The Hollister Redevelopment Agency board voted unanimously this
week to loan up to $1.5 million in RDA funds to remodel the former
Good Times Bowl, bringing a group of local businessmen closer to
turning the vacant bowling alley into a Honda PowerHouse store and
family restaurant, creating about 23 new jobs.
Hollister – The Hollister Redevelopment Agency board voted unanimously this week to loan up to $1.5 million in RDA funds to remodel the former Good Times Bowl, bringing a group of local businessmen closer to turning the vacant bowling alley into a Honda PowerHouse store and family restaurant, creating about 23 new jobs.
On Monday, the RDA board, which is comprised of city council members, voted to send the Honda Corporation a letter stating that they are prepared to make the loan to Dave Galtman and Marty and Mike Greenwood, who bought the bowling alley on San Felipe Road last year with plans to turn it into a motorcycle dealership.
While the letter does not commit the city to loaning the money, it gives the Honda Corporation confidence in Galtman’s and the Greenwoods’ ability to secure money to remodel the building, which the company is requiring before approving the franchise. PowerHouse stores sell most anything Honda makes, excluding automobiles, and include a service center. Currently, there is only one other PowerHouse store in the state, located in Southern California.
The letter was effective, according to Galtman.
“They’re (Honda) totally on board,” he said after the RDA board approved sending the letter. “They think Hollister is going to be a good location.”
City Manager Clint Quilter said that the RDA is eager to see the PowerHouse store open because it will benefit the city in at least four ways.
– Remodeling the old, vacant bowling alley would improve Hollister’s northern gateway.
– The remodel would make the building more valuable, which will bring more property tax revenue into city coffers.
– The store would draw people into town and generate sales tax revenue.
– The store would create about 23 new jobs.
According to Development Services Director Bill Avera, $1.5 million is the maximum that the RDA might loan, but he said he expects any actual loan to be substantially less.
“They’re just guesstimates at this point,” he said.
Now that the RDA board has approved the letter of intent, that agency will draft a loan agreement that will hammer out details, such as how much the loan will be and the repayment terms. As the RDA drafts a loan agreement, it will conduct studies to insure that the PowerHouse store is a good investment.
“We’ll open a study to see if it’s a workable venture,” said Avera, who also runs the RDA. “We’re not going to provide a loan to somebody who won’t ultimately pay it back.”
Galtman said that he and his partners might have been able to get financial backing from other sources, but the RDA would have better terms and the project would benefit the city.
“This is a good fit,” he said. “One: We’re wanting to bring a viable business into the area. And the funds are available for this type of use.”
Quilter said that it is not unusual for the RDA to loan money to a project it determines will benefit the city, even if the people seeking the loan might be able to get funding elsewhere.
RDA board members are excited about the PowerHouse project. They say that, because of the potential for tax revenue and new jobs, it fits right in with efforts to further Hollister’s economic development.
“Having a big name in town, potentially other names will come,” board member Monica Johnson said. “If a project comes up, you move on it.”
Luke Roney covers local government and the environment for the Free Lance. Reach him at 831-637-5566 ext. 335 or at
lr****@fr***********.com
