Catalyst for change: An updated Foothill Square will reenergize the whole area, John Jay says.  Developer Jay-Phares Corp. plans to begin construction this summer on a major overhaul of Foothill Square, a 50-year-old shopping center in East Oakland that will bring in new anchor tenants Foods Co. and Ross Dress for Less. The $30 million renovation will transform the outdated space into a 201,900-square-foot shopping center from its current size of about 155,000 square feet. The project involves tearing down existing buildings to make room for more parking and new structures. “The objective is to modernize the center and bring quality goods and services to the surrounding community,” said John Jay, a partner with Jay-Phares Corp., the developer working on the shopping center, which is owned by MacArthur Boulevard Associates. Foothill Square is perhaps one of the most underutilized sites in Oakland, Jay said.  It is close to the San Leandro border right off of Interstate 580 and MacArthur Boulevard, a major artery, and in heavily populated area.  There about 25,000 people within a one-mile radius and more than 160,000 in a three-mile radius. Oakland’s dearth of retail is felt throughout the city, but most acutely in areas such as East Oakland.  The addition of the 72,000-square-foot Foods Co. will be one way to address what Gregory Hunter, Oakland’s redevelopment director, calls a “food desert” because of a lack of grocery stores.The Foods Co. is expected to start construction in July and could be open by December, said Mark Salma, director of real estate for Foods Co., which is owned by Kroger Co., one of the nation’s largest grocery chains.“We’re happy it’s all coming together,” Salma said. “We obviously want our brand new store in a shopping center that looks brand new.”Besides a new layout, the developers will blanket the 13.5-acre property with modern landscaping, signage and facades.Alameda County has agreed to spend $300,000 to re-align an off-ramp from Interstate 580 to improve visibility and access from the freeway.Foothill Square currently houses a mix of tenants including a hair supplies store, a dialysis clinic, laundromat, restaurants, a bingo hall and a Head Start facility.Some of those tenants will stay, including the bingo hall and the Academy of Hawaiian Arts, two neighborhood favorites, while making room for the grocery store and 24,000-square-foot Ross.When it was first built in 1961, Foothill Square was considered ahead of its time because of its walkable promenade in the middle of the center and the first indoor food court west of the Mississippi, called the Court of the Seven Chefs.In its early decades, the center was home to tenants such as Thrifty Drug Stores, Bank of America, Zales Jewelers and S.S. Kresge, the predecessor to Kmart.With time, those tenants moved away or went out of business, leaving the center in decline. Jay-Phares came on board during the mid-90s when Foothill Square was about 70 percent vacant and began making attempts to lure a new anchor.Deals came close to sign new leases with retailers such as Long Drugs and Lucky Supermarkets, but ended up falling through for various reasons.Jay-Phares, which focuses on rehabilitating urban properties, was able to bring in tenants such as a Social Security office and county services offices, which have since moved out.“We have always envisioned a transformation back to the original retail community center it was,” Jay said. “We hope it’s a catalyst to improve the entire MacArthur Boulevard corridor.”

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