California Apparel News

Stanford University officials have decided to table a plan to fund a 240,000-square-foot expansion of Simon Property Group’s Stanford Shopping Center in Palo Alto, Calif.

University officials said they will instead turn their resources toward improving the campus’s medical facilities, which include the Lucile Packard Children’s Hospital and the Stanford University Medical Center.

Simon and Palo Alto officials expressed disappointment in the decision.

“The shopping center and a new hotel represent a significant percentage of the city’s sales-tax base. Protecting the center from any economic decline due to increased regional competition is vital to maintaining the city’s financial health and the city services our community expects,” said Palo Alto City Manager James Keene in a statement.

Keene added that the expansion would have generated an estimated $1.6 million in annual sales-tax revenues.

The initial plan called for the addition of a lifestyle-oriented wing to the center, featuring outdoor-situated retail and entertainment tenants at the northeast corner of the center.

Macy’s, Bloomingdale’s, Nordstrom and Neiman Marcus anchor the popular center, which Simon purchased in 2003 for $333 million.

Simon will follow through on an expansion of The Promenade at Camarillo Premium Outlets in the Ventura County town of Camarillo, Calif., where it will add 220,000 square feet of retail space for a total of 674,000 square feet of gross leasable area and 160 stores.The Promenade is anchored by Neiman Marcus Last Call, a new merchant at the center. Saks Fifth Avenue’s Off 5th has relocated to a larger store with a new store design in the center, as has the Gap Factory Store. New stores in the expanded area are Aldo, Charlotte Russe, Columbia Sportswear Co., Converse, Crocs, DC Shoes, Ecco, Esprit, Etnies:exs, Journeys, Karen Kane, Le Creuset, Loft Outlet, Michael Brandon, New Balance, Papaya, Rack Room Shoes, Robert Wayne Footwear, Tommy Bahama, Vans and Zumiez.—Robert McAllister