Feature Article, September 2005

Cities That Shape California
California has long been a trendsetter in terms of retail development. Many of the country's first lifestyle and mixed-use centers made their debut in the state. Now, cities and developers alike are looking to bring the next wave of retail development to the Golden State.
Lara Fuller

Rancho Mirage

Rancho Mirage is quickly becoming the centerpiece of the Coachella Valley with its multitude of new retail and mixed-use developments.

With a number of retail projects underway, Rancho Mirage is cementing its status as an upscale and stylish city. “The look and feel of commercial development in Rancho Mirage is unlike any other in the Coachella Valley in respect to the architecture, landscaping and site design,” says Barry Foster, director of economic development with the city of Rancho Mirage.

Developers are attracted to the city not only because of its design, but also because of its position. The city is located off the Highway 111 corridor, a major thoroughfare for the area. “Developers choose Rancho Mirage because of its strategic location in the middle of the Coachella Valley and its strong demographics,” says Foster.

Some current projects in Rancho Mirage include the One 11 Plaza, a 37,000-square-foot mixed-use development located at Highway 111 and Rancho Las Palmas Way. An 8,000-square-foot Bing Crosby Restaurant & Piano Bar will anchor the center, which will also feature a Starbucks, restaurants, gourmet market, upscale shops and a high-end spa. The project, designed using European-themed architecture, is being developed by the Alamo Group and will be completed in early 2006.

Another project currently underway in Rancho Mirage is the expansion of the Monterey Marketplace, located at Monterey Avenue and Dinah Shore Drive. The 58-acre center, which currently features tenants such as The Home Depot, Linens ‘n Things, Pacific Sales Kitchen & Bath Center, Red Robin Restaurant and a 16-screen Regal Cinema, will soon be home to additional retail and restaurant tenants. Radius Retail Advisors will soon open a 26,000-square-foot Clark's Nutrition & Natural Foods Market at the center. In addition, Investwest Group will soon be underway on another phase of the development, which will include 107,000 square feet of retail space. The tenant lineup features Plummers Furniture, Arizona Furniture, Guitar Center, Ortho Mattress and Coffee Bean & Tea Leaf.

On the Monterey Avenue Corridor, the 38-acre Monterey Commons will feature a 99 Cents Only store, a mixed-use component and 12 acres of adjacent apartments and town homes. The Desert Shores Townsquare is a 50-acre lifestyle center at Bob Hope and Dinah Shore drives that is part of a larger, 144-acre master-planned mixed-use development. Also at Bob Hope and Dinah Shore drives, the 33,000-square-foot Desert Ridge Plaza will be anchored by a 14,800-square-foot Walgreens.

Rancho Mirage has been home to many retail “firsts” in Riverside County, including the first Borders, Century Theatres, The Cheesecake Factory, Fleming's Steakhouse, P.F. Chang's, Roy's, Ulta and The Yard House. Over the next few years, the city hopes to continue to bring in a range of new retail uses and new developments.

Clovis

Clovis prides itself on being a family-oriented city with a low crime rate — which attracts not only new residents, but also new retail development.

Clovis has seen tremendous growth the past few years. Twelve years ago, the city had a population of 50,000. Now, the city is home to 86,000 people. This is for multiple reasons, including the city's family-friendly persona. “The city of Clovis is considered to be a great city to raise a family for several reasons,” says Mike Dozier, community and economic development director with the city of Clovis. “We have one of the best school districts in the state of California and nation. We have a very low crime rate and we have quality public amenities. Generally, the school district and safe environment are major reasons for home developers to choose Clovis, but retail follows rooftops.”

Land Value Management plans to add 190,000 square feet to Sierra Vista Mall in Clovis, California. Construction is expected to begin this fall.

And developers have been quick to see that the influx of people means the need for all kinds of new developments. Some of the newest retail projects include the Willow/Herndon Center. The 328,000-square-foot center, being developed by Regency Centers, will be anchored by Target and PetsMart. At the Sierra Vista Mall, Land Value Management is adding 190,000 square feet of space, which includes a 55,000-square-foot theater and six retailers and restaurants. Construction is slated to begin this fall. And Paynter Development is planning a 491,000-square-foot center in Clovis, anchored by a 200,000-square-foot Wal-Mart Supercenter.

“As with any new retail center, these centers will offer diversification of retail uses that will provide retail choices for residents to shop in Clovis and not have to travel for their shopping needs,” says Dozier. “It provides convenience and reduces traffic and pollution for the region.”

In Clovis, as in other regions across the West, retail development is constantly evolving. Developers are incorporating new elements into their projects, all designed to give the consumer more of what they are looking for. “Big box development is still in vogue, but we are seeing more mixed-use with office/hotel and residential being mixed with retail,” says Dozier. “Developers are looking for that edge to make their development unique. Retail development follows trends and it seems that the new trend is toward creative use of a mixed-use concept.”

Over the next few years, Clovis hopes to see developers continue to bring unique projects to the city. In addition, the city plans to form a task force of community stakeholders to attract targeted retailers, encourage retail commercial development that will increase the quality of life for Clovis residents, and work with the city planning and development services groups to plan for adequate retail growth in the urban planning areas to meet the needs of residents in those areas, says Dozier.

Riverside

In Riverside, new developments try to replicate on a smaller scale what the city as a whole exudes: a sense of community.

Riverside Plaza is one of the most anticipated projects in Riverside, California. Litchfield Properties is developing the center, which will also include The Shoppes at Riverside Plaza (currently under construction).

Riverside Plaza is one of the most anticipated projects in Riverside, not only because of the different uses it offers, but because it is designed to be a community within a community. “The vision of a neighborhood gathering place located in the heart of the city center has become a reality,” says Simone McFarland, marketing coordinator with the city of Riverside. “The Riverside Plaza has been transformed to include a main street look, entertainment and a smorgasbord of cuisine, accommodating everything from a quick lunch to a luxurious dinner.” Some of the restaurant tenants at the center include Chipotle, Pick-Up Stix, Ooka Japanese Steakhouse, Daphne's, Fazoli's, Red Brick Pizza, California Casual, Citrus City Grill, California Pizza Kitchen and Panera Bread. Litchfield Properties is developing the center, which will also feature a Regal Theater and Borders. Another portion of the project, The Shoppes at Riverside Plaza, is also currently underway, which will enhance the overall experience at Riverside Plaza. “Riverside Plaza is a venue focusing on the neighborhoods surrounding it,” says McFarland. “It has become a meeting place to sit outside, eat with friends, read a book or enjoy a movie.”

Some other significant projects in Riverside include the expansion of the Galleria at Tyler. Current tenants at the mall include Nordstrom, JC Penney, Macy's and Robinson's-May. The 1.1 million-square-foot Galleria, owned by General Growth Properties, will be expanded to include The Shops at Tyler. The Shops at Tyler will feature a 2,950-seat AMC Theater and a P.F. Chang's restaurant. The $75 million project is expected to be completed in spring 2006.

Adjacent to Mission Grove in Orangecrest, one of the city's fastest-growing, high-income neighborhoods, the Mission Village shopping center offers residents a range of retail stores and restaurants. Tenants at Mission Grove and Mission Village include the Cinema Star Ultraplex 18, Akina Sushi-Tappan, Cactus Cantina, Ralphs, Steinmart, Kmart and LA Fitness. In addition, the centers are adding a food court featuring Tommy's Burgers, Charo Chicken, the Pizza Factory and It's A Grind.

Over the next several years, Riverside hopes to continue to attract high-end retailers and restaurants. “Our residents have disposable income, want options and demand quality,” says McFarland. And beyond the development of new retail centers, Riverside has plans for the community as a whole. “The council wants to see our downtown become a destination area,” says McFarland. “We have an authentic, more than 100-year-old downtown with judicial, government and high-paying jobs. We are working towards adding residential, retail and mixed-use components, along with many arts and culture venues.”

San Jose

San Jose continues to attract new developments for a whole range of reasons — from its accessibility to its buying power.

Retail developments, historic revitalizations, Hispanic-oriented projects — San Jose is seeing a number of new developments spring up all over the city. This is partly because of the city's interesting dynamics. “San Jose has a friendly retail environment, tremendous buying power, is dramatically under-retailed with voids in key categories, has a high number of housing projects under construction, has a growing population (it is the 10th largest major city in the United States), has accessibility by being at the heart of the Silicon Valley and also has great weather with more than 300 days of sunshine a year,” says Edith Ramirez, senior development officer with the San Jose Redevelopment Agency.

Some developments currently taking advantage of all San Jose has to offer include a multimillion-dollar mixed-use project being developed by a partnership between CIM and the San Jose Redevelopment Agency. The project, currently under construction, is located in the city's historic district, between 2nd and 3rd streets and Santa Clara and San Fernando streets. “This mixed-use project is intended to create a critical mass that will redefine and energize the downtown by attracting new retail, supporting existing retail and creating new housing and entertainment uses,” says Ramirez. Included in the development is 17,500 square feet of retail space, a five-story building, 76 for-sale condominiums and 67 public parking spaces. In the planning stages is an additional downtown redevelopment, located at 3rd and San Fernando streets. The second site will feature 335 condominiums, 68,000 square feet of retail and 337 parking spaces.

Also underway in San Jose is the Story and King project located at Story and King roads. The 16-acre shopping center will feature a Target and Famsa, a Mexican retailer of furniture and electronics. Blake Hunt Ventures and the San Jose Redevelopment Agency are working together on the $73.5 million project.

At the northeast corner of South Market and San Salvador streets in the SoFA district of San Jose, Mesa SoFA Partners is planning to develop a 21-story, 208-unit residential project with 11,000 square feet of ground floor commercial space. Construction on the 1.1-acre project is slated to begin in July 2006.

Over the next 5 years, San Jose hopes to build on its strong dynamics with new growth. “We plan to establish the downtown as the 24-hour center of urban life and activity; rehabilitate existing downtown properties; provide new and enhanced cultural, convention, recreational and entertainment facilities; create a market for more commercial development opportunities; raise the level of quality in design and construction to improve the lifecycle of buildings and encourage private investment; increase housing opportunities and expand job opportunities for residents,” says Ramirez.

Fontana

Fontana, with its prime location in the Inland Empire and multitude of new development, is set to become a retail mecca for the area. “Fontana has initiated several aggressive projects that will set the course for the continued successful development of the city,” says Elisa Grey, economic development manager with the city of Fontana. “Some of those projects include, but are not limited to, the revitalization of the downtown with the development of the civic center; a senior housing project with senior center and state-of-the-art library; continued development of the Fontana Auto Center; and modernizing and improving major commercial corridors along Valley Boulevard and Foothill Boulevard.”

Providence Pointe is a 37-acre mixed-use project underway by Hopkins Real Estate Group and D.R. Horton in Fontana, California.

One project, in particular, will greatly influence development in Fontana. Providence Pointe, developed by a partnership between Hopkins Real Estate Group and D.R. Horton, is one of the first true mixed-use developments in Fontana. “This strategic alliance between Hopkins Real Estate Group and D.R. Horton will set the precedence for additional developments of this type within the city and surrounding areas, and will also address the desire to create true live/work/play environments,” says Grey. Architects on the project include William Hezmalhalch Architects, Inc. and Perkowitz + Ruth Architects.

Site plan for Providence Pointe in Fontana, California.

The 37-acre Providence Pointe will include 81 single-family homes, 126 townhomes and 105,000 square feet of retail space. The residential component, located on 24 acres, will also include a recreational area with multi-purpose trails. The retail component will feature a major southern California grocery anchor, health club, pads, shops and restaurants. The retail and residential sections of Providence Pointe will be linked by a central plaza at the end of Main Street. “The mixed-use development will define neighborhood character and provide focus and places for people to meet and socialize through a main street entry that has outdoor areas and plazas,” says Grey.

In the future, the city of Fontana plans to actively accomplish its goals and improve the quality of life for residents of the city. “The city is well on its way to establishing Fontana as one of the most strategically desirable locations in the Inland Empire,” says Grey.

Palm Springs

Though Palm Springs is often thought of as a tourist destination, residents know the city offers much more than meets the eye.

More than 3 million tourists visit Palm Springs each year, which brings a lot of business to the city. Developers come to Palm Springs for that reason, as well as for several other unique reasons. “The name alone attracts developers because of the historic appreciation for mid-century architecture, which the city is well known for in development circles,” says John Raymond, director of community and economic development in Palm Springs. “The city's eclectic mix of architectural styles opens the door for developers to be creative and not subject to a specific type of design. There are challenges, however, because the city has set very high design standards, which sometimes extends the approval process.”

Developers in Palm Springs are building a number of lifestyle centers and are also underway on redevelopment projects in the downtown area. One of the more recent projects includes The Springs Shopping Center. The Charles Company is developing the 393,000-square-foot center, which will be anchored by The Home Depot. “Just completed was an $8 million land remediation of the 35-acre site, which was formerly a dumpsite in the early 1940s,” says Raymond. Development of the shopping center is expected to begin in December.

Currently under construction is the Destination Ramon center. The 275,000-square-foot center sits on approximately 31 acres and features a 225,000-square-foot Wal-Mart Supercenter. Other tenants include Bank of America, PetsMart and Office Depot.

In addition, the Palm Springs Convention Center is undergoing a renovation and expansion. The $30 million project will increase the meeting room space to 50,000 square feet and will increase the exhibit space to 100,000 square feet. The main entrance of the convention center will now face the new Spa Resort Casino and Palm Canyon Drive. One of the first conferences to be held at the center, which will be completed this month, is the ICSC Western Division Conference.

“These retail projects offer more shopping and dining opportunities for residents and tourists,” says Raymond. “The expansion of the convention center will attract larger corporate events, which will also benefit from a variety of shopping and dining choices. The new tax revenue will benefit the residents of the city with increased public safety, improved roads and enhanced city services.”

Up next for the city is the redevelopment of the downtown area, which encompasses a mile-long stretch along Palm Canyon and Indian Canyon drives. “The challenge will be to preserve the Palm Springs flavor and historic architecture while adding new space to attract national and independent retailers,” says Raymond. “A large part of the redevelopment will include adding residential units to increase traffic in the downtown core.”

Pomona

Pomona is well positioned for success: the city is situated near five major freeways, offering developers the opportunity to attract a range of consumers.

Pomona has multiple mixed-use and retail projects currently underway, in part because of the city's ideal location between the Inland Empire and the San Gabriel Valley. And with approximately 157,000 residents, Pomona is attracting developers looking to tap into the city's tremendous buying power.

One project that was recently completed in Pomona is the Mission Promenade development. The project, located across the street from the Pomona Civic Center, features retail, office and residential space, all in an urban village environment. Mission Promenade consists of two buildings connected by a bridge. Retail and restaurant uses are located on the first floor, with office space on the second and live/work lofts on the third. Starbucks, Quiznos, Pomona Chop House, Magic Wok and Stuft Pizza are a few of the tenants at the development.

Other projects include CityView at University Village. The development is located in the 200 and 300 blocks of East Third Street in downtown Pomona. Urban Pacific Development is developing the project, which will feature two four-story buildings with 182 loft-style homes. In addition, each building will be built upon a single-level subterranean parking garage. On the ground level of one of the buildings, there will be 9,000 square feet of retail/commercial space.

On East Third Street, the 85,000-square-foot The Helix at University Village is currently underway. The $10 million project will feature 24 studios, 24 one-bedroom apartments and 52 two-bedroom apartments for the students of Western University.

Pomona is focused on revitalizing its downtown and residential neighborhoods to give its residents a better quality of life. The city has recently purchased the historic Fox Theater with plans for future public entertainment, performing arts and recreational uses. The Mayfair Hotel is another revitalization project that is currently underway. Plans include the renovation of retail and office space on the lower floors with live/work units on the upper levels. And in the Angela/Chanslor neighborhood, the redevelopment agency is continuing to work on a comprehensive strategy for revitalization of the area. All of these projects, coupled with the city's prime location, will serve the city well in the coming years.

TRANSFORMING THE CITY OF WHITTIER

Located about 12 miles southeast of Los Angeles, the city of Whittier was incorporated in 1898 and today has more than 85,000 residents. The city was built out in the 1950s and 1960s and most of the development then occurred outside the city limits. Today, the city is undergoing a revitalization to transform Whittier into a place that serves the needs of its growing population, while still remaining true to its heritage.

The largest retail center under construction in the area is Whittwood Town Center, an older regional shopping center site that is being transformed into a Target-anchored lifestyle center. LNR Property Corp. is redeveloping the center, which is set to open this fall. LNR will remodel the existing Sears, Mervyn's and JC Penney stores, as well as bring in new restaurants such as Red Robin, Panera Bread and Johnny Carino's Italian.

“We're primarily seeing revitalization or reconstruction of existing sites,” says Jeff Collier with the city of Whittier's redevelopment agency. “Whittier is an older community with lots of redevelopment opportunities and that's the bulk of our activity.”

The city is also in the early stages of negotiating the purchase of a former youth correctional facility from the state of California for a mixed-use project. Proposals for the 73-acre site include 500,000 multifamily units, as well as commercial and office uses. Approximately 25 acres of the project will be devoted to retail.

Whittier's uptown area — commonly referred to as downtown — is a historic, older area that was heavily damaged in the 1987 Whittier earthquake. “We're now seeing a lot more reinvestment in this area with new restaurants and coffee shops coming in,” Collier notes. “It's another mixed-use revitalization area where we have higher-density housing as well as commercial going in on the first floor.”

The city is currently lacking a Target and a big box retailer like a Costco or Sam's Club, as well as a major electronics retailer such as Best Buy. But developers and retailers are showing interest in the city and are scrambling to find available sites that meet their needs. The city just finished a major planning process for Whittier Boulevard, a 7-mile stretch of arterial roadway.

“Whittier is a fantastic town,” says Collier. “It's a quality community and we're very excited the community is embracing development right now.”

— Haley Shuler


CITY OF LA MIRADA LOOKS TO REDEVELOPMENT

For retail developers looking for communities that are hungry for new developments, La Mirada, California, is the place to feast one's eyes. Located in the heart of Southern California with a population close to 50,000, La Mirada is a built-out city that was incorporated in 1960. Since most of the city's retail centers were built within 5 years of its incorporation, the city is focusing its efforts on redeveloping its aging centers into places that meet the needs of today's residents.

Many of the city's aging centers have great potential because of their location. “The larger retail centers, where we're trying to facilitate and encourage retail development opportunity, are along the Imperial Highway corridor, which is a major thoroughfare that connects Orange County and Los Angeles County,” says John Dimario of the city of La Mirada's redevelopment agency. “We're trying to stimulate retail activity along this corridor where we have some older centers with retail potential.”

Currently, Rich Development is under an exclusive right to negotiate the move of an existing Home Depot that will put the company in a new store within the newly redeveloped Crossroads Shopping Center. Upon Home Depot's relocation, the city's redevelopment agency will seek retailers to fill the company's old location. “It's a sequential process,” Dimario notes. “Once we move Home Depot to a nice store, then we'll work on renovating their old site.”

One of the challenges the redevelopment agency is facing deals with assemblage of land parcels associated with existing centers. “Many of our shopping centers have multiple ownership on very odd-shaped parcels,” says Andrea Travis, also with the city's redevelopment agency. “In some cases, we have centers set on 10 or 11 acres that have 10 or 11 owners. These are complex deals that take quite a bit of time and are going to require right-of-redevelopment tools.”

Ultimately, La Mirada's redevelopment agency is looking for public-private partnerships to redevelop centers that need an economic stimulus. “Most importantly, we are accountable to our community which has certain desires and would like to see more nationally recognized retailers,” says Travis. “Our major role is to go out and sell the development community and potential retailers on the idea of moving to La Mirada by explaining the benefits of locating to the city.”

The city has spent the last few years focusing on redeveloping its retail centers and has spent millions improving its infrastructure — such as updating all of its signage.

Residents have limited shopping opportunities in La Mirada, and are looking for a variety of retailers — be it on the local, national, big box or small tenant level. The city has no discount retailers like a Wal-Mart or Target, and is also lacking electronics companies, bookstores and sporting goods stores.

“The city of La Mirada is willing to be a partner in the redevelopment process not only through facilitating the acquisition and assembling the properties, but also financially,” says Dimario. “The city wants to be a player in the partnership with a developer to help facilitate projects. We realize that redevelopment is the best move for the city and we want to work with developers to make that happen.”

— Haley Shuler



©2005 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.

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