Developer's big-box 'synergy' off Highway 101 Developer's big-box 'synergy' off Highway 101 (July 29, 2005)

REI, Best Buy among tenants at new 'Charleston Plaza'

By Jon Wiener

Dave Dollinger knows to strike when the iron's hot.

For months, the Redwood City-based developer had been eyeing an 11-acre site in Mountain View near Highway 101 and Charleston Road. When the two property owners finally decided to sell last December, Dollinger picked up the phone and called the real estate manager for Bed Bath & Beyond, who was home for the Christmas holiday.

"We'll be there," said the voice on the other end of line.

That was all Dollinger needed to hear. Within months, REI, Best Buy and Pet Smart had lined up to move in to the center, which Dollinger is calling "Charleston Plaza." A formal groundbreaking ceremony is scheduled for Sept. 7, and the stores hope to open by April 1, 2006 -- a high-speed project typical of big-box developments but unusual in the built-out urban areas in northern Santa Clara County.

Dollinger, who owns industrial buildings throughout the county, called the new development "a huge upgrade for the city." The visibility from the freeway is a major draw for retailers: "To try to get 11 acres on the freeway is virtually impossible," he told the Voice . City economic development manager Ellis Berns agreed, calling the site an ideal place for a project of this size.

Meanwhile, the rest of the area is already becoming a major retail center. Costco is adding 20,000 square feet to its operation, a new home building outlet is going in across the street from Orchard Supply Hardware, and the nearby In-N-Out Burger is one of the most successful in the state.

"There's some very interesting synergy that's starting to grow out there," said Berns.

REI already has three stores within 12 miles of Mountain View, but company spokesperson Mike Foley said that the outdoor outfitter, organized as a co-op, has more than enough members locally to support another store.

"Folks who were willing to travel out of their way to an REI store are finding that less convenient," said Foley.

Pet Smart's plans for the site call for a "pet hotel," hoping locals will leave their pets with the store rather than a sitter when they go out of town.

Monday, cranes were knocking down the few walls left from a time when the site was home to several tech companies. Seven heritage trees, mostly redwoods, have already been ripped out.

The city's share of sales taxes from Charleston Plaza could equal up to half a million dollars annually -- a significant boost, especially for a revenue source that has fallen by $10 million in recent years.

The project will total more than 120,000 square feet of retail space (not to mention more than 600 parking spaces). Estimated sales at the four stores, plus a Starbucks and a bakery, are close to $100 million a year.

"What we're doing is not only creating a very nice retail area that creates employment opportunities but also provides a variety of retail to Mountain View citizens," said Berns.

E-mail Jon Wiener at jwiener@mv-voice.com

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