An indecisive city council will wait a few more days to choose a
developer for two properties the city owns, but narrowed their
choice of viable and qualified builders to two.
An indecisive city council will wait a few more days to choose a developer for two properties the city owns, but narrowed their choice of viable and qualified builders to two.
Following more than three hours of presentations and public comments, and a confusing discussion among council members acting as the Morgan Hill Redevelopment Agency directors, the body voted 3-2 Thursday to ask staff to find out more about the plans of two developers who submitted ideas about how to implement the city’s plan for the Monterey Street properties.
Council members were impressed with the initial plans presented by Barry Swenson Builder of San Jose, and City Ventures of Santa Ana, though some disagreed on the timing of making a final choice in the downtown redevelopment process, which has lasted more than a year.
Councilman Greg Sellers said choosing the developer of the sites is a “definitive decision that realizes the vision we’ve developed over many years,” and it should not be taken lightly.
“It’s hard to pull the trigger and say now we’re going to do it,” Sellers said.
Although Councilman Larry Carr said he was prepared to make a decision at Thursday’s meeting, he voted in support of the motion to gather more information. He said the council should proceed with the process that has taken “years of work,” rather than further delay it or go backwards by opening the project up to more companies.
“I’m ready to keep the momentum going and make a decision tonight,” Carr said. “When we set our calendar (earlier this year) we said we would do that tonight. If we’re not doing that tonight, what are we doing? I want to keep us moving forward without changing direction.”
He did not indicate his preference between the two developers.
The RDA owns both properties in question. One contains the closed Granada Theater and Downtown Mall. The other houses Royal Clothiers and a small park. Both contain parking lots toward the rear of the property.
The council has indicated its preference for a new cinema on the site where Royal Clothiers is, with mixed-use projects including housing and retail stores on both sites, with the goal of creating a downtown where people can live, work, shop and be entertained.
After the council posted a request for qualified developers for the sites in September 2009, the city received responses from 17 interested builders. The staff narrowed those down to the “top three” recommended builders, and the council narrowed the choice down to two.
Council members thought the plans presented Thursday brought up more questions about which company is more qualified.
Mayor Steve Tate noted the two developers presented opposing ideas that months of research and interviews conducted by staff and a citizens committee did not explore the details of.
Specifically, Barry Swenson Builder presented a plan that anchors housing, parking, and retail development on the sites around two key tenants – a boutique grocery store and a small multiscreen cinema. Once those tenants are established, which the company says will not be difficult, then smaller retail shops, restaurants and drug stores will follow, and the demand for new housing units will grow.
“A lot of things will come in once the anchors are established,” said Jeff Current of Barry Swenson Builder.
Current’s presentation listed the company’s experience in mixed-use projects, with retail space at street level and housing or office space on upper floors – the kind of development the council wants. The company has built more than 500 different projects. A number of those are in San Jose, including a loft complex on The Alameda, and the Lion Building. They also participated in the renovation and reopening of the Del Mar Theater in downtown Santa Cruz.
By contrast, City Ventures thinks the two downtown Morgan Hill projects should be based on new housing to support a future cinema and retail shops. Mark Buckland of City Ventures said a downtown grocery store might not be viable.
“It would be difficult to have a project where housing is in the back seat, in this (economic) environment,” Buckland said. “We’re committed to start the project based on housing.”
He added that the company’s concept for a new cinema is a “luxury theater” with three or four screens that offers a full dinner menu, wide aisles and roomy seating. Such a facility is more likely to survive in such close proximity to the CineLux multiplex down the street at Tennant Station, he said.
City Ventures, based in Santa Ana, has not built any projects in northern California. Buckland listed a number of projects the company has built in southern California that are similar to what the council is looking for.
“In-town living has been the crux of what I’ve been working on the last 25 years,” he said.
Both companies indicated they are flexible on the type and mix of housing they could build, whether the units should be for rent or sale, and the desired density – details which would be worked out with city officials before the properties change hands.
Tate said both companies are “absolutely dynamite” but he would like more information on which approach – housing first or retail anchors first – will work best.
Other details that council members want staff to research before choosing a developer include each firm’s financial capacity, the viability of a grocery store and the desired housing density.
The issue is next scheduled to be discussed at the April 21 council meeting, when the body is expected to choose one of the companies with whom to enter into a business partnership, leading to an agreement to sell the RDA-owned properties as long as the chosen firm builds what the council wants.
The third recommended builder, The Olson Group, withdrew from consideration prior to the meeting Thursday, said David Heindel, assistant to the city manager.
Council members Marilyn Librers and Marby Lee voted against the motion Thursday, because they thought a third presenter, Morgan Hill Downtown Partners, was worthy of more consideration. That company was not included in the staff’s recommended top three developers, but was permitted a brief sales pitch at Thursday’s meeting that convinced Librers and Lee that they should be taken seriously.
Following the meeting, Librers and Lee said they though MHDP should have been added to the council’s request for more information about the other two companies.
“They’re local people, with a vested interest, and I feel they should have an equal chance to be presented,” Librers said. “And they presented intriguing information about their building concept that I’d like to learn more about.” She noted that statements made by Gordon Jacoby and John Telfer, both of MHDP, suggested they could complete the job in a shorter time and with less construction-related disturbance to other downtown Morgan Hill businesses and residents. And they said they already have the cash to purchase the property and complete the project.
Also speaking at Thursday’s council meeting were 10 supporters of renovating and reopening the Granada at its current site. They included longtime Morgan Hill residents who related their fond memories of seeing movies and spending time at the Granada as children, and transplants who testified to the small-town charm that “historic” theaters such as the Granada provide to communities.
“We chose (to move to) Morgan Hill specifically to buy a home and raise a family because of the sense of small community,” said Evvi Bowen. “We don’t want to see that change. I’m excited about the prospect of the Granada being used for a live theater.”
The nonprofit Save the Granada foundation submitted a business plan for the site. That plan includes renovating the theater as a 500-seat facility for both live entertainment and film screenings.
But the staff did not recommend the proposal due to its perceived lack of financial sustainability, and inconsistency with the council’s plans. Plus, the foundation suggesting that it lease the property, rather than purchase it from the city – a venture that Tate said might be too risky for the city.
City Ventures
- Based in Santa Ana
-
Proposes housing first to subsidize theater, retail and office tenants
-
Proposes 47 to 67 housing units on two downtown sites; flexible on size, type, and density of housing
-
Proposes a “luxury theater” with four screens, dinner menu, alcoholic beverages, with wide and roomy aisles; plus about 14,000 square feet “village retail” on street level, 10,000 square feet office
-
Experience with “in-town living” mixed-use projects, sustainable communities
-
Similar past projects in Pasadena, Yorba Linda, Poway, Carlsbad
Barry Swenson Builder
-
Based in San Jose
-
Proposes multiplex cinema on Royal Clothiers site and boutique grocery store as “anchors” for downtown mixed-use projects
-
Proposes a variety of housing upstairs from retail and office space
-
Housing would be “affordable by design” due to size of units
-
Design bicycle and pedestrian pathway plan
-
Similar past projects include Del Mar Theater renovation, Santa Cruz; Osio Plaza, Monterey; Lofts on the Alameda, San Jose; Lion Building, San Jose.
