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Developer warns market conditions and PG&E delays slowed Soledad retail project; Tractor Supply and Quick Quack among prospects
Summary
Newmark Retail California updated council on the Solidad retail marketplace, saying tenant wins (Grocery Outlet, Dutch Brothers) have improved momentum but construction-cost escalation and utility delays have altered earlier plans; the developer reported actual bids once received rose sharply compared with earlier estimates.
John Lee, senior vice president with Newmark Retail California, told the Soledad City Council the long‑running retail redevelopment of the shopping center has made recent leasing progress but still faces hurdles in a small market.
Lee said anchor tenants Grocery Outlet and Dutch Brothers are performing above expectations and that Tractor Supply and Quick Quack are in negotiation. He described a near‑term strategy: secure a few next tenants, demonstrate increased site traffic and then recruit additional retailers. "We got our actual bids in November, and it went up by, like, 55%," Lee said, explaining why earlier design plans shifted and why some national prospects decided against the project.
Council members pressed the developer on trade‑area capture (Lee said tenant analyses looked at roughly a 30‑mile radius), signage and visibility from Highway 101, and the ongoing problem of utility hookups. Lee said some tenants (for example DaVita and a car wash) are complete but remain unopened because PG&E service activation has been delayed more than a year for one building; he asked for council assistance in elevating the utility scheduling constraints with state contacts where appropriate.
Why it matters: The shopping center has long been viewed as a key opportunity to reduce sales‑tax leakage from Soledad and to provide local retail options. Council members said they want the city to be proactive in marketing and in helping to address infrastructure and permitting holdups.
Next steps: The developer offered to return for periodic (quarterly) updates; council supported continued engagement and asked staff to coordinate any necessary assistance with utilities or permitting.
