Nobody can accuse Bauer Transportation of playing it safe. The San Francisco-based company, which provides corporate transportation and limosine service across the Bay Area, has launched a new, upscale commuter service in Marin that may influence Golden Gate Transit (GGT) to step up its availability of Wi-Fi service.
Getting people out of their cars and onto buses in the land of plenty has been akin to building affordable housing in Marin [see “Rocking the Foundation"]. In theory, it’s a very nice thought and the socially responsible path to follow. In practice, not so much.
By law, the Golden Gate Bridge and Transportation District is obligated to provide public transportation service partially underwritten by the cash cow of bridge tolls. As a result, bus and ferry riders only pay part of the cost for service, while the balance is subsidized.
On the other hand, Bauer needs to recover all of its costs via fares. Its premium service, which includes the aforementioned Wi-Fi service, padded leather seats, table workspace, the availability of food service, and TV for one way from Larkspur Landing to the Ferry Building in San Francisco costs $7.38 (if you buy a month’s worth of rides). GGT charges $3.67 for the ride minus the perks, or $4.70 for the ferry. Bauer passengers can purchase a month’s service in advance and save money. They can also order food service in advance.
In addition to luring solo drivers and GGT riders to the Bauer fold via premium service, the San Francisco transportation company is leaning on Mom Earth. The new service, dubbed Bauer’s Intelligent Transportation, uses 52-seat buses that run on biodiesel. If the service ran full, it would prevent 1,310 tons of carbon monoxide from entering the atmosphere per year.
When the service began in March, Golden Gate’s response was that it welcomed the new service. “We run regular service to a number of locations, and what they’re doing is different. We welcome them,” says GGT spokesperson Mary Currie. “We’ve offered Wi-Fi on the ferries and on some buses, and we may do more of it in the future.”
The upstart service didn’t seem to be striking fear in the heart of GGT, possibly because the fare schedule for Bauer runs better than twice that of standard GGT bus service, and with just two runs into the city, it doesn’t pose much of a threat to ridership.
Still, it’s an intriguing business model, aimed at upscale execs who want to start working the minute they jump on the bus. One possible setback for Bauer is the news flowing out of Caltrans, the erstwhile keepers of freeway health, who report the widening of Highway 101 through Central San Rafael has shaved 20 minutes off the morning commute. On the other hand, Bauer’s hook for flush commuters may not be time saved, but rather, the ability to work in comfort and even have fresh coffee and a bagel served by a bus attendant.
New supermarket signed
When Safeway abandoned Pacheco Plaza for its new, cozy home at Hamilton Marketplace, the drop in traffic at the aging center was significant. The grocer, which had been there since the strip mall’s inception in 1967, left a gaping hole for owner John Kieckhefer at the 72,446-square-foot center. But instead of hanging his head, he set about the hard work of a $7 million remodel while he searched for new tenants. He was aided by Main Street Properties, which manages the center as well as 15 other retail assets in the Bay Area.
Then Paradise Foods, a popular, family-owned grocer out of Corte Madera, agreed to open a new, upscale store in the 22,500-square-foot left empty when Safeway jumped to Hamilton. Owned by David and Mel Gilmour of Ross, Paradise is known for its customer service and an ambiance that includes hardwood floors and a selection of fresh sushi.
Kieckhefer has his work cut out for him. According to the plaza’s website, there are currently 11 spaces with 22,142 square feet of space available. To say that this is a challenging economy when it comes to leasing retail space is like saying that AIG only has some minor financial challenges. And two of the larger tenants at Pacheco are banks, namely Westamerica and Bank of Marin. Though both are performing very well at a time when financial institutions are struggling, having two banks as key tenants would be enough to give most owners the jitters.
Though plans are still somewhat liquid, the Plaza hopes to have Paradise opening its doors this fall. The new store will mean 75 to 100 new jobs.
On second thought…
Bank of Marin would like to send Uncle Sammy a little something: $28 million, to be exact. Loyal readers of this column, all six of you, may recall that the bank accepted $28 million in Troubled Asset Relief Program cash in December. It then made new loans of $27.1 million.
The fact that the bank put the money into play so quickly and in such a large fashion makes it an exception. Many banks across the country took millions and even billions and have simply sat on the money.
But now, Bank of Marin wants to return the funds, joining a long list of banks who want to do so because the program limits the dividends banks can pay stockholders as well as the amount it can pay in salary to executives. The rules also give the Treasury Department the rights to a pair of seats on the bank board. The Treasury Department still has to OK the return of the money.
Bill Meagher is a regular contributor to NorthBay biz. He welcomes feedback, tips and comments at bmeagher@northbaybiz.com. Go Giants.
