Author: dwaresgroup

What does the future hold for Capitola Village? This is the debate and the vision that revolves around this special place here on the Monterey Bay. There are those who don’t want to change Capitola from a funky California beach town and thenn there are those who want to see an evolving towards a California version of a village on the Riviera.

Peter Dwares is one of those whose vision and dedication is to making the Capitola Esplanade “a Plaza like they have in Healdsburg, or Santa Fe, with weekend artists, unique foods, and pedestrians.”

From Dwares’ apartment over the Capitola Mercantile, a building that he has owned for over 25 years, it is easy to see what he loves about the Village and also what he would like to change.

One recent weekday evening the view from Dwares’ residence was magnificent in the twilight looking out over the beach and the bay. Then came the raucous sound of a big bike starting up in front of one of the bar-restaurants across the street. The engine roared and then backfired, roared and then backfired again, thenn continuously roaring and backfiring, the motorcycle made its way around the Esplanade finally exiting the Village up Monterey Avenue hill.

The peaceful scene, according to Dwares, is continuously interrupted. Instead of hearing birds and waves breaking onto the nearby beach, there is the sound of diesel delivery trucks in the morning, or rumbling, muffler-less motorcycles, or frusterated drivers searching endlessly for a parking space so they can go to the beach during the day or to a restaurant or bar during the evening, all of these adding to the noise and air pollution.

In addition, Dwares complains of the street noise during the night from loud music in the establishments across the street and from unruly patrons as the bars close at 2:00 a.m. “The city needs to clean up its act.” Dwares claims.

Dwares is a businessman. He has refurbished many retail centers on the west coast from Washington to California. In 1979 he bought the Mercantile building – the former Capitola Fish Market. From his balcony above the Mercantile it is easy to see why he wants to make what is unique, even better.

“The Esplanade should be a treasure,” says Dwares, “not a parking lot or short cut. It should have warmn and inviting cobblestone streets and historic lighting. I’d like to see the entire Esplanade be closed, eventually.”

He continues, “We can do this within five years, but we need two, or even three parking levels behind City Hall. We need an attractive free shuttle from the parking lots to the Village and the hotels. We need a new hotel at the freeway exit of up to 200 rooms, also a hotel where the Capitola Theater is of about 80 rooms, and a Rispin hotel of perhaps 20 rooms. We also need a 70-100 unit “condominium” hotel over the multi level parking lot behind City Hall. Condo sales and management would yield millions for the city. The new hotel rooms will provide direct tax revenues for the City annd create a year round destination in the Village resulting in improved shopping and dining and more sales tax.

“The parking revenue loss from Esplanade parking will be made up by new hotel tax revenues and new parking revenues behind City Hall, and even hotel management fees.”

Now, this is a man who has experience and has put practical goals and objectives into his dreams.

The City Council generally agrees that they could seriously consider closing the Esplanade to traffic but only if a parking situation is addressed by the building of a multistory parking garage behind city hall.

The possibility of additional facilities for visitors has been raised by the Capitola Theater currently being in escrow with talk of a bed & breakfast, boutique-style hotel being built on the property.

Councilman Kirby Nicol told us, “I think the city would be receptive to suchh a development. We need to encourage tourism that isn’t just oof the one day, in and out variety. Longer term visits would help local businesses with a more relaxed, upscale, family oriented, and year-round clientele.”

But until the parking situation is solved, plans for the Esplanade would be difficult to implement even though the city has plans in place for such an eventuality including an outdoor bandstand.

Obviously there are those who object to such a change.

The convenience of parking right at the beach or in front of your favorite bar or restaurant is undeniable. Some of the Village merchants aren’t convinced that crowds will continue to come if they have to park so far away from their businesses and the beach.

And then there is the subject of city income. Between parking meter revenues of $500,000 and fines collected for illegal and overtime parking of $531,000 annually, that’s a guaranteed income of over $1 million that the city might put in jeopardy.

As far as noise and disturbances, the Capitola Police Department recently began to focus its effors on Friday and Saturday nights in the Village to keeping the peace. The department established a “problem-oriented policing” program to reduce rowdy behavior in the bars and among the tourists that visit the Village. Also, four police are now on foot patrol in the area during these two nights. The state Alcohol Beverage Control is training bartenders in the Village on responsible serving.

Dwares states, “We have the Mayor, City Council, jCity Manager, Police Chief and Staff to realize the dream. I’m calling on them to debate these ideas and ask the community where it agrees, and where it disagrees. Capitola has to decide what kind of Village it wants to be.”

When Peter Dwares looks outside the building he has owned for more than 25 years, the Capitola Mercantile, and takes in the surrounding village, he generally likes what he sees.

He likes to see the people that stream into Capitola Village, especially on warm summer weekends. But he envisions something more.

Rather than cars and sometimes brutally loud motorcycles at a near stand-still along the Capitola Esplanade, the San Francisco businessman sees the possibility for something more — like a plaza sans autos with outside dining restaurants.

“If a few little things were focused on I think there could be a kinder, gentler village,” says Dwares, who has refurbished retail centers from Washington to California and who owns a Capitola home. He bought the Mercantile in 1979 and since 1980 has hosted “Uncle Nathan’s Day” in Capitola, a wintery holiday event for underprivileged children.

Dwares isn’t alone in his desire for change in the village.

“There has been talk about closing the esplanade, but it has not gone very far,” City Councilman Dennis Norton said, adding he favors such a plan at some point in the future.

“The killer in the village is the automobile,” Norton said. “It takes away from the charm and character of the village.”

Norton and others support building a parking garage at the municipal lot behind City Hall, a move many believe would bring flexibility to what could be done along the esplanade. Ask around the village, and there are plenty of ideas for making it a more enjoyable destination.

“I think it has been about the same, and I think that is unfortunate,” said Councilman Kirby Nicol, reflecting on the health of the village over the last 20 years. “I think we could make it so much better.”

He and some other council members say allowing more bed-and-breakfast establishments would help attract business to the village more often during the year.

But others say that, at least during the busy months, the area is as vibrant as can be.

“I don’t think, especially in the summer the village is lacking vibrancy,” said Car in Hannah, owner of the Craft Gallery. She said more is needed in the winter months, like some kinds of activities for children, to lure visitors during the off-season.

Talk of a hotel

In February, the City Council backed off a plan to allow side-walk vendors to offer their wares in the village after merchants complained that doing so would hurt their businesses.

The idea was to create a vibe along the esplanade where mild weather draws visitors ranging from day-trippers seeking refuge from Silicon Valley heat to Europeans on a West Coast jaunt.

Earlier this month, the City Council approved moving the summer-time Farmer’s Market held each Thursday to a more visible area — from the parking lot of the Capitola Theater to the street fronting the park area at the end of the esplanade.

Also, there have been discussions about capitalizing on the wildly popular Wednesday night concerts held during the summer with a Thursday outdoor movie night at the Esplanade Park, Norton said, echoing a trend that has emerged in many cities around the country in recent years.

Meanwhile, the Capitola Theater is in escrow and there is talk of a boutique=style hotel coming to the site, Norton said.

Few merchants or council folk can be found who don’t say a hotel on that side would be a boost, especially in the quiet winter months.

“It makes Capitola more of a year-round destination,” said restaurateur Lee Walters, who owns two village eateries, The Lido and the Stockton Bridge Grille. “Maybe that would be the catalyst.”

But any discussion about the village’s future runs into the problem common to just about any beach city: Cars.

For example: part of the city’s master plan for the village calls for sprucing up Esplanade Park by adding a string of features, including a bandstand.

“The problem is we can’t do that because of the parking,” said Nicola, who was elected last year.

Nichol would also support closing the esplanade off to traffic if a garage were built.

So would business owners like Walters, who said it was worth evaluating.

“If that happens I think they should periodically close off traffic on the esplanade and see what happens,” he said.

Norton points to the pedestrian village in Vail, Colorado, as an example of how such a plan could work. In Vail, a pedestrian village is enforced at a station known as “Checkpoint Charlie,” said Jackie Ogden, a code enforcement officer for the town. Delivery trucks are allowed only before 8:30 a.m. Visitors can park in the garage and exit into the village and a bus center, she said.

“Once people park, they can get to anywhere they want to,” Ogden said.

In Capitola, the average daily traffic count along the esplanade in May 2004 was 3,700 vehicles per day, a number that swells at the peak of the tourist season. In August 2004, the average daily traffic count along nearby Capitola Avenue was 7,400 vehicles per day, said Steve Jesberg of the Capitola Public Works Department.

But not everybody in Capitola is as disenchanted enough with the traffic to close it off from the esplanade.

Hannah is skeptical and suspects a parking garage would divert tourists looking for a place to park into nearby neighborhoods inste4ad.

“I have some mixed emotions about it, because we have an enormous number of people who live in the village,” Hannah said.

Councilwoman Stephanie Harlan also is skeptical about such an idea, saying the village needs all the parking it has.

“I don’t think it serves the village well,” she said of the parking garage idea.

Maintaining the Image

While trying to make the village a sustainable tourist draw, some council members say it is important to maintain its charm and appeal for locals who stroll down to the waterfront.

“We always have to remember it is its own neighborhood and people live down there,” said Harlan. “They have to park down there. We want locals to enjoy their beach and their wharf.”

On a recent Friday afternoon, the cars were already backed up on a cloudy day waiting to get into the village. Down at the beach, Alyssa Levitan of Palo Alto said the village offered the convenience and amenities that make it a perfect stop. Levitan said she comes to Capitola Beach about five or six times a year. She uses the parking lot behind City Hall.

Art Durand of Santa Cruz walked the esplanade with his toddler nephew Hayden Paul Buell. He said the village was a good place to bring younger children.

“It’s safe for him,” he said, nodding in the direction of his nephew. “Downtown (Santa Cruz) sometimes is not a place for little kids.”

He said he made three passes around the esplanade before finding a place to park.

The parking in some ways is a boon and a challenge. Parking meter revenue in the city amounts to roughly $500,000 annually, according to the Capitola Police Department. Citations from parking ticket revenue produce about $531,000 annually.

While the plaza idea is likely years away, other efforts are in full swing to add to the village’s ambiance.

“We’re getting there, it just takes time,” Norton said.

Fast approaching its first anniversary on July 5, the Capitola Mercantile has enjoyed a lion’s share of entrepreneurial success during its brief existence.

Located in the heart of Capitola Village, the Mercantile is the brainchild of Peter L. Dwares, a San Francisco based attorney who specializes in real estate investment. Dwares, who serves as the managing partner, is a long-time Capitola visitor and, for the past three years, has resided there part-time.

Acquiring and developing the building was no easy task. Dwares made his first attempt in 1977, but was unsuccessful. However, negotiations beginning in January of 1979 resulted in the closing of a deal in July of 1979.

One of the roadblocks to Dwares plans was the Mercantile’s rather checkered past. During its first incarnation ( in the early 1950′s), it went on to house a flea market and a number of failed retail ventures. It then stood empty for several years.

Dwares discovered that a large empty building did not encourage financial backing, but he eventually found the money and, with the approval of the Planning Commission, Coastal Commission, Arch and Site and the Capitola City Council, began renovation.
Hiring what he terms “the best retail designer,” Dwares set out to do the place like a mini-Quincy Marketplace (in Boston), with skylights, a greenhouse, canvas and high ceilings. A special guy was hired to pick out the colors of paint for the Mercantile and to execute the exterior graphics.”

Dwares feels the Mercantile is “the most unique retail center in Santa cruz County. We’re located across from the beach and surrounded by restaurants. We’re open seven days a week and weekend evenings.

“The place is cheery, an upper. The distinction between a large mall and the Mercantile is personal service – you don’t see that in department stores. These stores have charm, they’re unique and the merchandise is high quality.”

Thoroughly touring the Mercantile is at least a two hour excursion. There are 13 separate businesses housed in the one-story brown and blue building: eleven of them are retail shops, two purvey food and beverage.

Approaching the building before even entering, the eye is caught by numerous soft, squishy-looking human-like and otherwise forms gracing the windows of the first shop.

Three Wishes is owned by Jeanne Stowell, Steve Key and Marlana Barendregt. The critters up front are known as “softies.” Featuring plants, jewelry and handmade art, the three partners opened in Capitola because, according to Stowell, “We wnjoy teh area. We were all interested in starting a new business and working in Capitola.”

The softies are the work of Key and Barendregt. From their studio in Aptos, the two hand-produce the soft sculptures and other artwork is provided by various Monterey and Santa Cruz county artists.

Stowell feels, “Three Wishes provides personal service. We try to find information for people, tell them how to take care of the plants, offer special services. We’re doing very well – we’re pleases with the progress of the shop.”

Leaving Three Wishes, a few steps down and a sharp turn to the left finds one in the Celebration Gallery. The shop handles high quality hand-crafted items created by approximately 35 different artists. Celebration is operated by Jim and Nora Payne and is “a dream we’ve had for several years.” While Jim hammers and saws away to complete shelves for the expansion which success has demanded, Nora relates, “Three years ago we traveled extensively throughout the U.S. We started our plan of attack, pulling a house trailer for four months and putting together the people to buy from. We know all the artists represented here personally.”
The Payne’s believe they’ve “been able to bring in things people haven’t seen before. We bring in some of the biggest names and highest quality. With the expansion, we want to work into doing shows, on a spontaneous basis, featuring one or two artists.”
Immediately next door to the Paynes is Starboard Gifts, one of the original businesses to open in the Mercantile. According to owner Don Bourgerie, “About 80% of the merchandise is of a nautical theme. I specialize in brass and we carry a lot of different items.”

After touring the world two-and -a-half times (and visiting 23 countries), Bourgerie gave up marketing for a large corporation to “continue my love affair with Capitola.” Starboard Gifts is geared to local clientele. Bourgerie says, “A good percentage of our business is local and repeat… and tourists love the prices. I’m geared to Santa Cruz County.”

There are 21 different artists working exclusively for Bourgerie. They are from Santa Cruz County artwork – buying from the artists outright rather than taking items on consignment.

One-of-a-kind custom sea chests, ironwood carvings and concrete seagulls (known as “Quiet Gulls”) are some of Bourgerie’s favorite items. “The gulls are so popular people come from all over. I shop them to LA, Utah – I’m the only one who has them.”
The next shop is Carole Phillips’ Panache. Basically this is a good skin and body store, carrying products to treat yourself well, There’s a trend back to cosmetics – you can be a feminist and wear color,” Phillips explains.

Phillips also tries to “give people a chuckle – it’s never dull.” Devo glasses or goose quill toothpicks help liven things up.
Many of the cosmetics and bath/body products are purchased from the Body Shop in Berkeley and, because of “private labeling,” the costs are kept down. Containers are refillable or customers can bring their own – at a saving of 40 to 60 cents. There is also a make-up table for trying out new looks.

Phillips neighbor is That’s Hell of a Note. Owned by Diane Richardson and Judy Etherington, the store is managed by Peggy Chandler. The store boasts a full wall (and then some) of cards, wrapping paper and stationery by the pound. There are also gift boxes and a wide variety of stickers.

By this time, with blood sugar rater low and the smell of warm, freshly-baked cookies wafting into the Mercantile, a trip to Grandma Buffalo’s is in order. Grandma Buffalo’s Chocolate Chip Cookies (known as the edible buffalo chip) are produced from a recipe developed by Mrs. Joe Piedimonte who, along with her husband, owns the shop. There are ten different varieties, including whole wheat carob, mint chip and coco-chip-a-roon. The recipes are carefully guarded secrets – not even Grandma’s employees know for sure what make up the goods.

Supervisor Olga Torres says, “Everyone here works as a team – cooperation is a must. We’re really busy and popular.” Torres and Vicki Anderson (another supervisor) agree, “These are good cookies – we’ve tried others. People order dozens.”
And so back to browsing. Re-entering the Mercantile from San Jose Avenue, Palm Court Jewelry sits on the left. Palm Court, owned by Carin Mudgett and managed by Carol Zimmermann, primarily carries hand-crafted limited-production jewelry. Mudgett, who also owns the Craft Gallery, moved to the Mercantile to expand and to give more attention to jewelry. “We offer two things that are different: a large selection of earrings and a wide variety of wedding bands and sets,” explains Mudgett. “There’s a need for moderately-priced, unique special wedding bands – people should be able to have something left over from the honeymoon. We try to have a cross section, a good price spread.

“We have a lot of stuff in a small space. And carol really knows the lines we carry – she gives good service. She’ll call for prices, knows what there is to offer. One of the reasons for success is her familiarity with suppliers,” says Mudgett.

In the center of the Mercantile is Ellyn S. Diskin’s Blue Rose – a shop devoted to the rose. Housed in a gazebo built by a friend, the shop was started by Diskin in the back area of the Mercantile last July, using a cart and a couple of flower stands. She moved into the middle when her business outgrew the cart. Diskin makes many of the items she handles – the clay roses (used as earrings and on bracelets) and the silk flowers. She purchases flowers in Watsonville.

Along with the hand-crafted items and fresh flowers, Diskin also carries dried rose petals (“a by-product of the business”) which can be mixed with oils and spices to make inexpensive potpourris. She is also “heavily into herbs – fresh and dried. the fresh herbs come from the Capitola Community Garden. I make herbal bouquets using mint, sage, oregano. The herbs can be dried later.”
Leaving Blue Rose, one’s eye is caught by the rainbow of colors known as Spectrum. With a theme of color, Babette Beyer carries all kinds of items – both humerous and functional. There are ceramic pins in the shape of different foods, letters of the alphabet or Betty Boop, rainbow stationery, hats with ears and Aurora clocks. One of Beyer’s favorite items are “the silly hats – with ears, lightning bolts or chickens.”
From Spectrum to Harmony & Lotus is a short walk. Owned cooperatively by a number of people, Harmony & Lotus carries all natural fiber clothing: 100% cotton, raw silk, crepe de chine, cashmere and wool. They handle both men’s and women’s clothing.
The basic premise of the shop is to offer first quality merchandise at a good price. By ordering for all the Harmony & Lotus stores at one time (there are three others: in San Anselmo, Santa Rosa and Mill Valley), they are often able to offer lower prices.

Heading back through the Mercantile and turning to the right brings one to Vintage Antiques, still another of the original tenants. Owner Dennis Dubeck, manager kevin Shephard and Will French all have an interest in antiques and knowledge in varied fields.
Along with antiques, they also carry reproductions, manufactured at their own factory in San Francisco. Special amongst their inventory, according to Shephard, are “Dining room sets, brass, dressers, rolltop desks and lamps.”

Last but not least and right next door to Vintage Antiques is Delicacies, Dona and Patrick Dougherty’s delicatessen. Dona, who is from Brussels, and Patrick, who met Dona while studying cuisine if Brussels’ national Institute of Hotelery, opened this past January and offer imported cheeses, meats. beer and California wines. They are open from 10 a.m. to 6 p.m. weekdays and from 10 am to 9 p.m. on Friday and Saturday. On the weekends, Patrick also whips up fresh made-on-the-premises pastries. For $2.75 one can “create your own sandwich,” choosing a selection of meats, cheeses, breads and accouterments.

After an afternoon of shopping and browsing throughout the Mercantile, Delicacies is the perfect way to call it a day: an opportunity to sit down, rest one’s feet, have a bite to eat and people-watch in Capitola Village.