21 ATTACHMENT 14 - Laserfiche WebLink

ATTACHMENT 14 kosmon c©mpanies CUNI~IZ7Fti7'I.A.I.. S: PRiVII.:IIGF,17 tK'ORK YIto17L t;T Memorandum To: Peter Knoedler; Vice President of Investments -Regency Centers From: Larry J. Kosmont; President & CEO -Kosmont Companies Harpal Sadhal; Vice President -Kosmont Companies Date: October 8, 2007 Subject: Evaluation of "Potential Sales Analysis" by Pacific Retail Consulting for the Proposed Home Depot Location in Pleasanton INTRODUCTION Background Regency Centers ("Client" or "Regency") has retained Kosmont Companies ("Kosmont" or "Consultant") to evaluate estimates and conclusions of the "Potential Sales Analysis" ("Analysis") report completed by Pacific Retail Consulting ("PRC") dated October 2, 2007, who has been retained by the City of Pleasanton ("Pleasanton" or "City"), to evaluate demand for a Home Depot ("New Store") location at the proposed Pleasanton Gateway ("Project") in Pleasanton, California. Project Description and Background Regency's proposed Project consists of 193,481 SF of retail building area at the southeast corner Stanley Boulevard and Bernal Avenue ("Site") in Pleasanton. The Project consists of a 141,192 SF home improvement/building materials retailer (Home Depot) and 52,289 SF of additional retail including a Long's Drug store and various service retail and food users. Home Depot currently operates a retail store in Pleasanton at Johnson Drive and Owens Street ("Johnson Drive"), south of the I-580. The Project as proposed installs an additional Home Depot in Pleasanton, which would operate concurrently with the Johnson Drive location. Local community groups have questioned the viability of two Home Depot stores simultaneously operating in the same city and the "sales cannibalization" effect it may have on the Johnson Drive location. The City hired PRC to assess these concerns by conducting the Analysis which evaluates the Project site feasibility based on sales potential for a new hardware home improvement retailer in that location. Kosmont was independently asked to evaluate the sales potential and viability of the new Home Depot, including consideration of PRC's Analysis and findings. Kosmont's supplemental perspective and findings are based on the firm's professional experience and analysis of area sales and demand trends. tnis analysis is Fa iaVShalive WrDpsas and is rql a quvanure dt at~al and7pr !upue results. Proje[: prp +c.ms and tar anasysas are pepjCCUpM poly, IIGYit faSUlta may Cafar matenapy !!OM dxNt aspfe34ed Mt Iltw ena!yaq. kos mono„ tifi501 Venwra 8nrd. Suite 511 Endrro Cmilgnia su3s PrI HiB.9l1.&4B4 'ax 618,981 S5B8 +N+na,kp5monl com