Council Approves $20,000 Subsidy As An Incentive To Patrick James
Strategy is part of the city's new economic development
Some businesses unhappy
By Leigh Ann Maze
Saratogans may soon be able to do what they have not been able to do for a long time--buy a man's shirt and tie in Saratoga Village. On Aug. 2, the city council gave Interim City Manager William Norton the go ahead to spend $20,000 of the city's money to entice Patrick James into Saratoga Village.
The high-end men's clothing store recently lost its lease in the Pruneyard Shopping Center in Campbell, and is looking for a new location in Santa Clara County.
Patrick James has expressed interest in the 1,600-square-foot building, which used to house the Bit O' Country antiques and collectibles store at 14527 Big Basin Way in Saratoga Village. The building, which used to be a residence, has stood vacant since Bit O' Country closed its doors in February.
Patrick James has written a letter of intent to lease the property for an initial term of 10 years; however the lease is dependent on several conditions.
Before leasing the building, Patrick James wants the owner to make several improvements, including $35,000 in disabled access improvements and $40,000 in general building improvements. Patrick James has pledged to spend $85,000 on building improvements specific to its needs.
The property owner and Patrick James have been at a standstill over lease negotiations for the past two months. The $20,000 from the city is meant to bridge the gap and keep negotiations moving forward. "Both parties were willing to walk away from the negotiations, so that's where the city stepped in with some money as an investment," Norton said.
The city and Patrick James are expected to sign an agreement for the $20,000 early this week.
Not everyone is enthusiastic about the council's decision to invest in Patrick James. Kristen Davis, who owns the Front Window at Azule Crossing, questioned whether Patrick James is the kind of store that will attract the right customers to the Village.
"I think its a good idea for the city to offer some type of incentive to attract new business but I don't know if it should neccesarily be a monetary amount. It doesn't seem very fair to existing business owners," she said.
Several other Village business owners, who chose to speak off the record, said they believe the council's decision to invest $20,000 in Patrick James was unfair. Those contacted for this story said they would prefer to see the money used to help existing struggling businesses that have been in the area for years.
The city expects the money will be paid back to the city within four years through sales tax and business license tax revenues. If the money is not paid back through tax revenues, or if Patrick James leaves the building, the clothing store will be responsible for paying the city back.
"It's an investment by the city for economic development," Norton said. "We are guaranteed to get the money back."
Patrick James owner Patrick MonPere estimates annual sales for the store to reach $650,000 after a few years, of which the city will receive one percent, or up to $6,500 per year.
"This is an elegant store which will really add to our village," said Councilman Evan Baker at the council meeting on Aug. 2. "It's an opportunity we should not pass up."
It is expected that Patrick James will also increase business at nearby restaurants and retail stores not only through increased foot-traffic in the village, but also through the store's Bay Area-wide advertising.
The agreement with Patrick James is only one part of Norton's revitalization plan for the city of Saratoga, which includes seeding the business districts with several destination-oriented stores, like Patrick James. His plan also includes minor improvements to the village and the hiring of an economic development coordinator for the city.
Saratoga, California Since 1955
