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Redtree Proposes Storage Facility for Vacant Bay Avenue Space
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Redtree Proposes Storage Facility for Vacant Bay Avenue Space
By Linda Fridy
Nearly 38,000 square feet of retail space in Capitola has sat vacant since the County Office of Education moved from Bay Avenue's Nob Hill center in the summer of 2008. Now the building's owner, Redtree Properties, wants to convert the space to a self-storage facility.
The property company asked Capitola's planning commission to give it feedback on the proposal at its Jan. 21 meeting.
Redtree has not been losing money on the vacant space. In addition to maintaining its new offices in Santa Cruz, the COE has also been required to pay about $37,000 a month while it tried, unsuccessfully, to sublease the space.
Just after taking office, County Superintendent of Schools Michael Watkins pushed hard and won approval to purchase and renovate a larger office building in the Harvey West area of Santa Cruz.
The nearly 18 months of double facility costs has racked up nearly $700,000 in duplicated rent payments for the COE. The Capitola lease will end in August 2010.
"When we initiated the move in 2007, we had lessees [promised by the realtor who sold us the new facility]. Nob Hill was interested in expanding. In the year we spent making renovations to our new building, the economy just collapsed," said Watkins.
The location at the back of the shopping center was never optimal for an office, he said.
"It was difficult for clients to park. Whatever they can do to lease it to support the economy of Capitola, I would support," said Watkins.
Currently, Capitola does not include storage facilities among its permitted uses in commercial zoning, so the conversion would require more than just a project approval.
Commission Favors Plan
The concept got a positive reception from commission members, who acknowledged the location's challenges. These include limited parking in the immediate vicinity and an entrance that falls below street level.
Redtree proposes building 394 interior self-storage units ranging from 5 x 5 feet to 20 x 20 feet. The vision includes removing heating and air conditioning units on the roof and renovating the interior so that the units are not floor to ceiling, but allow an open space near the ceiling and skylights.
"Our intention is to do this ourselves," said Craig French, Redtree's managing director, rather than leasing the operation to another company.
The plan also would create new small retail or office spaces facing Bay Avenue, since the storage facility does not require all of the storefront area. Few changes would be made to the outer appearance of the center facing Bay Avenue.
Storage would not bring in sales tax income that a retail use would, city staff noted, but French observed that it will gain property tax income for the portion that was occupied by the County Office of Education. That part was tax exempt while the public agency leased it.
Commission member Ron Burke said his knee-jerk response was negative, but he now thinks that the plan could be appropriate with certain restrictions.
The four members of the commission in attendance unanimously agreed that access hours should match those of the shopping center's anchor Nob Hill.
They also said they would want to require low-noise rolling doors and actively monitored security cameras.
In addition, they asked that Redtree extend the center's white picket fence along the length of Central Avenue to improve appearances for those neighbors.
The one resident in attendance expressed support for the project with the restrictions suggested by the commission.
Although the conceptual review process is going quickly with a City Council public hearing scheduled for Jan. 28, the specific plan must go through approval, leaving little chance that that the COE, and taxpayers, will get any break on lease payments.
"We budgeted for it [continuing to pay the lease], but we didn't anticipate it. ... Clearly things have changed in three years," said Watkins.
Once the lease expires, the COE will be paying about what it expected to pay in increased rent, but on a building it owns, he said.
"I am still confident the investment will pay off," Watkins added.
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