ALAMEDA -- A Target store is expected to open by October next year at Alameda Landing, the proposed development along the Oakland-Alameda Estuary that will also include offices and up to 300 homes.

City officials say the new Target -- which would open for the holiday season if all goes as planned -- will anchor the 23-acre retail center in the development.

A groundbreaking took place Wednesday, the day after the City Council removed some of the final hurdles for the store, including allowing master developer Catellus to sell about 10 acres to Target Corp.

"This center will be a great addition to Alameda and we are especially excited to have Target be our first retailer to anchor the center," Mayor Marie Gilmore said in a statement. "Target is known as a strong, innovative retailer and an outstanding civic citizen due to their support of community giving."

About 200 people are expected to work at the 139,000 square-foot store.

The 72-acre Alameda Landing site borders the Bayport housing project and is near College of Alameda and the Webster Tube. The area was once the Fleet Industrial Supply Center, which served the Alameda Naval Air Station before the base closed in April 1997.

Along with Target and other stores, the Alameda Landing project will have about 400,000 square feet of office space.

The housing will be a mix of single and multifamily homes. About 45 units will be low income.

The project also calls for extending Fifth Street to accommodate some retailers.

"It's encouraging that work is getting done, especially given how tough the economy is right now," said Brandon Mack, 23, an Alameda resident, as he rode his bicycle near College of Alameda. "There's plenty of people who need those jobs."

Earlier this year, the city's Planning Board capped the amount of space inside the Target store that will be dedicated to groceries and other nontaxable items to 10 percent for five years, hoping to prevent the chain from undermining smaller neighborhood shops.

The Alameda Target will be about the same size as the chain's Emeryville location. It is expected to generate up to $300,000 in annual sales tax revenue for the city.

Last year, the retailer's sales were about $70 billion, according to documents filed with the city as part of the Alameda project. Target has built more than 300 stores throughout the country during the past five years.

The groundbreaking Wednesday took place near Mariner Square Loop and Marina Village Parkway.

"We are excited about the economic impacts of this project for our community," said Alameda's Community Development Director Lori Taylor, noting the jobs and sales tax revenue that will be generated by the new store.

Reach Peter Hegarty at 510-748-1654 or follow him at Twitter.com/Peter_Hegarty/.

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