Who says companies aren’t growing? Birkenstock USA, the Novato-based distributor of the famous German sandal that’s equal parts cork, comfort, leather and ugly, has outgrown its Hamilton Landing location and is moving back into its original Marin County home on Redwood Boulevard, a 93-acre spread that’s been vacant since the company left in 2007.
The land is owned by Novato Redwood Properties, a company the Birkenstock family owns a majority interest in. Prior to Birkenstock moving into the space in 1992, the campus was home to publisher McGraw-Hill.
Birkenstock USA was founded in Santa Cruz and migrated to San Rafael in 1971; the company headed to Novato in 1992. The parent company Birkenstock is a privately held firm headquartered in Germany.
Birkenstock says the move north from Hamilton was prompted by the need to fill 11 new positions as well as the need for more room to accommodate future growth. The property has become something of a landmark on the southbound side of Highway 101 as motorists exit the Novato Narrows. In recent years, the warehouse closest to the freeway has seen more deer than people.
With Birkenstock USA moving back to its old home, Straus Dairy is going to have to keep looking for a new production facility. Word on the street is that Straus would like to find a location to consolidate its very successful business, and the old Birkenstock site was under consideration.
How many jobs were lost
From 2007 to 2010, Marin lost 10,317 jobs—or about 1 in 10—according to figures released by the census bureau. The figures aren’t all inclusive, because the feds don’t include positions lost with school districts, local governments or, for that matter, self-employment. In Marin, that particular sector is well-represented with a wide variety of consultants, as a midday check of any local Starbucks will reveal.
By the numbers, the hospitality sector lost about 4.8 percent of its jobs, compared with the retail sector, which dropped 15 percent, to the tune of $23.5 million in annual wages lost. That pales in comparison to the finance and insurance industry in Marin, where more than 1,000 jobs were scrapped and more than $127 million in annual wages slipped away. The information sector, which includes software and publishing, also took a hit, with more than 400 jobs becoming history and $121 million in wages lost.
The news wasn’t all sour, as the health care industry added a little more than 1,000 jobs, and private education saw positive growth with 276 jobs added.
Vacant condo project to be rentals
Monahan Pacific of San Rafael spent $55 million completing an 82-unit condo complex that’s sat ghost-like on a hillside near the Civic Center for months. But New York-based Praedium Group and LA’s Empire USA recently bought the project out of a federal bankruptcy sale for just $36.4 million.
The joint venture plans on renting the high-end condos rather than trying to sell them into a still shaky market. The sale to Praedium and Empire doesn’t alter the city of San Rafael’s requirement that 16 of the units be made available for below market rates.
US Bank picked up $33.4 million of the sale proceeds based on a secured claim. The bank says Monahan defaulted on a $35 million loan.
Hopmonk Tavern moves in
It didn’t take long for Southern Pacific Smokehouse in the Vintage Oaks Mall to shutter its doors, but Gordon Biersch co-founder Dean Biersch is reopening the space as Hopmonk Tavern in October or November (depending on how the remodel goes).
With successful locations in Sebastopol and Sonoma, Biersch promises to bring a wide variety of beers, both on tap and in bottles, along with live music to the performance space, which seats 175. The Hopmonks in Sonoma County have hosted local players like Les Claypool and Tommy Castro along with a mix of touring performers like Little Feat and Leon Russell.
Of late, Marin has also added other musical venues, such as the new Sweetwater Music Hall in Mill Valley and Phil Lesh’s Terrapin Crossroads in San Rafael in the old Seafood Peddler space.
Your Marin moment
The ancient Hatfield-McCoy style feud between Marin General Hospital and Sutter Health is coming mercifully to a close and in typical MGH-Sutter fashion; both sides are claiming the other lost.
After almost four months of arbitration, Marin General was rewarded $21.5 million. That cash was way short of the $180 million in profits that the hospital district claimed Sutter transferred from 1995 to 2010 while Sutter leased the hospital. But that didn’t keep MGH from claiming victory. “This ruling validates our longstanding contention that, in the years leading up to the transition, Sutter didn’t operate Marin General in a manner consistent with the best interests of our community,” said MGH CEO Lee Domanico in a press release.
Not to be outdone, CEO Pat Fry fired back in Sutter’s own release, “Sutter is extremely pleased with the arbitrator’s decision to deny the vast majority of the damages the district sought and her finding that Sutter and its directors acted prudently and in accordance with fiduciary duties.”
Spin so strong you could wind up in an emergency room.
Bill Meagher is a contributing editor for NorthBay biz. He does not own any Birkenstocks and he lost one of the jobs that the Census folks counted, though he found a better one just a little later. He does live in a condo, but not 33 North. He plans to check out Hopmonk when it opens and does his best to stay out of both MGH and Sutter facilities, as spin makes him nauseous.
