Article updated: 3/4/2014 2:41 PM By Madhu Krishnamurthy - Daily Herald
Outlet malls. The concept took hold in the '80s and '90s. Clusters of stores occupied by manufacturers selling directly to customers seemed like a can't-miss way to compete with traditional shopping centers.
Their success is evidenced by their growth: The number of outlet malls nationwide quadrupled from 113 in 1988 to 472 last year.
But the past decade has been a challenge for outlet malls, which have taken a hit from more traditional shopping centers offering aggressive promotions and discounts, and the migration to online shopping, analysts say.
In the suburbs, Chicago Premium Outlets in Aurora, Huntley Outlet Center and Gurnee Mills each tell a different story on staying viable in a tough market.
Chicago Premium Outlets, viewed by some as one of the more successful outlet malls in the country, has plans to expand. Gurnee Mills is undergoing a massive interior renovation this spring aimed at creating spaces where families will want to hang out.
The struggling Huntley Outlet Center is marketing itself to local stores by working with area chambers of commerce and community economic development officials. It's banking, too, on a new tollway interchange.
But with little evidence of economic pressures easing anytime soon, outlet malls, as well as traditional ones, could be in for a bumpy ride, said George Rosenbaum, retail analyst and president of Chicago-based GR Research and Consulting.
Historically, the incentive for shopping at outlet centers was lower prices. But factor in gas prices, travel and shopping time, and bargain hunters of today are less inclined to go to the trouble, Rosenbaum said.
"If the present climate were to continue and the migration to online shopping doesn't hit a wall soon, we are going to see a continuing decline in the number of major shopping centers, and even secondary shopping centers, that are viable," he said. "If you have to sell at a lower margin, this does not bode well for a healthy future. This is a mark of gradual decline."
Here, then, are the specifics of the three outlet malls' efforts.
Hope for Huntley
The Huntley Outlet Center, marking its 20th anniversary, today has a nearly 50 percent vacancy rate with many prominent stores, such as BCBG Maxazria and Calvin Klein leaving in recent years.
Years ago, the Huntley mall was acquired by Indianapolis-based Simon Property Group Inc., the same group that owns the outlet centers in Aurora and Gurnee.
A new Skechers outlet opened in Huntley in December. Yet, overall, the Huntley center has struggled with attracting traffic, said leasing agent Rick Scardino, director for Rosemont-based retail brokerage Lee & Associates of Illinois LLC.
"The fact that it never had full access, and 9/11 and 2007 came along ... it put a severe hurt on centers that didn't have great access," Scardino said.
That is expected to change with the $61 million full-access tollway interchange at I-90 and Route 47 that opened in the fall.
"There's a lot of great buzz about Huntley, and justifiably so," Scardino said. "And we're going to try and remind retailers of that. It's our hope to lease these spaces one at a time. We're trying to make the center more accessible to the local community. We want to host more communitywide events here to make it more of a focal point of the community."
Scardino's firm was hired last fall to attract local retail tenants for the outlet center. He has been working with Huntley's business recruitment and economic development staff who are visible in the community, attend chamber and business events, and know firsthand the shopkeepers looking to expand, he said.
"This center really wasn't marketed to brokers in metropolitan Chicago for years just because that's not the way malls or outlet centers are traditionally marketed," he said. "We don't see them hiring us as any sort of panacea or overnight success."
The outlet center ultimately will need to expand its offerings beyond softgoods and apparel.
Scardino hopes to reach out to Chicago companies in the businesses of furniture, home improvement, kitchen and bath, carpeting, tile and sporting goods.
"We're looking to get creative out here," Scardino said. "A company that has a dozen stores in Chicago and has never contemplated an outlet store, we want to give them a reason to consider that. There's a lot of second-generation spaces that have some very attractive build-out that could be relatively easy, cheap turnaround spaces.
"I don't know if we can reinvent the wheel. Tenancy and traffic begets more traffic. If you have the goods and services that people are looking for, they won't necessarily drive past you to go to Pleasant Prairie (Premium Outlets in Wisconsin) or Rosemont."
Fashion Outlets of Rosemont opened last fall and caters mostly to an upscale clientele. The two-story, 530,000-square-foot enclosed mall runs upstream of traditional outlet malls, experts say.
Aurora gets bigger?
Chicago Premium Outlets, now 10 years old, plans to add next year about 294,000 square feet of retail space to its existing footprint of 437,342 square feet. Area General Manager Darcy Rutzen would not offer further details about expansion plans, nor discuss vacancy rates.
Sales tax revenues from the outlet center declined slightly after the 2008 market crash but started picking back up in 2011, according to figures from the city of Aurora.
"If you ever watch the parking lot out there or tried to get a place in the parking lot, there could have been a fall-off (in sales tax revenue), but it's pretty hard to notice,"Aurora Mayor Tom Weisner said. "We've projected about $40 million in sales tax revenues overall for this year and a very strong percentage of that comes from the outlet mall."
Nearly 9 percent of the city's sales tax revenues comes from the outlet center.
"I think their success exceeded even their expectations and ours," Weisner said.
The center helped put the state's second largest city with a population of nearly 200,000 on the map as a shopping destination.
"They are part of a continuing saga in Aurora being a regional retail anchor," Weisner said. "That (mall area) annexation was the second largest in the state's history after O'Hare Airport. That really continued to solidify us as one of the best retail destinations in Illinois."
Property tax receipts from the mall also have given a substantial boost to the city's finances. The city created a special taxing district in 1989 to spur redevelopment of the area that includes the mall property east of Farnsworth Avenue abutting I-88.
At the time, Weisner said, annual property tax revenues from the area was $25,000. Today, "that same area generates $8 million in property tax revenues yearly." The outlet center accounts for about 50 percent of that revenue, he said.
The original 60-acre mall was built on 140 acres. The expansion will take up an additional 45 acres on the east end of the mall property.
Weisner has high hopes for the center's continued success.
"This considerable expansion certainly is a vote of confidence by them in the property," he said. "It's been a great thing. It's provided a lot of employment opportunities."
Gurnee now a hybrid
The 22-year-old Gurnee Mills recently renovated and added a full-price wing anchored by Macy's, much like a traditional mall, General Manager Randy Ebertowski said.
It includes stores such as Lego, Ann Taylor Loft, Bachrach, and Charming Charlie women's accessories, and new amenities.
"Of course in retail you're going to have turnover of new stores, that's something that's healthy," Ebertowski said. "A mall is about fashion, and fashion always changes, which means you've got to reinvent yourself with new stores, new additions to keep up with the times. We're unique in the fact that we are the only hybrid shopping center in Illinois and anywhere throughout this area."
Gurnee Mills is the only other enclosed outlet center that also offers full-price retail, discount retailers, and designer outlet stores under one 2 million-square-foot roof. The mall has an attached movie theater, which recently added a 70-by-29-foot Ultrascreen, plush seating and new sound system. It also has entertainment and dining venues meant to keep shoppers on property as long as possible.
"We're also renovating this year one of our two food courts so it will be completely redone to new, comfortable furnishings, improved lighting, new restaurant fronts, new dining options," Ebertowski said. "There's always some exciting things in the works."
Analyst Rosenbaum doesn't have such a rosy prediction for the future of outlet centers.
"All major shopping centers are being affected by migration to online shopping," which accounts for nearly 12 to 15 percent of retail sales, he said.
Traditional mall anchor stores can make up for losses in in-store retail sales online. But malls like Gurnee Mills don't have the same kind of online sales, he said.
And while amenities are attractive, they can distract customers from shopping, which defeats the purpose, Rosenbaum said.
"My guess is that (mall) shopping is not going to return to its glorious era," Rosenbaum said. "Online shopping has continued to grow. ... That means thinning out of shopping centers and conversion of shopping centers to alternative uses."
Showing posts with label Mills. Show all posts
Showing posts with label Mills. Show all posts
Monday, March 10, 2014
Thursday, January 9, 2014
Franklin Mills reinvents itself as a more conventional mall
Bloomberg Business Week McClatchy-Tribune 12/26/2013 2:03 AM ET
Dec. 26--A sky-high crane dangles over a corner of Franklin Mills Mall these days, but it is more than a towering construction tool: It is a symbol of how necessity is the mother of reinvention at this once-legendary shopping mall.
A Walmart Supercenter is taking shape at the once-pioneering complex, which opened nearly 25 years ago with theme-park anticipation as among the first outlet malls, and the outright largest, ever built. The splashy development, unveiled in 1989, was a gamble befitting its locale, a onetime Northeast Philadelphia racetrack. And early on, its unmatched offerings paid off with packed corridors.
The mall flaunted a 1.2-mile-long, zigzag-shaped concourse, and more than 200 stores hawking discount designer goods, at a time when such wares were available only at out-of-the-way old-factory outlets. Its 1.7 million square feet of bargain buys, right off I-95, was a tourist draw and local sensation.
But the megamall's early monopoly on outlet shopping has come to an end, forcing Franklin Mills to alter its once-irresistible identity. The Walmart is one of many tenants that now make the monolith, well, a bit more ordinary. And this is by design.
Dubbed "The Mall to End Them All" when it opened, Franklin Mills is refashioning itself as more conventional these days. The 180,000-square-foot Walmart opening next year is but one example.
"We consider ourselves the largest outlet and value destination in Philadelphia," said John Ahle, who became Franklin Mills' general manager a year ago, before Walmart broke ground on a long-dormant anchor site. "Some of the stores are outlets, some are factory outlets, some of the stores are traditional mall vendors. So you get the best of both worlds."
The new Walmart will replace a smaller one across the street and have a full-size supermarket, as is found in suburban shopping centers. Such expansions are common where shopper demand is high and a large tract of land is available, Walmart spokesman Bill Wertz said.
"Walmart meets our value proposition," Ahle added. "They offer budget-conscious shoppers more selection for less."
Now value is key
Such language is a far cry from the Disney-like promise of unbeatable shopping and entertainment when Franklin Mills opened in 1989, with downright imperial ambitions.
Franklin Mills hit the stage as a bigger version of the Woodbridge, Va., outlet mall Potomac Mills, a 1.2 million-square-foot mall that opened in September 1985 and served as prototype for the Philadelphia behemoth. Both were built by the same partnership group that introduced outlet malls to America.
It opened with a JCPenney Outlet, the Boscov's-owned Ports of the World, a Phar-Mor discount drugstore, Reading China & Glass, and a Sears Outlet store, plus an entertainment wing. Almost all have since vanished, except for the Sears Outlet. Penneys a few years ago was converted to a regular department store.
Higher-end attractions included the Saks Fifth Avenue outlet store Saks Off Fifth, and Last Call by Neiman Marcus, which remain centerpiece attractions today.
"It was very pioneering, and it was a huge regional draw," said Steven Gartner, president of retail brokerage Metro Commercial Real Estate Inc., whose company books tenants at an adjacent shopping center, Franklin Marketplace. "I believe at one time it was one of the largest tourist attractions in the state of Pennsylvania."
Franklin Mills is the region's second-largest mall, behind King of Prussia. Both are owned by Indianapolis-based real estate investment trust Simon Property Group.
For years, it was a force to be reckoned with. Even with King of Prussia nearby, the well-heeled of the western suburbs would trek toward rowhouse Northeast Philadelphia in search of designer steals.
"I went from the Main Line to Franklin Mills, and lots of people did, to shop," Gartner said. "That is not happening today."
A tired theme
Outlet-style shopping has become commonplace. Outdoor complexes such as Simon-owned Philadelphia Premium Outlets in Limerick ha
Dec. 26--A sky-high crane dangles over a corner of Franklin Mills Mall these days, but it is more than a towering construction tool: It is a symbol of how necessity is the mother of reinvention at this once-legendary shopping mall.
A Walmart Supercenter is taking shape at the once-pioneering complex, which opened nearly 25 years ago with theme-park anticipation as among the first outlet malls, and the outright largest, ever built. The splashy development, unveiled in 1989, was a gamble befitting its locale, a onetime Northeast Philadelphia racetrack. And early on, its unmatched offerings paid off with packed corridors.
The mall flaunted a 1.2-mile-long, zigzag-shaped concourse, and more than 200 stores hawking discount designer goods, at a time when such wares were available only at out-of-the-way old-factory outlets. Its 1.7 million square feet of bargain buys, right off I-95, was a tourist draw and local sensation.
But the megamall's early monopoly on outlet shopping has come to an end, forcing Franklin Mills to alter its once-irresistible identity. The Walmart is one of many tenants that now make the monolith, well, a bit more ordinary. And this is by design.
Dubbed "The Mall to End Them All" when it opened, Franklin Mills is refashioning itself as more conventional these days. The 180,000-square-foot Walmart opening next year is but one example.
"We consider ourselves the largest outlet and value destination in Philadelphia," said John Ahle, who became Franklin Mills' general manager a year ago, before Walmart broke ground on a long-dormant anchor site. "Some of the stores are outlets, some are factory outlets, some of the stores are traditional mall vendors. So you get the best of both worlds."
The new Walmart will replace a smaller one across the street and have a full-size supermarket, as is found in suburban shopping centers. Such expansions are common where shopper demand is high and a large tract of land is available, Walmart spokesman Bill Wertz said.
"Walmart meets our value proposition," Ahle added. "They offer budget-conscious shoppers more selection for less."
Now value is key
Such language is a far cry from the Disney-like promise of unbeatable shopping and entertainment when Franklin Mills opened in 1989, with downright imperial ambitions.
Franklin Mills hit the stage as a bigger version of the Woodbridge, Va., outlet mall Potomac Mills, a 1.2 million-square-foot mall that opened in September 1985 and served as prototype for the Philadelphia behemoth. Both were built by the same partnership group that introduced outlet malls to America.
It opened with a JCPenney Outlet, the Boscov's-owned Ports of the World, a Phar-Mor discount drugstore, Reading China & Glass, and a Sears Outlet store, plus an entertainment wing. Almost all have since vanished, except for the Sears Outlet. Penneys a few years ago was converted to a regular department store.
Higher-end attractions included the Saks Fifth Avenue outlet store Saks Off Fifth, and Last Call by Neiman Marcus, which remain centerpiece attractions today.
"It was very pioneering, and it was a huge regional draw," said Steven Gartner, president of retail brokerage Metro Commercial Real Estate Inc., whose company books tenants at an adjacent shopping center, Franklin Marketplace. "I believe at one time it was one of the largest tourist attractions in the state of Pennsylvania."
Franklin Mills is the region's second-largest mall, behind King of Prussia. Both are owned by Indianapolis-based real estate investment trust Simon Property Group.
For years, it was a force to be reckoned with. Even with King of Prussia nearby, the well-heeled of the western suburbs would trek toward rowhouse Northeast Philadelphia in search of designer steals.
"I went from the Main Line to Franklin Mills, and lots of people did, to shop," Gartner said. "That is not happening today."
A tired theme
Outlet-style shopping has become commonplace. Outdoor complexes such as Simon-owned Philadelphia Premium Outlets in Limerick ha
Wednesday, October 2, 2013
Sawgrass Mills gearing up for holidays with job fair
McClatchy-Tribune 09/27/2013 12:01 AM ET - Bloomberg BusinessWeek
Sept. 27--Sawgrass Mills is hosting a job fair Oct. 11 as more than 40 restaurants and retailers are looking to fill part-time and full-time positions for the upcoming holiday shopping rush.
Retailers who will be hiring include Armani Outlet, Michael Kors Outlet, Victoria's Secret and J. Crew Factory. Sushi bar Sushigami also has openings.
The event will run from 11 a.m. to 2 p.m. in the Fashion Row wing, between Calvin Klein and Forever 21. Job applicants are encouraged to park near the Bed Bath & Beyond store.
"We are thrilled to help our retailers enhance their sales forces in preparation for the demands of the busy holiday season," said Joellyn Fellmeth, regional director of marketing at Sawgrass Mills.
Job seekers should be prepared to fill out applications, be prepared for on-the-spot interviews, and to have their resumes reviewed.
Sawgrass Mills is at 12801 W. Sunrise Blvd., Sunrise.
Sept. 27--Sawgrass Mills is hosting a job fair Oct. 11 as more than 40 restaurants and retailers are looking to fill part-time and full-time positions for the upcoming holiday shopping rush.
Retailers who will be hiring include Armani Outlet, Michael Kors Outlet, Victoria's Secret and J. Crew Factory. Sushi bar Sushigami also has openings.
The event will run from 11 a.m. to 2 p.m. in the Fashion Row wing, between Calvin Klein and Forever 21. Job applicants are encouraged to park near the Bed Bath & Beyond store.
"We are thrilled to help our retailers enhance their sales forces in preparation for the demands of the busy holiday season," said Joellyn Fellmeth, regional director of marketing at Sawgrass Mills.
Job seekers should be prepared to fill out applications, be prepared for on-the-spot interviews, and to have their resumes reviewed.
Sawgrass Mills is at 12801 W. Sunrise Blvd., Sunrise.
Monday, September 16, 2013
St. Louis Outlet Mall, formerly St Louis Mills, struggles amid tough market
HAZELWOOD • Randy Tienes knows only too well the signs of a dying mall — and he doesn’t see them yet at the struggling St. Louis Outlet Mall.
His shop, St. Louis Custom Gear, a sports apparel and custom embroidery shop, was in Jamestown Mall until 2010 when he moved his business to the sprawling outlet mall, then known as St. Louis Mills, in Hazelwood.
“Business is still good,” he said. “I think it’s just malls in general. I don’t think any mall has done that great with the exception of a few.”
The mall, which was renamed last year, has been grappling with challenges of the economy and competition from online shopping. And the opening of two new outlet malls in Chesterfield last month probably won’t help either, he added.
As is obvious to most shoppers who roam its cavernous corridors, this is not the best of times for St. Louis Outlet Mall.
Black curtains — the telltale signal of a struggling mall — cover up a number of empty storefronts. One of the most recent casualties was the Marshalls that closed in May. A sign above the recently vacated store promises: “New store coming soon!” but the mall did not provide any further details.
According to data included in a recent report by its management company, the mall was 84 percent leased at the end of June. By comparison, the average occupancy rate at malls in many markets is roughly 92 percent.
While the empty storefronts may be most visible to shoppers, what has not been as much in the public eye is that the mall, formerly owned by Simon Property Group, had been delinquent on its loan.
In October 2011, the loan was transferred to special servicing. And in January 2012, the $90 million Morgan Stanley Capital Investment construction loan matured and was defaulted on.
So in August of last year, the mall’s ownership was transferred to the lender via a special warranty deed in lieu of foreclosure. The Woodmont Co. came on board to manage the property and the mall was rebranded as St. Louis Outlet Mall shortly after.
Simon Property Group happens to be the developer of St. Louis Premiums Outlets, one of the two new outlet malls in Chesterfield. Woodmont is also a minority stakeholder in that project.
A Simon spokesman declined to comment on the company’s separation from the Hazelwood mall other than to confirm it was no longer the owner. Woodmont officials did not respond to requests for comment. And a spokeswoman for the mall also declined to comment for this story.
When the mall first opened in November 2003, it was the first new mall to be built in the region in 16 years. The $250 million mall was unusual in that it not only offered a hybrid of outlet-type stores and full-price stores, but also included a number of entertainment venues.
Mall officials at the time trumpeted the whole experience as “shoppertainment.” Today, the mall still has a NASCAR SpeedPark, an Ice Zone where the St. Louis Blues practice, and a skate park.
Now the assumption by Hazelwood city officials is that the lender is preparing to sell the mall.
Sunday, July 28, 2013
Macy’s now open at Gurnee Mills
Macy's has made its long-awaited debut at Gurnee Mills and is receiving high marks from some shoppers.
At least a couple hundred customers were in line for a ribbon-cutting ceremony for Wednesday morning's grand opening. Gurnee Mayor Kristina Kovarik, village board trustees and other dignitaries attended the festivities.
"Simon Group had a vision, which took a lot of guts," Kovarik said before the doors opened amid a festive atmosphere. "A lot of guts on the part of Simon Group, a lot of guts on the part of Macy's, a lot of guts by the village of Gurnee. Because, like anything in business, it's always a gamble. And this was a gamble, but everybody had the grit and the fortitude and the determination to see it through."
While it is Macy's first venture in a mall known for outlet and value shopping, the 149,000-square-foot store is anchoring Gurnee Mills' new full-price wing. Jan McBee and her sister-in-law, Sherry Holmen, both of Grayslake, led the pack into the Macy's and gave it a thumbs-up.
McBee and Holmen like the Starbucks near the social dresses department and the store's one-level layout, which is similar to a racetrack. They also like that Macy's, which has a Vernon Hills store, located in Gurnee.
"We've been always running to Vernon Hills," Holmen said. "You have to go through Libertyville and all that traffic. So, this is a perfect, perfect location and we needed a big store out here."
Gurnee Mills opened in 1991 and was the first in the Chicago area with an outlet concept. However, Gregg Goodman, president of Simon Property Group's The Mills, said research showed Gurnee-area consumers wanted some higher-end retail options and specifically asked for Macy's.
"I think that what we're providing on this property is spot-on to what the customer wants in an out-of-home environment," Goodman said. "And we're excited about it."
Other stores in Gurnee Mills' new full-price area that opened this week include Victoria's Secret PINK, Bachrach and Crazy 8.
Macy's employees handed $10 gift cards to the first 300 customers who went through the store's main east-side entrance. Simone Coisman of Gurnee was one of two shoppers who received a $500 gift card.
Coisman and her husband, David, are frequent mall walkers and decided at the last minute to join the Macy's line. Simone Coisman said she likes the way Gurnee Mills is being upgraded.
"I think it's a good thing they're doing to get some more regular retail to draw people here to the mall," Coisman said.
Shopping is a big deal to Gurnee village government, because sales tax represents 48 percent of general fund revenue.
Village officials project $16.6 million in sales tax revenue for the fiscal year that started May 1 and runs through April 30, 2014. If the projection holds, the sales tax would increase by $325,000 or 2 percent from the last budget year.
Wednesday, October 31, 2012
St. Louis Mills name changes to St. Louis Outlet Mall
Hazelwood, Mo (KSDK) -- The St. Louis Mills is under new management and has a new name.
The Woodmont Company is now managing St. Louis Outlet Mall.
Signage throughout the property is being modified to reflect the name change.
The St. Louis Outlet Mall is features the Nike Factory Store, Banana Republica Outlet, Cap Outlet, Tommy Hilfiger Outlet, The Children's Place Outlet, Gymboree Outlet and many more.
KSDK
The Woodmont Company is now managing St. Louis Outlet Mall.
Signage throughout the property is being modified to reflect the name change.
The St. Louis Outlet Mall is features the Nike Factory Store, Banana Republica Outlet, Cap Outlet, Tommy Hilfiger Outlet, The Children's Place Outlet, Gymboree Outlet and many more.
KSDK
Wednesday, June 20, 2012
Grapevine approves $14M for Mills mall improvements
The Grapevine City Council approved $14 million in incentives Tuesday
night for expected improvements to the Grapevine Mills mall.
The incentives, allocated from a tax increment financing district, will go toward an estimated $40 million upgrade, according to the Star-Telegram. The council agreed on $10 million in interior upgrades and $4 million for the exterior.
City officials were not immediately available for comment Wednesday morning, but City Manager Bruno Rumbelow spoke with the Dallas Business Journal about the need for improvements earlier this month.
Rumbelow said the mall, which opened in October of 1997 and is now owned by Simon Property Group, needs a series of physical upgrades such as better lighting and flooring.
“We’ve been talking to them about a renovation project, basically making the inside of that mall new again, for the last two years,” Rumbelow said.
And Grapevine officials have even made trips to other Simon malls to see what could be done at Grapevine Mills. In April, city officials traveled to Opry Mills in Nashville to tour a recent renovation after a flood in 2010. It was something Indianapolis-based Simon wanted to show off as a possible renovation of Grapevine Mills.
“They really wanted us to take a look at it, because in terms of what that mall will be, that mall is a nice template,” Rumbelow said.
The biggest change that would take place in a Grapevine Mills renovation would be an upgrade to the tenant base.
“There need to be stores that draw a higher demographic shopper with a higher spend per person,” Rumbelow said.
Rumbelow mentioned brands like Michael Kors and Brooks Brothers, which are in the Opry Mills, as possible tenants in the new Grapevine Mills.
The higher tenant base leads to higher sales tax revenue for the city, Rumbelow said. Grapevine Mills is the city’s largest source of sales tax revenue.
But will customers who like the current tenant base at Grapevine Mills be driven away by higher priced luxury items? Rumbelow wasn’t sure, but was more concerned with attracting those customers that spend more at the mall.
“The customer base that the premium stores cater to is here in large numbers,” Rumbleow said. “We just have to get them specifically to our center."
The incentives, allocated from a tax increment financing district, will go toward an estimated $40 million upgrade, according to the Star-Telegram. The council agreed on $10 million in interior upgrades and $4 million for the exterior.
City officials were not immediately available for comment Wednesday morning, but City Manager Bruno Rumbelow spoke with the Dallas Business Journal about the need for improvements earlier this month.
Rumbelow said the mall, which opened in October of 1997 and is now owned by Simon Property Group, needs a series of physical upgrades such as better lighting and flooring.
“We’ve been talking to them about a renovation project, basically making the inside of that mall new again, for the last two years,” Rumbelow said.
And Grapevine officials have even made trips to other Simon malls to see what could be done at Grapevine Mills. In April, city officials traveled to Opry Mills in Nashville to tour a recent renovation after a flood in 2010. It was something Indianapolis-based Simon wanted to show off as a possible renovation of Grapevine Mills.
“They really wanted us to take a look at it, because in terms of what that mall will be, that mall is a nice template,” Rumbelow said.
The biggest change that would take place in a Grapevine Mills renovation would be an upgrade to the tenant base.
“There need to be stores that draw a higher demographic shopper with a higher spend per person,” Rumbelow said.
Rumbelow mentioned brands like Michael Kors and Brooks Brothers, which are in the Opry Mills, as possible tenants in the new Grapevine Mills.
The higher tenant base leads to higher sales tax revenue for the city, Rumbelow said. Grapevine Mills is the city’s largest source of sales tax revenue.
But will customers who like the current tenant base at Grapevine Mills be driven away by higher priced luxury items? Rumbelow wasn’t sure, but was more concerned with attracting those customers that spend more at the mall.
“The customer base that the premium stores cater to is here in large numbers,” Rumbleow said. “We just have to get them specifically to our center."
Sunday, May 6, 2012
H&M will open a store in Grapevine Mills
GRAPEVINE - Grapevine Mills mall will take another step forward on the fashion scene with the announcement last week that H&M plans to open a store.
The Swedish-based seller of clothes for women, men, teens and children will open this fall in the former Books-a-Million space near Entry No. 2, next to Last Call by Neiman Marcus and Rainforest Café, according to Simon Property Group, the mall's owner.
"The date right now is not confirmed," said Robyn Hankerson, a Grapevine Mills spokeswoman.
The addition of H&M is part of a trend for the mall of bringing in higher quality merchants, said Bruno Rumbelow, the Grapevine city manager. "In terms of business strategy, for Mills it is going after better fashion-based tenants that appeal to the area's residents," he said last week.
"It is another step to have stores that differentiate this mall from others," he said, citing the recent opening of Coach, which sells handbags and accessories, and the expected opening soon of Under Armour, which sells athletic wear.
Earlier this month, Rumbelow and some City Council and staff members visited Simon Property Group's newly remodeled Opry Mills mall in Nashville to get an idea of how a remodeled Grapevine Mills mall might look.
They came away impressed with Opry Mills. "The way the mall feels inside is hopefully what our Mills mall will be in the future," Rumbelow said.
While no one with Simon has admitted publicly that a remodel is coming, officials have met with city leaders behind closed doors on at least two occasions.
The addition of an H&M store in the fall, the third store in the DFW area and the first in Tarrant County, will help keep Grapevine Mills a destination, Rumbelow said.
"When you think of stores that will drive traffic to the mall, H&M is at the top of the list," he said.
This article contains information from the Grapevine Courier and Star-Telegram archives.
Monday, April 30, 2012
Sawgrass Mills to break ground on expansion
Sunrise, Fla. -- Indianapolis-based Simon Property Group announced that Sawgrass Mills, the largest outlet, value retail and entertainment destination in the United States with more than 350 stores, will soon break ground on its newest phase of development to increase the footprint of The Colonnade Outlets at Sawgrass Mills.
This milestone also represents the soon-to-be-completed 140,000-sq.-ft. retail expansion of the south side of the property.
The 40,000-sq.-ft. expansion of The Colonnade Outlets at Sawgrass will be located across from the existing retail structure by late 2012.
The 140,000-sq.-ft. retail expansion to the south side of the property will allow for more retailers to open this summer, including South Florida’s first outlet location from Steve Madden, plus Columbia Sportswear Outlet and Volcom. Other brands such as Forever 21 and Calvin Klein will relocate and undergo expansions to be in this new wing.
The retail surge at Sawgrass Mills will also add a second location from Michael Kors, a Bare Minerals, and the expansion of Levi’s Outlet Store. Talbot’s, Greg Norman and Old Navy, as well as a California Pizza Kitchen, will open at The Oasis at Sawgrass Mills.
Friday, April 6, 2012
Grapevine leaders visit Opry Mills Mall
GRAPEVINE -- City officials are in discussions with the owners of Grapevine Mills mall about a major renovation.
To get a better idea of what that might look like, some of Grapevine's elected leaders and staff flew to Nashville on one-day trips Wednesday and Thursday to visit the newly renovated Opry Mills mall. It had been closed since being devastated in a 2010 flood and has its grand reopening Thursday after a $200 million makeover. Both malls are owned by Simon Property Group of Indianapolis, which bought Mills Corp. in 2007.
"We wanted to see the interior configuration, the store lineup," Grapevine City Manager Bruno Rumbelow said.
"The way the mall feels inside is hopefully what our Mills mall will be in the future."
He said the city and Grapevine Mills are in a "discussion phase" for an interior renovation. The two sides, including the City Council, have met behind closed doors at least twice in the last few months, with Mills representatives bringing large, four-color maps and images.
Councilwoman Darlene Freed, who visited Opry Mills on Thursday, said she was impressed.
She said it was "jammed" with people at the grand opening, and described a lighter-colored floor, comfortable chairs rather than benches, a wing designated as a "fashion district" with higher-end shops and store entrances that are "more dramatic."
"It is time to do an upgrade on our mall," she said.
Michael Goodman with Simon's public relations firm of Bitner Goodman said in an e-mail that "the Mills has been focused on renovations and expansions."
He wrote that "we do not have specific plans for Grapevine Mills, but we look forward to working with the city of Grapevine in the near future."
Grapevine Mills mall, built at a cost of $200 million, opened in 1997. It has more than 1.78 million square feet; Opry Mills has more than 1.16 million square feet, according to Simon's website. In the last couple of years, Grapevine Mills has added a Legoland Discovery Center and Sea Life
Grapevine Aquarium as well as shops. For example, Coach Factory outlet recently opened, and an Under Armour store is expected to open next month.
To help with the construction of Grapevine Mills, Grapevine created a tax increment financing district, which uses future property tax revenue to repay $27.5 million in public improvements for roads, water and sewer. That TIF was joined by other taxing entities including Tarrant County
College, Tarrant County, the county hospital district and the Grapevine-Colleyville school district. The TIF has a 20-year payback period.
John McGrane, Grapevine's director of administrative services, said the "fund is doing very well. The payback exceeds" the timetable.
He said he expects Simon to come to Grapevine seeking incentives for any mall renovation.
Freed described the mall as Grapevine's largest sales tax generator. However, separate sales tax figures covering just the shops at the mall are not available from the state comptroller's office.
Rumbelow, who visited Opry Mills on Wednesday with Councilmen Mike Lease and Roy Stewart, said "everyone was impressed with the renovations."
His hope is to "actively go forward" in the discussions with Simon to "rebuild and retool" Grapevine Mills.
"This is the newest version of Mills; we intend to have that," he said.
This report includes material from the Star-Telegram archives.
To get a better idea of what that might look like, some of Grapevine's elected leaders and staff flew to Nashville on one-day trips Wednesday and Thursday to visit the newly renovated Opry Mills mall. It had been closed since being devastated in a 2010 flood and has its grand reopening Thursday after a $200 million makeover. Both malls are owned by Simon Property Group of Indianapolis, which bought Mills Corp. in 2007.
"We wanted to see the interior configuration, the store lineup," Grapevine City Manager Bruno Rumbelow said.
"The way the mall feels inside is hopefully what our Mills mall will be in the future."
He said the city and Grapevine Mills are in a "discussion phase" for an interior renovation. The two sides, including the City Council, have met behind closed doors at least twice in the last few months, with Mills representatives bringing large, four-color maps and images.
Councilwoman Darlene Freed, who visited Opry Mills on Thursday, said she was impressed.
She said it was "jammed" with people at the grand opening, and described a lighter-colored floor, comfortable chairs rather than benches, a wing designated as a "fashion district" with higher-end shops and store entrances that are "more dramatic."
"It is time to do an upgrade on our mall," she said.
Michael Goodman with Simon's public relations firm of Bitner Goodman said in an e-mail that "the Mills has been focused on renovations and expansions."
He wrote that "we do not have specific plans for Grapevine Mills, but we look forward to working with the city of Grapevine in the near future."
Grapevine Mills mall, built at a cost of $200 million, opened in 1997. It has more than 1.78 million square feet; Opry Mills has more than 1.16 million square feet, according to Simon's website. In the last couple of years, Grapevine Mills has added a Legoland Discovery Center and Sea Life
Grapevine Aquarium as well as shops. For example, Coach Factory outlet recently opened, and an Under Armour store is expected to open next month.
To help with the construction of Grapevine Mills, Grapevine created a tax increment financing district, which uses future property tax revenue to repay $27.5 million in public improvements for roads, water and sewer. That TIF was joined by other taxing entities including Tarrant County
College, Tarrant County, the county hospital district and the Grapevine-Colleyville school district. The TIF has a 20-year payback period.
John McGrane, Grapevine's director of administrative services, said the "fund is doing very well. The payback exceeds" the timetable.
He said he expects Simon to come to Grapevine seeking incentives for any mall renovation.
Freed described the mall as Grapevine's largest sales tax generator. However, separate sales tax figures covering just the shops at the mall are not available from the state comptroller's office.
Rumbelow, who visited Opry Mills on Wednesday with Councilmen Mike Lease and Roy Stewart, said "everyone was impressed with the renovations."
His hope is to "actively go forward" in the discussions with Simon to "rebuild and retool" Grapevine Mills.
"This is the newest version of Mills; we intend to have that," he said.
This report includes material from the Star-Telegram archives.
Monday, April 2, 2012
Thursday, March 29, 2012
Simon Property Group Announces Grand Re-Opening of Opry Mills
The largest outlet and value retail shopping destination in Tennessee now open for business with more to come
NASHVILLE, Tenn., March 29, 2012 /PRNewswire/ -- Simon Property Group, Inc. (NYSE: SPG), the world's leading retail real estate company, today announced the Grand Re-Opening of Opry Mills, the largest outlet and value retail, shopping, dining and entertainment destination in Tennessee.
"We are thrilled to reopen Opry Mills, creating thousands of new jobs, generating tax revenues and attracting even more visitors to the Nashville area," said Gregg Goodman, president of The Mills, a Simon company. "With a great selection of outlet and value retail stores, paired with family dining and entertainment options, Opry Mills will once again be the favorite shopping destination for locals and visitors alike."
Opry Mills is home to some of America's most popular retailers, many of which are reopening their Opry Mills locations including Michael Kors, Polo Ralph Lauren Factory Store, Vera Bradley, Coach Factory Store, Crazy 8, Jones New York Outlet, P.S. from Aeropostale, Aeropostale, The Children's Place Outlet, The Finish Line, Fossil, Gap Outlet, Gymboree Outlet, Haggar, HANESbrands, J. Crew Factory, Journeys, Levi's Outlet, Nautica Factory Store, Old Navy Outlet, Papaya, RCC Western Wear, rue21, Skechers USA Outlet and Wilson's Leather Outlet.
Opry Mills' unique brand of shopping includes a variety of family dining and entertainment options. Aquarium Restaurant, Claim Jumper, Rainforest Cafe, Romano's Macaroni Grill and Dave & Buster's, plus a food court provide lunch and dinner options. Shoppers can also watch feature movies in a state-of-the-art environment and enjoy the IMAX experience at Regal Cinemas Opry Mills Stadium 20 & IMAX.
Opry Mills' Grand Re-Opening events will continue during April through May 5. The grand finale event will be a free outdoor concert with Country Superstar Josh Turner.
The Grand Re-Opening of Opry Mills comes nearly two years after the historic flood in May 2010 ravaged Nashville and Opry Mills, one of Tennessee's top tourist attractions.
About Opry Mills
Opry Mills, the largest outlet and value retail shopping destination in Tennessee, will celebrate its Grand Re-Opening on March 29 with a great collection of fashion forward stores such as Coach Factory Store, Cole Haan, Saks Fifth Avenue OFF 5TH, XXI Forever, Nike Factory Store, Gap Outlet, New York & Company Outlet, Bose Factory Store, Lucky Brand Outlet and Ann Taylor Factory Store. Shoppers will also enjoy quality dining and entertainment options including Rainforest Cafe, Aquarium Restaurant, Dave & Buster's and Regal Cinemas Opry Mills Stadium 20 & IMAX. Opry Mills' famous Entertainment Stage and Tennessee Treasures play area will further enhance the family shopping experience.
Opry Mills is located seven miles from downtown Nashville, between Interstates 40 and 65, and is within walking distance of the Grand Ole Opry and the 2,800-room Gaylord Opryland Resort and Convention Center. Regular hours are 10 a.m. – 9 p.m. Monday through Saturday and 11 a.m. – 6 p.m. on Sunday. For more information on Opry Mills, please call (615) 514-1000 or visit www.oprymills.com. Opry Mills also may be found on Facebook (www.facebook.com/OpryMills) and on Twitter @shOpryMills.
Monday, March 12, 2012
Opry Mills to reopen on March 29th
NASHVILLE, TENN. — One of the most popular shopping malls not only in Middle Tennessee, but the entire Southeast region, makes its triumphant return on March 29 after succumbing to Cumberland River flooding in May 2010.
Opry Mills in Nashville will reopen for business March 29 with more than 60 new and returning retailers and dining options added to its already-announced lineup of outlet stores including Brooks Brothers Factory Store, Coach Factory Store, Cole Haan Outlet, J.Crew Factory, Lucky Brand Outlet, Michael Kors, Nike Factory Store, Polo Ralph Lauren Factory Store, Saks Fifth Avenue Off 5th and Tommy Bahama Outlet.
The opening comes with an official ribbon cutting ceremony, followed by a series of celebratory events running through early May. Opry Mills has recovered after a major flood event – the same Cumberland River flood, in fact, that also victimized stores and restaurants along Riverside Drive in Clarksville in May 2010.
New to Opry Mills will be more stores such as Crazy 8, Express, Jones New York Outlet, P.S. from Aeropostale, Sunglass Warehouse, Tilly’s and Wilk’s Dugout. “The excitement continues with the return of several familiar names to Opry Mills not previously announced such as Aerie, Aeropostale, Body Central, The Children’s Place Outlet, Claire’s, dressbarn, The Finish Line, Fossil, Gap Outlet, Gymboree Outlet, Haggar, Hanes brands, Journeys, Justice, Lane Bryant Outlet, Levi’s Outlet, Nautica Factory Store, Old Navy Outlet, Pacific Sunwear, Papaya, Rack Room Shoes, RCC Western Wear, rue21, Skechers USA Outlet, Wet Seal and Wilson’s Leather Outlet,” representatives for the shopping complex said in a news release.
Other returning retailers will further enhance the Opry Mills shopping experience.
“These many new store announcements fuel the momentum to reopen as one of the most popular shopping destinations in the United States,” said Jad Murphy, general manager at Opry Mills. “Opry Mills’ visitors will enjoy our unique brand of shopping with the best mix of outlet and value retail stores, plus great dining options.”
In addition, Murphy said shoppers will be welcomed back with many new and returning casual dining options including Burger King, Charley’s Grilled Subs, The Cookie Store, Dairy Queen, The Great American Cookie Company, Green Leaf’s Beyond Great, It’Sugar, Kelly’s Cajun Grill, Maki of Japan, Orange Leaf Frozen Yogurt, Panda Express, Pyramids Cafe, Rocky Mountain Chocolate Company, Villa Fresh Italian Kitchen and Which Wich. Plus, the return of Macaroni Grill, Rainforest Cafe and Aquarium Restaurant “will allow shoppers to enjoy a full-service dining experience,” he said.
Five major anchors, Regal Cinemas Opry Mills Stadium 20 & IMAX, Dave & Buster’s, VF Outlet, Bass Pro Shops and Sun & Ski Sport, opened in time for the 2011 holiday season and are already enjoying success at Opry Mills, Murphy added.
The grand re-opening of Opry Mills comes nearly two years after the historic flood in May 2010 ravaged areas of Clarksville and Nashville and submerged Opry Mills, considered one of Tennessee’s top tourist attractions. Construction on the landmark property began in April 2011.
Opry Mills is located seven miles from downtown Nashville, between Interstates 40 and 65, and is within walking distance of the Grand Ole Opry and the 2,800-room Gaylord Opryland Resort and Convention Center.
Thursday, March 8, 2012
Lego Store to reopen in Discover Mills
The LEGO group, one of the world's best-known toy manufacturers, is thrilled to announce the grand reopening of the LEGO store on March 16 at Discover Mills, Atlanta's largest outlet, value retail and entertainment destination. The LEGO store will now be located near The Disney Store and Gymboree Outlets and raises the bar in innovative displays, in-store family events and shopper-friendly play areas.
"The newly redesigned LEGO store is the perfect complement to Discover Mills' already celebrated shopping and entertainment experience," said Karl Woodard, general manager of Discover Mills.
"We are confident that local residents and visitors to the greater Atlanta area will revel in the fun experiences that the LEGO store brings to Discover Mills."
The new LEGO store will feature an assortment of products covering nearly every square inch of space amidst three key design components. The "Pick-A-Brick-Wall," by far the most popular store feature, offers the option to hand pick and purchase specific LEGO bricks and elements in a variety of colors and shapes in bulk. The "Living Room" is an interactive play area prominently positioned in the center of the store and finally a "Brand Ribbon" runs the circumference of the store, featuring LEGO model displays, company history and fun facts to entertain guests. In addition, other in-store features and experiences include Master Builder Bar, Monthly Mini Model Build Classes, LEGO Club Meetings, V.I.P. Program and Shop & Ship.
"Our newly redesigned store at Discover Mills will enhance our consumers' overall LEGO brand experience through product variety, store design and regular hands-on family events," says Skip Kodak, vice president, LEGO Group. "Children and families will be able to experience first-hands and hands-on creativity and imagination that goes into LEGO building and be inspired by the over 4 million LEGO bricks that are in the store at any given time."
Other popular stores already enjoying success at Discover Mills include Last Call by Neiman Marcus, Papaya, Guess Factory Store, Sears Fashion Outlet, Off Broadway Shoes, Zales The Diamond Store Outlet, Kenneth Cole Company Store and Nike Factory Store.
Sunday, February 12, 2012
Opry Mills Job Fair on Valentines Day
Participants include:
Absolute Wireless, Ann Taylor Factory Store, Aquarium/Rainforest Café, Auntie Anne's Pretzels, Bath and Body Works, Calvin Klein, Carter's, Chuy's, Claire's, Coach Factory, Disney Store Outlet, dressbarn, Ecko Unlimited, Express, Famous Footwear, Gap Outlet, Banana Republic Factory Store, Haggar, Journeys / Journey's Kidz / Shi by Journeys, Lane Bryant Outlet, Levi's Outlet, Macaroni Grill, Nautica, Oakley, Old Navy Outlet, Payless Shoes, Polo Ralph Lauren Factory Store, Pyramids Café, Saks Fifth Avenue Off 5th, Skechers, Steve Madden, Stride Rite, Tilly's, Tommy Bahama, Uniform Destination, Van Heusen / IZOD, VF Outlet, Victoria's Secret, Wet Seal and Wilsons Leather.
Thursday, February 9, 2012
Coach Mens store opening in Arundel Mills
Men who like high-end accessories will soon have somewhere close to home to shop.
In early spring, the Coach Men’s Factory store will open at Arundel Mills Mall, announced the Hanover shopping center in a press release this week.
The Coach outlet store for men will sell leather accessories like wallets and satchels plus shoes, jackets, watches, travel accessories and colognes, said the release.
This is the second Coach factory store to open at Arundel Mills in the past year; the Coach Factory Store for women opened in spring 2011.
“We enjoyed a banner year in 2011…and look forward to welcoming more new retailers in 2012,” said Gene Condon, general manager of Arundel Mills, in the press release.
In 2011, approximately 18 stores opened at Arundel Mills, said spokeswoman Lauren Horsley, including Best Buy Mobile, Andrew Marc, Talbots Outlet, Coach Factory Store, DKNY Company Store, Aerosoles and Merrell.
Other Coach Men's Factory stores have sprung up around the country, mostly in Texas and California, but so far, none in Maryland. The closest locations to Elkridge are Rehoboth Beach, DE, and Atlantic City, NJ.
The shopping center's announcement stated that Coach Men's Factory store will be "another first-in-market addition," citing Vince Camuto as an example among retailers that have recently entered Maryland's outlet landscape through Arundel Mills.
The Coach Men's Factory Store at Arundel Mills will open in early spring.
Monday, January 30, 2012
60 stores coming to Opry Mills
NASHVILLE, Tenn. – Opry Mills has announced that more than 60 new and returning stores will be part of its grand opening in March.
New stores coming to the mall are Crazy 8, Express, Jones New York Outlet, P.S. from Aéropostale, Sunglass Warehouse, Tilly's and Wilk's Dugout.
Other stores returning include Aerie, Aéropostale, Body Central, The Children's Place Outlet, Claire's, dressbarn, The Finish Line, Fossil, Gap Outlet, Gymboree Outlet, Haggar, HANESbrands, Journey's, Justice, Lane Bryant Outlet, Levi's Outlet, Nautica Factory Store, Old Navy Outlet, Pacific Sunwear, Papaya, Rack Room Shoes, RCC Western Wear, rue21, Skechers USA Outlet, Wet Seal and Wilson's Leather Outlet.
They will join other previously announced stores such as Bath & Body Works, Bed, Bath & Beyond, Build-A-Bear Workshop, Elegance Perfumes, GNC, Opry Nail Salon, Perfumania, Spencer's Gifts, Tennessee Sports Fan and Yankee Candle.
Dining options will include many new and returning restaurants including Burger King, Charley's Grilled Subs, The Cookie Store, Dairy Queen, The Great American Cookie Company, Green Leaf's Beyond Great, It'Sugar, Kelly's Cajun Grill, Maki of Japan, Orange Leaf Frozen Yogurt, Panda Express, Pyramids Café, Rocky Mountain Chocolate Company, Villa Fresh Italian Kitchen and
Which Wich. Macaroni Grill, Rainforest Café and Aquarium Restaurant will also return.
Five major stores and business have already opened at the mall. Regal Cinemas Opry Mills Stadium 20 & IMAX, Dave & Buster's, VF Outlet, Bass Pro Shops and Sun & Ski Sport opened last year.
The grand re-opening is scheduled for March 29.
The historic flood in May 2010 caused more than $200 million in damage to the popular mall, but the insurance companies have only provided $50 million for the necessary renovations.
Construction on the property began in April 2011.
Monday, December 19, 2011
JCPenny returning to Franklin Mills
Philadelphia Business Journal by Peter Van Allen
JCPenney will make a return to the Franklin Mills mall in Philadelphia — this time as a full-line store.Last January the retailer said it would close 19 outlet stores, including its Franklin Mills location.
In March, it will open a 100,000-square-foot store in the same space, the mall said. It will have an updated design and an assortment of professional-and-lifestyle attire for men, women and children.
J.C. Penney Co. Inc. (NYSE:JCP), which is based in Plano, Tex., has 1,100 JCPenney stores and annual sales of $17.8 billion.
Franklin Mills, which is owned by Indianapolis-based Simon Property Group (NYSE:SPG), has 200 outlets and what it calls “value retail” stores, including Saks Fifth Avenue OFF 5TH, Last Call by Neiman Marcus, Polo Ralph Lauren Factory Store, Nike Factory Store, Kenneth Cole Outlet Store, Guess Factory Store and others.
Wednesday, November 2, 2011
Stores prepare to open in Opry Mills
 |
The Opry Mills Sun & Ski store / Sanford Myers / The Tennessean |
Written by Andy Humbles | The Tennessean
Frank Carroll remembers going back into Opry Mills in the days after the May 2010 flood and looking at about five feet of water in Sun & Ski Sports.
As the store’s manager, he saw an uncertain future for the business and for the popular mall and tourist destination off Briley Parkway
“I thought Sun & Ski would find another location, but for a time I thought they might tear Opry Mills down.’’
“It’s one of those last vestiges from the flood … the one building that’s still hurting,’’ Carroll said.
But as the holiday season approaches, a handful of stores, including the once-devastated Sun & Ski, are preparing to get back in business even though the grand reopening of the mall won’t occur until March 29.
Sun & Ski plans to reopen Nov. 18, the same day the mall’s movie theaters have announced they will officially open the doors for the holiday movie season. Dave & Buster’s and VF Outlet announced intentions to open in 2011 as well, though specific dates haven’t been announced.
Opry Mills’ reconstruction, when finished, could provide a tangible and moral comeback from the historic flood that was especially hard on businesses and homes in the Donelson community of Davidson County.
“For this area the reopening of the mall is the final piece of closure for the flood,’’ said Phil Claiborne, Metro councilman for the area. “That aside, there is the economic advantage of people coming back to the theaters, and then gradually reopening after the first of the year. Like a kid waiting for Christmas and seeing the decorations go up.’’
Thursday, October 27, 2011
The Village of Gurnee gives Gurnee Mills $10 million
Gurnee's elected officials Monday night endorsed spending up to $10 million in public money so a Macy's department store can be built in the village.
Village board members agreed the cash should be borrowed through the issuance of Midwestern Disaster Area Bonds, a federal program meant to help Illinois counties that sustained flood damage in 2008.
Gurnee Mills' parent company, Indianapolis-based Simon Property Group, would receive the maximum $10 million from the village to help pay for for construction of the Macy's where Circuit City had operated as part of a proposed redevelopment agreement.
As part of the negotiation for the $10 million, Gurnee wouldn't share sales tax proceeds with Simon after that agreement ends Dec. 31, 2012, said Village Administrator James Hayner.
Gurnee Mayor Kristina Kovarik said the $10 million would be money well spent because many retailers already are looking toward the village because of Macy's decision to open there. All six village board trustees informally backed the idea Monday night and expect to hold a binding vote Nov. 7.
“It's always scary spending money,” Kovarik said. “I've always said we can't save our way out of this (recession).”
Simon's vice president of development, William Hammer, said demolition of the Circuit City, work on Macy's and other Gurnee Mills upgrades are projected at $20 million. He called Macy's a “loss leader” that won't bring in much rent but should attract many other quality tenants.
“We cannot go forward without the (financial) participation of the village,” Hammer said.
Hammer appeared before the Edina city council in suburban Minneapolis in May seeking similar public money for improvements to Southdale Center, according to meeting minutes. He sought nearly $5.4 million for work estimated at $12.6 million to $15 million.
Edina officials responded that Simon should consider selling some mall property to the city — with possible use for a water treatment facility or transit hub — to finance the mall upgrades.
Retail businesses, commercial properties and hotels qualify for the low-interest financing secured through the tax-exempt bonds. The Illinois Finance Authority would handle the transction.
Gurnee would obtain a low-interest loan for the Macy's project from the sale of Midwestern Disaster Area Bonds. The federal program was designed to encourage the economic recovery and rebuilding of areas area struck by severe weather in 2008.
Construction on Macy's would start in spring with opening set for about the same time in 2013, Hammer said.
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