Concerned about the numerous vacancies in Pacifica shopping centers owned and operated by KIMCO Realty, City Council members directed staff to engage in a conversation with KIMCO about their long term plans for the shopping centers.
Out of the meeting that occurred Mar. 26 with Pacifica Planning Director Tina Wehrmeister, City Manager Lorie Tinfow, and three KIMCO reps including Western Regional President Armand Vasquez, a commitment to communicate more frequently about issues key to both the city and the realty corporation emerged.
Council Member Mike O’Neill was the one who encouraged his colleagues to take a tough stand on vacancies by developing a vacancy ordinance. His colleagues did not go that route, but they did support opening up communications with KIMCO to find out what its long term plans are for the shopping centers.
“There is a lot of community concern,” O’Neill said. “I would like to see what happens working cooperatively before the hammer comes down. I was disappointed to see the week after the meeting, the pet store closed and two others are concerned with rent increases.”
“They do have a plan,” City Manager Tinfow said. “They said tenants have their own considerations to take into account. Other businesses have moved in, such as Pet Food Express.”
KIMCO is now the sole owner of the Linda Mar Shopping Center, having recently bought out a partner, but still owns the Fairmont Shopping Center with a partner.
There are nine vacancies in the Linda Mar Shopping Center and seven in the Fairmont Shopping Center. Denny’s Restaurant is a prominent vacancy in Linda Mar. Tinfow said KIMCO asked during the meeting for the community to suggest restaurants to go into the vacated space. She made that the topic of a “City Hall Listens” question posted on the city website.
As of press time, 39 local residents made suggestions. They range from wanting something elegant to something family friendly. A few posted the importance of having a restaurant open at least late if not 24 hours. Many said independent ownership, not a chain, was important to them. Some said they wanted to see a restaurant that serves healthy, high quality, organic food.
Suggestions ranged from a brew pub such as Gordon Biersch to other restaurants — Saturn, In ‘n Out, Fresh Choice, California Pizza Kitchen, Pacific Catch, Native Foods, Mimi’s, Coco’s, Shari’s, Carrow’s, Black Bear Diner, Red Robin’s, Hobee’s, Buttercup Grill, International House of Pancakes. One local resident said the perfect restaurant for that space — another Denny’s.
Armand Vasquez, Western regional president of KIMCO, said he initiated the opportunity to talk with city staff about the shopping centers.
“Our concerns are the same as they are for the community. I’m just as concerned about the vacancies as the rest of the community,” he told the Tribune. “We would contact any restaurant the community is suggesting move into the area.”
When asked about the Denny’s franchise owner who said she left Linda Mar because KIMCO would not give her a long term lease, Vasquez said the terms of the lease are private and he could not comment. He said other tenants in the shopping center do have long term leases.
When asked why an independently-owned pet supply store left in favor of a chain, Vasquez said that sort of thing will happen as changes are made to the mix. Asked why the Hallmark store closed and that space remains vacant for years, Vasquez said, “Their product is very seasonal. With a limited market area, it’s difficult for them to survive. We continue to market the space.”
Asked why there are so many vacancies in the Linda Mar Shopping Center, Vasquez said some vacancies will always occur.
“We try to maintain market relevancy. In some cases, we have leases in place, but we have to continue to work with those spaces to have long term availability. We are in discussion with several retailers for the in-line space as well as restaurants for the Denny’s building. We have to respect their confidentiality at this time,” he said.
Asked about allegations KIMCO tried to raise rents so high in both shopping centers, tenants fled, Vasquez said, “There are always two sides to the story. The community may not have been supportive and generated enough volume. We have always tried to preserve our existing tenant base, but if they pursue negotiations to the point it doesn’t make sense, we have to go in the other direction. We try to work with all tenants and give them a chance to make an equitable deal, but the market will dictate. While it may be our role to define the shopping center, the market dictates the adjustments we make over time,” he said.
Rite Aid is making long term cosmetic improvements both in Linda Mar and in Fairmont. Safeway plans an upgrade soon, as well, Vasquez said.
KIMCO also operates the Westlake Shopping Center in Daly City and is expanding its personnel base in Daly City to address both Daly City and Pacifica’s concerns.
“The city’s concerns are our concerns. We are not always going be in agreement, but we will have Pacifica’s and the shopping centers interests in mind,” Vasquez said.
Jane Northrop can be reached at jnorthrop@bayareanewsgroup.com
