DG Market (Dollar General Market) may soon be coming to Oakley as they were apparently the winning bid on the Centro-mart parcel that was currently up for bid. Their bid price was just $630k and I would urge the City Council to request staff to re-bid and find another investor who has a different development plan for the property.
The City Council would make a bold move in rejecting all bids for this property and opening it back up considering just two bids were submitted (Item 4.4). Whoever wins the property, they would have to make a significant investment in updating/upgrading the facility.
The first bid was submitted was $500,000 by Dan Hoady, a developer from Fremont, CA. Hoady’s bid was thrown out because it did not include a development plan as required per the RFP.
The second bid was for $630,000 from Cross Development, a developer based out of Plano, Texas. Cross Development’s submittal did include a development plan and met all of the bid requirements, as outlined in the Invitation to Bid.
The development timeline and improvements plan states they would commit themselves to complete the facade improvements within one year of the close of escrow. They will need 90-120 days to coordinate our engineers, architects, and other consultants and obtain the necessary permits for our expansion and redevelopment of the existing building. Construction will then take an additional 150 – 180 days to complete the improvements. With Tenant opening within 15 days or construction completion.
Cross Development plans to partner with DG Market (Dollar General Market) to expand and improve the existing building to include a specialty market that includes fresh fruits, vegetables, dairy and related grocery items as well as other soft goods, as depicted in the photographs found in its submittal. The proposal is for DG’s unique specialty market that has been successful throughout the country – it is not a dollar store.
According to the Bid, DG Market; a national, public tenant operating more than 9,800 stores in 38 states, 9 distribution centers and more than $13.04 billion in sales. Please refer to their website at: dollargeneralmkt.com. The store will be a 17,500 or larger DG Market. (please see attached pictures) We will be expanding the store and investing in the existing building to make it a top notch property. We are confident that our redevelopment will be a true asset to your community, employment and tax base.
The staff report and city staff can say it’s not a dollar store all it wants, the pictures show otherwise and this may be a small step up from a dollar store. To me, it looks like a mix of Rite Aid and Walgreen’s—do we really want another one of those as the focal point of Downtown?
Oakley has a downtown plan and it should stick to the plan rather than accept someone from the first round of bids. Reject the bid, put it out again and then re-evaluate. Losing a Dollar General Market is not the end of the world as just two bids were received.
It’s better to find the right fit for downtown as opposed to simply filling the buildings with anybody.
DG Market Website
Full Staff Report (Bid does include pictures of inside a DG Market): http://www.ci.oakley.ca.us/UserFiles/file/agenda/2012%20Agendas/5%2022%202012/text4_4.pdf