Downtown area retail-office project delayed by the economy
By Moryt Milo
The plan to build a multipurpose retail-office complex on E. Campbell Avenue between Second and Third streets has been delayed by developer Barry Swenson Builders Inc., due to a downturn in the economy.
The project, part of the city's revitalization plans for the historic downtown business district, was scheduled to begin in March 2002, but it will sit idle until the summer of 2002, according to Campbell Redevelopment Agency Executive Director Kirk Heinrichs.
"The developer was unable to sufficiently pre-lease the building due to a slow market," Heinrichs said.
Barry Swenson Builders Project Manager Deborah Calloway added that there was a huge demand for rental space in February 2001 when the development was being designed, but "last spring things started to drop off."
Prospective tenants were slow to commit, with less than 50 percent of the planned development rented, Calloway said. The builder hopes to have a significant percentage of the property leased before the project begins construction.
The multipurpose two-story building, approximately 25,000 square feet, will include retail businesses on the lower level and offices on the upper level. The project is being designed to locate all the office entrances in the back of the building, which will give employees closer access to the new two-story parking structure located between Second and Third streets. All the retail entrances will be located in the front.
Calloway said that the developer is hoping to rent out some of the lower level space to restaurant tenants, with sidewalk seating.
The developer also plans to create a landscaped pedestrian plaza, with benches for leisure seating behind the complex. The design will create an open space between the parking garage and the new building.
"It will be more than just an alley," Calloway said. "It is going to be beautiful."
With the extended five-month delay, the builders expect to complete the project by fall 2003.
"The design of the project is not changing at all, only the timetable," Heinrichs said.
Campbell, California
