Murrieta positions itself for economic recovery
10:00 PM PDT on Saturday, March 28, 2009

By AARON BURGIN
The Press-Enterprise

The long line of shoppers inside the Burlington Coat Factory in Murrieta, occupying a storefront vacant for more than two years, is a welcome sight to Mary Furgerson .

"I'm amazed they opened here, given the circumstances," Furgerson said, referring to the recession. "Maybe it's a sign things are coming around, or at least a start."

Burlington Coat Factory's opening is the latest in a string of recent retail and development milestones that has some residents and city officials optimistic that the city is taking baby steps out of recession.

A Capistrano Beach-based developer selected the builder for the $50-million Murrieta Education Center, a project expected to house satellite college campuses and work force development programs.

Groundbreaking is expected this fall.

Construction crews are putting together the steel frame of what will be a $256 million hospital in the city's northeastern edge.

Just across the freeway, a Super Target nears completion.

Developers in Historic Downtown Murrieta are pressing forward undaunted on several projects in the city's core.

"Some of these projects obviously were planned before the downturn, but the fact they are pressing forward with them is exciting for the city," Economic Development Director Bruce Coleman said last week. "It is a vote of confidence in our future."

Brisk sales of previously foreclosed properties are an indicator that Murrieta will emerge from the recession.

Forbes recently named the city the nation's No. 1 "Post-Subprime Boomtown" for city's with less than 100,00 people.

Murrieta had more than 2,000 foreclosure sales in 2008 according to RealtyTrac, compared to about 400 in 2007.

Coupled with relatively low unemployment and vacancy rates, Coleman said the city is in a good position to bounce back when the recession ends.

"It's an indication that we are bouncing back, and people do see value in locating here," Coleman said.

That isn't to say the city hasn't taken its fair share of lumps during the recession.

A developer recently withdrew his application for a Walmart Supercenter, citing the economy.

Several major shopping centers, including Village Walk center and Home Center Murrieta, are pocked with high-profile vacancies.

The developer of Home Center recently asked the city to strike a clause from the agreement that restricted the shopping center to only furniture stores.

The retail agent for Village Walk said he doesn't expect vacancies in the shopping center on Kalmia Street to be filled until later in the year or into 2010.

"A lot of the retailers that would be traditionally targeted just aren't opening new stores, and are waiting until the economy improves," Cameron Crowner said.

And, of course, foreclosures still dot the landscape.

Several economists said the Inland area won't see a true economic rebound until the inventory of foreclosed homes is cleared and new home construction resumes.

Reach Aaron Burgin at 951-375-3733 or aburgin@PE.com