Thursday, March 12, 2009

New Petaluma center may impact Novato retail

A report prepared for the City of Petaluma predicts that the proposed East Washington Place shopping center may cause local residents to shop closer to home rather than at nearby centers in Novato and Santa Rosa.

According to the Fiscal and Economic Impact Analysis conducted by Bay Area Economics, The Petaluma area is currently in short supply of general merchandise and other stores, which means that almost 50% of retail sales in these categories are "leaking" out of the Petaluma to adjacent cities.

That may change after the opening of East Washington Place, which is slated to include 362,000 square feet of retail space, including a 138,000 sq.ft Target. Total retail sales at the center in its first year are estimated at $120 million, of which $68 million is projected to be money that petaluma area residents would otherwise have spent at stores outside the Petaluma area. Watch out Vintage Oaks.

A number of major retail developments have been proposed for Petaluma in recent years following a 2004 report that highlighted that nearly $200 million of retail spending by Petaluma residents was leaking to stores outside of Petaluma.

According to the North Bay Business Journal, another large center is also planned for Petaluma. The 315,000 sq.ft Deer Creek Village would be anchored by a Lowes home improvement store. This may prove to be a regional attraction, drawing shoppers from the Novato area and elsewhere.

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