Warring parties find common ground, drop lawsuits that had stalled 380,000-square-foot center

With council chambers packed for a full-scale battle, warring factions on Monday night announced a truce that will allow Petaluma's controversial new Target shopping center to move toward construction.

The center's developer, Florida-based Regency, and the Petaluma Community Coalition, a citizens' group, agreed to drop dueling lawsuits that have kept the project stalled since February.

Representatives for both parties had been negotiating throughout the day and informed council members of their agreement before announcing it to the crowd of about 100.

Regency agreed to many of the design changes opponents wanted, said Matt Maguire. With those demands satisfied, his group said it would drop its lawsuit against the city.

In exchange, Regency agreed to withdraw its suit against the city and pay up to $100,000 of the city's legal costs.

"We're happy to get past the stalemate," said Pete Knoedler, Regency's Senior Vice President. "We want to build the project. It looks like we've come to an agreement that will allow us to move forward."

"We're pretty happy," said Matt Maguire, former councilman and a leader of the citizens' coalition. "Were there other changes we would like? Sure. But it's as good as can be, given the makeup of the City Council."

First proposed at the city's urging in 2004, the project at the former Kenilworth Junior High site will include 380,000 square feet of retail and office space on 33 acres. It will include Target as an anchor tenant and possibly a national electronics retailer.

Sonoma-based Friedman's has signed a letter of intent to build its third Sonoma County site there, pending further city approvals.

The East Washington Place center finally won approval in February after fitfully making its way through the city's planning approval process. The council approved it 5-2, with Teresa Barrett and Tiffany Renee opposing.

The development was stalled by two lawsuits, one filed by the community coalition to stop the project, and the second filed by Regency claiming that the city unlawfully delayed the project's approval.

Opponents argued that the design is akin to bad 1970s architecture, its traffic design will endanger the health of users of the nearby swim center, it lacks bike- and pedestrian-friendly designs and that its mixed-use component doesn't satisfy the city's requirements

Regency agreed to make changes in most of those areas, including:

- More windows, skylights and solar tubes to reduce energy consumption;

- Designated roof areas for solar arrays;

- Two on-site Petaluma Transit stops;

- Traffic calming efforts in the nearby neighborhoods and the fairgrounds parking area;

- Pedestrian safety features on East Washington;

- A buffering berm with "super trees" along Highway 101.

Regency also said it would cooperate with a realignment of Johnson Drive near the swim center if possible.

Councilmen David Rabbitt and Mike Harris said after the meeting they were pleased by the agreement.

"The quicker it gets built, the better," Rabbitt said.

He alluded to dozens of city employees in the audience, all of whom have taken unpaid furloughs to cut city costs. The city will receive $11.5 million in impact fees from the project, and the center is expected to bring in about $100,000 a month in sales tax revenue, Harris said.

"If they can find a middle ground, it's a win-win," he said.