By Jondi Gumz
On Oct. 14, when the city of Scotts Valley announced retail giant Target will take over the empty Kmart store, it was big news — warranting a report on KION-TV and sparking a flurry of comments on the social network NextDoor by locals and people in neighboring San Lorenzo Valley.
“I personally think this is good news,” wrote Connie Denault, a real estate agent in Scotts Valley. “That shopping center needed a good strong anchor to provide the basic everyday items to a rather large geographic radius. Target has a way of hitting the basics like Kmart provided. It must be really hard to be a retailer right now.”
Added Patty Walker of Ben Lomond, “I’m all for it, I hate going to 41st for stuff.”
Scotts Valley resident Roger Anderson commented, “Good news for SV tax base, I would think. Excellent news.”
Added Daryl Tempesta of Scotts Valley, “good location.”
Target will be moving into the Kmart building in the Scotts Valley Square Shopping Center, which closed in February.
Tempesta led the fight in 2007 when Target proposed to build a 143,000-square-foot store with 57,000 square feet devoted to parking on 18 acres on La Madrona Drive across from his home in the Monte Fiore development. That project was projected to bring $489,000 in annual sales tax revenue to the city.
Target dropped the project in 2009 as the county, the state and the nation were sinking into a recession so deep it took years to recover.
Target spokeswoman Jill Lewis confirmed Target plans to open at the Scotts Valley Kmart, and promised more details “as we get closer to opening the store.”
Kmart in the Scotts Valley Square shopping center, 270 Mount Hermon Road, is 55,000 square feet, so it’s considerably smaller than what was proposed in 2007.
Kmart, owned by Sears since 2004, had struggled through the recession. When the economy improved, Kmart didn’t upgrade and wasn’t prepared for customers shopping online.
The Scotts Valley Kmart closed along with many others in February, prompting speculation on NextDoor about what might replace it.
Then the COVID-19 pandemic arrived locally, forcing non-essential businesses to close.
After Kmart closed, the Scotts Valley City Council appointed Vice Mayor Derek Timm, who owns Montalvo Homes & Estates, as the council lead on the city’s Kmart replacement strategy.
The city worked with commercial brokers and The Pratt Company, which owns the shopping center, to develop leads, even as Target was considered ideal for the space.
“The City has aimed for this exact retailer for years, with special focus after the closure of Kmart,” said Timm. “This presents an incredible opportunity for Scotts Valley and the Town Center vision, and is truly a game-changer for our City.”
City officials have worked for 25 years to create a Town Center at the former Skypark airport site, now used for RV storage and a dog park with buildings vacated by Suburban Propane and AmeriGas still on the property.
The Town Center is envisioned as a mix of retail stores, housing and public amenities such as a town green. A series of developers has come and gone.
So far, the new development in the area has been completed by Scotts Valley local Corbett Wright working with builder Rob Stuart. It’s a drive-through Starbucks. A mixed-use multi-tenant project called The Hanger is nearing completion.
The Hangar will have a tap room, a restaurant, essential services and child care – and more information is expected soon.
Kevin Pratt of The Pratt Company called Target a game-changer, saying, “It affects everything about the makeup of the center.”
He said mom-and-pop businesses – Togo’s, Earthwise Pet Supply, Scotts Valley Jewelers, Scotts Valley Cleaners – have kept the center going along with Food Trucks To Go on Thursday nights.
Pratt’s first question is whether Target will expand into the empty Payless Shoes space next to Kmart.
Next is what kind of remodel will happen. The Kmart building, which is 35 years old and owned by Kmart, needs a lot of work to meet today’s codes.
Pratt estimated a full remodel could cost $1.5 million.