Planning Commission Agenda and Packet 2012 03 08

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Planning Commission Meeting Minutes February 9, 2012 Page 10 of 14 Edrington discussed the big box market along the US 36 corridor. He stated the national tenants are looking for perfect deals, the economy has made buyers be more specific in what they want and need. Therefore the big box owners are looking for other tenants such as recreation areas (shooting ranges, indoor soccer), medical uses, call centers and mixed use sites such as this application. He stated SRS Brokers had canvassed all lookers and had no luck. They specifically searched out groceries but they had no interest in the location. Knudsen discussed the general welfare and economics of the property. They also looked at the changes in Sales Tax Revenue along South Boulder road. He stated a grocery or deli is important to anchor the development but they are also the highest producer of traffic. The vacancies of the shopping center are up 15% since the closure of Safeway. The Boulder County Assessor also state a 7% decline in appraisal of the property. Knudsen stated the trade area or market is saturated by grocery stores. He stated the current Louisville population can support 1.9 stores and there are 2 stores. He stated the retailers will know this statistic is true and will look elsewhere. A third store could be supported due to the household income in Louisville, however there would need to be 4,000 additional rooftops. Knudsen continued with a discussion of the US 36 corridor and the possible future erosion of retail along the corridor. With the increase of vacancy levels along US 36 with better visibility the former Safeway site is at the bottom of the potential site searches. Therefore retail is not the path forward for this site. The proposed project does infuse the community with economic stimulus. Tengler asked with the declining tax receipts, and King Soopers picking up the slack, is it not considered part of the South Boulder Road district. Russ stated according to the City’s Sales tax districts the King Soopers site is consider part of the HWY 42 district, not south Boulder Road. Gerrelick reviewed his grocery store employment history with Albertsons, King Soopers and Safeway. Twenty-one years of his thirty-three have been with Safeway. He stated 1988 was their best year and they were able to expand. From 1988 to 1998 sales declined due to larger stores in the area but they expanded again to build back their service area. Other site issues were also a cause for the decline. From 1998 to 2008 sales declined 40% when the area became over populated with other big box stores. From 1998 to 2010 the sales declined 57%. He stated the standard is for one grocery store for every 20,000 population. Safeway had requested a fueling station with the potential of a $2 million expansion but the City denied the application. At the time of closure in 2010 the City offered to allow a fueling station and some additional tenant finish but it was not enough to keep us in the town. Since the closure Safeway has approached numerous potential clients to lease but no one has been interested. Mulhern’s presentation included illustrations of the existing site conditions. It also illustrated how the proposal will reinforce existing streets and create new internal streets which are easily walk able. The parking structure clusters parking to allow for