Santana Row 20th anniversary: A big gamble on San Jose that paid off

Santana Row will have fun its Twentieth anniversary because the epicenter of client tradition in San Jose on Monday. However when the swanky procuring middle opened Nov. 7, 2002, it was removed from a positive wager.

The opening of the $450 million, 42-acre vacation spot had been delayed almost two months after the most important hearth in San Jose’s historical past destroyed certainly one of its buildings that August. And solely 34 shops and three eating places have been prepared in time for the vacation procuring season.

Federal Realty Funding Belief had invested so much within the mixed-use improvement, which was bringing collectively residential, procuring and eating, together with a resort on the location of the outdated City & Nation Village. It was constructing throughout the road from Valley Truthful, one of many hottest procuring malls within the nation, and it was dealing with opposition from old-school San Jose boosters who believed it will put the ultimate nail within the coffin for downtown retail.

San Jose’s Redevelopment Company was pursuing a $1 billion undertaking with New York developer Palladium to remodel a number of blocks into what might need been a “downtown Santana Row,” however Palladium pulled out in March 2002. And keep in mind that all this unfolded because the dot-com bust was melting Silicon Valley’s riches. Santana Row had the potential to be one other Titanic — the ship, not the film.

The man who actually believed within the undertaking was Steve Guttman, Federal Realty’s CEO and chairman, however observers on the time stated it price him his job. Earlier than Santana Row even opened, he had already stepped down as CEO and left the chairman put up in March 2003 after a 22-year profession there. He left the actual property enterprise for the artwork amassing world.

In 2002, Guttman had moved to San Jose to supervise the undertaking, and he and his spouse lived in an condo there. His imaginative and prescient was that it will be a spot the place individuals would stroll round and seize a chunk at a sidewalk cafe. “I wish to hang around right here,” he informed columnist Leigh Weimers days earlier than Santana Row opened. “I hope the remainder of town will embrace that.”

Guttman turned out to be proper. Individuals do wish to grasp on the market — 13 million of them a yr.

Its faux-European streets are crammed with individuals, even on gloomy fall days, gawking on the Ferraris and Lamborghinis lined up exterior the Lodge Valencia. It now boasts greater than 100 retailers and eateries and greater than 1 million sq. ft of workplace area. The YWCA introduced legions of high-heeled guys to parade at Santana Row as an alternative of downtown San Jose in 2015, and San Jose Jazz has used it as a venue for its Summer season Fest kick-off for greater than a decade.

Dwell music live shows, makers markets and annual vacation occasions draw a whole lot of individuals. Monday’s Twentieth-anniversary celebration ought to have an enormous crowd, too, for strolling, wine tasting and leisure from 4 to eight p.m. (Tickets can be found for $50 at www.santanarow.com, with 100% of the proceeds benefitting Second Harvest of Silicon Valley.)

However, from the place I stand, the key of Santana Row’s success has come from an sudden place. It’s not procuring; it’s all in regards to the meals.

As a procuring vacation spot, Santana Row at all times has aimed for the luxurious client — whether or not it was Burberry, Gucci and St. John at first or right this moment’s Kendra Scott boutique and Tesla showroom. However tastes change, and shops have moved out and in over 20 years. What was as soon as an City Outfitters is now a Scorching 8 Yoga studio.

A surprising variety of Santana Row eateries, nevertheless, have been in place virtually because the begin: Straits, Maggiano’s Little Italy, Cocola, Pizza Antica, Left Financial institution and Amber India are a few of the oldest. As areas open or new ones are constructed, they’ve been joined by sizzling newcomers like Momosan, Dumpling Time and Mendocino Farms. And that’s been a boon not solely to Santana Row “customers” — who I’m undecided really purchase something — however to the individuals working on the Splunk and NetApp workplaces.

None of this reward is supposed to invalidate criticism that Santana Row is just too plastic, too bougie, too no matter. It's what it's: a non-public improvement that may maintain homeless or disruptive individuals off its pristine sidewalks, shortly clear up any graffiti or litter. Does it rain at Santana Row? Sure, however they’ll provide you with an umbrella if it does. In fact, all this perfection prices prospects, residents and tenants a premium.

The place downtown San Jose might have indicators for long-gone companies like Zanotto’s, Voodoo Lounge and Firato Delicatessen on its buildings for years and perhaps many years, as soon as a enterprise leaves Santana Row, it’s scrubbed away prefer it was by no means there. (Didn’t Roots + Rye was once the place Sauced is? I don’t know what you’re speaking about. Gucci? By no means heard of ’em.)

As for the cost that Santana Row completed off downtown San Jose’s hopes to turn into a major retail vacation spot, it’s exhausting to examine most of the upscale retailers selecting downtown even when Santana Row didn’t exist. Excessive-end Japanese retailer Muji gave it a go in 2013 and lasted till it closed all its Bay Space places in the course of the pandemic. However one retailer doesn’t make a procuring vacation spot.

The lesson that downtown San Jose wanted to be taught from Santana Row is that for those who can create a crucial mass of eating places, you’ll draw a crowd. Have a look at downtown Campbell, which has seen a resurgence the previous 15 years pushed by eating places and bars, not procuring.

However there’s hope for downtown but. San Pedro Sq. has turn into a vibrant hotspot most nights of the week, with the wildly standard San Pedro Sq. Market and restaurant/bars like Farmers Union, Olla Cocina, District, the Brit, O’Flaherty’s and Dr. Funk. Positive, it helps if there’s a Sharks recreation and lunches aren’t nice but, however it’s a begin.

If Santana Row teaches us something, it is likely to be that in 20 years a long-shot gamble can seem like a no brainer.

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