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Just as Los Angeles was once described as "19 suburbs
in search of a city", so has Dublin been similarly
slammed - with 57 fast-food restaurants as its identity.
Both have exacted revenge on their detractors, though.
While Dublin has not joined L.A. as one of the world's
leading cities, it is gaining new respect from its neighbors,
as an emerging retail powerhouse in the East Bay.
In the latest coup for Dublin, its City Council last
week approved the construction of a 317,000-square-foot
Ikea furniture store, which will bring one of the world's
most recognizable retailers to town by the first half
of 2006. The store will be the largest in the Bay Area
- the third and probably final store built in the region
by Ikea International A/S of Helsingborg, Sweden.
To be located just east of the Interstate 580 interchange
with Hacienda Drive, the trophy Ikea store will sit across
the street from the hugely popular Hacienda Crossings
big-box retail center, which boasts Best Buy, Pier 1 Imports,
Barnes & Noble Booksellers and its own IMAX theater.
A few months later, a 137,000-square-foot, multilevel
"lifestyle" center, being developed by Danville's
Blake Hunt Ventures Inc., is slated to open just north
of Ikea, bringing a new infusion of upscale boutiques,
tony home merchandise stores and trendy eateries to the
Tri-Valley.
"Dublin has been a center of commerce for a long
time," said Janet Lockhart, mayor of the fast-growing
city of 33,000 residents. "Even going back to when
there wasn't much here, people came to Dublin to make
purchases and get things repaired. These latest developments
are taking us, however, to another level."
A higher level dictated by, as the old real estate maxim
says - location, location, location. As the Bay Area's
center of population and business activity has migrated
south and east, Dublin has an ideal setting at the confluence
of interstates 580 and 680. Commuters traveling between
housing and jobs in the East Bay, South Bay and Central
Valley must pass through the area and the frequent traffic
jams expose drivers for even longer periods of time to
Dublin's businesses.
Doug Greenholz, Bay Area real estate manager for Ikea,
said the busy freeways and Hacienda Crossings give the
location a "critical mass" to support such a
huge store. The new Dublin store and the one opened last
year in East Palo Alto will bring a "welcome cannibalization"
of sales from the region's original store in Emeryville
that caused notorious traffic tie-ups when it opened in
2000.
The new Tri-Valley development, which will feature an
Ikea store elevated on stilts above a 1,126-space parking
lot, will be able to take advantage of the commute crawl
because the city authorized construction of a 99-foot-high
sign to advertise its stores.
And there's still plenty of room for even more retail.
"The main reason Dublin is so hot is the 580-680
interchange, which has become the most important in the
Bay Area," said Jim McMasters, commercial broker
for Colliers International. "And it still has the
land for large developments. Thousands of new homes are
being built in Dublin, San Ramon, Livermore and Tracy
and when the residential market is hot, so is the retail
market."
McMasters describes the area as "underretailed"
because of the rapid residential growth.
"Retailers don't feel the area is saturated yet,"
he said. "There's still a lot of interest in this
area. Hacienda Crossings is doing very good numbers and
the restaurants are packed. The demand is almost insatiable
at this point.
"We had tenants move into Hacienda Crossings at
$18 per square foot," McMasters said. "New leases
there are going for $30 per square foot."
Still, even with rising rents - or perhaps because of
them - it's fun these days to be Chris Foss, economic
development director for a city that's in demand.
"Dublin has caught fire because we have large, developable
parcels of land sitting right along a busy freeway with
great infrastructure and access already in place,"
Foss said. "We have a well-educated population with
high amounts of disposable income, too.
"And the great location is an easy trip for people
from throughout the Tri-Valley, Castro Valley, the Central
Valley, even people in Fremont and the east side of San
Jose."
In 2004 dollars, Ikea and the lifestyle center should
generate $7.5 million in sales tax revenue for the city
during its first decade of operation, Foss said. That's
a major consideration for city officials.
"Sales tax is even more important today than it
was in the past," Mayor Lockhart said, noting its
comparative reliability as a revenue source to fund city
services compared with depending on the financially strapped
state. "We hope the state fiscal crisis will end
soon, but you can always count on people shopping. With
a city growing as fast as ours, (the sales tax) becomes
extremely important."
Over the past decade, the city's sales tax revenue has
more than doubled to more than $13 million from less than
$6 million in 1994. Hacienda Crossings alone generates
$1.5 million annually, Foss said.
Although its construction depends on plans for a new
West Dublin BART station, a mixed-use development with
more than 300 apartments, 150,000 square feet of office
space, 7,500 square feet of retail and a 150-room hotel
could spark even more development interest in the city's
"downtown" area that consists today of elaborate
strip malls with such tenants as Target, EXPO Design Center,
Burlington Coat Factory, Mervyn's and Ross Dress for Less.
Lockhart said city officials plan to widen sidewalks,
install new lighting fixtures and plant more landscaping
to give the downtown area more of a unified look, but
they have no illusion it will become the focal point of
their sprawling suburban community.
"We want a greater amount of residential development
in the downtown area to support greater commercial development,"
she said. "But we envision Dublin as a city of villages,
with each commercial and residential area having its own
distinct look and flavor." |