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June 25, 2010

Deal near for two Oakland Foods Co. locations

By Blanca Torres, San Francisco Business Times

Oakland’s retail dreams are finally starting to come true.

After years of unsuccessfully reaching out to retailers and developers, the city’s redevelopment agency is negotiating several deals, including one with Kroger Co.-owned Foods Co. to open two stores in East Oakland — a highly underserved area.

In addition, the redevelopment agency selected developer Sunfield Inc. to build mixed-use retail and commercial projects on two sites that were among 10 for which the agency solicited development proposals last fall.

Of the 10 properties, six attracted proposals. The city decided to pursue five: one from Foods Co., two from Sunfield and two others which are still in early negotiations.

The Foods Co. bid is for a four-acre site at the corner of 66th Avenue and San Leandro Street, a city-owned property near the Oakland Coliseum, where it plans to build a 72,000-square-foot store. That store alone is projected to add $50,000 in sales tax revenue and more than 100 jobs.

In addition to the redevelopment agency site, the grocer also plans to open a similar-sized store in the Foothill Square Shopping Center, an aging complex that developer Jay-Phares Corp. plans to revamp with a Foods Co. store as the anchor.

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