Proud and provincial, Woodland was once a compact square surrounded by some of the state's richest farmland.

Victorian mansions, stately civic buildings and turn-of-the-century storefronts still line the city's downtown streets, reminders of its past prosperity as the seat of Yolo County government.

But in recent years, the city of 55,000 has struggled to define itself as it grew in an irregular patchwork to the south and east along Interstate 5 and Highway 113. Downtown languished. Strip malls proliferated and deteriorated. The town's sole shopping mall lost major department stores to bankruptcies.

In the last four years, a new wave of prosperity has struck the city in the form of big-box stores and suburban housing tracts creeping east toward metropolitan Sacramento and south toward Davis.

The city's new direction is pitting those committed to the aging central core against supporters of the commuter and shopping mecca taking shape along the freeways.

"In some ways we're creating a second city on our eastern edge," said Councilman Tom Stallard, a lawyer and downtown property owner concerned over Woodland's transformation.

Tensions surfaced last month when the City Council voted to annex 154 acres so Sacramento developer Paul Petrovich can build more retail stores and an auto mall. Three council members voted for it; two, including Stallard, voted against it.

Known for chrome animal sculptures at his shopping centers, Petrovich built the Safeway center at 19th and R streets in midtown Sacramento and the Stone Pointe center across from Sacramento City College.

In Woodland, his Gateway I features a sculpture of a cowboy roping a horse. Petrovich brought in Costco, Target and In-N-Out Burger; all are doing a booming business. His latest Woodland project, called Gateway II, is the sequel.

Supporters in town say they are grateful for the new amenities, jobs and revenue that have helped prop up the city budget during the downturn.

"I love it," said Yolanda Joy, a lifelong Woodland resident, as she loaded purchases from Costco into her car. "You can come to one place and get all your shopping done."

2nd project scaled back

Mayor Art Pimentel said residents tell him "all the time how we need more of those types of businesses."

Pimentel voted Sept. 20 to annex the acreage for Gateway II and to rezone 61 acres of it from agricultural to commercial.

The proposal calls for 340,000 square feet of commercial space plus three auto dealerships. Petrovich has agreed to scale back his original proposal to use all 154 acres of the annexed land and build 800,000 square feet of retail.

His willingness to compromise was "a game changer," according to former City Manager Mark Deven.

Stallard wasn't convinced. At the meeting, he called the project "too much, too soon." He said he wants to see more incremental expansion to ensure smart growth.

And he wants to see Petrovich help support revitalization of Woodland's historical downtown.

Councilman Bill Marble, who also opposed Gateway II, said Petrovich reneged on a pledge to build a downtown movie theater. Petrovich said he intends to build the theater eventually, along with shops and restaurants.

The developer said he thinks the opposition comes from a city experiencing "growth pains." He contends that by allowing him to build Gateway II, the city is positioning itself to take advantage of future economic recovery.

"There's an old saying that no one has ever been successful developing in Woodland," Petrovich said. "I'm the guy who hasn't lived there for six generations and is making things happen."

Meanwhile, a major subdivision called Spring Lake is under way, with 1,000 homes already built. Construction stalled as the housing market collapsed, but plans call for the area to eventually have 4,000 homes, adding about 10,000 residents. Those homes are along County Road 102, not far from the Costco and Target stores.

'Class-A retail' lacking

Petrovich said Woodland has a "deep supply" of residential development. "What they don't have is a supply of class-A retail," he said. "They have a lot of obsolete retail – four-and-five-decade-old stuff when there were a lot of shop tenants in the world before the advent of big-box."

That includes struggling strip malls along Main Street and Court Street west of downtown.

At Shade Tree Plaza, the former McMahan's Furniture was dark and empty. "Available" signs filled the windows. A shopping cart with garbage was tipped over in the parking lot.

"This whole shopping center used to be full," said Christian Melgoza, a high school student walking through the plaza. "It's just empty lots now."

On Gibson Road, County Fair Mall is half vacant. It has lost Target, Gottschalks and Mervyns since 2008. Target went to Gateway I, where it opened a much larger store. The other two stores closed as their parent companies liquidated.

On Tuesday, the corridors were silent, with only a handful of shoppers.

In contrast, the Costco and Target stores in the Gateway shopping centers are bustling. They draw customers by the thousands from Sacramento and Davis.

Mary Fernandez, from the Pocket area, was shopping at the Target with her daughter and grandson this week. "We love this Target because it's new and not real crowded," she said. "It's 25 minutes. It's not that far at all."

Laura Stannard drove with her sons from Natomas to the Woodland Costco. She prefers it to the Cal Expo area Costco store, where she said the crowds make parking difficult. Woodland, she said, is "a straight shot down I-5" with no traffic lights.

Petrovich said the big-box stores are keeping shoppers in Woodland who used to drive to Sacramento or Vacaville.

Sales taxes from the Gateway I stores contribute about $1.2 million annually to the city – nearly one-seventh of its sales tax revenue. That has allowed Woodland to avoid significant reductions during the recession.

"That $1.2 million keeps the library open, keeps the fourth engine company going, keeps us afloat right now," said Vice Mayor Skip Davies.

Petrovich told council members that Gateway II would create hundreds of jobs and millions more in tax revenue.

"Our community owes a lot to you for what you've done here," Stallard told Petrovich. "I respect you. I know the kind of work you do.

"But I feel like this is the future of our community" at stake.

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