Citing changing market conditions, the Hillsdale Shopping Center in San Mateo is withdrawing large-scale renovation plans that included a new Target store, open-air food court and luxury cinema.
The center informed the city of San Mateo last week it was temporarily suspending its application to replace Sears with a 174,000-square-foot, three-story Target; expand the bridge across 31st Avenue for an open-air food court; add 11,000 square feet of retail on an existing parking structure adjacent to Sears; and add an upscale movie theater at the former World Market which has since moved to the Bridgepointe Shopping Center.
The original plan was to update the center’s north block to better link it with the new Bay Meadows community near the Hillsdale Caltrain station which is itself slated for a northern shift.
The application was submitted in March and, in preparation of an environmental impact report, a scoping meeting was held over the summer to publicly evaluate the potential significant impacts. However, circumstances are different now, according to Hillsdale officials.
“Due to changing market conditions, we plan to take additional time to further analyze all potential options in order to bring the best possible addition to our San Mateo community,” Robert Webster, president and CEO of Bohannon Development Company, said in an announcement of the suspension.
While Hillsdale Shopping Center’s announcement does not take the potential north block project completely off the table, it did not set a timeline for resubmitting the application.
“Once we have more fully explored the options available to us, we will resubmit plans to enhance and improve the shopping experience at the center,” Webster said.
Meanwhile, Webster said the shopping center will continue looking at ways to improve what businesses are offered.
Construction was previously scheduled to begin in the second quarter of 2014.
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