We’ve been reading the developer agreement for the Daughtrey’s Building, trying to understand what Castro Valley will get out of it, and what say, if any, we will have in it.
Section 6.2 (page 25) of the agreement stipulates: “The Developer acknowledges that certain proposed uses, and/or tenants of the Property, as more particularly described in Exhibit G, require the prior written approval of the Director which shall be granted or denied by the Director as set forth in this Section.” Let’s check out Exhibit G [PDF] to see what requires prior written approval, what needs prior written approval only if on the street frontage, and, crucially, see what doesn’t require prior written approval:
Types of Use that Need Prior Written Approval:
- Antique Re-Sale
- “Dollar Store where “Dollar Store” shall mean a.99 cents store or “dollar” store including by way of example but not limitation, stores such as Big Lots, 99-cent Only, Dollar General, Dollar Tree, or Family Dollar.”
- “Low-value Retail where “Low-value Retail” means a retail store whose primary purpose is the selling of damaged, used, or heavily discounted merchandise because of its condition, or stores at the bottom-end of the Off-price Retail (defined below) spectrum such as DD’s Discounts. “
- “Thrift Stores such as Goodwill, Salvation Army or similar stores selling second-hand goods”
- “Liquor Sales (not intended to preclude [i] a restaurant selling alcohol for on-premises consumption such as by way of example and not limitation Buffalo Wild Wings, Buffalo Bills, Pyramid Brewery, or Elephant Bar, or [ii] a first class retailer such as BevMo, Total Wine & More, or a specialty wine merchant).”
Types of Use that Need Prior Written Approval for Street-Facing Store Frontage:
- Beauty/Barber services
- Financial Institutions
- Day Spas
- Dry Cleaners
- Indoor Exercise
- Photocopying Services
- Tailor Services
Types of Use that Do Not Need Prior Written Approval:
Low-value Retail is distinguished from so-called “Off-price Retail” which shall mean a retailer that generally offers quality, fashionable, private label (its own or other’s), brand name, or off-season merchandise with every day prices that are generally below regular retail prices for comparable merchandise and include by way of example and not limitation TJ Maxx, Marshalls, Ross, Home Goods, Shoe Pavilion, DSW, Stein Mart, Burlington Coat, or Fry’s. The Parties hereby acknowledge that, as of the Execution Date, such stores do not constitute “Low-value Retail” as defined above. The Parties further acknowledge that Off-price Retail does not constitute “Low-value Retail” (as defined above). The Parties further acknowledge that Off-price Retail shall not include Dollar Stores or Thrift Stores. Off-price Retail is permitted and is not a Director-Approved Use [my emphasis].
And there you have it. That location has so much potential, but the developer can explicitly rent out the former Daughtrey building to yet another off-price retail chain, with nary a word from the County. And even “low-value retail” needs the approval of only one person: the Director handling the former redevelopment properties for Alameda County. The contract does not preclude the Director from seeking input from the MAC, but it does not require it, either. Is it too late to add this requirement into the contract?
Is it too late for Castro Valley to have a say in what happens to this county-owned property in the middle of our downtown? Is this really the best we can do on Castro Valley Boulevard? Is this what we want for Castro Valley?