From Our Readers
Peninsula News – Thursday, February 14, 2008

Stoltz is committed

To the Editor:
In a recent letter to the editor (Feb. 7), comments were made concerning the motives for the name change for The Avenue of the Peninsula and the viability and desirability of the center in general. As the owners of this center, we were surprised a member of the community views one of the main gathering places and their community in such a negative light Our experience on the Peninsula has been entirely the opposite. We have felt a very warm welcome here and are proud to be a part of this community. In the 15 busy months that Stoltz has owned the center, our occupancy has grown as we have opened nine new businesses - two are currently under construction and four are getting ready to start construction soon.
To clarify, when Stoltz Management purchased the center, the name change was a requirement of terms of the purchase of the property with the seller. “The Avenue” was a signature name of the previous owner's shopping center portfolio. It has become common practice among retail developers to have a “signature” name.
The center provides more than just retail to the surrounding residents. Without this center, the residents would have to drive off the Hill to obtain these services and all the other amenities it provides. The Avenue of the Peninsula offers services such as doctor's offices and educational facilities, family attractions such as the theater and the new health and wellness center, and a gathering place for community events such as the tree lighting, music and theatrical performances. Stoltz Management is very proud of their investment and the opportunity to serve the unique and outstanding Peninsula community, and Stoltz's commitment is long term. It is our goal to make this center a positive and integral part of the community. Therefore, we asked the community to vote on a future name for the shopping center, which serves them in so many different aspects of their lives.
We have received hundreds of responses from enthusiastic residents who are actively taking part in the center naming. We look forward to announcing the new center name and thank everyone who has taken the time and effort to vote for their name choice.

                                                                    Elizabeth Griggs, general manager
                                                                    The Avenue of the Peninsula
                                                                    Stoltz Management


Condos won't save retail

To the Editor:
I read Mike Giglia's letter that appeared in last weeks Feb. 7 issue of the PV News with mixed reaction. I am sympathetic to Giglia’s desire to grow his business, but I am taken aback at what he is prepared to sacrifice (increased commute traffic, parking overflow) in order to achieve the promised retailing gain from the condominiums.
Most important here is the fact that Giglia apparently doesn’t understand the economics of local vs. regional shopping centers well enough to know if the developers' promises are real.
Silver Spur began as a local shopping area. It was turned into a regional shopping center when The Courtyard was built in the early 1980s. This shift in center type is important, because the shift from local to regional requires a much larger customer base.
Regional shopping centers focus on less frequent but more dollar-intensive shopping - clothes, perfume, housewares and other medium to high-ticket items. But those larger ticket items are usually purchased in fewer shopping trips. Larger per-visit spending, but fewer trips. Thus, for the regional business model to work (generate revenue sufficient to cover the regional center's costs), it needs a larger customer base. And if this base isn’t there, nothing works well. It is instructive that several excellent anchor retailers have tried our Silver Spur center; and all have failed. From this, a reasonable person could conclude that the original developers simply made a mistake, and the regional center at Silver Spur requires more customer base than the Peninsula provides. The economic study commissioned by the city appears to agree with this observation. Thus, the developer-presented idea that the customer base represented by “a few new condos” will save the Silver Spur retailers just doesn’t wash.
Giglia would have us buy the developers' notion that “... if we build them (the condominiums),” salvation will come. I don’t think so. Destructive complications in commute traffic, parking and ghetto potential are evident and palpable, while the argument in favor (it will save our retailers) doesn’t appear to have much substance. And I find the “so what” attitude about trashing our RHE rural environment repugnant.

                                                                            Richard Conway
                                                                            Rolling Hills Estates
 

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