Business & Tech

What Should Novato Do About All the Vacancies in Bel Marin Keys?

Updated zoning codes, incentives for property owners and more aggressive marketing could help recruit new tenants, say local business owners




Corrado Fabbro remembers traffic jams through Bel Marin Keys as workers commuted to BioSearch, SPG Solar and Zenni Optical, all located in the business park. At lunch time, the sidewalks were filled with people and cyclists could often be seen zipping out for a quick ride along the waterfront.

Today the traffic has been replaced by an eerie calm and dozens of “For Rent” signs in shop windows. The mood in Bel Marin Keys is glum, where the vacancy rate has hovered around 9 percent for the past three years.

Fabbro owns Michael’s Sourdough, a local deli, and is one of several Bel Marin business owners urging the city to be more proactive in attracting businesses to the area. He says there are many reasons for the high number of vacancies, including inadequate Internet connectivity for companies that need high-speed data transmission, and a lack of incentives for problematic landlords to upgrade their properties.

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“We need to create a public-private partnership where the city offers tax breaks to owners who spend the money to improve their properties,” Fabbro said. “We have all these fantastic bio-tech companies in the park, so why can’t we create a bio-tech hub that emphases connectivity to Highway 101 and the SMART station at Ignacio. The city is really missing out on the tax revenue.”

Coree Cameron, who owns CCK Corp., a tax and accounting firm in Bel Marin Keys, says another problem is the area’s inflexible zoning that has kept companies from relocating to the area.

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“We had a beauty salon that wanted to move in, but was not allowed because of the zoning ordinances, although there is a barber shop and a tanning salon nearby,” she said. “Then a small medical facility and batting cages that wanted to open, but were also barred.”

Chris Stewart, Novato’s economic development director, says the city is aware of the zoning restrictions in Bel Marin and updating the General Plan, a process that could take two years. Meanwhile, Stewart is focusing on creating a marketing and recruitment program that emphasizes Novato as a hub for bio-tech that’s still a relatively affordable place to purchase a home. 

“For companies with workforces that are raising families, Novato is an attractive place because it’s a lot less expensive that the peninsula or San Francisco,” Stewart said. He said the city’s “business attraction plan” targets companies whose leases are coming up for renewal, creating a promotional video that highlights why Novato is a great place to do business, holding one-on-one meetings with realtors to identify available space and using social media to get the word out.

This Tuesday, Stewart, along with the Novato Chamber of Commerce, held a meeting for Bel Marin property owners and property managers to discuss what could be done to prevent companies from leaving the area.

Cameron, who was in attendance, says the goal was to create a relationship between property owners and tenants and spur investment in the commercial area.

“We’re not trying to change the character of Bel Marin, we just want to open it up, so that people come here to shop, eat and workout.” (Gyms are another type of business currently  not allowed in the area.)

Another complicating factor that has forced out some companies is the shortage of space larger than 20,000 square feet and the relatively high rents, prompting companies to relocate to nearby Petaluma.

City Hall can’t force property owners to charge less or even upgrade their units, unless there are code violations, but they could offer tax incentives to spur owners to initiate upgrades, said Fabbro.

“The city needs to be a little more aggressive in appealing to prospective tenants,” he said. “If we can get one or two large companies to move back into the business park, it will provide so much tax revenue instead of focusing on attracting another Chick-Fil-A at the Redwood Boulevard corridor. That’s not the type of development we need.”

 Are you a Bel Marin Keys business owner? What kind of changes would you like to see in the area?


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