City celebrates economic prospects new 650,000- square-foot mall
will bring
By Tony Burchyns Staff Writer
Morgan Hill – The city is so excited about the development of its new 650,000-square-foot mega mall that officials will savor the moment at a groundbreaking ceremony at 5pm Oct. 25.
“Its impact on the local economy will be significant. We estimate the city loses about $100 million per year in ‘sales tax leakage,’ ” said Garrett Toy, director of Business Assistance and Housing Services.
City officials hope the mall, located on Cochrane Road east of the freeway, will allow residents to shop in town for those products they currently leave town to find.Â
“More people shopping locally also means more sales tax revenues to the city which can be used to pay for city services,” Toy said.
Construction of the $100-million mall began in July, and the first major piece of the center will be ready next summer when the area’s largest Target store and a variety of other retailers open their doors. Developers are still working out the total number of stores and are in negotiations with retailers such as Petco, Staples and Cost Plus World Market.
City planner Rebecca Tolentino said the mall’s parking lot would hold slightly less than 3,000 cars – an indication that stake holders hope more than just Morgan Hill residents are drawn to the stores.
“We’re still looking for a high-end grocer, and we’ve talked to some cinemas,” said San Jose developer John DiNapoli. “We’ve been doing a lot of work out there. We’ve been wanting to get this going for a long time.”
Phases of the mall’s construction will continue over the next several years.
Guests at the groundbreaking ceremony will include Morgan Hill elected officials, city staff, members of the business community, Santa Clara Valley Water District board member Rosemary Kamei and county supervisor Don Gage.
“The Guglielmo-Broman shopping center fulfills part of the city’s long-term vision to provide much needed shopping opportunities for Morgan Hill and South County residents,” said Morgan Hill Mayor Dennis Kennedy. “Morgan Hill shoppers will be able to do much more of their shopping in Morgan Hill, plus it will bring much needed sales tax revenues into the city’s coffers.”