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HomeMy WebLinkAboutColliers_Letter of Support_2024-12-02 Boise 755 W. Front St. Ste. 300 Boise, ID 83702 208 345 9000 colliers.com/idaho Nampa 5700 E Franklin Rd. Ste. 205 Nampa, ID 83687 208 472 1660 Twin Falls 205 Shoshone St. N. Ste. 201 Twin Falls, ID 83301 208 910 2006 Pocatello 2043 E. Center St. Pocatello, ID 83201 208 951 2100 Colliers Lincoln Hagood, Mike Pena, and Bryant Jones 5700 E Franklin Road, Suite 205 Nampa, ID 83687 December 2, 2024 Caldwell City Council Re: Concerns Regarding Commercial Area Density at the Soterra Development (Ustick & Kimball) Dear Members of the Caldwell City Council, Thank you for the opportunity to address you regarding the Soterra Development at the intersection of Ustick and Kimball. As a team of experienced commercial real estate professionals, we have collectively worked in the Caldwell market for over two decades and have facilitated more commercial transactions in the area during that time than any other brokerage. Drawing on this extensive experience, we would like to share our insights and concerns about the current density of commercial development planned for this project. Concerns with Excessive Commercial Density The current plans designate a significant portion of the Soterra Development for commercial use. However, based on market trends and the specific dynamics of this area, we anticipate that demand for such a high concentration of commercial space will be limited. Destination office and medical users represent the most likely commercial users for this site, but even these users typically require strong infrastructure, established traffic patterns, and high visibility to commit to a location. The high construction costs for commercial projects in Caldwell further compound this issue. Similar developments, such as Willow Falls Commercial Park, still have vacant lots nearly 20 years after their initial development. If Soterra is developed with its current level of commercial density, there is a significant risk that much of the property will remain vacant, potentially leading to long-term economic stagnation or blight in the area. Enhancing the Viability of Commercial Areas A more balanced approach to the development, including the addition of more single- family residential lots, would greatly enhance the viability of the commercial component. A larger residential base in the immediate area would provide the foot traffic and consumer base necessary to support local businesses and attract high-quality tenants. This approach would create a symbiotic relationship between the residential and commercial areas, fostering a thriving, vibrant community. Opportunities for Ustick Corridor Growth While the Ustick corridor offers excellent opportunities for commercial growth, much of Boise 755 W. Front St. Ste. 300 Boise, ID 83702 208 345 9000 colliers.com/idaho Nampa 5700 E Franklin Rd. Ste. 205 Nampa, ID 83687 208 472 1660 Twin Falls 205 Shoshone St. N. Ste. 201 Twin Falls, ID 83301 208 910 2006 Pocatello 2043 E. Center St. Pocatello, ID 83201 208 951 2100 the immediate demand in the coming years will be focused between Cleveland Boulevard and 10th Avenue, where established infrastructure and traffic volumes provide greater support for development. The Soterra site has potential, but without adjustments to the proposed commercial density, much of it risks sitting vacant for years. A Vision for Sustainable Growth We encourage the Council to consider reducing the scale of commercial space in favor of additional single-family lots and other uses. By aligning the development with current market realities, the Soterra project can avoid long-term vacancies, increase its attractiveness to potential tenants, and contribute to the long-term success of the Caldwell community. This letter reflects the shared views of our brokerage team, which is deeply committed to the success and growth of Caldwell. We are happy to provide additional data or insights to support the Council’s deliberations and stand ready to assist in any way. Sincerely, Lincoln Hagood, Commercial Real Estate Agent Mike Pena, Commercial Real Estate Agent Bryant Jones, Commercial Real Estate Agent Colliers - 208-472-1660