A representative for Alameda Landing developer Catellus told the city council early this morning that negotiations with Target are continuing and that an agreement with the retailer could be in place by the end of this year.
“There’s still a high degree of interest from Target,” Tom Marshall, managing director for the Catellus Development Group, told the council. “We’re still in the midst of some very serious negotiations.”
Marshall said that Target has pulled back from new store construction but that Alameda Landing is one of the few sites the retailer is currently considering for a new store. If an agreement is reached, the store could open here in 2011.
“That’s kind of the best case at this point,” he said.
Marshall said that Catellus, whose parent company, ProLogis, has dramatically reduced development starts in the midst of apocalyptic times for the real estate industry, could move forward on building a standalone Target at the site now in order to keep the retailer in the Landing development.
Building the Target without the rest of the project, which includes additional retail and 300 homes, would cost Catellus $17 million, Marshall said.
The Target would bring the city an estimated $250,000 a year in sales tax, Base Reuse Manager Debbie Potter said.
Marshall stressed that his company remains healthy despite the (well-publicized) impacts it has suffered in this flagging economy, and he said the Landing project is likely to be among the first that is built when the economy improves. (He also said the company has pulled out of San Francisco’s mostly-built Mission Bay development, which it served as the master developer.)
Still, it looks like the city could end up paying money Catellus was supposed to front to extend Stargell Avenue, considered a “must” for the project to move forward. Potter said staff will come to the council on March 17 with a proposal to help fund the $20 million project in an effort to keep state funding the city secured for the project.
Catellus was supposed to pay $9 million toward the cost of the extension; the city has secured $4 million from the state.
Construction of Alameda Landing was originally slated to begin in August 2007, with a completion date in 2013.
Incidentally, while we’re talking about the Landing, Marshall said Clif Bar is pursuing another location here on the Island. Last time I checked with Clif Bar they said they’d let me know when they’d found a new home. Stay tuned.