Morgan Hill – The city is so excited about the development of its new 650,000 square-foot mega mall that officials will savor the moment at a groundbreaking ceremony on Oct. 25 at 5pm.
“Its impact on the local economy will be significant. We estimate the city loses about $100 million per year in ‘sales tax leakage,’ ” said Garrett Toy, director of Business Assistance and Housing Services.
City officials hope the mall, located on Cochrane Road east of the freeway, will allow residents to shop in town for those products they currently leave town to find.
“More people shopping locally also means more sales tax revenues to the city which can be used to pay for city services,” Toy said.
Construction of the $100-million mall began in July, and the first major piece of the center will be ready next summer when the area’s largest Target store and a variety of other retailers open their doors. Developers are still working out the total number of stores and are in negotiations with retailers such as Petco, Staples and Cost Plus World Market.
City planner Rebecca Tolentino said the mall’s parking lot would hold just under 3,000 cars – an indication that stake holders hope more than just Morgan Hill residents are drawn to the stores.
“We’re still looking for a high-end grocer, and we’ve talked to some cinemas,” said San Jose developer John DiNapoli. “We’ve been doing a lot of work out there. We’ve been wanting to get this going for a long time.”
Phases of the mall’s construction will continue over the next several years.
Guests at the groundbreaking ceremony will include Morgan Hill elected officials, city staff, members of the business community, Santa Clara Valley Water District board member Rosemary Kamei and county supervisor Don Gage.
“The Guglielmo-Broman shopping center fulfills part of the city’s long-term vision to provide much needed shopping opportunities for Morgan Hill and South County residents,” said Morgan Hill Mayor Dennis Kennedy. “Morgan Hill shoppers will be able to do much more of their shopping in Morgan Hill, plus it will bring much needed sales tax revenues into the city’s coffers.”
COCHRANE ROAD MALL
Size: 650,000 square-feet across 66 acres
Cost: More than $100 million
Number of Parking Spots: Just under 3,000
Construction Schedule: First wave of stores, including a 127,000 square-foot Target store, will open July 2007.
Reason to be Excited: “It’s impact on the local economy will be significant. We estimate the city loses about $100 million per year in ‘sales tax leakage,’ ” said Garrett Toy, director of Business Assistance and Housing Services.
Tony Burchyns covers Morgan Hill for The Times. Reach him at (408) 779-4106 ext. 201 or
tb*******@*************es.com.
