Shopping center concept advances in Lemoore

Seth Nidever

Aug 19, 2016  

 LEMOORE — A developer’s vision for a huge shopping center south of Lemoore moved forward this week, but it wasn't a slam dunk.

The City Council on Tuesday narrowly approved, on a 3-2 vote, an option agreement with S Squared Development to allow the company to explore the possibility of bringing in a large shopping center to an 80-acre piece of city-owned property in the Lemoore Industrial Park.

Mayor Lois Wynne, Councilman Billy Siegel and Councilman Ray Madrigal voted to approve the agreement, while Mayor Pro Tem Jeff Chedester and Councilman Eddie Neal opposed it.

The L-shaped parcel is bordered by Highway 41 on the west, Idaho Avenue on the south and 19th Avenue on the east.

It’s currently zoned for industrial use. It would have to be rezoned for retail in order for a shopping center to locate there.

The option agreement gives the developer a year to look into the feasibility of moving forward with the project.

Much will depend on whether Bill Stone, the principal investor in S Squared, is able to successfully market the site to tenants.

If Stone decides to move forward with the concept at the end of the 12-month option period, he’s promised to invest an estimated $10 million into improvements such as a frontage road along Highway 41, a new access road from 19th Avenue, building bridges over or burying a ditch along Idaho Avenue and filling in dirt that was removed from the site and used to construct the Highway 198/19th Avenue overpass.

The city would then subtract the value of the improvements from the estimated $4.3 million Stone would otherwise have to pay the city to buy the property.

In addition, Stone has said he’d pay an estimated $3 million to have Caltrans build a roundabout at Highway 41 and Idaho Avenue.

The city would reimburse Stone the $3 million through a sales tax sharing arrangement.

While the option agreement is in effect, the city can’t do anything with the property such as selling it to somebody else.

If Stone decides to terminate the option and not move forward with the concept, he’ll owe the city $10,000 for staff time and legal services.

Stone told the council the whole project hinges on Caltrans building a roundabout at the Highway 41/Idaho Avenue intersection.

Caltrans has plans to permanently close Idaho Avenue at the intersection once traffic on Highway 41 reaches a certain level, according to Lemoore City Manager Andi Welsh.

However, Welsh said that Caltrans officials have expressed interest in a roundabout there as part of discussion of infrastructure improvements associated with a potential shopping center.

When council members asked Stone to come up to the podium Tuesday night, he shared some hints about the kind of shopping center that might materialize at the site.

Stone talked about “mixed use,” mentioning the possibility of “hospitality” businesses alongside retail outlets.

The hospitality industry includes hotels.

Stone talked about “experiential retail.” He put movie theaters, bowling alleys, trampoline parks and Apple stores into that category.

Stone talked about bringing in “fast casual” dining such as The Habit.

Stone said that the retail industry is “changing so rapidly.”

“What we’re looking at is not your traditional shopping center,” he said. “If I knew exactly what I was going to do today, I would tell you. That’s why we need the [12 months].”

When Councilman Billy Siegel asked Stone why he was interested in doing a big retail project in the Lemoore area, Stone said it had a lot to do with “[Naval Air Station Lemoore], what’s happening now and what’s happening in the future.”

NASL is poised for 25 percent to 30 percent growth over the next three to five years.

In explaining why he would vote for the option agreement, Siegel said that the city needs the additional sales tax revenue Stone’s development would bring.

Before the vote, the council heard a passionate argument from Lemoore area landowner and Kings County Supervisor Craig Pedersen against developing the property.

Pedersen said he and his family own a 90-acre parcel between West Hills College Lemoore and Highway 41 that’s already zoned for retail.

Pedersen said in an interview that Lemoore officials had in the past intended for more residential and retail development to go around the college.

Pedersen said Stone’s proposal would be “leapfrog development” that would create blight.

“I guess [the city] is scrambling trying to find money for their general fund,” Pedersen said.

Stone said in an interview that he’s a “firm believer” that if his shopping center concept becomes a reality, it would stimulate development interest in Pedersen’s property too.

http://hanfordsentinel.com/news/local/shopping-center-concept-advances-in-lemoore/article_326d67de-a3f5-59dd-af2c-991863db3d0e.html