Can Merced create a retail destination on southeast side? Here’s what we know
On the southeast side of Merced County, several development projects offer the potential for a future retail destination spot for the region and to support new housing and the needs of UC Merced workers and students at the nearby university.
Two developers with fallow land near the intersection of Coffee Street and Campus Parkway along Highway 99 hold the key as they approach their plans with different philosophies. A newly widened Campus Parkway is also ready to handle the extra traffic expected from new businesses and housing that could come together over the next five years, the developers say.
One of the developments, called Campus Parkway Plaza I, already has a Chevron gas station and convenience store. The developer, Daniel Moradzadeh, is also finishing a 133-room Hilton Garden Inn, scheduled to open in late summer or early fall, he told The Sun-Star.
Moradzadeh has 17 acres across Campus Parkway that he plans to develop as Campus Parkway Plaza II. He said that he and his late father, Shemoil, wanted to take their time to ensure that high-end vendors with staying power were located at their developments and that their projects stayed locally owned.
“We want to create that missing element that we don’t have in Merced,” he said, mentioning some popular high-end tenants found in other cities’ retail developments, such as Fleming’s Prime Steakhouse & Wine Bar.
“One of the things we have in Merced is land that can be developed,” he said. “Merced has a lot going for it. It should not be that we just have to take what we can get.”
On the other side of Coffee Street, the Gateway Marketplace project is looking for a new master developer to take over the next two phases of the project. Undeveloped parcels, about 42 acres, are up for sale, said Ken Noack Jr., senior managing director for Newmark, a commercial broker in charge of the property.
“I think it’s natural for a shopping center and hospitality for the benefit of the community and the university,” he said.
The land was part of a dairy farm operation owned by the Pluim family, he said. The family and a development partner feel it’s time to sell the undeveloped acres, Noack said.
The original project was envisioned in three phases. The first phase is mostly completed and home to an ARCO station, several fast food restaurants, including a McDonald’s, Chipotle and Starbucks, and a Tractor Supply Co. outlet.
The next developer will need to invest in backbone infrastructure, including water and sewer, estimated to cost about $6 million, Noack said. He said that two hotels already have made offers and a national bowling alley company has expressed interest about availability. He would not say which ones.
The dream is for a Costco or WinCo Foods to commit to moving in, he said. “Costco is already in Merced, but it may be impacted by the high-speed rail and may have to relocate.”
The intersection is a popular stop for travelers heading into Merced on Highway 99, but developers and local officials envision the larger projects coming together and that part of town exploding with commercial activity.
Amanda Williams, economic development associate with the city of Merced, said in an email to The Sun-Star that the larger development activity at the intersection already has been positive for the community.
“We are excited for the growth and investment these projects are bringing,” she said in the email. “Already, they have created opportunity and a greater connectivity for our community.”
