In tough economic times, retailers are the first to go. In past issues, Napa County’s tough skin and ability to fend off economic downturn have been highlighted. However, as our nation sinks deeper into recession and retailers around the globe struggle to stay afloat, we, too, are starting to feel the pain. Retailers throughout Napa County are making cuts to stay afloat—and, in some cases, closing their stores entirely. Within our retail sector, however, the hospitality branch isn’t contracting. In fact, it’s exploding—with some very positive downstream impacts for the County as a whole. Here are a few of the hotel and retail projects coming online throughout Napa County.
American Canyon
American Canyon’s Planning Commission recently approved construction of a Holiday Inn Express, to be located at Napa Junction. This 100-room hotel (previously known as the Inn at Napa Junction) will be located on one acre at the south end of Napa Junction’s mixed-use project.
The Planning Commission also approved Phase III of Napa Junction, a 17-acre site that will host nine buildings, totaling 131,300 square feet of retail/commercial space.
A new retail center was also recently approved, to be located on the corner of “old” Broadway and American Canyon Road. Anchored by a 15,000-square-foot Walgreens, this center will also feature an El Pollo Loco drive-through restaurant and roughly 12,000 square feet of multitenant commercial space.
Napa
The first hotel in the Napa Gateway Business Park, Marriott’s Springhill Suites, opened earlier this year after nearly 12 years of planning and public approvals. This 100-room, all-suite hotel is situated on 4.4 acres and features a 6,200-square-foot conference room, catering to the nearby businesses and the airport. Rates will begin at $139 per night and, by April, are expected to move up to $189 to $239 per night.
In the Carneros corridor, S.R. Napa LLC recently submitted a project package for the St. Regis Napa Valley resort, to be located on 93 acres of the Stanley Ranch. Aiming for Silver LEED certification, this 245-unit resort will feature a signature restaurant, hotel restaurant and bar, 25,000-case winery and tasting room, pool, fitness center, luxury spa and ballroom. Of the 93 acres, only 43 will be designated for the resort and winery. The remaining 50 acres will be vineyard and open space, complete with walking trails for resort guests.
This past July, the Napa City Council unanimously approved River House Land Company’s Ritz-Carlton proposal. Located in the Oxbow district of downtown Napa, this 351-room hotel will generate an estimated $100 million per year in local economic activity—including $3.75 million in transient occupancy tax (TOT) to the city in its first full year of operation. Completion is targeted for 2011.
In October 2008, just around the corner from the proposed Ritz-Carlton, the Westin Verasa held its grand opening nearly three months ahead of schedule. The Westin Verasa, Napa’s first four-star condo/hotel, features 180 rooms and underground parking for 232 cars. Hotel rates start at $299 per night. Condo units can be purchased from $500,000 to $1.2 million.
Downtown on First Street, Napa Square (on the old Wells Fargo site) is filling up its retail and office space with vendors such as Pacific National Bank, Michael Holmes Interior Design, Spinelle Jewelry and Charles Schwab. Leases start at $2.75 per square foot per month.
Under construction next door to Napa Square, Avia hotel plans to open in the summer of 2009. This five-story hotel features 142 rooms and 12,606 square feet of retail space, which is currently available for lease at $3.25 to $4 per square foot per month.
Perhaps the most prominent downtown Napa development is Channel Properties’ Riverfront project. Estimated for completion in spring 2009, this mixed-use project features 42,000 square feet of retail, 30,000 square feet of office space, 50 residential condos and underground parking. Ten of the 50 residential condos were reserved in one night. Main Street Property Services is currently in negotiations with four top New York chefs for a restaurant anchor, and other retail tenants are already lining up.
Yountville
In Yountville, Thomas Keller is at it again. The Town Council recently approved his proposed Aloysius Inn, located across the street from his world famous French Laundry. Situated on 3.1 acres, the Inn will host only 20 rooms.
Like Keller, Michael Chiarello is also expanding his empire by opening a new restaurant, Bottega, next door to his Napa Style retail shop. The restaurant features “farm to table” dining, a reflection of Chiarello’s fresh Napa Valley produce and rustic Italian culinary design. Bottega seats 118 indoor plus 66 more on the outdoor “terrazzo.”
Yountville’s first “green” luxury hotel, the Bardessono Inn, has just opened. Striving for Platinum LEED certification, this 62-unit hotel offers a unique, organic approach to the Napa Valley using local and environmentally friendly design elements. Some of the amenities you’ll find include rooms ranging from 900 to 1,200 square feet that make use of natural light from private courtyards, a restaurant built with a teaching/display kitchen, solar power co-generation, water conservation, onsite composting and minimal solid waste generation.
St. Helena
If you’re looking for retail space in St. Helena, you’re in luck. This highly coveted little town, which hosts millions of Wine Country tourists each year, has a few retail spaces available. On the south end of Main Street, the Bella Party Rentals building is for lease. This 1,675-square-foot building is available for $2 per square foot per month. St. Helena Plaza currently has two spaces available, each 1,200 square foot, at negotiable rates. And further up Main Street, the former Alan’s Studio space is for lease at $3.95 per square foot per month. Pro Nails recently completed the renovation of its new location on Main Street, and Town & Country Real Estate is settling in to Pro Nails’ former location.
Summary
This wave of new hotels with numerous retail additions, will bring revenue to the cities in the form of sales and transient occupancy tax. Ironically, the Bay Area’s economic woes may accelerate hotel demand in the Wine Country, as people take short weekend getaways rather than longer destination vacations. In summary, there are a lot of new jobs being created and a lot of “room nights” on the near horizon—which translates to a lot of new money about to hit our local economy.
