target; stated Target has different products which spread into the categories listed in the 2006 strategy; Target is taking up about 50% of the square footage and addressing a number of the categories listed in 2006, which is a relevant distinction to make between the two strategies. Councilmember deHaan stated the Council gave direction to spread and capture sales loss; not a lot of footage remains. Mr. Whiskeman stated he does not think Catellus is shying away from the heavy hitters which are accounted for in the various categories and also supplemented by what Target is doing by being a department store. Meeting of the Successor Agency of the Community Improvement Commission November 7, 2012 3 Mayor Gilmore stated the Bridgeside strategy to bring in a high end grocer did not work; inquired why the thought is that the strategy will work at Alameda Landing. Mr. Whiskeman responded the advantage with the project is the location on major arterial streets at the entrance to Alameda coming out of the Webster Street tube; stated infrastructure improvements made to Webster Street at Stargell make the access point very easy to get on and off the Island; the project casts a wider net than Bridgeside because of the location and accessibility. Councilmember Tam stated the Council agrees with Mr. Whiskeman regarding the design and marketability of the transit and location; the Council is being asked to approve the tenant strategy and has expressed prioritization of the high ticket items; suggested postponement until the tenant strategy can be brought back more explicit and comporting with the marketing strategy outlined. Councilmember Tam moved approval of sending the matter back. Councilmember deHaan seconded the motion. On the call for the question, the motion carried by unanimous voice vote – 5. Urged that the shopping center be more upscale and that the new grocery store be a Whole Foods: Karen Bey, Alameda, Councilmember Johnson inquired the typical size of a Whole Foods grocery store, to which Councilmember Tam responded about 30,000 to 50,000 square feet. ORAL COMMUNICATIONS None. ADJOURNMENT There being no further business, Chair Gilmore adjourned the meeting at 9:09 p.m. Respectfully submitted, Lara Weisiger Secretary The agenda for this meeting was posted in accordance with the Sunshine Ordinance. Meeting of the Successor Agency of the Community Improvement Commission November 7, 2012 4