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Pittsburg Agrees to Asian Retail Store Concept

Post Date:04/26/2010
Updated: 04/24/2010 05:15:58 PM PDT

PITTSBURG — When a city delegation returns from a diplomatic trip to Asia next month, Pittsburg leaders hope they bring back more than souvenirs and stories.

Pittsburg is eager to open a downtown retail store where merchants from Wenzhou, China, can showcase and sell their leather products. Last week, Pittsburg leaders gave the go-ahead for Vice Mayor Michael Kee to sign an agreement with Wenzhou leaders during a sister city visit to proceed with the concept.

Though early in the process, the goal is to establish a working relationship with the municipal government of Wenzhou and encourage Chinese investment in Pittsburg and California, City Manager Marc Grisham said.

Wenzhou is one of the leading manufacturers of leather goods in China. For the past several years, Pittsburg officials have visited Wenzhou and discussed bringing goods such as shoes, belts and leather handbags to sell in the United States, Kee said.

Pittsburg would provide 2,500 square feet of space in Vidrio, a city-owned residential and retail project, and make the space ready for sales. Pittsburg would initially operate the store, help find warehouse space for wholesale operations and market the store.

The East Contra Costa city also would work with the Bay Area Regional Center in getting green cards for the foreign investors.

Pittsburg has looked to develop traditional retail in its changing downtown area, though leaders have acknowledged it's difficult enticing business there because it's risky and far from the highway. Lucrative economic packages helped bring local restaurateurs to Old Town over the past few years.

"It's not typical, but these are not typical times," said Grisham of the Wenzhou project. "Anyway we can get people and business into the community is worth pursuing."

A few residents spoke against the Wenzhou idea at last week's City Council meeting, objecting to putting the store in the brand-new Vidrio rather than existing vacant buildings. They also questioned why Pittsburg did not have any estimated costs or expected revenue for the project.

"I don't think in the United States we enjoy the same close relationship between business and government. I don't think you belong in the retail business," resident Tom LaFleur told the council.

Leaders insist that opening such a store in a city-owned building would be easier. No analysis was done because a deal needs to be in place first, Grisham said.

Councilwoman Nancy Parent said that Wenzhou merchants have been eager to find a place in Pittsburg, but there is a unique relationship between government and business in China where they have to ask permission to proceed.

"It's a strange way, but it's China's way," she said.

Parent believes an association of leather producers with a pool of items, not just one brand, could be at the retail center. Grisham envisions the retail store being used similarly to 615 Restaurant — a downtown bistro and cooking school — as a training ground for novices to learn how to operate a retail business.

A delegation of four Pittsburg officials is going to Wenzhou, Shimonoseki, Japan, and Pohang, South Korea on Monday and returning May 7. Earlier this month, Pittsburg approved spending up to $25,000 from the city's municipal power company for the trip.

Contact Paul Burgarino at 925-779-7164. Follow him at twitter.com/pittsburgarino.

*************************
Marc Fox
Assistant City Manager – Internal Services
City of Pittsburg
Office: (925) 252-4876
Facsimile: (925) 252-4138
Email: mfox@ci.pittsburg.ca.us

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