In five years, you might take a Saturday morning stroll to Home
Depot, followed by a lunch at Applebee’s, before browsing Borders’
collection of books and CDs, and finishing up by picking up some
coffee at Starbucks or Peet’s.
In five years, you might take a Saturday morning stroll to Home Depot, followed by a lunch at Applebee’s, before browsing Borders’ collection of books and CDs, and finishing up by picking up some coffee at Starbucks or Peet’s.

And you may not even have to drive to Gilroy or Salinas. You may not have to leave Hollister at all.

City officials, preparing for the building moratorium’s expiration in late 2005, feel confident those types of mainstream retailers will come to Hollister.

The demand, they say, is already there.

Such rumors of corporate convenience have circulated in the past. Most times, the gossip ebbed without a taste of fruition.

Now, led by City Manager Dale Shaddox’s eagerness to foster economic growth, that could change. To some extent it likely will, he said, and planning stages for such developments aren’t that far off.

“There’s a great desire to come here,” Shaddox said. “So we’re not going to have to do a lot of recruitment when the time comes. We’re actually going to be faced with the unusual circumstance of trying to figure out which ones we want the most.”

Shaddox said he’s meeting a development manager from Home Depot next week in Monterey, where the International Council of Shopping Centers is holding an annual conference.

Home Depot requested the discussion and, Shaddox said, is “interested in coming here.”

Mayor Tony Bruscia wasn’t as optimistic about attracting national small- and big-box outlets to Hollister. His recent phone calls to Barnes and Noble and Borders national bookstores were not returned, he said.

“That shocks me,” he said of Home Depot’s apparent interest, with one being 20 miles away in Gilroy. “The thought was always – we’re not big enough.”

That’s no longer the case, according to Shaddox. He said most chain outlets follow “strict formulas” based on population – one of at least 40,000 people is usually necessary.

Hollister’s population, slightly climbing during the moratorium, is at about 36,000. But another 20,000 residents living within county limits may regularly shop here, too.

Shaddox mentioned rousing interest in the Hollister market before the state-ordered cease and desist order struck in September 2002. The penalty, after a 15-million gallon sewer spill, halted issuance of building permits until a new treatment plant could be constructed.

Places like Applebee’s and Orchard Supply Hardware were analyzing Hollister when the regional water board ordered the penalty. Officials also had been talking to a shopping center developer along with other potential businesses, Shaddox said.

Since, they’ve wallowed in envy over the snowballing success of Gilroy’s retail economy – watching streams of local residents driving out on Highway 25 each weekend.

“Retailers that haven’t gone to Gilroy – we need to talk to them,” Bruscia said.

Completion of a new sewer plant and an ensuing end to the moratorium is slated for October 2005. An application and environmental review takes about a year. So Shaddox said the city should start receiving permit applications in September or October of this year.

If the regional water board approves the city’s “plan of service” in September, the Council shortly thereafter expects to consider a formal “list of priorities” for new developments, the city manager said.

Shaddox plans to recommend commercial and industrial developments be at the top of the totem pole – with single-family homes at the bottom.

“Just as the wastewater treatment plant problem has had a negative ripple effect throughout our economy,” Shaddox said, “solving that problem and attracting new retailers will have a reverse ripple effect.”

Among the most alluring locations in town, the grassy corner on the 400 block of San Benito Street is a hot commodity for developers, according to city officials.

Shaddox called the locale a “primary jewel for us.”

The Redevelopment Agency, which owns the property, has already received development proposals. This week, one company sent a rendering of a potential four-story building project neighboring the downtown Briggs parking garage.

The first floor of the structure includes one large retail space – it’s envisioned as a Borders bookstore – along with other shops. The upper floors are conceived for housing.

Shaddox also said he hopes to take advantage of tourism opportunities, such as Hollister Hills and the Hollister Independence Rally. He believes the city could accommodate two to four new lodging businesses. And Holiday Inn Express has previously shown interest, he said.

Officials say they’ll focus on infill developments such as on that property – lots within city limits yet to be developed, as opposed to annexation of county land into Hollister. Plus, Shaddox said he wants to see more multiple-story projects, especially downtown.

Councilman Tony LoBue said officials already entered negotiations with three national chain businesses – he declined to name them. He’s confident the city will reach deals with them, he said, “as long as the moratorium is lifted.”

Many officials, businesses and residents are banking on that, too.

“As we begin to move beyond these current issues and begin to think about two and three years from now,” Shaddox said. “I can kind of start to get excited about the possibilities.”

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A staff member wrote, edited or posted this article, which may include information provided by one or more third parties.

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