The Buzz: Stillwater lands a second buyer. A virtual meeting for Costco? – Redding Record Searchlight

What happened last Monday in Redding got lost amid the escalating news cycle of the coronavirus.

The Redding City Council agreed in principle on a deal with PACE Engineering to purchase Lot 3 in Stillwater Business Park.

The Redding-based company will be the second business to buy land in Stillwater, the city-owned business park that officially opened 10 years ago. The other company is Lassen Canyon Nursery of Redding. The nursery paid $840,000 for 16.75 acres in Stillwater in late 2015 but postponed its plans in 2017 to build there due to the economy.

“The council authorized staff to basically complete negotiations with us and authorize a purchase agreement for parcel 3, so the city attorney and our attorney are working through a few details,” PACE President Paul Reuter said. “The city was pretty excited to authorize it.”

This past Thursday, Reuter told me he expects the property to be in escrow within a week, and the deal to close not much after that. He said PACE has already done its due diligence so it should be all but a done deal.

PACE has applied for a grading permit and wants to submit a building permit for its new 22,000-square-foot facility in Stillwater by the end of the month. It will take about 15 months to build.

“Our intent is to begin construction in early May, so then the coronavirus comes along,” Reuter said. “At this point in time we are full steam ahead, but just like the rest of society we are keeping our eyes and ears open as things change.”

Initially, PACE was interested in Lot 2, about a 3-acre parcel. But when the company did some preliminary layouts, it discovered the property was too small, so it pursued Lot 3, which is just over 5 acres. The larger lot gives the firm room to expand.

“We really want to build a single-story building,” Reuter said, noting that going to two stories would add about 15% to construction costs. “As you know, it is challenging to build something today that is worth the money you have in it when you’re done.”

And the project won’t trigger prevailing wage, Reuter said.

“We have been working with our legal counsel and the city’s legal counsel and it is our understanding that as long as we pay fair market value and won’t take any development incentives, that we don’t have to pay prevailing wage,” Reuter said. “To be honest, if we have to pay prevailing wages, there is no project. It adds 30% to construction. There’s no way we could do it.”

How much PACE will be paying for the property has not been determined because the fair market appraisal has not come in, Reuter said.

Incorporated in 1976, the company has 55 employees, about 15 more than it had five years ago. 

“That’s kind of the driver. We are just bursting at the seams here,” Reuter said of PACE’s current South Street home in downtown Redding.

A virtual meeting on Costco?

Like nearly everything, Costco’s planned move to freeway frontage property in south Redding is being paused by the coronavirus pandemic.

This past Thursday, the city announced the Planning Commission meeting coming up on Tuesday to consider the move is postponed. A make-up date hasn’t been announced.

The Redding City Council was scheduled to make the final decision on Costco’s plans April 7. That meeting also will not take place.

Kent Manuel, the city’s special projects planning manager, said the best-case scenario would be the Planning Commission meeting gets rescheduled for late April, but that is being extremely optimistic.

This is the latest setback for a project that has had its fare share. Clearly, Costco and the city want to see some closure.

Costco’s new store would be 152,000 square feet — about 40% larger than its current location — and sit on the northwest corner of South Bonnyview Road and Bechelli Lane west of Interstate 5. The store also would feature a gas station with 20 fueling positions and the ability to expand to 30.

Would the city consider holding the Planning Commission meeting virtually if the state’s ban on large group meetings lingers?

It’s something the city is thinking about but hasn’t decided, City Manager Barry Tippin said.

“We think it’s important to the community and we want them to have their say,” Tippin said.

“We want to do everything we can to push this forward but not at the expense of public safety and not at the expense of potential governor orders.”

There’s also the question of having the technical capability to allow the public to chime in virtually. And what about those who don’t have that capability from their end?

If conditions improve, Tippin said maybe the meeting could be held in the Redding Civic Auditorium, a much larger venue that would allow for better social distancing.

Stay tuned.

Cracker Barrel coming to Redding?

A reader emailed me recently to say she was at the Cracker Barrel in Sacramento and an employee there said Redding would be getting a location.

She wanted to know if I’ve heard anything.

I have not. But then I got to thinking where would Cracker Barrel go?

One spot that came to mind is the former HomeTown Buffet building in the FoodMaxx shopping center on Churn Creek Road. The building has been vacant since last summer when HomeTown Buffet abruptly closed, ending a 25-year run in Redding.

Or maybe the Churn Creek MarketPlace shopping center where In-N-Out Burger last fall opened a second location in Redding.

For the record, there is a Cracker Barrel in Medford, Oregon, where there also is a Chick-fil-A.

READ MORE BUZZ:

• Street fair, umbrellas, holiday lights debut this year. Here’s a preview
• Former Costco site in default; Realtor says deal to avoid foreclosure in works
• Save Mart opens in May. Four questions answered about the new store.

David Benda covers business, development and anything else that comes up for the USA TODAY Network in Redding. He also writes the weekly “Buzz on the Street” column. He’s part of a team of dedicated reporters that investigate wrongdoing, cover breaking news and tell other stories about your community. Reach him on Twitter @DavidBenda_RS or by phone at 1-530-225-8219. To support and sustain this work, please subscribe today.

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