In the most recent fiscal year, according to the Morgan Hill Times , the city of Morgan Hill collected $6.1 Million in sales taxes. Restraunt and gas stations accounted for 23% of that amount. This lead the Times article to suggest that maybe the city motto should be changed to 'Eat here, get gas'.
The article goes on to discuss declines in retail sales since 2001. It also discusses retaining the sales tax "leakage" - or retail purchases that residents of Morgan Hill make outside of Morgan Hill.
The article itself is a great read and worth your time, but it brings up bigger issues worth discussing here. The fundamental problem here is growth philosophies and an inability of Morgan Hill planners to attract retailers that would keep those retail purchases inside Morgan Hill.
One effort that is mentioned in the article to reverse this trend is the construction of the retail space at Cochrane and 101.
You could also argue that establishment of a Trader Joes in Morgan Hill and the developments taking place downtown are also efforts to try and retain retail dollars spent by Morgan Hill residents.
The new development at Cochrane and 101 may help to keep some of those dollars, but it currently does not offer much in the way of new shopping or big draw retailers that might keep more Morgan Hill residents out of Gilroy.
Lets take a look at some of the known retailers that will be setting up shop in the new retail outlet at Cochrane and 101:
- PetCo.That is great, but we have a PetCo. It's in that retail center that the city has talked about using eminent domain to take over. It sounds like this PetCo will be larger and offer more. But still, I don't see the big "retail difference being made there".
- Circuit City will be another store. Now this one could make more of a difference. Getting a well known chain like Circuit City into this retail center will definately be a good thing and help to keep some of that retail revenue in Morgan Hill. In addition, it will be one less reason for folks to get off the freeway in South San Jose (where the nearest Circuit City is) on their way back to Morgan Hill from work.
- Cost Plus. I think this will be a good one. I have enjoyed Cost Plus World Market stores I have seen. This would be a good addition to what is currently on offer in Morgan Hill
- Staples. This is a great one. It directly competes with Gilroy since there is a Staples there. I know that I have had to drag myself down to Gilroy on many occasions to pick up one thing or another. It will make me VERY happy to be able to spend that money in Morgan Hill now.
- Sleep Train. Nice, but I don't see it tiping scales in the retail dynamic.
- Starbucks. Ok. Don't get me wrong. I like Starbucks. It is the only place I can get a reliably good Mocha. But good Lord... how many starbucks do we need in this town? There is the one on Dunne by the 101. Another drive through near Cochrane and Monterey a walk in at Monterey and Dunne. Plus there are the ones inside the grocery stores. I just don't see this adding a big draw - but I do wish them well.
- Target. We have one... this one will just be bigger. Despite being bigger, it will still be missing the grocery and garden centers. Perhaps this will keep some of the Target based business local, but since we have had a target for a while, I am not counting on a big change revenue wise.
This is all good news. Particularly if it is all done using the opposite approach to that taken by Gilroy where it looks like a cookie cutter concrete retail sprawl suddenly fell out of the sky.
The moves we are seeing are in the right direction. With just a few more big anchor retailers in Morgan Hill, we can all stop driving to Gilroy for what we need.
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