Op-ed by Petaluma Tomorrow directors opposing the big-box retail expansion near the Outlet Malls, published in the Argus-Courier June 16, 2004

Expansion of the Petaluma Village Premium
Outlets a Mistake

Petaluma Tomorrow, a group of Petalumans interested in issues related to responsible development and sustainable watershed management, has closely followed the proposed expansion of Chelsea Corporation's Petaluma Village Premium Outlets, also referred to as the Petaluma Village Marketplace and the Outlet Mall. Chelsea is proposing a 244,000 square foot expansion of its discount outlet mall by building a 163,000sf southern parcel plus an 81,000sf parcel to the north.

Petaluma Tomorrow has concluded that the expansion of the mall would incur significant detrimental impacts to our community and would simultaneously prohibit the use of the property for needed positive applications. We concur with the conclusions of the exhaustive Retail Leakage & Strategy Study, jointly funded by the City Council and Chamber of Commerce and unanimously approved by the City Council on June 7th that placed expansion of the outlet mall as the weakest site (by a considerable margin) of the eight Petaluma retail site locations evaluated.

The key reasons Petaluma Tomorrow strongly recommends no expansion of the outlet mall are outlined below:

The site sits directly in the Petaluma River floodplain. Floodplains naturally soak up and retain surplus water in times of flooding. Although the Army Corp of Engineers has dredged the river to mitigate the potential for flooding, the fact remains that the area is a floodplain. Covering the area with concrete negatively impacts the area's ability to retain water. If flooded, the new structures will be inundated and the Payran community downstream will be jeopardized.

Expansion of the mall would significantly increase traffic in an already congested area. The mall can only be reached via Petaluma Boulevard North. This boulevard is already congested and the combination of recently approved and proposed residential growth along the road will further increase the load. Because the outlet mall is isolated from other retail, commercial, and neighborhood populations, it would increase cross-town traffic simply to reach this remote destination.

Expansion would be harmful to the revitalization of Petaluma's downtown. A great deal of effort is being expended to re-energize the downtown area and to make it a vital center of activity. The addition of numerous small discount stores within the outlet mall would negatively impact this desired revitalization of the downtown area. Both the Retail Leakage Study and General Plan favor growth in the core of the downtown area because it is more easily supported by infrastructure and less harmful to downtown businesses.

The outlet mall would provide fewer tax revenues than other commercial sites. The City of Petaluma would receive significantly less cash from taxes from additional building at the outlet mall than it would from completely new retail development in the preferred areas of town. This property may be Chelsea's worst economic performer of all of its properties nationwide, and the development of new outlet stores within the mall will not necessarily improve its performance. In addition, to bring in desperately needed tax dollars, the retail plan noted that development in the downtown core would result in higher tax collection for the city than outlet expansion at the outskirts of town. Petaluma Tomorrow also has concerns regarding the Chelsea Property Group failing to make payments to the city when funds are due. The corporation is reported to owe the City of Petaluma $1.2 million dollars in traffic mitigation fees, funds Chelsea agreed to pay as development impact fees in return for being allowed to develop its property in the floodplain along the Petaluma River in the first place. Until these payments are made (plus interest and penalties), the City should refrain from even considering expansion of their properties.

The location, known as the Corona Reach, can best serve as open space or as a recreational park. This beautiful floodplain is filled with wetlands and riparian oak forests that provide habitat for countless land and waterborne inhabitants. It can serve as both a preserve for this natural habitat and as an outstanding green space for hikers, bikers, birders and others desiring a respite from urban congestion. Alternatively, the land could be transformed into fields for organized sports. There are no large fields for team sports on the west side of Petaluma (and none planned) for people over the age of 8. The Corona Reach is the only large flat acreage that can feasibly be used. With the likely closure of the fields at Kenilworth, the proposed new developments and resultant growth of population, and the tremendous East-West traffic load due to transporting west-side participants to east side fields during rush hour, the city should strongly consider opening these last remaining open spaces to recreational uses.

While we agree that additional commercial development can be beneficial to our economy and personal needs (we favor the Retail Leakage Study's high scoring sites along the Washington Boulevard corridor), the Chelsea floodplain location is the least desirable option. The City was the primary funding source for the $75,000 cost to have Thomas Consultants identify and assess feasible locations for large commercial development in Petaluma. The results of this very thorough and revealing report were published as the 'Petaluma, California: Retail Leakage & Strategy Study'. The study identified a real need for additional commercial and retail development in Petaluma and closely studied the eight most likely possible sites for development. Of the eight identified locations, the outlet mall was determined to be the very weakest site. We believe that if the city is to pay for an exhaustive study, it should accept the clear results and recommendations produced by that study.

Given the detrimental impacts to the floodplain, the increased congestion, the need for open space and/or sports fields, and the clear results of the Leakage Study report, Petaluma Tomorrow strongly urges the city not to grant the Chelsea Corporation's request for a 244,000 square foot expansion of the outlet malls.

Please join us on Monday, June 21 [see note below] at City Hall when the outlet mall expansion will be discussed by the City Council.

Petaluma Tomorrow Board of Directors

Larry Modell
Connie Madden
Scott Vouri
Bill Phillips
Steve Kirk


[NOTE: A follow-up public hearing is scheduled for Monday, August 16, 2004, at Petaluma City Hall, 11 English Street. - Ed.]