EDITORIAL: Life after loss of car dealer EDITORIAL: Life after loss of car dealer (March 16, 2005)

It would be easy to conclude that the upcoming loss of Menlo Park's Cadillac Buick Pontiac GMC franchise on El Camino Real is an omen of more bad things to come for the downtown area. After all, neighboring Palo Alto recently waved goodbye to its Nissan dealer and lost a struggle to keep the Hyatt Rickey's hotel, which is now a residential project.

However, in Menlo Park, there are many indicators that the sky is not falling, even though the loss of sales tax revenue from the dealer will definitely hurt the city's bottom line in the short term. The city has known since last year that El Camino Real is losing its appeal for auto dealers, who would prefer to be near a high-traffic freeway.

The city is rapidly trying to create an auto mall opportunity on Haven Avenue, off Marsh Road, a rezoning process that will proceed well into 2006. But if the remaining three Menlo Park dealers (Anderson Chevrolet and Truck, Peninsula Ford and Stanford Lincoln Mercury) can hold on until an auto mall is created, the city could hang onto at least a portion of its transportation-sector sales tax revenue.

Elsewhere in Menlo Park, the retail vacancy rate is low and things are looking up. For example:

** Stanford University officials may be close to signing a deal to bring a luxury hotel to a Menlo Park site at Sand Hill Road and Interstate 280. If approved and built, the project could add considerable sales and hotel tax revenue to the city's coffers.

** Hammers, nails, nuts and bolts will once again be available on Santa Cruz Avenue when the new Menlo Park Hardware store opens its doors later this spring.

** The city will be the site of a design charrette next month, giving 50 architects the opportunity to redesign the area around the Caltrain station, taking in the possibility of grade separations, while hoping to make the area more vibrant.

** City officials also see potential in the development of 12 acres owned by Tyco Electronics near Hamilton Avenue and the Sun Microsystems complex at Willow Road and the Bayfront Expressway in Belle Haven. The city owns an adjoining six acres that could be combined with the Tyco property to generate significant sales tax revenue.

Rather than an indicator of doom, perhaps the loss of the Menlo Park car dealer is just a sign of a typical business cycle that will see new and better uses for the downtown properties, while possibly moving the remaining dealers to an auto mall near the Bayshore Freeway with long-term leases.

The design charrette is a good way to show what is possible if business and government leaders get the message. Let's hope all sides pay attention.

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