Toeniskoetter
&
amp; Breeding, Inc. Development has announced it will open the
first phase of the 80,000-square-foot Madrone Village Shopping
Center this month.
Morgan Hill – Toeniskoetter & Breeding, Inc. Development has announced it will open the first phase of the 80,000-square-foot Madrone Village Shopping Center this month.
The first four businesses will be South Valley National Bank, Peet’s Coffee & Tea, FedEx Kinko’s and Chipotle Mexican Grill. Together they will comprise 28,000 square feet.
The new shopping center, with its white stucco walls and red clay roof tiles, is located on Cochrane Road and Madrone Parkway opposite Cochrane Plaza, which houses Mervyn’s, McDonald’s, Target and other big-name stores.
With so much retail activity in the area, TBI President Brad Krouskup said the new well-known businesses would draw shoppers right away. Krouskup added TBI is negotiating with other “high-quality” retailers for space in the buildings. Phase two of Madrone Village, a 50,000-square-foot free-standing building, will be developed after TBI can find a major grocery store, drug store or other large retailer to sign the lease.
Pleased with their efforts to shepherd in new shopping amenities, city officials believe the Madrone Village Shopping Center, combined with Cochrane Plaza and the new 650,000-square-foot center under construction east of U.S. 101, will create a “retail synergy” that will encourage other businesses to come to the area. Together, the three shopping centers will account for 1 million square feet of retail space.
While market studies no doubt point to success – TBI chose to build Madrone Village without any signed tenants or incentives from the city – downtown merchants hope the popularity of national chains doesn’t destroy their sales. Earlier this year Jody’s Junction, a locally owned stationary store on Second Street, closed its doors with Staples looming on the horizon east of the freeway on Cochrane Road.
Others believe the new retail options on Cochrane Road will draw shoppers from out of the area who may otherwise drive to Gilroy or San Jose to find the amenities they desire.
Krouskup said in a written statement proximity to major business parks makes the location attractive. Madrone Village lies adjacent to the Madrone Business Park and Cochrane Business Ranch, with 700,000 square feet of existing floor space. Across the street the 400-acre Morgan Hill Ranch is Silicon Valley’s largest business park.
Morgan Hill Business Assistance and Housing Services Director Garrett Toy estimates Madrone Village’s first phase would generate $8 million in sales yearly. Toy said the city would receive 1 percent, or about $80,000, in sales tax revenues.
South Valley National Bank is a subsidiary of Pacific Capital Bancorp, which is a NASDAQ-listed bank-holding company with 48 branches and $7 billion in assets.
Peet’s Coffee and Tea – also NASDAQ-listed – is a specialty coffee roaster and marketer of hand-selected teas based in Emeryville. The company started in Berkeley in 1966 and operates stores in several metropolitan areas in addition to selling products through gourmet stores and online.
FedEx Kinko’s is an office and printing services company owned by FedEx Corporation, a New York Stock Exchange-listed company that operates the Federal Express freight business.
Chipotle Mexican Grill, a large chain of burrito and taco stores that started in 1993, is also listed on the New York Stock Exchange. The Denver-based company is credited for helping pioneer “fast-casual” dining, one of the largest growing segments of the restaurant industry.
