City Council Planning

Los Altos Downtown Shops – Bankers Talk to Packard

Packard wants this unused drive-through used for retail, not services
Written by lalahpolitico

Packard wants this unused drive-through used for retail, not services

It was Bankers’ Day at the downtown Los Altos Contiguous ad hoc Retail Committee meeting this Monday morning, May 21, 2012. Los Altos City Council members Ron Packard and Jarrett Fishpaw had invited the Los Altos banking community to attend. Noticeably absent was Chase. But Citibank, Bank of the West, First Republic, Heritage and others sent their managers.

 

Chase, Bank of the West and Citibank are three banks that Ron Packard would prefer not be located on Main Street, at least not at ground level.   He believes these banks with their bigger buildings and lack of inviting windows create dead zones where strolling shoppers do not go.  Such dead zones impair the  “shopping experience.”

these create dead zones where strolling shoppers do not go

 

View of drive-through from Main Street sidewalk

The bankers rejected the premise.  They said, quite the contrary, their customers come to town to conduct bank business as their destination.  Then they may extend their visit to do some shopping and dining.  Banks attract visitors; they don’t repell them. Ask the Los Altos downtown shops, they suggest.

 Banks attract visitors; they don’t repell them.

Ron Packard took a poll of the bankers about the square footage the banks had now.  It went from a low of 3,000 square feet for Citibank to a high of 6,000 square feet at Bank of the West. (4K downstairs, 2K upstairs) Ron Packard asked them if it would be possible to conduct their operations in a 25 foot wide, 100 foot deep two-story building instead (5K square feet ) of their current spaces. The City Attorney has recently determined it would be legal for banks to transfer their non-conforming use to other parts of Main Street. Could they consider it?

 

They replied that  25 x 100 was not a very inviting floor plan for private wealth management activities. Privacy seeking clients might choose Palo Alto banking for their better ambience and more spacious interiors to accommodate appointments with advisors.  Also, if facing the prohibitive costs of moving a vault and safety deposit boxes a few doors down the street, a bank would have to consider the alternative of  just consolidating with a branch in a nearby town. Some of your customers would follow you there.

 25 x 100 was not a very inviting floor plan for private wealth management

The manager at Bank of the West said she had a budget for a remodel this  year, but she has put it on hold [given the uncertainty of what the Continguous Ad Hoc Retail Committee might ultimately recommend].

 

Some bankers who were located on San Antonio said they would prefer to be located in or next to the downtown core.   However, Scott Richie, a local businessman on the committee, says he prefers doing his merchant banking outside the core, at a bank with a large parking lot.  That way a bank errand only takes 10 minutes out of the day.

 

What’s Limiting Downtown Vibrancy

The bankers had some ideas about what was limiting vibrancy downtown.

  1. many different owners … absentee owners, who have inherited the properties…make it difficult to manage the retail mix for the benefit of all
  2. 25 foot frontage zoning makes it impossible to bring in regional or national chains, both retail, restaurant, or movie
  3. police enforcement of noise and partying limits night life
  4. lack of handicap parking on Main and State
  5. lack of balance between the conflicting goals of quaintness vs. falling behind / not up-to-date

 

The bankers stressed the “good citizen” services they provide to the community.  Seniors get help with elder abuse scams and identity theft.  All the banks pack the ATMs with extra cash before city events like Art in the Park.   Banks will make change for out-of-towners, taking a chance on breaking a big bill. Banks make loans to local merchants having troubles.

 

One retired banker observed, “ Main Street banks are all well-maintained. The problem is we have so many buildings along State and Main that really need to be cleaned up.  Government is sticking its nose into business.  This issue is not whether banks need to downsize or upsize.”

 

Packard said the city doesn’t have much control over building maintenance.  What the city does have is zoning – that’s a traditional city function.

 

Transcript 1: Bank of the West Drive-through

From this morning, here is an interesting discussion about the bank of the West Drive-through property.

 Fishpaw: There had been ideas in the past, specifically regarding the Bank of the West site, where since the drive through wasn’t a permitted use by the city council, a number of years ago, the Village Association [ an association of Los Altos downtown shops ], I think it was Abbey Ahrens [ realtor-developer ], mentioned that there was an idea of converting that drive-through area, putting up a short retail space to kind of connect the two buildings there rather than having a drive through and converting a portion of the Main Street side of the buiding to retail while leaving potentially a majority of the current use in place. Are there ways that we can, if there’s way to repurpose part of the building while leaving as much of the space available for the current use,  is that something that…

 

Bank of the West: You’d have to talk to the current owner….We just lease.

 

Fishpaw: Right

 

Al Hill: Let me understand this.  Is the issue not so much about banking, as about the use of the downtown? You two guys would like the two corners to be something other than a bank because you are sort of … it’s almost like coveting the property, because you’d like to see more retail windows on it or something….

 

Packard: You are not far off the mark…There areas up here [ points to Main between First and Third]  are very vibrant from a consumer point of view.  But a consumer walking down here looks across the street and what do they see?  [points to Main between Third and San Antonio]  They don’t see anything  interesting from a consumer point of view.

 

Corner of Main and Third, Bank of the West - Interesting or not?

Al Hill: They see a well-maintained bank building

……..

 Packard: They don’t cross the street

…….

State Street is a dead zone between Third and Main - long parking lot

 

Al Hill:  All along State Street you’ve got a long corridor that’s the parking lot.  That creates sort of … you don’t have stores on both sides in that location,  that’s not as much of a destination.

 Other banker:  [ Interrupting  ] This building [ 4 Main Street, Packard Offices ]  is a gateway to the city and you don’t see any  nice retail.

 

Packard: Which building?

 

Top left is by the tree, the burgundy is CRS-OAD zone

 

Other banker: This building [ meaning 4 Main Street Packard Offices ]

 

Packard:  This is down here [ pointing at map ], this [meaning 4 Main Street Building]  is in a different zone. [ The Packard Building is in he CRS-OAD zone. }

 

Gateway Building at Main and San Antonio has no retail. 4 Main is CRS-OAD

Packard: [Speaking to Hill again now] But you are right this ( State Street between Third and Main]  is kind of dead zone.

40 Main Street Site Today with 4 Main Office Building on right

40 Main Street Site Today with 4 Main Office Building on right

 

……

 

Transcript II  – Gateway to Retail?

The discussion went on to many other things.  Later there was this discussion.

 

Other banker:  What is the true [ inaudible ] that you are trying to accomplish?

 

Fishpaw: It is definitey improving co-tenancy

 

Other banker: I want to see the numbers.

 

Fishpaw: We have not yet engaged an economist to review

 

Other banker: You don’t need to spend a lot of money.  Contact the retailers, not the bankers. How do the retailers feel about the value of banks in town?

 

Packard: Think through the methodology.  The numbers you are specifying [ traffic per sq. ft., revenue per sq ft.]  may not be the right numbers.

 

Other Banker: What numbers would you specify?

 

Packard: What is the incremental impact that this will have on the retail. It might not be based on square footage, it might be based upon the perception of the retail experience.

 

Other banker: Well what about the retail experience of driving into this town  and seeing a good retailer right at the corner of this building? [ 4 Main Packard Offices ] How did this area get zoned differently?  Why aren’ t people looking at rezoning this. Or a modification. What perception…

 

 Packard: That was done 40 years ago. I would have a conflict of interest about that . I can’t talk about that in front of council member.

………….

Wrapping it up –

The group went on to discuss parking, lamenting how some people who frequent downtown will get in their car to move it one block.

Packard said there would be another meeting in two weeks  [Monday June 4]

About the author

lalahpolitico

Norma Schroder is an economics & market researcher by trade and ardent independent journalist, photographer and videographer by avocation. Enthralled by the growth of the tech industry over the decades, she became fascinated with the business of local politics only in the past several years.