City of Ukiah undaunted by talk of mall

Oct 16, 2009 (The Ukiah Daily Journal - McClatchy-Tribune Information Services via COMTEX) -- DDR | Quote | Chart | News | PowerRating -- Ukiah's endeavor to attract big-box retail to the south end of the city is undaunted by the Ohio firm Developers Diversified Realty's efforts to draw four large stores to the old Masonite property, according to City Manager Jane Chambers.

The city of Ukiah continues its effort to sell more than 18 acres it purchased jointly with the Ukiah Redevelopment Agency this year. The city issued a request for proposals Wednesday in an effort to find a firm to help the city market the land to developers.

"I don't know if it (DDR's plans) threatens that," Chambers said. "We have our plans and hopes, and other developers have theirs."

The 800,000-square-foot shopping center proposed for the old Masonite property, dubbed Mendocino Crossings, is the subject of Measure A, which appears on the Nov. 3 ballot. If it passes, the site will be rezoned from industrial to commercial, mixed-use, to allow the shopping center.

The city and its redevelopment agency bought more than 18 acres and an option to purchase another 14.75 acres in Airport Industrial Park, also called Redwood Business Park, earlier this year. The undeveloped land is across Airport Park Boulevard from Wal-Mart and surrounding stores.

The city bought the land, already zoned commercial, so it will be easy to combine with adjacent city-owned land if needed, and sell to developers. The offered retail space is about 240,000 square feet.

"The mall they're (DDR) proposing is huge," Chambers said, noting that DDR's

specific plan includes mixed use, including housing and other elements, not just shopping.

DDR Senior Development Director Jeff Adams said in a recent Measure A debate that it looks like the firm will only be ready to develop 450,000 square feet of retail space.

"One of the points that is being argued against it is it's way too much retail space for this area to absorb," Chambers said, adding, "I don't think I would use the term threatened. We are going to pursue our interests in securing retail for the area; it's important to the community that it gets built out and completed."

Adams has said publicly he has letters of intent to locate at Mendocino Crossings from Costco, Target, T.J. Maxx and Petco.

Measure A opponents say Mendocino Crossings isn't the only location for those stores, and tout the South Ukiah opportunity as an alternative.

Chambers wouldn't comment on whether she had heard from any of the four big-box stores Adams named.

Chambers added that cities are looking at ways to compete for retail, especially since the current economic conditions seem to be causing retailers to focus on strengthening the markets they already have, and to be cautious about where they develop new locations.

"A lot depends on future economic factors," Chambers said. "But there certainly is retail interested in Ukiah."

The city's request for proposals calls for marketing, brokerage and real estate services. Proposals are due by 5 p.m. Wednesday, and the Ukiah Redevelopment Agency is expected to consider authorizing Chambers to enter a listing agreement at a special redevelopment agency meeting Thursday.

The agreement and/or contract for services will end April 30, 2010, at which time Chambers may renew it.

Tiffany Revelle can be reached at udjtr@pacific.net, or at 463-3523.

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