New Businesses on the Horizon

I heard that a DSW shoe store is coming to the retail center at the northeast corner of Cochrane Road and U.S. 101. I admit this retailer was unfamiliar to me as my personal shoe inventory is somewhat limited, but I have been informed that DSW would be a great addition to the community. So I checked their Web site and here’s what it says:

“DSW caters to the passionate shoe enthusiast and indulges customers who love to shop … Typical DSW stores have over 30,000 pairs of shoes in more than 2,000 styles displayed on the selling floor.” I hope the old axiom of “you can never have too many shoes” remains true.

If shoes aren’t your thing, how about outdoor furniture? Patioworld is in for plan check for its 11,500-square-foot building on Condit Road, north of Harley-Davidson. According to its Web site, Patioworld is the largest stocking dealer of outdoor furniture. I guess that means if you buy it, they most likely will have it in stock as opposed to ordering it, but they do offer custom furniture. They have eight stores in California. I’ve never been to one but my understanding is that they sell very high quality outdoor furniture. This should be a good match for area.

A few columns ago I reported Chipotle Restaurant was locating in the new Cochrane Road retail center. It turns out they instead may be locating in the Madrone Village, the smaller center currently under construction at the northwest corner of Madrone Parkway and Cochrane Avenue. 

SALES TAX REVENUE

Well, the sales tax results are in for the third quarter 2006 (July through September). We anticipate that fiscal year 2006-07 will be the highest year ever in sales tax revenue for the city. We’re estimating the city will collect more than $6.6 million. The largest economic segment of Morgan Hill’s sales tax revenue continues to be vehicle sales. And, our motto continues to be “eat here, get gas” as service stations and restaurants make up the next two largest segments of sales tax for the city. 

General/retail, which includes apparel stores continue to decline, although slightly, in comparison to the previous four-quarter period. Since 2001, per capita spending in the general retail category dropped from the all-time-high of $33.37/capita to $25.37/person, a drop of 24 percent. Countywide, the per capita average is $43.19. We would have to experience a 70 percent increase in per capita spending to reach the countywide average. That equates to more than $60 million a year in increased purchases. That’s a lot of shopping, but DSW and Patioworld should help fill the gap. 

MISCELLANEOUS

Last month, I reported that about $5 billion in gift cards go unredeemed due to expiration or being lost. However, when they are redeemed, research shows that most consumers will spend more than the card is worth, using their own money to make up the difference. Those of us with kids know how that works. Here’s hoping people find old gift cards and spend them in Morgan Hill.

With regard to the regional economy, I attended the 2007 State of the Valley conference sponsored by Joint Venture Silicon Valley (JVSV). JVSV prepares a report card annually on the state of the Silicon Valley economy. The bottom line is that Silicon Valley is doing pretty well by both competing and collaborating in a global economy. A key finding of the report is that, since 2001, the industrial/energy sector experienced a 776 percent growth in venture capital investment. In other words, clean energy appears to be the trend in the future because high oil/gas prices are making alternative energy more profitable.

The keynote speaker was former Vice President Al Gore. He spoke on the topic of why Silicon Valley will lead America into the new energy future. He also said he wasn’t running for president. On a side note, I didn’t notice any security following Mr. Gore as I walked up to his table and took a picture of him eating lunch. John Varela, a longtime Morgan Hill resident and businessman, interrupted Gore’s lunch and had me take a picture of them shaking hands. I’m sure Gore was wondering who Varela was.

QUOTE OF THE MONTH

“If everything you tried works, you’re not trying hard enough.”

~ Gordon Moore, founder and chairman emeritus of Intel Corporation

Garrett Toy is the director of business assistance and housing services (BAHS) for the City of Morgan Hill. BAHS is responsible for the city’s economic development, redevelopment and affordable housing activities. He has been working in this field for 18 years: 8.5 years for the city of Morgan Hill. E-mail him at

ga*********@mo********.gov











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