Bank forecloses on Scotts Valley comm...

Bank forecloses on Scotts Valley commercial property

There are 18 comments on the Santa Cruz Sentinel story from May 22, 2009, titled Bank forecloses on Scotts Valley commercial property. In it, Santa Cruz Sentinel reports that:

The highest cash bidder -- if there is one -- in a pending public auction next month may get part of the Sequoia Research Park in Scotts Valley and its business tenants at a reduced price, thanks to a commercial real estate market with high vacancy rates and a growing number of foreclosures.

Join the discussion below, or Read more at Santa Cruz Sentinel.

jojo

United States

#2 May 22, 2009
probably one of the few intelligent and profitable things things borland did in the last 10 years was to unload this before the real estate meltdown; in doing so i assume they actually made money on the transaction.
Jeremy

Felton, CA

#3 May 22, 2009
jojo wrote:
probably one of the few intelligent and profitable things things borland did in the last 10 years was to unload this before the real estate meltdown; in doing so i assume they actually made money on the transaction.
You're probably correct. Borland is practically a dead "empty shell" of a company.
Overbuilding

Santa Cruz, CA

#4 May 22, 2009
There currently is over 500,000 sq feet of unrented office space in Scotts Valley. Why isn't the City aggressively trying to recruit high paying/tech businesses to Scotts Valley to fill the glut of office space.

Instead the City seems on a campaign to overbuild retail space in our community at a time when retail is one of the worst hit segments in the economy. Didn't we learn any lessons from the impact of the overbuilding of office space that took place 10-15 years ago?
Citizen Santa Cruz

United States

#5 May 22, 2009
Wonder if the so called investment group 'owning' this property applied and qualified devaluation in taxes under prop 13 guidelines.

If so - are the leases then being adjusted for the small business tenants - you know, the ones currently paying the rent to sustain this franchise?
Citizen Santa Cruz

United States

#6 May 22, 2009
Overbuilding wrote:
There currently is over 500,000 sq feet of unrented office space in Scotts Valley. Why isn't the City aggressively trying to recruit high paying/tech businesses to Scotts Valley to fill the glut of office space.
Instead the City seems on a campaign to overbuild retail space in our community at a time when retail is one of the worst hit segments in the economy. Didn't we learn any lessons from the impact of the overbuilding of office space that took place 10-15 years ago?
Because City Managers are essentially dissers who are on an anti growth, anti manufacturing, anti service, anti agricultural agenda.

Word gets around .. even as such managers santimoneously attempt to appear they, really even care.
Caelum Sinclair

Santa Cruz, CA

#7 May 22, 2009
Jeremy wrote:
<quoted text>
You're probably correct. Borland is practically a dead "empty shell" of a company.
That's not entirely correct - they just announced that Micro Focus was purchasing them for $75 million, so yes, Borland will be dead, but they are certainly not an empty shell. What a lot of people didn't pick up on is that Borland actually moved to Austin two years ago.
Caelum Sinclair

Santa Cruz, CA

#8 May 22, 2009
Can anyone explain why their debt tripled - I don't quite understand how that works?
susie queue

Walnut Creek, CA

#9 May 22, 2009
Original headline: Sentinel seeks to exploit foreclosure and move back downtown.

From the article:
"If big changes were to occur down the line, the Sentinel would welcome the opportunity to re-evaluate its 10-year lease, van Dongen said. The newspaper, he said, would be better off returning to downtown Santa Cruz nearer to the county hub rather than its current isolated office on the Scotts Valley frontage road.

In a visit to the Sentinel on Thursday, Mac Tully, vice president of the Bay Area Newspaper Group -- which includes the Sentinel -- and publisher of the San Jose Mercury News, said he had just learned of the foreclosure. When asked about the possibility of moving the paper back downtown, Tully said, "Nobody wishes that you were downtown more than me."
Citizen Santa Cruz

United States

#10 May 22, 2009
Caelum Sinclair wrote:
<quoted text>
That's not entirely correct - they just announced that Micro Focus was purchasing them for $75 million, so yes, Borland will be dead, but they are certainly not an empty shell. What a lot of people didn't pick up on is that Borland actually moved to Austin two years ago.
Or something.$75 million, wow.

"Go Dot Com Yourself" - Borland.

Since: May 09

Santa Cruz

#12 May 22, 2009
Overbuilding wrote:
There currently is over 500,000 sq feet of unrented office space in Scotts Valley. Why isn't the City aggressively trying to recruit high paying/tech businesses to Scotts Valley to fill the glut of office space.
Additionally, on the Westside, the Wrigley and Dascom buildings are empty or mostly empty. There are numerous other commercial buildings empty as well around town (e.g. the old Sentinel building). Meantime, there are industries which would love to use these spaces but the landowners have decided its more fortuitous for them to keep the property vacant for the tax write-off than to lease at a lower, affordable rate. There are many innovative people in Santa Cruz that would love to use these spaces to start businesses (not just tech related) but can't come up with the kind of money it would take to both convert the spaces to their uses, continue to pay gouging lease rates while generating enough income to pay the other high-cost of living expenses we have here in Santa Cruz county.

Recruiting is a great idea but will take grants to back the effort since there is a gap between the reality of businesses who are interested in the spaces and the landlord's greed. The city is broke. The county is broke. The State - broker.. Federally we all are wondering how much more blood can be squeezed from the rock (how many more dollars can the US Treasury print that investors will buy?) To move anything forward we are talking about finding entrepreneurs with millions $$$ in cash, ready to go just to get anything off the ground. We are waiting and its not happening...
Didn't we learn any lessons from the impact of the overbuilding of office space that took place 10-15 years ago?
Obviously not.
Citizen Santa Cruz

United States

#13 May 22, 2009
Westsider, sorry, but forget the grants.

There isn't any money.

What does need to occur is certain regulation clauses to be written and inacted to enforce a free enterprise system that prohibit the sleaze for which commercial property is managed.

With that in mind, if someone thinks then they can come here (or stay here) local and bottleneck flow of doing business, then they should either be fined or buried in lawsuits until they comply with measurable results.

As long as anti growth policy keeps it's stronghold on public policy, the local area only has a post apocolyptic forcast scenario to look forward to.
Saul Madoff

Brisbane, CA

#14 May 22, 2009
When deals like the Borland and Sentinel Buildings were made financing was as easy to get as a Strawberry Picker buying his first 750K Castroville Home. The deal makers were raising money, not there own, by finding willing private parties to pony up the down payment to make the deal go. Money was so easy to get that there was no shortage of retirees were willing to part with 100 K here, a 100K there for the promise of being a REIT owner and getting a stable monthly interest payment from the future renters. Unfortunately, every time a deal like this is done it is the podunk investors and not the principles that shoulder the risk. The principles make themselves whole as soon as the deal closes by cash out refinance, re-leveraging the equity, or any other number of ways to accomplish the same goal. The principles never work for free you know, always have fees you know, and never actually risk their own capital. They don't have to because there a very large pool of dummies out there who will practically throw their money at you if you have a decent pedigree and can sell.
Citizen Santa Cruz

Soquel, CA

#16 May 22, 2009
Brian wrote:
Clearly, the Sentinel's move out of downtown was ill-timed. The real estate bubble burst and no plans materialized for the building. There's no reason why they shouldn't return.
That said, the newsroom's physical location is not the paper's key problem: instead, the need to maintain the cheapest-possible reporting staff has led to City On A Hill / Good Times- level content.
In other words, garbage.
There are overt opinions inserted into news stories, horrendous errors of fact, with spelling and grammatical errors common as well.
Critical thinking is usually now missing, reporters now accept as fact whatever is contained in a press release from the university or a politician.
Finally, there has been a loss of institutional memory, senior reporters who have a long history in the community and understand patterns of political and other behavior. What that brings is perspective to a news story.
The Sentinel was never a terribly high-quality paper, but it has never been worse than it is today.
Good point Brian. However, lack of basic journalism practices surface daily with the AP.. so it's not just the Sentinel.

I disagree about comparison with Good Times or even City on a Hill Press however.

Content at least provided by Sentinel has proven effort to inform public on government misfeasance ..

But good luck EVER finding any content deemed controversial in Good Times (yawn)- and without Risa's column, probabably no one would bother picking up the paper altogether - other than MAYBE movie listings - or those covered among whatever happy clique just happen to be featured for the week.(yawn again).

Anyway, GT has been especially thin lately, don't you think?

City on A Hill makes honest effort - but hey, they're kids, undergraduates, without experience - so again can't agree with the comparison.
City press releases

Santa Cruz, CA

#17 May 22, 2009
While the reporting for Santa Cruz may be bad there is even worse reporting done on the Scotts Valley stories. I have yet to see the Sentinel present any issue in Scotts Valley without favoring the position of the City. It is like the reporter is afraid of disturbing the city for fear that they won't give her more press releases. Wouldn't it be nice to see some investigative reporting or at the very least even handed reporting every now and then.
Citizen Santa Cruz

Watsonville, CA

#18 May 22, 2009
City press releases wrote:
While the reporting for Santa Cruz may be bad there is even worse reporting done on the Scotts Valley stories. I have yet to see the Sentinel present any issue in Scotts Valley without favoring the position of the City. It is like the reporter is afraid of disturbing the city for fear that they won't give her more press releases. Wouldn't it be nice to see some investigative reporting or at the very least even handed reporting every now and then.
'Afraid' is a perceptive sense I get too.

Yet another publisher has stepped down from the Sentinel.

Guess he didn't like it here and, well, left.

Wonder if it could be the local mob.

Reporters typically stay up to date on Council agenda and minutes which are available for public disclosure anyway.

Success in the anti-growth agenda has really served to shoot the Sentimel itself in the foot due to the reduction in advertisement revenue base, as well as circulation readership audience. Common sense really.

But if the Sentinel can't sustain maybe City on a Hill Press should take the lead to really tackle some controversial issues and indict more the policies practices and procedures in local governments that prevail to be hostile to business.

Might even serve to the credibility of the UCSC journalism department.
Dubious

United States

#19 May 23, 2009
Two years later, the Sentinel publisher suggests that the paper big-wigs made a huge mistake by moving away from Santa Cruz and into an "isolated" space in Scotts Valley? Ironic that the Sentinel appears to be the last to get that news bulletin. This is the ultimate no-duh moment. As most longtime (now former) readers said two years ago, the Sentinel belongs downtown, so go back and stay there. And stop wondering why the newspaper industry is failing.
Citizen Santa Cruz

United States

#20 May 23, 2009
Dubious wrote:
Two years later, the Sentinel publisher suggests that the paper big-wigs made a huge mistake by moving away from Santa Cruz and into an "isolated" space in Scotts Valley? Ironic that the Sentinel appears to be the last to get that news bulletin. This is the ultimate no-duh moment. As most longtime (now former) readers said two years ago, the Sentinel belongs downtown, so go back and stay there. And stop wondering why the newspaper industry is failing.
USA Today reports to be doing pretty good.

And Walmart is doing a remarkable job sustaining in this market crash.

Maybe media execs should read "Made in America" by Sam Walton. And take notes.

“Loan Modification Expert”

Since: Jan 09

Laguna Hills,CA

#21 May 27, 2009
Hi,

"The foreclosure isn't a surprise to many local commercial real estate agents who have been working to secure new tenants into properties across the county. What remains unclear, however, is if Fowler's financial difficulties also will result in the auction of its other local property"

I think this may effect on us.

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