RDA likely to sell property to developer
Hollister officials are hoping the $4 million Redevelopment
Agency purchase of nearly seven acres at the former GAF Leatherback
property east of downtown will spur growth once the vacant
buildings are demolished within the coming year.
The city council recently authorized a $53,290 agreement to have
Harris and Associates manage the demolition of the site, where
roofing materials were manufactured for decades before
Leatherback’s two plants
– located at 111 Hillcrest Road and 901 Prospect Ave. – ceased
operations in August 2007.
RDA likely to sell property to developer
Hollister officials are hoping the $4 million Redevelopment Agency purchase of nearly seven acres at the former GAF Leatherback property east of downtown will spur growth once the vacant buildings are demolished within the coming year.
The city council recently authorized a $53,290 agreement to have Harris and Associates manage the demolition of the site, where roofing materials were manufactured for decades before Leatherback’s two plants – located at 111 Hillcrest Road and 901 Prospect Ave. – ceased operations in August 2007.
“Once the property is demolished, we can market the property to prospective buyers,” said Bill Chow, Hollister’s redevelopment program manager. “One proposed use of the property is housing, but that’s not necessarily something that we have to follow. It depends on the needs of the community.”
Chow said he will research the best use of the property, which has been touted as a prime location for a mixed-use commercial and residential area.
“I’m not sure it’s an ideal site for housing, since it is in an industrial area,” said Chow, who called the property’s proximity to downtown an attractive feature.
Hollister’s General Plan designates the sites as mixed-use commercial and the city’s draft zoning ordinance district proposes it as “neighborhood mixed use.”
City Manager Clint Quilter said the General Plan doesn’t allow and the zoning ordinance won’t allow for further industrial development at the former Leatherback property.
There have been no formal proposals brought before the city regarding developing the property, Quilter said, because the demolition project must proceed first.
Harris and Associates’ role will include general administration of the demolition, which is expected to take approximately one year to complete. An RDA staff report indicated that potential bidders on the property will have the option to sell the paper milling equipment and recycle the various materials on the site, such as lumber, metals and concrete.
Quilter said “some commercial with associated housing” is a potential option for the site, but that it is “way too early to know” what will become of the property.
Developing the vacant area, Quilter said, could help tie together the as-yet-undeveloped Gibson property west of Rancho San Justo School near the nearly-completed Highway 25 bypass with the Premiere Cinemas area and the Guerra property on McCray Street where a Lowe’s store is expected to be built.
Hollister’s Development Services Director, Billy Avera, said no buildings will remain after the year-long demolition process.
“The reason for the long schedule is we want to give the contractor the opportunity to sell the equipment that has value and recycle as much as possible,” he said. “As far as the ultimate use of the property, it is far too early to tell. However, the RDA will likely sell the property to a developer for commercial/residential use as designated in the General Plan.”
Chow said it will take approximately one month for him to prepare a request for proposals that must be approved by the RDA board before being sent to developers to review and respond with a development concept for the Leatherback land.
“Within four months of that, we hope to have a proposal we like,” he said.
Recouping the RDA’s $4 million investment “is part of the equation, but it is probably way down there at the other end of the spectrum,” Chow said. “The priority is to get the land redeveloped.”
Jerry Muenzer, chairman of the Hollister Downtown Association’s economic restructuring committee, said the HDA “is excited that the site is going to be converted from industrial to mixed-use.
“It’s close enough that it’ll be another thing that’s healthy for the downtown,” he said.
HDA Executive Director Brenda Weatherly said that although the former plant is outside the agency’s immediate scope of interest, the HDA would be willing to offer its opinion on potential uses for the site, particularly if that usage compliments the downtown area.
Leatherback officials last year cited a weakening market and competitors’ growth as reasons for shuttering the plant. More than 40 people lost their jobs at the manufacturer, which had operated for more than a half-century in Hollister.
Mayor Doug Emerson said that had the city not purchased the Leatherback site, “anyone could, within a period of 12 months from Leatherback ceasing operations, have purchased the site and commenced operations similar to what Leatherback did.”
Now, with RDA involvement, Emerson said he hopes for a proposal from a developer consistent with the mixed-use designation for that area.
“I would especially like to see a proposal that has both commercial and residential,” he said. “The residential could be either condos or apartments. Walkability and green areas would be important” as well, he added.
Hollister Planning Commission Chairman David Huboi said the Leatherback property fits into the city’s infill development strategy.
“Instead of building houses on hillsides and away from city services, we need to take advantage of opportunities in the proximity of downtown,” he said.
The Leatherback site, he continued, has added value because it is adjacent to a rail line, which one day could facilitate an extension of CalTrain’s rail system.
