After months of guessing and speculation, the official word was
released Monday that a Home Depot will fill the vacated Kmart space
on East Dunne Avenue. What has not been determined is which kind of
Home Depot it will be.
After months of guessing and speculation, the official word was released Monday that a Home Depot will fill the vacated Kmart space on East Dunne Avenue. What has not been determined is which kind of Home Depot it will be.
Garrett Toy, the city’s Business Assistance and Housing director, confirmed the rumor that had been circulating for weeks that the answer was Home Depot.
Kathryn Gallagher, spokeswoman for the Atlanta-based national chain said, because the project was still in the planning stages, she did not have many details yet but promised a “colorful description” later along with information on how to apply for the many jobs the store will provide. About 90 full and part time workers lost their jobs when Kmart closed earlier this year.
“We will be moving into former Kmart site,” she said Monday. “We are working through the approval process and have an application into the (city) planning department for review.”
Home Depot, Gallagher said, has several “concept stores” besides the familiar purveyor of sinks, nails and insulation, including the popular Expo stores with high-end appliances and designer kitchens and bathrooms.
“It probably won’t be an Expo,” she said. Home Depot also fields stores geared toward landscape or building professionals, called Home Depot Supply and Home Depot Landscape Supply.
The general public is welcome at all stores, Gallagher said. The company is looking for the best “fit” for the area, she said, considering there is a Home Depot only 12 miles away in Gilroy, to remain, and a new Lowe’s store a bit further south.
Mike Johnson, owner of Johnson’s Lumber/Ace Hardware on Tennant Avenue said, while he does suppose Home Depot will have an effect on his store, he does have plans to combat that effect.
“We have a 20,000 square-foot addition in the works – ready in April or May – that will double our retail space,” he said, “and we will expand our parking spots from 30 to 80.”
The Butterfield extension will dead end – for the time being – at Johnson’s Hardware, ( plus the nearby medical building and freeway services, under consideration by the city) will bring more business, he said.
Retail hardware is only 20 percent of the store’s customers, Johnson said. The store does a great deal of lumber contracting and also does a significant amount of custom door business, some of which comes from Gilroy Home Depot referrals.
“We get between three and five referrals on the weekends,” Johnson said. “I see Home Depot being more competition for Lowe’s than for us. But we may have to pull the gloves off down here. In the end we will be a stronger player on the field.”
No opening date has been set yet. Gallagher said the company would be better able to judge when Morgan Hill can begin Home Depot shopping in town after the project makes its way through the planning process and the company decides which store concept it wants to install.
Jim Rowe, the city’s planning manager, said he hasn’t seen the Home Depot request yet but has been told to expect it this week.
“The site and architectural review process should take about six weeks,” Rowe said. “It will go to the Architecture Review Board but not to the Planning Commission since it doesn’t involve a zoning change.”
Home Depot plans to expand the garden center to 17,000 square-feet, make changes on elevations (altering the building’s exterior) and reconfigure the loading area with a higher loading dock, Rowe said.
While the number of parking spots in the Lawrence Oaks shopping center fronting Dunne Avenue just west of U.S. 101 that includes Safeway, Longs and the usual freeway services of fast food and gas, exceed city standards, city planners will look at any traffic impact Home Depot might have.
“Traffic impact fees will probably be all that’s required,” he said. “We will do a trip generation analysis and compare the projected trips to those of Kmart; then we will see if any traffic mitigation is required.”
Rowe said the department will assemble staff to assist the Home Depot people in getting the plans through.
Hammer and saw wielders throughout the city began to weigh in Monday.
Home handyman and stay-at-home dad, Kris Snook was hesitant to believe that Home Depot will really appear, having heard so many of the other rumors. But he’ll happily shop there instead of driving to Gilroy.
“I”d like to have a closer Home Depot,” he said.
Brad Jones, owner of an historic home and who’s BookSmart is ensconced in an equally elderly building – both of which require repeated repairs – said he will continue to shop at Johnson’s Lumber/Ace Hardware for two reasons.
“One, Johnson does a whole lot better job with customer service,” he said, “and two, Johnson’s is locally owned and operated.”
He did admit that he would go to Home Depot for things just not available elsewhere.
“I’ll go (to Home Depot) as a last resort,” Jones said.
Councilman Larry Carr, who has just completed renovating an old house in Morgan Hill’s center and spends a lot of time in hardware stores, said it will be a welcome addition to town.
“We already have a great hardware store in Morgan Hill (Johnson’s) but with a different selection. The sales taxes, though, will be a major plus. We’re trying to do a lot of things in town and need sales tax revenues to make them work.”
City Finance Director Jack Dilles keeps a close eye on sales tax revenues that pay for police and fire protection, recreation services and administrative costs.
He said the income from the new store would be “significant.”
“This is excellent news,” Dilles said. “It should bring in more taxes than the previous business. It’s great for the city.”
Home Depot, encourages employees to volunteer on community service projects, supports thousands of non-profit organizations nationwide through its grant program, helps to build playgrounds and houses for Habitat for Humanity and partners with Rebuilding Together to make home repairs in the U.S., in Canada and in Mexico.
The company is the world’s largest home improvement retailer and the nation’s second largest retailer.
Home Depot stores regularly run free clinics and classes dealing with home repairs and targeted to women and children and the traditional home “handyman” as well.
