OPEN LETTER

By Doug deHaan

Orchard Supply Hardware (OSH)

I am sorry to say that the only chance for the above-mentioned appellants to appeal to the City Council was during the design review phase of the project. Therefore, the City Council solely addressed the design element of the planning phase with total disregard to the economic impact on the existing retailers. The council refused to defer the appeal item, nor would they consider the real economic concerns expressed by the retailers, citizens and myself, regarding the economic impact of the proposed OSH on the survival of the existing retailers. The majority council totally refused to take this into consideration and rejected the appeal. The vote was four to one to deny the appeal. Unfortunately, this does not uphold the existing ordinance intent that the city would not jeopardize existing retailers while trying to gain a small amount of retail (hardware/garden) sales leakage.

Alameda continues to have many opportunities to bring in appropriate retailers in support of sales leakage. Even though we have a heavy sales leakage in many retail categories, the community has stated loud and clear that large box retailers such as Home Depot, Ikea, Costco and Walmart are not transportation or retailer friendly to the City of Alameda.

Another sales leakage area is auto sales, and as you know, auto retailer Goode Toyota is leaving Alameda because their business model demands a much larger facility adjacent to the freeway. Unfortunately, we abruptly lost Good Chevrolet due to the present downturn of the economy. Other opportunities to regain retail sales leakage are electronics, home goods and furnishings, gasoline sales, apparel, sporting goods and appliances, all of which can be accommodated in our present and planned retail areas.

As you know, Target Stores have been looking for a location within Alameda for the last five years. At the present time, a smaller Target is being envisioned to be part of Alameda Landing's Development (300,000 square foot shopping center), which is adjacent to the Posey/Webster Street tubes. This proposal will be going through the planning process in the near future. Alameda Landing's development agreement (DDA) requires all retail mix be approved by the City Council. I was instrumental in making sure Alameda Landing's DDA included a retail mix provision. Unfortunately, Towne Centre is an old development that is not under any such agreement, and they have more latitude in determining their own retail mix. Exactly what got us into this dilemma with OSH. I do believe the City Council could have and should have addressed these retail mix concerns and avoided this situation. Hopefully, this will give you a better perspective of my position on this issue. Once again, I thank you for your concern.

Doug deHaan City of Alameda Councilmember