1920s
In 1927 private investors opened the two-lane Dumbarton toll bridge. Not
yet linked to University Avenue, it brought heavy traffic to Willow Road.
In its wake came businesses and housing, and the area was dubbed Newbridge
(see map). Gas stations, cafes and
other traveler-oriented enterprises did a thriving business until the San
Mateo Bridge diverted much of the traffic. The drawbridge was purchased
by the state in the 1930s and replaced by the existing Dumbarton Bridge
in 1982.
1930s
In the 1930s much of East Palo Alto's
business district was concentrated along the recently-constructed Bayshore
Highway. It consisted largely of restaurants, gas stations and motels catering
to travelers. Once Prohibition was repealed in 1933, several liquor stores,
bars and night clubs sprang up, earning one area the name Whiskey Gulch
(see photo and map). It attracted
people from Palo Alto, which was still "dry," as well as Bayshore
travelers. Local residents complained of gambling and disturbances which
occurred with increasing frequency.
1940s
The Depression and war years retarded further growth until the 1940s. The
few Italian and Japanese flower growers who already operated in East Palo
Alto were joined by others after World War II. Flowers became East Palo
Alto's chief agricultural product. The small, family nurseries - numbering
around 30 at their peak - eventually withered away due to dropping prices,
increasing expenses, and foreign competition. Only four are active today
- the oldest being Nakanishi Nursery, established in 1939.
Dairies and other businesses appeared following the end of World War II. In 1947 Hiller Aircraft Company became the first major industry to move to East Palo Alto. Located just east of Willow Road, Hiller was one of only four companies in the world producing helicopters at that time, and the only aircraft manufacturer in the state. The company grew from a dozen employees to around 2,000.
1950s
But in the next dozen years, widening of Bayshore Highway and annexation
decimated East Palo Alto's business base. In 1949 and '59 Hiller and other
companies and residences in Belle Haven and Newbridge were annexed into
Menlo Park. The loss amounted to about one-fourth of the population and
the property value historically considered part of East Palo Alto (see map).
When the University Avenue cloverleaf was built as part of the freeway project, more than 50 businesses were forced to relocate. Only five chose to remain. A replacement commercial area between University and Capitol avenues was planned, and homes were cleared to make way. But the business district never fully reestablished itself, and in 1958 another large industrial area was annexed into Menlo Park.
In the following years - as the rest of the Bay Area witnessed growth and prosperity - East Palo Alto, for a number of reasons, was in a weak position to compete with its neighbors for desirable economic development. Not only was there little growth, but several key businesses shut their doors.
1960s to 1980s
University Village Shopping Center was built at the corner of University
Avenue and Bay Road in 1957. Never prosperous, it changed hands several
times. It underwent renovation in the late 1960s and was renamed Nairobi
Village Shopping Center. A decade later it was a boarded-up, mostly vacant
eyesore notorious for loitering and illegal activities. It was finally demolished
in 1989.
A Safeway grocery store operated in Whiskey Gulch from 1959 to 1974. Southern Pacific Railroad closed its East Palo Alto track in 1974 due to insufficient business. It was used rarely in subsequent years before being abandoned in 1987. All four of the city's banks left town in the 1980s.
A chamber of commerce resurfaced for a time in the 1950s. Revival was attempted in 1974, '77 and '82. It met sporadically in the late 1980s, and another attempt at resuscitation began in 1993.
1990s
Today many of East Palo Alto's woes are blamed on its lack of a business
tax base. The city depends on small companies - located primarily along
University Avenue, East Bayshore and Bay Road- for tax revenues as well
as services. It lacks a bank, supermarket and other key service-oriented
businesses.
The only large employer is Romic Environmental Technologies, a chemical recycling facility near Cooley's Landing. Romic originated in the early 1950s under another name and changed hands a couple of times. It was purchased out of bankruptcy in 1964 and, under the leadership of H.M. "Mike" Schneider, grew from three employees and one truck into a multi-million dollar company with some 300 employees at locations in California and Arizona.
Photos courtesy of Palo
Alto Historical Association
and San Mateo County Historical Association