Madrone Village Shopping Center Will Open May 2007

Madrone Village Shopping Center Will Open May 2007
Morgan Hill – Construction of the new Madrone Village Shopping Center in north Morgan Hill that started in September is expected to finish in May 2007, with potential tenants including Kinko’s, FedEx, Peet’s Coffee and South Valley National Bank.

A 50,000-square-foot anchor store is planned, but that will wait until a tenant is signed, possibly a major grocery or drug store.

Madrone Village is the second retail hub under now construction on Cochrane Road. And with all the hoopla over the 650,000-square-foot shopping center going in east of Highway 101, it appears as though Morgan Hill has found its next retail hot spot.

“Cochrane Road is an extremely strong retail area with significant room for growth,” said San Jose developer Brad Krouskup, adding he thinks the location is so attractive that he’s proceeding on a “speculative basis” with the 80,000-square-foot Madrone Village, which is located one block west of Highway 101.

Krouskup’s development firm, Toeniskoetter and Breeding, Inc., estimates more than 140,000 people live along the Highway 101 corridor between Coyote Valley and Hollister, with mean incomes surpassing $85,000.

City Manager Ed Tewes said, “Not surprisingly, the three largest retail areas by volume of sales are near the three freeway interchanges. Development on Cochrane will increase retail activity there significantly.”

Garrett Toy, the city’s director of Business Assistance and Housing Services, said Cochrane Road is ripe for more retail development.

“We believe that the larger center (east of Highway 101) combined with Cochrane Plaza and Madrone Village has the potential to create a retail synergy, which will encourage other retailers to come into the area,” Toy said. “That amount of retail amenities will draw shoppers into the area.”

Officials hope that means more sales tax money for the city. Madrone Village, even without an anchor store, is expected to generate between $56,000 and $84,000 annually. A large grocery store could help it generate between $160,000 and $240,000 in sales tax dollars. 

“It will serve the majority of residential population in northern Morgan Hill,” Krouskup said. “And everyone going in and out of Madrone Parkway and Coyote Valley.”

Cochrane Road is an area Toeniskoetter and Breeding, Inc., already knows well. The company’s 110-acre Madrone Business Park includes Marriott Residence Inn, Courtyard by Marriott, a Chevron gas station, In-N-Out Burger and Denny’s. They also developed the 30-acre Cochrane Business Ranch.

As more stores crop up in north Morgan Hill, city officials anticipate future retail development will occur through revitalization of existing shopping centers, in-fill development along Highway 101 and the on-going effort to bring more businesses downtown.