Status of Sites
Site 1 (Downtown Mall)
On June 17th Successor Agency approved the right to negotiate exclusively with Leal Vineyards, LLC for the development of Site 1, Granada Theater and the Downtown Mall. The 60 day term is intended to be used for the due diligence and to determine the terms of a Development Agreement. Leal is proposing the re-use of the Granada as an event venue and the demolition of the Downtown Mall to provide for construction of a Market Hall/Restaurant and Boutique Hotel. Leal owns vineyards in the area, the Grove and the Barn in Hollister, Willow Heights Mansion in Morgan Hill, and Hacienda Leal Boutique Hotel in San Juan Bautista.
Site 2 (SE corner of Second and Monterey)
Lonestar Development ( now 17390 Monterey Road, LLC) has completed their due diligence for the purchase of Site 2. Escrow closed on July 6 and they have taken possession of the Tryst/Royal Clothiers building. The City Council will review a request to enter into a revocable easement agreement for both the parking lot and the pocket park to provide for temporary public access until the site develops.
Site 3 (Depot Center)
City Ventures completed their due diligence period for the purchase option for Site 3 on June 29, 2015.
Site 4 (former liquor store, SE corner of Third and Monterey)
At the May 20th City Council meeting Council approved an agreement to negotiate exclusively with Kenneth Rodrigues and Partners, Inc/Imwalle Properties, Inc for the development of this site. Negotiations are going very well. Staff will have a development agreement to take to Council on August 5. It is anticipated that construction will begin sometime in January.
Relocation Program
Nine Downtown businesses are eligible for the Downtown Economic Development Business Reimbursement Program. All of the businesses submitted letters of intent to apply for the program by the June , 2015 deadline and all have received eligibility letters for a combined total of $927,000.
United Academy of Martial Arts (UAMA) has purchased a 3200 square feet place at 330 Digital Drive. They are delighted to be owners of their new business site and are now moved in and open for business at their new location. Over $23,000 in reimbursement claims has already been processed for UAMA.
The Peking Chinese Restaurant is working on lease negotiation for 1,250 square feet at the Candy Park Center located at 16375 Monterey Road, south of Downtown.
Jesus Mexican Restaurant is working with a Colliers Commercial broker to find a suitable replacement location. They had previously identified a relocation space at Cochrane Plaza, near Hobby Lobby, but the landlord decided against another Mexican restaurant concept for that shopping center. Jesus Restaurant was approved for eight employees and is eligible to receive up to $280,00 in reimbursements.
Downtown Business Workshop
In May, staff held a business workshop with representatives for SBDC, Grow America Fund, Business Licenses, Building Department and local brokers to help businesses maneuver through the relocation process. A similar workshop is being planned for July 23 at 3pm for all Downtown businesses.
More information about the Downtown Development Opportunity Sites
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