Let Me Put You On The Game

Here's one more post for your Monday evening...when I saw this story on Steve's Blog, I couldn't resist the urge to share it here. One of my favorite West Coast rappers, The Game ("Compton's Finest"), got into a little trouble at the Four Seasons Town Centre mall in Greensboro, North Carolina on Friday. Scandalicious! Read on:

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The Game arrested after mall confrontation

GREENSBORO, N.C. (AP) — Rapper The Game, accused of rowdy behavior and refusing to remove a Halloween mask in a shopping mall, was arrested Friday on a charges of disorderly conduct and resisting arrest.

"I'm here for a concert. I got arrested for signing autographs," the 25-year-old rapper from Southern California told television station WFMY after he was released on $500 bond. "Signing a little girl's autograph got me arrested."

But police said in a statement that The Game, whose real name is Jayceon Taylor, and a group of companions were behaving disruptively and swearing at Four Seasons Town Centre.

Mall security officers said Taylor was wearing a full-face Halloween mask and cursing loudly in front of other patrons, and refused when they asked him to leave, police said. When police arrived, Taylor continued to act up and was arrested, the statement said.

A 19-year-old companion, Michael J. Taylor, was charged with disorderly conduct and obstructing an officer when he allegedly interfered with Jayceon Taylor's arrest. He also was freed on $500 bond.

Other members of the group were sprayed with pepper spray when they surrounded the officers in a threatening manner, police said. The incident was captured on videotape by a member of the group.

Jayceon Taylor said officers overreacted.

"They thought I was Rodney King, man. It was a case of mistaken identity," he told WFMY as he headed, belatedly, to a performance in nearby Winston-Salem. "It's unfair, man. Their behavior's unfair. ... Soon as I wake up in the morning, I'll be on the phone with my lawyers."

Police said they will conduct an internal investigation, as they do in all cases where officers use force.

Spotlight On Simi Valley

I was so wrapped up in the opening of the Metro Orange Line this past weekend that I didn't realize Simi Valley Town Center, Southern California's newest regional shopping destination, made its debut on Thursday. While fellow mall blogger Steven Swain lives in Virginia, he never misses a beat -- props to him for tipping me off to the news.

Earlier this evening I shared that more people are "Living at the Mall" in Arizona. The Simi Valley Town Center is an innovative development similar to the San Tan Village project being planned for the Phoenix suburb of Gilbert. The complex combines an outdoor shopping promendae featuring department stores and other typical "mall" retailers with numerous residential units and big-box stores such as Lowe's Home Improvement and Best Buy. This paradigm of the next generation of retail centers has opened in the somewhat distant and hum-drum Ventura County suburb of Simi Valley, though its likely success should hold lessons for future developments closer to the core of Los Angeles.

It's interesting to note that before Simi Valley Town Center even opened, Federated Department Stores announced the mall would be losing one of its two department stores next year since it includes new units of both Macy's West and Robinsons-May. Hopefully the mall's owners will find a replacement anchor by next year's crucial holiday shopping season.

I'll plan on heading out to Simi Valley Town Center soon. In the meantime, I'd like to share the following article from last Thursday's edition of the Los Angeles Daily News, also posted on Steve's Blog, that does an excellent job of summarizing the evolution of malls in Southern California:

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Mall for a new generation

It's all about the air as the area's iconic centers go back to the great outdoors

By Brent Hopkins, Staff Writer

Forget the hills, the beach, even the Hollywood sign - Southern California's true icon is the mall.

From the novel outdoor shopping centers of the 1960s to the '80s' boxy, enclosed fortresses to the massive "lifestyle centers" of today, the mall has had many faces. It's gone from sunshine-warmed to air-conditioned and back again. It's contained movies, skate rinks, youth zones and choreographed dancing fountains. In the urban desert of Los Angeles, malls dot the landscape like modern oases, each trying to outdo the previous one with bigger stores, better parking, smoother landscapes.

Marking the latest entry into this ultracompetitive playing field is the Simi Valley Town Center, a $300 million development that will celebrate its grand opening today - a mall that blends department stores, boutiques, big-box retail outlets and apartments. Each of its key elements represents a lesson learned from the experiences of its retail forebears, resulting in 1.5 million square feet of commerce in nearly every form.

"Retail's been around for thousands of years, starting with someone selling pots in the desert," said John Gilchrist, a principal with the Corti Gilchrist Partnership, one of the Town Center's three developers. "Then he put a carpet down, then he put a tent up. But consumers have certain preferences and trends change."

The Town Center, which intends to re-create an Italian shopping district on a hillside, is a far cry from that desert pot stand, with six restaurants, two department stores, Best Buy, Lowe's and 500 apartments. While it's the first major shopping development since The Oaks in nearby Thousand Oaks went up in 1972, this new entry will add competition to an area that defined mall culture for much of the past half-century.

From the trailblazing Panorama Mall, a swanky center anchored by The Broadway when it opened in the early 1950s, to the Sherman Oaks Fashion Square, the Valley served as an incubator for some of the region's most influential shopping centers and trends.

When they first came about, these huge centers aimed to pull together all the elements of a downtown shopping district in one location. Taking advantage of Southern California's good weather and ample land, they were open-air with vast asphalt parking lots.

But as shoppers became more accustomed to creature comforts, enclosed centers became in vogue, with multilevel, air-conditioned concourses linking increasingly huge department stores. Topanga Plaza started the trend in 1964, and Northridge Fashion Center cemented it seven years later, conditioning shoppers to nab all their purchases in one stop.

Fried-food court fare fed many a cranky child dragged along for the ride. This all led to the 1976 birth of the Glendale Galleria, the super-regional mall so huge it extended across several city blocks. By then, malls had little resemblance to the downtowns of old, becoming entirely self-contained and cut off from the outside world. This spawned the iconic Sherman Oaks Galleria in 1980, home of the much-mocked Valley Girls, and led the Panorama Mall and Fashion Square to cover up in coming decades.

But by 2000, the traditional mall didn't cut it anymore. Consumers suddenly remembered they liked the outdoors and turned their backs on enclosed centers. The Sherman Oaks Galleria shut down, only to reinvent itself as an outdoor "entertainment destination" mixing retail, movies and sit-down restaurants. Other centers reversed course and began playing up their natural elements, adding outdoor features and landscaping beneath skylights.

"A big part of it is that consumers are fed up with the sameness of shopping malls," said Linda Berman, vice president of branding and communications for Caruso Affiliated Holdings. "At a certain point, people will react to that. Closed-mall developers are getting more savvy about importing better entertainment, putting in outdoor elements, whatever it takes to make it warmer and friendlier."

Caruso, which owns a series of so-called lifestyle centers, including The Commons at Calabasas and the landmark The Grove in the Fairfax District, has been one of the biggest forces in the current movement back outdoors. Though at times controversial - critics say its whimsical developments are overly saccharine and rival developer General Growth Properties Inc., owner of the Glendale Galleria, set off a nasty legal battle attempting to block Caruso's plans to build an outdoor center in downtown Glendale - its malls have become a huge success with consumers.

"Here, people feel like they're on vacation," Berman said. "When you're at a resort, the shopping barriers fall away. People don't really come here to shop necessarily, but they end up buying something anyway."

The trend back to more classic, outdoor centers has led other developers to take notice. General Growth knocked down the old Fallbrook Mall to make way for a collection of big-box stores with more outdoor space, while Westfield Corp. will spend more than $300 million to bring in high-end tenants such as Neiman Marcus to Westfield Topanga.

While there are limited things a developer can do within the confines of an enclosed center, Westfield is still playing up the natural aspects of the mall.

"The centerpiece of the redeveloped center is an architectural and design marvel called The Canyon," Katy Dickey, Westfield's vice president of communications, said in a statement. "With over 30,000 square feet of glass, it will be a vast sky-filled atrium, which runs through the heart of Westfield Topanga, bringing the Southern California lifestyle indoors."

The final step in bringing shopping centers back to the way they used to be comes in the form of adding apartments. Though a relatively new trend in malls, first seen locally at Paseo Colorado in Pasadena in 2001, this hearkens back to traditional retail, in which stores operated in the heart of neighborhoods instead of on their suburban fringe. For Simi Valley Town Center, the people who will live in those apartments will add a community vibe to the shops - and built-in customers as well.

"It's the doctrine of new urbanism," said Alexander Moore, a professor of anthropology at the University of Southern California. "It all goes back to the importance of the street. Not only do you want the traditional things, like boutiques and department stores, but you want real, actual people there."

Living at the Mall

Last week Thurman sent me an article from the East Valley Tribune about the growing number of shopping centers in greater Phoenix that combine housing with the usual mix of retail, restaurants, and entertainment. These developments in the Salt River Valley reflect a nationwide trend that promises to create environments far more complex and urbane than those provided by traditional malls in the past.

Westcor, which owns most of Phoenix's malls, has already recieved approval to add condominium towers to its Biltmore Fashion Park property and is considering adding housing to several other "mature" malls, especially those that will lose department store anchors once Macy's West absorbs Robinsons-May. Such a move would create a "built-in" customer base, increasing sales, and would allow the company (a division of Macerich) to derive more profit from its landholdings. Lofts are also planned for Westcor's brand new SanTan Village in Gilbert, an outdoor "hybrid" mall that will include big-box retailers and a supermarket along with department stores, a multiplex, numerous restaurants, and the usual retail offerings.

From an urban planning standpoint, the addition of residences to regional retail centers is a worthy concept whose time has come. Malls need to move beyond their role as "mono-functional centers" to become vibrant mixed-use hubs with 24-hour activity, especially in suburban areas that lack traditional "downtown" environments. The evolution of consumer preferences and the retail business has worked in tandem with the growing need for housing to create a new style of mall that is more relevant for today's lifestyles than its predecessors.

As a native of the East Valley, I'm pleasantly surprised to see that SanTan Village and Main Street Commons, a similar mixed-use development, are both being built in Gilbert, a relatively "far out" but fast-growing suburb. Indeed, when I left Phoenix in 1997, the area that will hold these two ground-breaking endeavors was little more than farmland. It's good to see more urbane environments coming to the suburbs of "Sprawl City, U.S.A."

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Malls being built with condos above stores

By Beth Lucas, Tribune

October 21, 2005

The malls of the future are coming to the East Valley. And for some people, they’ll become home — literally. Joining a recent national trend, local developers are building malls in Gilbert that have condos and lofts, and may add them to older malls such as Scottsdale Fashion Center and Fiesta Mall in Mesa.

It’s an attempt to rekindle a downtown-type atmosphere, especially in regions where sprawling suburbia has left behind the oldfashioned thriving main street of years gone by.

The trend has been building nationwide for about five years, said Michael Niemira, chief economist and director of research for the International Council of Shopping Centers.

Kierland Commons at the northwest corner of Scottsdale Road and Greenway Parkway was the first mall in Arizona to feature condos. The first 30 condos available opened in 2005 after all were sold on the same day two years ago.

About 3,000 eager buyers are on a list to claim 55 more condos that go on sale in January. At final buildout, the luxury shopping center will have 120 high-end lofts overlooking a courtyard and fountain.

"With the main street neighborhood, you feel very comfortable walking outside at night," said resident Trudy Hammond. "You’ve got everything from shops to restaurants to services, all within walking distance."

Her balcony looks down upon energy that can’t be matched in any typical East Valley community, she said.

"People love this. People want this," Hammond said. "They want more convenience in their lives. They don’t want to have to maintain a big house somewhere."

A similar retail/residential development called Main Street Commons is planned for the southeast corner of Pecos Road and Val Vista Drive in Gilbert. The Commons will be a pedestrianfriendly neighborhood with lofts above high-end retail, all built along roads meant to feel like neighborhood streets. Stores open in 2006, with homes expected to become available in 2007. Potential home buyers already are calling.

Westcor plans to build up to 400 condominiums atop stores, restaurants and parking structures at its SanTan Village near Williams Field Road and the Santan Freeway leg of Loop 202 in Gilbert — a mall that when completed in 2007 will have 3 million square feet of stores ranging from Dillard’s to a Wal-Mart.

Though the condos are at least three years from opening, already more than 30 buyers have expressed an interest, said senior marketing manager Karen Maurer.

Westcor also is debating whether to have lofts and condos at its existing malls, including Chandler Fashion Center, Fiesta Mall in Mesa, Scottsdale Fashion Square and Paradise Valley Mall.

Garrett Newland, assistant vice president for development with Westcor, said condos could be built in empty land outside the malls, or above new parking structures. Another option is tearing down anchor stores that will be left empty with the recent merger of Robinsons-May and Macy’s department stores.

"I think it’s a good idea. We’re seeing it more and more talked about," said Greg Tilque, Gilbert’s director of economic development. "Some people don’t want a house. They want to walk downstairs, right in an area they can do some shopping."

J.P. Ward, a manager at Dicks Sporting Goods in Huntersville, N.C., said he’s noticed a dramatic increase in regular customers at his mall, which is similar to the future SanTan Village. A recent survey found 78 percent of customers are from the immediate area.

"They took the concept of a New England kind of downtown — a turn of the century downtown," Ward said. "There’s a nice grassy area, with a fountain kids can play in. It’s created a customer base like I haven’t seen at any other retailer I’ve worked at . . . enables us to have a repeat customer base like you wouldn’t believe."

Kierland Commons in Phoenix has 30 lofts above retail stores such as the Banana Republic and Bose. About 3,000 buyers are on a list to claim 55 more condos that go on sale in January. (Paul O'Neill, Tribune)

Downtown Boom Attracts Suburban Builders

Today's edition of the Los Angeles Downtown News featured a story on the latest residential towers planned for the South Park district near the Staples Center arena and the future L.A. Live complex. While this development project is unremarkable in the sense that Downtown is in the midst of an unprecedented residential building boom, it is interesting to note that its builders will be KB Home and Lennar Corp., two of the largest suburban homebuilders in the nation. These two companies have profited greately from suburban sprawl but now see their future in urban high-rise living; such a paradigm shift speaks to the changes that have occurred in Downtown Los Angeles, the larger Southern California metropolis, and the real estate market. Read on:

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Two More Towers

Mega Builders Join South Park Housing Frenzy

by Kathryn Maese

The forest of residential towers being planned around Staples Center just got denser. Last week two major housing developers announced plans to create as many as 700 units in two high-rises.

KB Home and Lennar Corp., among the biggest homebuilders in the nation, said they will partner on a 40-story and a 27-story structure on Figueroa between 11th and 12th streets across from Staples Center. Pending city approvals, the four-acre project could break ground as early as June, said KB Home spokeswoman Caroline Shaw.

"What we're really announcing is the launch of KB Urban, a concept that will help us to develop more high density projects in city centers," Shaw said. "We chose L.A. because it's in our own backyard and it's a vibrant place. We want to contribute to the Downtown revitalization."

The proposed venture, dubbed Fig Central, would add to more than a dozen housing towers in the blocks surrounding the planned L.A. Live project, a $1.5 billion entertainment district helping to fuel the area's comeback with a slate of restaurants, clubs, retail and a 1,100-room Convention Center headquarters hotel.

Last summer, a subsidiary of Lennar, Newhall Land, purchased the property from Anschutz Entertainment Group (AEG), the developer of L.A. Live. The site is one of many around Staples Center that has been sold by AEG to housing developers. The district is entitled for up to 2,000 housing units.

South Group developer Tom Cody, who purchased the sister site to the south with plans to develop 648 units in two 30-plus-story towers - he hopes to break ground in the middle of next year - said Fig Central will knit together the entertainment district with the emerging residential community.

"The plans I've seen are spectacular," Cody said. "It's an enormous endeavor and it is very complimentary from the standpoint that we want to see that retail happen. They know how to execute complicated, large-scale projects that have a positive impact on neighborhoods like this. It gives us the confidence that we are in the right place at the right time."

Like many of Downtown's new residential projects, Fig Central could include ground floor retail, in this case up to 250,000 square feet. An artist's rendering depicts a shopping area to be developed by LNR Property Corp. fronting Figueroa Street, along with mammoth billboards and television screens in keeping with the flashy L.A. Live design.

Lennar spokeswoman Marlee Lauffer would not comment on the project's specifics, saying the details of the deal are still being worked out. Lauffer, however, noted that the firm is looking to establish itself in the Downtown market, and recently opened an office in Wells Fargo Tower.

"We are getting involved in the urban market in L.A. and are excited about the great opportunities in Downtown, particularly around Staples Center," she said. "There is strong demand in the marketplace and there is great synergy occurring there."

Lennar Corp. and KB Home are planning up to 700 units in two towers just east of Staples Center. It's the first Downtown venture for both companies. Rendering courtesy of KB Home.

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While we're on the subject of the Downtown housing boom, here's a funny cartoon, also from today's Los Angeles Downtown News (click to enlarge):

Ride the Orange Line

Ride the Orange Line (a Flickr photoset)

This weekend the Metro Orange Line began to shuttle passengers across the San Fernando Valley. The innovative 14-mile-long busway has been touted as an alternative to higher-cost rail systems in Los Angeles and elsewhere. Earlier today Chizi and I participated in the inaugural festivities by enjoying a free round-trip journey. I'd like to share some of the photos I took:

The Orange Line begins in North Hollywood. Behind the station's sign is one of several new transit-oriented mixed-use developments currently under construction in the vicinity.

A key aspect of the Orange Line is that it feeds into the Red Line subway, which proceeds from North Hollywood southeast to Downtown.

A view of one the articulated "Metro Liner" buses acquired to operate the line.

A Metro Liner arrives at North Hollywood. Note the line of waiting passengers at the left.

Boarding at the rail-like station platform was quick and easy considering the size of the crowd.

The terminus of the Orange Line is in Warner Center, across the street from the Westfield Promendae mall. On the return trip we saw some interesting art at the station while waiting for a bus.

A Metro Liner arrives at Warner Center.

While Chizi may not have been thrilled to be photographed riding a bus, I'm sure she'll come to appreciate her place in Los Angeles transit history. I certainly enjoyed her company very much.

Yours truly, loving the trip.

On the whole, I found using the Orange Line to be a convenient and pleasant experience. However, I'm unlikely to use it much because I don't live in the San Fernando Valley. I hope the large inaugural turnout is indicative of the busway's success; the true test begins tomorrow, when the first true commuters board.

Ride the Orange Line (a Flick photoset)

Previously on P.U.

Coming Soon: Metro Orange Line

Busway Anxiety

Red Line Extension Clears Hurdle

Last Wednesday I shared that Los Angeles Mayor Antonio Villaraigosa and U.S. Representative Henry Waxman had appointed a "blue ribbon panel" of engineering experts to determine whether tunneling along Wilshire Boulevard is "safe." Mr. Villaraigosa has vociferously supported the extension of the Red Line subway west from its current terminus at Wilshire and Western Avenue to Santa Monica as a bulwark against worsening traffic congestion on the city's Westside. This extension, long a dream of transit planners, has been stymied by Rep. Waxman, who placed a ban on Federal funding for the project ostensibly because he was afraid of the methane gas along the route and its potential to cause explosions. Many suspect that Rep. Waxman's primary concern was with the large portion of his constituency that opposed the subway on race and class fears. For the whole story, read "Dreaming of a Subway to the Sea."

On Thursday, the panel announced it had concluded that the Red Line extension could proceed safely. Rep. Waxman previously indicated that such a decision would persuade him to remove the ban on Federal funding for the project. The costly subway extension cannot move forward without the possibility of Federal assistance.

If the methane gas issue is put to rest and the Federal funding ban is lifted, the Red Line still isn't a sure thing. When Congress can appropriate money to the project, there's no assurance that they will, especially in the current political climate. Furthermore, Los Angeles County voters approved an initative in 1998 that prevents local sales tax money from being used for underground transit construction. A skeptical public would need to be convinced that a new subway endeavor would have regional benefits. These financial and political obstacles ensure that any Red Line extension is at least 15 years away.

As an unabashed Los Angeles transit booster, I find the panel's findings encouraging. The Wilshire subway is a worthwhile endeavor, but "getting it done" requires advocacy and political acumen. I applaud our Mayor for demonstrating the leadership necessary in our rapidly evolving metropolis.

More from the Los Angeles Times:

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Building Subway Beneath Wilshire Deemed Safe

Conclusion by a panel of experts supports Mayor Villaraigosa's effort to extend the Red Line

By Richard Fausset
Times Staff Writer
October 28, 2005

A westward extension of Los Angeles' Red Line subway can be safely built below Wilshire Boulevard despite the presence of dangerous underground gases, a panel of tunneling and transportation experts concluded Thursday.

"By following proper procedures and using appropriate technologies, the risk would be no greater than any other subway systems in the U.S.," the group concluded in a report to local transit officials.

The preliminary decision by the five-member panel, which was convened by the Metropolitan Transportation Authority, could bolster Mayor Antonio Villaraigosa's vision of building a subway to the beach.

Currently, the subway runs between Union Station and North Hollywood. Federal law bans using federal money to extend the Red Line. The law was introduced by U.S. Rep. Henry Waxman (D-Los Angeles) after a 1985 methane explosion at a Fairfax-area clothing store. Concerns have also been raised about the presence of lethal hydrogen sulfide gas.

Earlier this month, Waxman said he would ask Congress to rescind the law if the panel concluded that tunneling was safe. On Thursday, Waxman said the conclusion was "encouraging," but said he would not seek to repeal the law until he had a chance to talk to panel members in the next few days.

"I certainly am not going to make any decision before I have a thorough understanding of their report," Waxman said from Washington, D.C. "I just want to understand what their findings were, and the basis for it."

The panel of experts from around the country spent the week studying the geology of the Wilshire corridor and reviewing tunneling methods. The experts presented their preliminary opinion to MTA officials at a closed-door meeting Thursday morning, but their arguments were outlined in a report released to The Times.

According to the report, much has changed since the 1985 explosion.

The technology for tunneling and detecting gas has improved, as has the "attitude regarding safety."

Construction engineers have much more experience with the challenges posed by tunneling. And a number of basements for parking garages have been built along Wilshire without major incident.

"They were pretty confident that any difficulties that would be encountered could be taken care of," said MTA Chief Executive Roger Snoble, who attended the meeting.

Los Angeles City Councilman Tom LaBonge — who led the push to create the panel when he was on the MTA board — was excited by the findings.

The panel will prepare its findings in a written report that will be presented to the MTA's construction committee on Nov. 17, authority spokesman Rick Jager said.

Dreaming of a Subway to the Sea

As the Merger Churns

On Monday Federated Department Stores announced that it would close six additional "duplicate" stores in five states, including two in Southern California, as it continues to integrate the operations of former competitor May Department Stores. The merger will result in the closure of 82 stores nationwide, 26 of which are located in the greater Los Angeles and San Diego areas. May's regional offices in North Hollywood will also close, resulting in the loss of over 1,000 jobs.

The divesture list has been expanded to include one of the two existing Macy's stores at The Oaks in Thousand Oaks and one of the two existing Robinsons-May stores at Westfield North County in Escondido. It's interesting to consider that each of these malls will be losing not one but two department store anchors as a result of the merger. The retailing landscapein Southern California will be irrevocably changed.

This week's announcement also indicated that its first round of "going out of business" sales would begin on January 29, 2006 at 32 stores across the nation, including these in the greater Los Angeles and San Diego markets:

Robinsons-May

Fashion Valley (San Diego) *

Los Cerritos Center (Cerritos)

Santa Monica Place (Santa Monica)

South Coast Plaza (Costa Mesa) *

Westfield Fox Hills (Culver City)

Westfield North County "north store" (Escondido)

Westfield North County "south store" (Escondido)

Westfield Plaza Camino Real (Carlsbad)

Westfield Santa Anita (Arcadia)

Westfield University Town Center (La Jolla)

Macy's West

Galleria at Tyler (Riverside) **

Inland Center (San Bernardino) **

Montclair Plaza (Montclair) **

* After closing, these stores will be converted into Bloomingdale's units.

** The "going out of business" sales will not occur at these Macy's stores, but at the Robinsons-May stores in the same mall. It appears that Federated intends to clear out the Robinsons-May stores at these malls, then briefly close them to re-stock them with merchandise and open them as Macy's units. The existing Macy's stores at these malls will close quietly.

For more information:

Macy's: Coming Soon to a Mall Near You

Remembering Robinsons-May

Big Changes in Store for Southern California's Malls

Pink Slips Galore

Wilshire Subway On Track

Los Angeles Mayor Antonio Villariagosa has publicly pledged to push for an extension of the Red Line subway westward from Koreatown into Santa Monica along Wilshire Boulevard. If you're not familiar with the many issues surrounding this transit project, I suggest you read "Dreaming of a Subway to the Sea."

The Los Angeles Independent recently reported that the Mayor has continued to keep the Wilshire subway at the forefront of his agenda although he is acting "behind-the-scenes." Read on:

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Westside Subway Extension Alive Again

Politics: Villaraigosa and Waxman name expert panel to study tunneling feasibility.

By ROSANNA MAH and TONY CASTRO, Staff Writers

19.OCT.05

Mayor Antonio Villaraigosa has gotten Rep. Henry Waxman to soften his longstanding opposition to construction of the Westside subway extension, which has been blocked for two decades by a federal ban.

Waxman, one of the most powerful members of Congress, has joined Villaraigosa in appointing a blue ribbon panel of experts to study whether it is safe to tunnel under Wilshire Boulevard from Western Avenue to the ocean.

Both Villaraigosa and Waxman downplayed the Westside congressman’s willingness to open feasibility studies.

But former Mayor Jim Hahn says that he was consistently unable during his term in office to get Waxman to reconsider — blaming the congressman as “the reason we can’t build the subway.”

Waxman’s opposition has been based on concerns about methane gas underground in the area close to where the subway tunneling would run — a hazard responsible for a 1985 explosion at the Ross Dress For Less store adjacent to the Farmers Market.

The panel will study the safety in tunneling through the area, as well as any potential dangers from methane gas zones.

How Villaraigosa was able to soften Waxman’s opposition shows an often overlooked side of the mayor’s political astuteness: the ability of a politician known for his charismatic flair for show-boating to also wield influence quietly behind-the-scenes.

“I’ve know Henry for over 35 years — I don’t think that he’s going to be wooed by charm alone,” observed former Los Angeles City Councilman Richard Alatorre, who has served as an unofficial adviser to Villaraigosa in the past year.

“I think that you have to make your case, and I think there is a case to be made for the position that the mayor has taken about the completion of the Wilshire [subway] all the way to the beach...

“There has been some movement [toward the subway extension idea] on the part of Congressman Waxman. He’s opened to the idea of listening, and I think you have to continue to push forward.

“You push forward, not steam roller over Congressman Waxman, but work with him and alleviate his concerns.”

According to insiders, Villaraigosa may also have been aided in assuaging Waxman’s concerns by the new technologies mitigating dangerous underground gases, by the Wilshire corridor’s increasing traffic congestion, as well as by the alliance with the Congressman who represents much of the Westside.

“You have a mayor who reaches out and talks about bringing people together,” notes political observer Jaime Regalado, director of the Edmund G. “Pat” Brown Institute of Public Affairs at Cal State L.A.

“That was not Jimmy Hahn’s style or Richard’s Riordan’s style. It is Antonio’s style and it measures well with the Congressman and how it works. It’s a new ball game.”

Though he is known in political circles as the power-broker on the Los Angeles Westside, Waxman is a man who historically has been more comfortable with the nuts and bolts of public office and for downplaying his own achievements.

Press conferences, such as the one last spring where he and other Westside political figures endorsed Villaraigosa’s mayoral candidacy are rare in the Waxman playbook.

Notably, last week’s announcement of the Villaraigosa-Waxman panel appointments came in the form of a news release from Villaraigosa’s office — a stark contrast to the media hype and news conferences that have surrounded many of the mayor’s appointments and announcement during his first 100 days in office.

Understandably, a spokesperson for the mayor played down any ulterior motive in the understated manner of the panel’s announcement.

Waxman himself would only answer a request for comment on the apparent softening of his opposition to the subway with a brief written statement:

“I am pleased we'll have an independent study now and look forward to reviewing the panel's work.”

Mayoral spokesperson Janelle Erickson said Villaraigosa and Waxman have spoken privately several times about the Wilshire subway and transportation issues over the past three months.

“We are hoping,” Erickson said, “that the panel will bring back findings that will allow the MTA with, the support of Congressman Waxman to consider building a subway under Wilshire Boulevard.”

L to R: Mayor Antonio Villaraigosa, U.S. Representative Henry Waxman

Dreaming of a Subway to the Sea

Kroger May Bag Albertsons

Last month I reported that Albertsons, once a darling of the supermarket industry, has decided to put itself up for sale after years of floundering in its efforts to remain competitive. Traditional supermarket chains face increasing pressure from warehouse clubs like Costco, upscale "gourmet" operators like Whole Foods, and (of course) Wal-Mart, whose push into Supercenters has enabled the big-box superstar to become the nation's largest grocer.

Recent reports indicate that Kroger, Albertsons' largest supermarket competitor, is among the suitors for the company. Another mega-merger is possible for the retail sector, following fast on the heels of the mammoth Kmart-Sears and Federated-May combinations earlier this year. This trend speaks to the evolution of retailing in the United States, as it creates organizations on the kind of massive scale required to compete with Wal-Mart.

Kroger's move is largely defensive in nature, as there is significant overlap in many markets. However, an Albertsons purchase would bring the company into several important and potentially lucrative areas, such as Chicago, Florida, and the Northeast. In many parts of the West, however, Kroger would be compelled to sell or close numerous stores due to regulatory concerns or simple economic realities.

Such a merger would be unthinkable even a decade ago due to anti-trust issues. The Federal Trade Commission (FTC) has recognized that the competitive landscape among supermarkets has shifted in the age of Wal-Mart and its growing share of grocery sales. As recently as 1999, the FTC required that Albertsons sell many of its Las Vegas units to Sacramento-based regional grocer Raley's as a condition of its approval of the company's acquisition of American Stores, which controlled the Lucky chain. However, in 2002, the FTC allowed the sale of Raley's unsuccessful Las Vegas division to Kroger although its Smith's subsidiary was already a major player in the market, largely because of the many Wal-Mart Supercenters that had popped up all over town in the interceding years. While the government would probably not reject a Kroger-Albertsons union, it may force concessions in markets where Wal-Mart does not have a significant presence.

As was the case with the Federated-May merger, Southern California is the largest market in the country that would be affected by a Kroger-Albertsons combination. Albertsons became a major player after acquiring Lucky in 1999, though it has met middling success after dumping the local banner in favor of its own. Kroger already controls Ralphs, the market leader. While there are some Albertsons locations that could be converted to one of Ralphs' formats (conventional stores, upscale Ralphs Fresh Fare units, and no-frills Food 4 Less warehouse stores), numerous store closings would be likely. Since Wal-Mart has few Supercenters in the region, Federal and State regulators may require that some units be sold to competitors. Vons, a division of Safeway that also operates local Pavilions stores, could add a few locations as a result, but the main company that could take advantage would be Stater Brothers, a local supermarket chain that is successful in the far-out suburbs but largely unknown in the Los Angeles Basin. It would be interesting to see what Kroger would do with Bristol Farms, an upscale local chain recently acquired by Albertsons.

In Phoenix, Kroger owns market-leader Fry's, a local banner that has already grown by absorbing the legendary local Smitty's chain and most of the Arizona stores formerly operated by Smith's. As recently as 15 years ago, 8 supermarket chains competed for customers in the Salt River Valley -- today there are 4. Regulatory concerns may be negligible there, as Wal-Mart has blanketed the metropolis with Supercenters and Neighborhood Markets. However, competitors Safeway and family-owned Bashas (which operates upscale AJ's stores and Hispanic-oriented Food City units in addition to its traditional namesake stores) could end up expanding as a result.

Kroger is unlikely to have much interest in Albertsons' stand-alone drugstore operations, Osco and Sav-On, which are former divisions of American Stores. CVS, Rite-Aid, and Walgreens are all reportedly interested in acquiring them, so the end of Albertsons could also result in a consolidation of the drugstore sector of retailing in the United States.

Kroger is competing with several teams of private equity firms, who are most likely to sell off Albertsons piece-by-piece if successful. Even if Kroger fails in bagging the whole chain, it may end up taking control of a few key Albertsons divisions, albiet at a higher price. It will be interesting to see how the competition to buy the once-mighty chain pans out.

Busway Anxiety

This weekend the Los Angeles County Metropolitan Transportation Authority (Metro) will begin service on the Orange Line across the San Fernando Valley. The Orange Line is a 14-mile-long busway featuring rail-like stations and extra-long articulated "Metro Liner" buses. Modeled after a system in Curitiba, Brazil, it is the second such transit line in the country.

Built along a former railroad right-of-way, the Orange Line is not grade-seperated and includes signalized intersections with numerous north-south boulevards. After test runs began about a month ago, Metro embarked on a public awareness campaign to advise Valley drivers of the changes in traffic control while the Sheriff's Department engaged in heavy-handed enforcement to underscore the message. With safety begin a major concern for the busway, it was somewhat ironic that a Metro Liner nearly collided with another vehicle yesterday while being rode by Mayor Villariagosa, as reported in the Los Angeles Daily News:

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Close call on Orange Line

By Lisa Mascaro, Staff Writer

October 25, 2005

Mayor Antonio Villaraigosa was taking his first ride Monday on the Metro Orange Line to promote safety around the busway when suddenly the driver hit the brakes, narrowly avoiding a motorist who apparently ran a red light at Kester Avenue.

It was a real-life, real-time example of what officials are seeing repeated across the San Fernando Valley as buses practice for Saturday's opening. For the mayor and others on board, it underscored the need for motorists and pedestrians to be careful.

"For San Fernando Valley residents who've waited for their share of transportation improvements, the Orange Line is a down payment on progress," said Villaraigosa, who also chairs the Metropolitan Transportation Authority board, at a press conference at the Valley College Station.

"Pay attention to the red lights. Pay attention to all the traffic signs at the intersections. Save yourself some money, but most importantly save yourself some injuries and pay attention.

"Let's make the Orange Line the Valley's safest new short cut."

Sheriff Lee Baca's deputies have issued more than 500 citations over the past month along the route, and Supervisor Zev Yaroslavsky noted the sheriff's "ruthless and merciless" enforcement of the traffic laws.

"The reason we're being so hard is because we want people to live through this experience - and there's no reason why they shouldn't," said Yaroslavsky, another MTA board member, who has led the effort to build the Orange Line.

"This is a great amenity, and the only thing that can ruin this amenity is (if) somebody, through their own negligence, ends up getting hurt or getting killed."

Dozens of intersections have been reconfigured along the 14-mile busway, which runs on a former rail corridor between North Hollywood and Warner Center. A right turn on red is now banned at many of the corners - to prevent motorists from turning into the path of a bus.

"In the San Fernando Valley, that's a new type of sign," said Councilwoman Wendy Greuel. "We want to make sure people are actually reading those signs and obeying those signs."

Sherman Oaks resident Haleh Zahab complained to officials about getting a $147 ticket for making an illegal right turn at Burbank and Fulton avenues after dropping her child off at school.

The intersection is posted with a sign, but not a red-arrow signal like other intersections have. She asked whether the sign could be upgraded to a light.

"We'll look at it," Villaraigosa told her.

Critics have long said the $330 million Orange Line should have crossing gates like those at a railroad crossing, but officials maintain that gates are unnecessary because traffic can be managed the same way it is on city streets.

The mayor - on his first ride of the Orange Line - heaped praise on the busway, saying it will offer Valley commuters an alternative to sitting in gridlock on the 101 Freeway.

He also admired the landscaping along the route. The MTA has brought hundreds of thousands of plants and trees in a $20 million beautification effort.

Officials stopped briefly at the Sepulveda Station, noting they've created 3,200 parking spaces along the route.

"It's going to be a great addition to our regional transportation system," Villaraigosa said.

The Orange Line is expected to draw at least 5,000 riders a day during its first year.

Yaroslavsky said the busway will remain a work in progress, with service added or adjusted based on commuter demand.

"When we cut the ribbon on Friday and it opens to the public on Saturday, that's not the end of the project. That's the beginning," he said.

"We'll look at what works and build on it, and we'll see what doesn't. ... That is our challenge. That is our goal. We will continue to fine-tune this thing. Saturday is a beginning, not an end."

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While collisions are almost certain to occur, any tragic incidents involving loss of life would negatively impact ridership, especially within the first year. Angelenos need to feel that the busway is safe.

I understand Metro's reluctance to install crossing gates, as such a move would negatively impact intersecting traffic flow far more than simple traffic signals. However, as Supervisor Yaroslavsky points out, additional safeguards may prove necessary.

An abundance of grade crossings is problematic for any high-capacity transit system. The safest and most efficient design for the busway would entail seperation from the boulevards in a trench or elevated structure. Unfortunately, Metro is largely unable to fund such an expensive effort, especially when the very concept of the busway is experimental in nature. Historians of Los Angeles transit know that the Pacific Electric interurban trolley system suffered after 1920 due to an ever-growing number of automobile grade crossings that slowed the trains down and increased the rate of collisions; today's Orange Line faces similar problems.

These pamphlets are being distributed on the Metro Red Line subway, which will connect to the Orange Line in North Hollywood:

By the way, I plan on riding the Orange Line this weekend.

The Next Generation

One of the benefits of becoming a blogger is learning that your interests are not as unique as you once thought. The Internet has a way of bringing like-minded people together to share thoughts and ideas in an extremely powerful and meaningful way.

My loyal readers know that I am absolutely obsessed about shopping malls. For a long time I thought my interest was unique, but upon entering the blogosphere I found that I was far from alone in my passion. Steven Swain, in particular, loves malls just as much as I do, and his Internet vigilance tipped me off to Carolina Circle City, a "tribute blog" to a "dead mall" in Greensboro, North Carolina. I am extremely impressed by the information contained within the blog as well as its owner's dedication -- especially when I consider that its owner is a precocious 15-year-old named Billy Coore. The kid is brilliant.

On Sunday the Greensboro News & Record ran an article about Billy's blog and the end of Carolina Circle Mall. I am thoroughly impressed, since P.U. has yet to garner any press coverage. The article touches upon nearly all of my favorite subjects: malls, dead malls, retail, blogging, photo documentation, history, urban planning, local politics, even Wal-Mart. I'd like to share it with all of you here:

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The old Carolina Circle Mall lives on - at least in cyberspace

By Allen Johnson

October 23, 2005

To everything there is a season, and a blog to every purpose under heaven.

Consider the case of a new Web log devoted entirely to Carolina Circle Mall.

Carolina Circle is no more, pounded into so much rubble and scraped away to make room for a new Wal-Mart. All that's left is red clay, clumps of uprooted trees and brush and scattered stacks of rusty steel girders.

Coming soon: another temple to low prices and low wages. Hoo-rah.

But the loving new blog keeps the memories alive and sees life through the shops and promenades of what used to be one of the most pleasant places to shop in Greensboro.

Titled "Carolina Circle City," and authored by a self-described 15-year-old Sagittarian named "Billy," the site covers any and everything you'd want to know about The Mall that Time Forgot -- and more.

Billy Coore of McLeansville is a ninth-grader at Pendle Hill Christian School." A lot of my childhood was there," he says of the old mall. "I have many, many memories there."

Adds his dad, John Coore: "He's been crazy about that mall ever since he was a baby."

So it was no surprise when Billy prodded his dad to take him out to the old mall to shoot photos and video recently as dozers and excavators picked it apart.

In a Q&A with himself about Carolina Circle, the young blogger makes clear his affection. For instance:

Q. What was your favorite version of the mall? Ice Rink Version or Carousel Version?

A. Carousel Version. I grew up going to the Carolina Circle with ... a carousel. Even though I was born after the ice rink years, if it wasn't for the carousel, I wouldn't care about the mall as much.

Q. What was your favorite store?

A. Montgomery Ward. It had everything from your electronics to your apparel. I remember that smell it always had outside and inside. It's too unique to describe. During the demolition, I could still smell it.

I can't say that I still smell the old mall. Some say I didn't smell the coffee, either, about its inevitable demise.

I still believe to this day that Guilford County could have saved the sprawling off-white building if it had only followed through with a plan to place court space and county offices there and to locate a branch of GTCC there.

Part of that devotion was rational and eminently practical (which, of course, may have sealed its fate; the commissioners aren't exactly known for being rational or practical). So the commissioners balked. The deal never happened.

Then Dr. Don Linder came along and attempted a sports complex called Pyramids Village. I was more skeptical about that one, but still hopeful. Linder had lots of cash and cachet.

During one meeting at the complex he produced slick brochures and marketing studies about the projected residential growth in the area and the demand for such a facility. Already, his new soccer fields on part of the old mall's parking lots were booked with youth and adult soccer teams. Next, he assured me, he'd attract retail shops. Heck, he might even build a ballpark out there.

The rest, as they say, is misery. Linder's grand plan never fully played out. He sold part of the complex to the city. The rest he now plans to develop as a shopping center with Wal-Mart as the anchor.

One thing you can say for sure: Carolina Circle had the right name. Round and round it went, always stopping precisely where it had begun: nowhere.

But I think I've finally pinpointed its appeal to me. Like Billy, I grew up with it, and I remember its brief heyday in the 1970s and early '80s, when there were shops and people and the famous ice skating rink (unlike Billy, I preferred the rink to the carousel that replaced it).

And I preferred Carolina Circle to Four Seasons because it was smaller, friendlier and more intimate. It had many of the same stores, but you could shop there during Christmas season and not feel overwhelmed. There were big stores and little ones. There was Montgomery Ward, which remained until the bitter end. There was my college buddy, who managed one of the record stores there.

Now, shopping seems to be going back to the future. Malls are passe and old-fashioned shopping centers, where you actually have to walk outside in fresh air, are back in vogue. A new retail development, the Village at North Elm, takes the concept a step further, affecting the look and feel of a little self-contained town, complete with streets and alleys. It looks promising.

Still, I'll miss the dingy old hulk off U.S. 29. Though probably not half as much as Billy Coore.

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In conclusion, mad props to the next generation of mall bloggers!


Billy's Blogs:

Carolina Circle City

Flashback City

Road City (N.B. I am also a "roadgeek")

All of them are excellent reads. Keep it up Billy!

Derby in Danger

Angelenos are not the type of people to wax nostalgic. Our city was built on a sense of "manifest destiny," a mindset that entails a rejection of the past in favor of "progress" and new ways of thinking. For years historic buildings and institutions here were destroyed without mercy; however, a counter-movement has developed to embrace and protect the remnants of earlier times. The Los Angeles Conservancy is at the forefront of this battle -- its Modern Committee (Modcom) has worked to preserve vestiges of the city's most recent past, a time in which neon, "space age" design, and the "car culture" were at their peak.

The Los Angeles Conservancy wasn't successful in saving the Ambassador Hotel on Wilshire Boulevard, but its ModCom has been working with other advocacy groups to save the former location of the Brown Derby restaurant in Los Feliz, approximately two miles away from my home. The legendary Brown Derby chain once had five locations in Los Angeles -- the buildings that once held the other four are long gone. The Los Feliz building is now home to a unit of Southern California's Louise's Trattoria chain and The Derby nightclub, a long-time hipster hang-out featured in the movie "Swingers." Developer Adler Realty Investments has plans to raze the Derby's former home and build 80 condominiums, a 40,000-square-foot Whole Foods supermarket, 7,441 leasable square feet for small shops, and 390 parking spaces.

Here is a depiction of the southwest corner of Los Feliz Boulevard and Hillhurst Avenue "before and after" the mega-development, courtesy of the Greater Griffith Park Neighborhood Council:

A view of the proposed development's Hillhurst Avenue elevation:

Preservation efforts are best encapsulated in the Save The Derby Web Site.

I think the most remarkable thing about this building is that, unlike the other Brown Derby restaurants, the Los Feliz location was a "drive-in." Opening in 1940, it was designed by famed "roadside architect" Wayne McAllister, as was the iconic Bob's Big Boy on Riverside Drive in Toluca Lake, a drive-in that opened nine years later. Here it is in its heyday:

Sadly, the structure has been modified so thoroughly that it hardly represents the glamour of the "car culture," bringing claims of its historic significance into doubt. Bob's Big Boy may have been saved, but it deserved to be because its original design remains largely intact. The Johnie's Broiler in Downey, now home to a used car developership but largely unmodified, is a more worthy cause in the fight to save drive-ins.

Frankly, in looking at the current photograph of the property displayed above, I see little worth saving. As an urban planner, I believe in the "recycling" of property that has outlived its "economic usefulness." If approved, the redevelopment of the site will undoubtedly bring the property owner profits, but it will also provide badly-needed housing in the type of high density mixed-use configuration that I believe is key to the city's future development. Its merits are similar to those of the Beverly Connection redevelopment proposal that is the subject of a hearing before the City Planning Commission tomorrow morning. In this instance, I think the development potential of this site outweighs its negligible historical significance. The Brown Derby restaurants that were actually worth saving are gone; justice cannot be served by saving the last Brown Derby solely because it is the last one.

For those who believe the existing building should be saved, I recommend attacking the project on design concerns rather than arguments for historical preservation. Is there a design that could maintain the existing structure while yielding a comparable return on investment for the property owner? Aren't the project's bulk and height somewhat out of character with the surrounding neighborhoods? Won't this project make traffic on Los Feliz Boulevard -- already horrific at peak times -- even worse? There may be a way to redevelop this site in a manner that benefits all the parties involved better than the current proposal does, but only if everyone is willing to negotiate.

The battle over the urban future of Los Angeles is about far more than saving a restaurant, but the controversy concerning "The Derby" speaks to the raging conflicts over land use that will shape tomorrow's metropolis. Preserving the past is important but it must not be done for purely nostalgic reasons at the expense of the larger goals that should shape the Los Angeles of the future.

Thanks to Mike at Franklin Avenue for tipping me off to this story.

Off to Nashville

One of my high school friends, Steve, is getting married this weekend in Nashville, Tennessee. Yours truly will be in attendance. In a few hours I'll be headed down to the South and will return Sunday night.

I'll be flying on Northwest Airlines for the first time...unfortunately, the company is currently bankrupt. I just hope this doesn't mean they've stopped serving soda and peanuts, as that's all I really have to look forward to during the flights.

Last year another high school friend, Zach, got married in Wisconsin...he was the first of our "clique" to do so. If you get bored while waiting for me to resume posting, may I suggest you view the photographs from that event:

Zach's Wedding (a Flickr photoset)

JibJab Takes On Big Boxes

Props to Thurman for tipping me off to "Big Box Mart," the latest cartoon from JibJab.com. I really enjoyed it, as it looks at some of the political issues concerning Wal-Mart and similar retailers in a very humourous way.

Watch "Big Box Mart"

Ode to a Legal Drug

For a long time, I resisted coffee. I couldn't stand the taste of it. Then I got a job in which I was required to come in at 7 a.m. and work 10 hour days...caffeine became an imperative, so I learned to love coffee. Now I can't get enough.

Last night Chizi took a break from idolizing Oprah to blog about her coffee addiction. Of course, it's impossible to think about coffee without thinking of Starbucks. It's hard to imagine what life was like before the mega-chain began hawking caffeinated pleasure at nearly every street corner in America. Most people in this country have no love for drug dealers, yet Starbucks is one of our most admired companies. Don't front -- I know you go there too.

Recently I stumbled upon an awesome Web Site: Starbucks Everywhere. I love documentation, so I respect the site owner's desire to visit and photograph every Starbucks in the world. Quite an ambitious goal, if you ask me. I encourage you to check it out and see if your local Starbucks is pictured. Mine is:

(Northeast corner of Hollywood Boulevard and Western Avenue)

Caffeine addicts of the world unite! At least it ain't crack...

P.U. Blog of the Week: October 11-17, 2005

This week I'd like to give props to The Ambassador's Last Stand. Mike, half of the "dynamic duo" behind Franklin Avenue (arguably the best blog in and about Los Angeles), has been following the controversy regarding the destiny of the historic Ambassador Hotel for over two years. Last week he launched this "spin-off" blog documenting the hotel's last days while it is slowly (but surely) being demolished by the Los Angeles Unified School District (LAUSD) to make way for a mega-school serving 4,200 students.

Unfortunately, Angelenos have become accustomed to seeing their city's history eviscerated in the name of "progress." While I certainly understand that there is a pressing need for more classrooms here, I believe that LAUSD didn't make a conscientious effort to preserve this important landmark. While I moved to L.A. long before the hotel closed in 1989, the building holds a special place in my heart since I once lived only a few steps away from it. I applaud Mike's effort to document the Ambassador's destruction and honor its history.

A Mall in Need

I'd like to share an interesting article from this week's edition of the Los Angeles Downtown News about the Los Angeles Mall, a shopping center in the Civic Center owned and operated by the City of Los Angeles. Most Angelenos are probably unaware that this place even exists...the L.A. Mall definitely needs some "T.L.C." This article does such a good job of chronicling the center's deficiencies that I have nothing to add. Suffice it to say that as a Civic Center employee, Downtown booster, and shopping mall aficionado, I fully support Councilwoman Hahn's efforts to breathe some life into this forlorn place.

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Shopping for a Solution

Much Maligned L.A. Mall Is Targeted for Extreme Makeover

by Kathryn Maese

It's been called every name in the book. Dirty. Ugly. Dark. Outdated. Most recently, Councilwoman Janice Hahn added a few choice words of her own to describe the City-run Los Angeles Mall: "fragmented, dilapidated and uninviting."

Call it what you will, the subterranean retail strip just east of City Hall has been a running joke for more years than civic leaders care to recall. Most who speak about the early-1970s throwback do so with derision.

It's a reputation Hahn said she wants to change.

There is a better idea for this mall. Right now it is languishing," said Hahn, who once co-managed the Baldwin Hills-Crenshaw Mall, and whose 15th District includes portions of South Los Angeles and the harbor area. "I'm doing this for all the city employees who every day give a collective groan when it's time for lunch. We also have a new urban lifestyle developing in Downtown and people living here 24-7."

Last month, Hahn drafted a motion asking the General Services Department and the Chief Administrative Office to report back to the Council's Information Technology & General Services Committee, which she chairs, on how to give the facility some sex appeal.

Bounded by Temple, Main, Los Angeles and Aliso streets, the shopping center is marred by uneven walkways, drab architecture, dim lighting and lack of visibility from the street and plaza level. Last year, the Downtown Breakfast Club lampooned the L.A. Mall for being one of the worst projects in Downtown over the last 25 years. During a video spoof, public television host Huell Howser sarcastically raved about the design and, in his Tennessee twang, said, "I love to come down here on sunny days."

Hahn also wants to extend the hours, keeping the mall open on evenings and weekends. "The outdated concept of nine to five is crazy," she said. "That's why in the past we haven't been able to get tenants like CPK and Cheesecake Factory. Now we have a whole new constituency."

Many Failed Attempts

The undertaking may sound simple, but Hahn is only the latest Civic Center denizen to tackle the thorny piece of real estate. In the late 1980s and early '90s, the city hired a consultant to turn the property around and attract big name tenants. The plan, like the mall itself, ended up collecting dust. Hahn's motion said, "Those plans appear to have been set aside for unknown reasons."

More than a decade later, the Downtown Los Angeles landscape is much changed from the time when Mayor Tom Bradley was in office and Disney Hall was a mere twinkle in architect Frank Gehry's eye. Hahn said she plans to use Downtown's momentum to improve the mall once and for all, perhaps tying it into the nearby $1.8 billion Grand Avenue plan, which is expected to deliver a promenade of shops, restaurants and entertainment.

"I think we have this whole experience happening in Downtown and a lot of things coming online," she said. "We can bask in some of that glory."

Basking will have to wait, however. Currently the L.A. Mall is a mishmash of merchants: There are 11 tenants offering haircuts, Lotto tickets, gifts, shoe repair and other services, along with 13 eateries and four retail stores. Of the 47,867 square feet of mall space, city offices account for a huge chunk - 22,300 square feet.

More than two years ago, Controller Laura Chick audited the city's real estate holdings, including the Los Angeles Mall. The report found that the venue lacks a strategic plan focusing on maximizing revenues, improving customer satisfaction, and creating convenient public access to city offices.

"The Los Angeles Mall is a perfect example of unfulfilled and unrealized potential. Here we have this prime commercial space, right in the core of our Civic Center, and it is only a shadow of what it could be," Chick said in the audit.

Revenues have gone up and down over the years for a variety of reasons, said Reginald Byron Jones-Sawyer, Sr., the city's director of asset management, who oversees the facility. For example, revenues dropped after 9-11 because new security procedures were implemented and the streets around City Hall were blocked off. In the last fiscal year, the mall generated $462,846.

"The mall hours are limited to 7 a.m. to 5 p.m., which significantly impacts revenue generation by merchants," said Jones-Sawyer. "There is no customer traffic after 5 p.m. [and] subsequently retail shops' revenue generation is negatively impacted."

Recent efforts to lease the vacant slots have drawn little interest from retailers, often resulting in vendor proposals that are similar to existing mall tenants. No leases were signed in 2004; three have been inked this year.

Currently, mall rents are well below the average of $4.25 a square foot that newer retail space such as the Grove shopping mall commands, or even the $3.25 a square foot landlords fetch at older malls, said Ingrid White, senior managing director for Charles Dunn Company's retail services group.

Bits of Momentum

When and if Hahn's plan moves forward, it could build on small bits of momentum. In July, the city approved a five-year lease for a 3,611-square-foot California Pita and Grill restaurant. It will replace the Bob's Big Boy that occupied the slot for almost 30 years. This could bring the city monthly revenues of $4,500, or $1.25 a square foot.

Likewise, exercise studio Curves is negotiating a lease for an 1,800-square-foot mall location; it would pay $2,250 a month, or $1.22 a square foot. The space was previously occupied by a city office and has been vacant for nearly a year. But for Curves franchise owner Mickey Verma, the main attraction is foot traffic, which the city estimates at about 20,000 people daily.

"We thought that it seemed like a good space and it's surrounded by a lot of density and population from City Hall, the police department and Caltrans," she said. "When I first walked into the space I thought it had potential. My first impression is that it was not really clean but the person I talked to assured me it would change."

White said older properties like the Los Angeles Mall have high operating expenses that reduce revenue. She noted that landlords typically take the cost of property taxes, insurance and maintenance for items such as air conditioning, and divide it into each tenant's rent according to their square footage.

"It sounds like they are doing the best they can with what they have but there needs to be an investment in the center," White said.

Hahn, who recently returned from a shopping center convention in Las Vegas, said she spoke with several potential tenants and developers. She also brought Jones-Sawyer to the event to glean ideas about how to improve the facility.

"The mall facade needs at least a facelift and at best it needs to be completely reconstructed," said Jones-Sawyer, who noted that the current space is really just a food and service court for government employees and clients.

Though a new strategic plan is expected to take several months, Hahn said she has three years and nine months - the time until her term expires - to make sure the city revamps the mall.

"I worked in the shopping center industry and I know that it's not the best thing government does," Hahn said. "We need to start better management of the mall."

The rundown Los Angeles Mall across from City Hall has stymied city leaders who have sought to redevelop it. Councilwoman Janice Hahn is leading the latest effort to make the retail strip relevant. Photo by Gary Leonard.

A Union at Wal-Mart? Sort of...

I've been meaning to share an interesting article about Wal-Mart from a couple weeks back. I've posted my comments at the end.

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Fla. Wal-Mart workers unite — without union

250 employees form group to collectively air complaints about treatment

Associated Press
September 29, 2005

TAMPA, Fla. - It's not a union, but some Wal-Mart workers say it might be the next best thing.

Searching for a voice in their work lives, employees of some central Florida Wal-Mart stores have formed a workers group to collectively air complaints about what they claim is shoddy treatment by the retail giant.

About 250 employees and former employees from 40 central Florida stores have joined the fledgling Wal-Mart Workers Association, spurred by what they say is a reduction of hours and schedule changes recently that may jeopardize health care benefits for some. Organizers say the word-of-mouth campaign is attracting 15 to 20 new members every week.

The members say they hope their efforts will persuade the company to listen to its people and make some changes.

"Management seems like they don't really respect the associates," said Carl Jones, acting chairman of the new group, who makes $9.40 an hour as the lead cart-pusher at a store outside Orlando. "We don't have a voice. We don't have any rights at all."

The company, however, says most of its associates are happy, and characterized the effort in Florida as another attempt by the unions to get their hands in the pockets of some of its 1.3 million workers in the United States.

"It's within (employees') legal rights to do that, but this group is a wolf in sheep's clothing," Wal-Mart spokeswoman Christi Gallagher said. "This is a labor organization attempting to masquerade as something else."

The world's largest and most profitable retailer has heard the employees' complaints before. Stores around the United States have been accused of everything from paying lousy wages and locking workers in overnight to discriminating against women, while foiling attempts by labor groups such as the United Food and Commercial Workers Union to organize workers.

The food and commercial workers union is among the sponsors of the new workers association, along with the Service Employees International Union, and Acorn, an advocacy group for the poor. Central Florida was chosen for the launch because of Wal-Mart's aggressive expansion here.

Nine Wal-Mart Supercenters have opened in Florida so far this year to go along with a dozen new stores last year, according to the company. The state has 170 Supercenters and discount stores, 39 Sam's Club stores, eight neighborhood markets and six distribution center. More than 92,000 people work in the company's Florida facilities.

"Florida is like Wal-Mart central," said Rick Smith, state director of the Wal-Mart Alliance for Reform Now (WARN), a coalition of labor, anti-poverty and environmental groups trying to change the way Wal-Mart does business. Smith is spearheading the workers association project, which is also being launched soon in the Dallas area with hopes of expanding it to other cities.

"It was carefully formulated," he said. "This is not the traditional unit we have now in terms of collective bargaining or having an election, this is about what sort of problems Wal-Mart employees are having at work and what can they do to make their lives better at work."

The group has already helped some of the employees who've had their hours cut apply for partial unemployment benefits, Smith said.

Claire Middleton, 70, said she worked a full-time day job for four years taking in returns at a Wal-Mart Supercenter in Pinellas Park near St. Petersburg. The store changed her schedule in July, telling her she would have to be available from 7 a.m. to 11 p.m. seven days a week if she wanted to keep getting shifts.

Her bad eyes make it difficult to drive after dark and she's afraid of losing her health care benefits if she doesn't work enough hours. She makes $8.56 an hour.

Rveva Barrett, 61, was working as the community involvement coordinator at the same store, even appearing in a national Wal-Mart commercial last year with community leaders. Her job was eliminated recently and she was told she could take another position with a $200 a month pay cut or leave.

Both women have joined the workers association, paying the $5-a-month dues.

"This is a really bad thing that's happening to all the people at Wal-Mart," Barrett said. "Unless we do something about it now, it's going to get worse."

Gallagher, the Wal-Mart spokeswoman, said the incidents are isolated. She said the company has an "open-door policy" and urges associates to talk over any problems with managers. That works for most, she said, noting that associates themselves have shunned opportunities to unionize.

"We regularly receive thousands of applications for 400 jobs when we open new stores," she said. "I think that certainly would be an example that we are seen as a benefit to a lot of our associates."

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For an in-depth analysis of the issues contained in this article, I recommend "The United States of Wal-Mart" by John Dicker. While I have my own concerns over the relevance of organized labor in today's America, I think the formation of "associations" like these is in the best interest of Wal-Mart's employees. The world's largest retailer simply has too much power over its "associates," and the best way to secure better wages, benefits, and working conditions is to have more leverage in negotiating, i.e. collective bargaining.

The responses offered by Wal-Mart Spokeswoman Christi Gallagher in this article are a window into Wal-Mart's PR machine, well described in Mr. Dicker's book. It seems Wal-Mart's representatives ("Wal-flacks," in Mr. Dicker's terms) are determined to read from the same script and highlight the same points when it comes to discussing employee treatment. I offer the following responses:

1) The incidents of mistreatment described by members of the Wal-Mart Workers Association are "isolated"

This record of poor employee treatement at stores across the country is well documented; Wal-Mart can't (in good conscience) pretend it simply doesn't exist. A person can only logically assume that this record stems from ideas imbedded in the company's "corporate culture." Even if that isn't the case and Wal-Mart merely has some "bad apples" in its cadre of store managers, the size of the company ensures that these incidents are a common occurence that must be investigated and addressed. After all, would the company be facing the largest class-action lawsuit ever filed, alleging systematic mistreatment of its female employees, if these incidents were "isolated?" Of course not.

2) The company has an "open-door policy" that allows employees to discuss problems with management

The fact that employees have an "open-door" to management does not ensure that any complaints they share will be addressed. Wal-Mart has long claimed that it can "police itself," but history has shown that no gigantic organization, whether it be a government, a corporation, or even a labor union, can be trusted to do so without some kind of third-party oversight. Without true accountability, the "open-door policy" is worthless. Furthermore, it would be nice if we could believe that every single manager at Wal-Mart wouldn't dare to retaliate against an employee who airs a grievance, but no one is that naive. One of the benefits of having a union at Wal-Mart would be that employees could bring their concerns to a third party, confidentially and without fear of retaliation.

3) Employees themselves have shunned opportunities to unionize

Employees have "shunned" unions under enormous pressure from Wal-Mart. Preventing unionization at each and every store is one of the company's top priorities. When workers at a Canadian store were brave enough to vote for unionization, the company quickly shut the store down. When meat cutters at a Supercenter joined the local UFCW, the company fired them and decided to only sell pre-packaged meat at all its stores. Wal-Mart employees know full well that openly supporting a union will probably cost them their jobs.

4) Organized labor only wants money from Wal-Mart employees

I will concede that organized labor is motivated to unionize Wal-Mart partly because it employs more people than any other corporation in America. Organized labor wants more members, which certainly means more income and more political power. However, the purpose of a union is to protect workers, and Wal-Mart looks ridiculous painting organized labor as "evil" or by portraying the Florida employee association as "a wolf is sheep's clothing" simply because it is backed by the unions. The company tells its employees that organized labor doesn't care about them -- only its own management does -- a very tenuous argument.

5) Wal-Mart has good jobs because so many people apply for them

This argument is Wal-Mart's favorite, and everyone from CEO Lee Scott on down to "Wal-flacks" like Ms. Gallagher loves to use it (note that she is quoted in the article as saying "we regularly receive thousands of applications for 400 jobs when we open new stores"). This argument is also the most ridiculous. How can anyone at Wal-Mart claim the number of applicants "certainly would be an example that we are seen as a benefit to a lot of our associates"? Uh, those people don't work for you (yet). Just because a person seeks a Wal-Mart job does not mean that he or she will like the way he or she is treated by the company. I think a more telling statistic than the number of applicants is the rate of employee turnover (i.e. how soon an employee leaves Wal-Mart after being hired). Wal-Mart's turnover rate is 44 percent per year -- if nearly half the people who work at Wal-Mart leave in a given year, then how can the company's jobs be all that great? According to Mr. Dicker's book (pp. 30-31), 70 percent of new employees leave within 90 days of hiring. Hmmm...

Although I have a lot of respect for Wal-Mart as a corporation and as a retailer, I find its employee relations to be disgusting. Full-scale unionization might not be the answer to the company's "labor problem," but Wal-Mart offers no solutions of its own...instead, it keeps portraying the fiction that "everything's fine" with propaganda that seems completely out of touch with reality. It's hard to take Wal-Mart seriously or have any sympathy for its position when it continues to stand behind a script of nothing more than hollow rhetoric. The company will have to come to terms with these issues, and it would be better for everyone if it did so sooner rather than later.

Westfield Brings "Hy-Style" to L.A. Malls

Steven Swain posted an interesting article from the Los Angeles Business Journal about some changes planned for malls in Southern California. I'd like to re-post it here, along with some commentary.

The article is primarily concerned with the activities undertaken by Westfield, an Australian company that has become one of the largest owners of shopping malls in the United States. Westfield is a major player in the Southern California retail scene, as it now owns 20 malls in the region.

The focus of the "shopping center industry" in this country has shifted from development to management and redevelopment. Competition between existing centers is fierce. Westfield and other mall conglomerates are charged with making sure their "mature" properties stay "relevant" at a time when "big box" retail is king and a new generation of "lifestyle centers" has begun to challenge the mall's dominance. The ongoing consolidation of the department store sector presents another challenge as malls continue to lose anchors that are difficult to replace.

In Southern California and elsewhere in the U.S., Westfield took a novel approach to marketing by "branding" all its centers as "Westfield Shoppingtowns" and advertising all its malls in a given market as a single entity. As the article indicates, this effort has been met with mixed results. Shoppers never warmed to the "Shoppingtown" moniker, causing the company to recently drop it from use. It's also questionable whether consumers percieve a marked difference between Westfield malls and their competitors. It's likely that most people still refer to the malls by their "pre-branding" names; for example, "Fox Hills Mall" as opposed to "Westfield Fox Hills." I doubt that customers would go out of their way to visit a Westfield mall if a center with similar retailers was closer to home.

While Westfield has had middling success in marketing its Southern California properties, it has done an excellent job of reinvesting in them and keeping them "fresh." The company has termed its approach "hy-style," with the "hy" referring to "hybrid." In order to compete with big box and lifestyle centers, Westfield is incorporating similar elements into its existing "traditional" malls. The recent expansion and renovation of Westfield Santa Anita was the first to employ the "hy-style" strategy, as it included a large AMC multiplex, a new food court, several new sit-down restaurants, and "large format" lifestyle-oriented retailers such as Borders Books & Music. As the article indicates, similar efforts are underway at Westfield Century City and Westfield Topanga, with plans underway for a major overhaul at Westfield Fox Hills. If all prove successful, expect more "hy-style" revampings at the company's other properties in Southern California and elsewhere.

Formerly known as Century City Shopping Center, Westfield Century City was one of the first components of a "mini-city" constructed on what had been the "back lot" of 20th Century Fox Studios. Today, Century City could easily be considered the "downtown" of the Westside, commanding higher office rents than even Downtown Los Angeles. One of the mall's main assets is its fabulous location along Santa Monica Boulevard near many of the wealthiest neighborhoods in the metropolis. Here's an aerial photograph of the center from Google Earth (click to enlarge):

Here's a three-dimensional "bird's eye" view of the mall and the rest of Century City, looking east towards Downtown Los Angeles (click to enlarge):

The outdoor mall sits atop two levels of subterranean parking and is anchored by Bloomingdale's (formerly The Broadway), Macy's (formerly Bullock's), an upscale Gelson's supermarket, and an AMC multiplex. As it is one of very few outdoor malls in Los Angeles and is surrounded by the high-rise towers of Century City, the center offers a unique shopping environment. Here's a photo, circa spring 1999, that I took as part of my All the Malls of Southern California project (click to enlarge):

Long a top performer, Westfield Century City has faced renewed competition from the recently remodeled Beverly Center (also anchored by Bloomingdale's and Macy's) and The Grove, a recently opened outdoor "lifestyle center" adjacent to the historic Farmers Market and anchored by Nordstrom. Westfield was smart to realize that it was time to "up the stakes" when it came to vying for the retail dollars of wealthy Westside consumers.

The "Makeover of the Century" will give the mall an updated look, along with a new food court, a new AMC multiplex with stadium seating, and an expanded Gelson's. The existing food court and AMC multiplex will be converted into more shops and restaurants. As the article indicates, all the construction has cost the center some business in the short-term, but the timing of the remodeling couldn't be better, since it has coincided with the major reconstruction of Santa Monica Boulevard, which is also scaring off shoppers. Soon the revamped mall will benefit from better access to the rebuilt boulevard, which should make up for the lost business and then some.

Here are some renderings of the "new" Westfield Century City:

Though it is also located on the Westside (in the suburb of Culver City), Westfield Fox Hills is a very different mall. Originally opened as Fox Hills Mall in the mid-1970's, it is a typical suburban center that is oriented towards a more middle-class clientle. Current anchors are JCPenney, Macy's (formerly The Broadway), and Robinsons-May (formerly May Company). The Robinsons-May store is slated to close next year as a result of the acquisition of its parent company, May Department Stores, by Federated Department Stores, parent of Macy's.

One unique aspect of Westfield Fox Hills is that it was built in a topographically challenging location. The resultant design has two levels of shopping on its north side and three on its south, linked by a series of ramps to balance customer traffic. Another unique aspect of the mall is that it literally has a freeway running through its parking lot: the Marina Freeway (Route 90) passes over on an elevated structure. The center was originally developed by the late Ernest Hahn, the man responsible for many of Southern California's malls.

As one might imagine, Westfield Fox Hills is looking rather dated these days and in need of a more contemporary look. Here's a photo of the interior, circa spring 1999, that I took as part of my All the Malls of Southern California project (click to enlarge):

In addition to upgrading the mall's interior, Westfield plans to add an outdoor "lifestyle" component facing Sepulveda Boulevard, which will take advantage of the mall's visibility from the busy San Diego Freeway (Interstate 405). It's fairly obvious that the company intends to acquire the soon-to-be vacant Robinsons-May store as part of this project rather than try to find another department store anchor to take its place.

Here's an aerial photograph of the mall from Google Earth, showing the key location of the Robinsons-May store near the junction of the San Diego Freeway and the Marina Freeway:

The larger challenge for Westfield will be bringing in new stores and restaurants that will expand the center's appeal. Fox Hills currently lacks many national retailers, as it features mostly local, independent stores. While the recent addition of a large Old Navy should give the mall a boost, the tenant mix is lacking in comparison to other nearby centers. Most customers come from the predominately middle-class suburbs of Culver City and Inglewood; if Westfield hopes to draw wealthier customers from nearby Marina del Rey and other upscale communities, a lot of effort will be needed to "remerchandise" the mall no matter how good it looks once remodeled. It will be interesting to see if the company is successful.

While I am certainly impressed with and excited by these remodeling projects, I agree with Greg Stoffel's view, as expressed in the article, that the success of any retail center is directly tied to the stores it offers, not how it looks. Westfield's "hy-style" endeavor must be about substance just as much as style if the company hopes to grow market share in Southern California. I agree with Mr. Stoffel's contention that the region's most productive mall, South Coast Plaza, looks rather dowdy but continues to be a success because its management gives customers the merchandise they want. The future of malls across the country depends on the bedrock principles of retailing, not on the latest trends.

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Call of the Mall

By RACHEL BROWN
Los Angeles Business Journal Staff

The months-long renovation of Century City’s only shopping center has been an exercise in patience, with relocated stores, reduced parking, double-parked dump trucks and nonstop construction noise all cutting into the shopping experience. Overall mall sales are down because some customers have just given up.

Not much longer, though. The first phase of Westfield Group’s transformation of its Westside mall will be almost finished next month with the opening of a second-floor dining terrace, a gussied up replacement of the center’s tired-looking food court that will feature, among other things, indoor and outdoor seating and real silverware instead of the plastic stuff.

The following month, just in time for the holiday movie season, comes a 15-screen AMC theater with stadium seating, digital technology and surround sound that will replace a 14-screen lower-tech multiplex in another portion of the mall.

It’s all part of what Sydney, Australia-based Westfield dubs a “hy-style” mall – a hybrid of traditional and lifestyle shopping centers where department store anchors place second to entertainment venues, restaurants and specialty retailers. “It is something that we are doing to differentiate from our competitors, and it is something that we are looking at to roll out to the rest of our centers,” said Paul Kurzawa, Westfield’s vice president of management.

If all goes well at the newly christened Westfield Century City – the name “Shoppingtown” has been dropped – Westfield will take the hy-style concept to its 10 other malls throughout the Los Angeles region.

Already, Westfield Topanga in Canoga Park is being renovated and expanded, and plans are being readied to make over Westfield Fox Hills. The price tag for all three centers is around $600 million, with many more millions to renovate the other properties.

Fundamental transition

There are skeptics, among them Elliot Mahn, owner of Agoura Hills-based Potatoes Potatoes Potatoes, which runs Century City’s California Crisp location. He said shoppers don’t think about the Westfield brand when they go into a mall and amenities like fancy forks aren’t the reason people choose to eat there. (Anyway, he said silverware ends up getting stolen.)

But Westfield’s willingness to invest so much speaks volumes about the fundamental transition taking place in retailing. With department stores consolidating and so-called lifestyle centers like the Grove drawing away customers with their specialty retailers and movie theaters, the more traditional centers must keep up by providing many things to many shoppers – or at least trying to.

That includes changing the retail mix. At Westfield Topanga, where renovations began earlier this year and are scheduled to be mostly complete by the fall of 2006, Nordstrom and Neiman Marcus will be adding stores – as will Target.

Like other mall operators, Westfield is trying retail juxtapositions that were unheard of when large anchor traditional department store tenants ruled the mall experience.

“Target is a wonderful addition,” said Greg Stoffel, a shopping center consultant with Irvine-based Stoffel & Associates. “That combination (of Target and Nordstrom) works more and more. People wouldn’t have tried it five years ago.”

Opportunity has influenced many of the makeovers – starting with Federated Department Stores Inc.’s acquisition of May Department Stores Co., which is leading to the closure locally of seven Robinsons-May stores and two Macy’s locations.

“What has actually refocused a lot of these projects is the fact that the department store merger has given back property,” said John Goodwin, a vice president of development at Westfield. The Robinsons-May at Westfield Fox Hills, for example, is on the chopping block, giving Westfield the opportunity to shift that department store space.

Deli routes

Westfield, publicly traded on the Australian stock exchange, is the largest mall operator in the world, with 129 centers in four countries – 68 of those in the United States and 42 in Australia. The estimated worth of the U.S. portfolio is $15.2 billion.

The company began cobbling together its collection of L.A. centers in the 1990s, purchasing TrizecHahn Corp.’s mall portfolio, which had Fox Hills, for $1 billion. In 2002, Westfield was in a group that acquired Rodamco North America’s U.S. properties in a $5.3 billion deal that netted Westfield 14 centers, including Century City.

The company was started inauspiciously enough in the late 1950s when Frank Lowy opened a deli in western Sydney with partner John Saunders. With that business thriving, the two purchased the surrounding land and developed the first Westfield shopping center.

Lowy remains chairman of Westfield and members of his family take key roles in the company. His son Peter Lowy sits on the board and is the company’s managing director.

The company has a tendency to acquire malls in geographic proximity. That way, it can cross-brand centers to create a distinct Westfield identity that’s supposed to attract shoppers even when rival centers are nearby.

That approach was behind the Shoppingtown tag, which was placed on centers across Westfield’s portofolio – except the name hasn’t really worked. “Shoppingtown kind of just made for long difficult project names,” said Rob York, a principal with retail consultancy Fransen Co. “It didn’t ring true with a more cosmopolitan customer base.”

L.A.’s top tier

That certainly was the case at Century City, where an affluent mix of residential and office tenants are luring high-end retailers willing to fork over higher rents. “Rent is always a function of opportunity,” said Valerie Richardson, vice president of real estate for the Container Store Inc.

The Dallas-based chain needed 25,000 square feet to locate at the mall, a space requirement that prohibited it from entering Century City prior to the remodel. With the renovation, it’s set to open next year.

All told, 30 new stores are slated to open at Century City, lifting mall-wide sales to $400 million from the current $300 million, according to Kurzawa. That puts Century City in the top tier of malls in L.A. County.

But the centerpieces of the Century City renovations are the theater and dining terrace. These additions will be on the Constellation Avenue side of the mall; the old theaters and food court, on the Santa Monica Boulevard side, will be turned into retail offerings.

The overhaul comes none too soon for some merchants. Craig Albert, president of Flavor Firm, franchiser of the Tacone restaurant chain, remembers that when the AMC multiplex had a big movie playing, his Century City location would get a bump of $200 to $300 per day. “I think the theaters at the Grove and some of the others around town have really impacted that adversely,” he said.

Rick Caruso, chief executive of Caruso Affiliated Holdings LLC, the Grove’s owner, isn’t worried about the Westfield renovations hurting his mall properties. This year, he said the Grove is on pace to increase its sales per square foot 40 percent over last year, although he wouldn’t disclose the specific figures.

“I am glad to see Century City get improved. I think it is needed,” he said. “The challenge for us is that we always have to be on the cutting edge and constantly doing new things.”

Looking for convenience

At Fox Hills, Westfield faces perhaps a tougher challenge than at Century City. It needs to broaden its customer base if it wants to pull shoppers away from other shopping venues.

To do so, the company is adding a façade to give the indoor complex a lifestyle center feel. The focal point will be a grand entrance facing Sepulveda Boulevard around which specialty stores and restaurants will be centered.

If the hy-style concept is transformative there at Fox Hills, it’s a good bet the concept can succeed at other local Westfield malls, including those in Valencia, Eagle Rock and West Covina.

In the end, Stoffel stressed that mall shoppers just want to eat and shop at the most convenient and best places. After all, he said, South Coast Plaza is no beauty, but the mall is always a top performer.

“Of all the centers I have seen across the United States, three quarters of them look better than South Coast Plaza, but no one has a tenant mix better than that in Southern California,” he said. “That is what really matters.”

The New Beverly Connection

Recently I spent the better part of a Friday just walking around the Westside for kicks despite the fact that nobody walks in L.A. I doubt anyone would be suprised that my feet eventually led me to the Beverly Center, a posh mall I hadn't visited in awhile.

The Beverly Center is a Los Angeles landmark because it literally towers over the Westside. Located on a rather small and oddly shaped plot of land bounded by Beverly Boulevard on the north, La Cienega Boulevard on the east, 3rd Street on the south, and San Vincente Boulevard on the west, the mall sits on a podium of structured parking. The majority of Beverly Center's stores, including anchors Bloomingdale's and Macy's, are located on the sixth, seventh, and eighth floors!

Here's a photo of the mall's La Cienega Boulevard elevation circa spring 1999 that I took as part of my All the Malls of Southern California project (click to enlarge):

The success of the Beverly Center inspired the creation of another "urban" shopping center just across the street: the Beverly Connection. Like Beverly Center, Beverly Connection features a multi-level design oriented towards the street and served by structured parking. Beverly Connection is a bit of a "hybrid" center, featuring "convenience" stores (Ralphs supermarket, Rexall Square drugs), "big box" stores (Sports Chalet, The Good Guys!, Old Navy), a multiplex theater, numerous restaurants, and an "enclosed mall" section that includes spaces for smaller shops. Here's an aerial view of both shopping centers that I snagged from Google Earth (click to enlarge):

During my recent visit I observed that most of the Beverly Connection was nearly gutted and many of its tenants were gone. It appeared that the center was in the midst of a major remodeling and redevelopment effort; when I got home, I did some research and was excited to learn more about the "new" Beverly Connection. The project demonstrates the innovative ways mall owners are keeping their properties "relevant" for customers in Los Angeles and elsewhere.

Beverly Connection, though relatively successful, was due for a makeover. The center's internal pedestrian and vehicular circulation system was a mess, making it difficult to get from one side of the mall to the other. In addition, its facade had become a bit dated. I'm glad that the renovation will address these issues, strengthening the center's draw.

The most interesting aspect of the redevelopment effort is that it will add a residential component where none existed before. A building containing 62 luxury condominiums is being added along the center's Beverly Boulevard frontage, and a second building containing a 177-unit assisted-living facility for seniors is being added along the center's 3rd Street frontage. The ground floor of both structures will contain shops to complement the center's existing retail component.

Adding residential units to existing shopping centers makes a lot of sense for mall owners. Not only does having people living at the mall add a "built-in" customer base, but it allows owners to derive more value from their real estate. But such projects are also good for the communities in which they are located. There is a definite need for more housing in the existing urban areas of Los Angeles and other major cities, especially for seniors; building it in such "mixed-use" configurations can improve traffic conditions, as residents in the "new" Beverly Connection won't have to get in their cars to pick up a gallon of milk, drop off their dry cleaning, or even to enjoy a dinner and a movie. Our cities cannot afford to keep building "out" exclusively (a phenomenon known as urban sprawl) -- they must also build "up" (mixed-use redevelopment).

While the Beverly Connection Web Site indicates the the City of Los Angeles has yet to give its final approval, the mall's owners must feel confident that the "new" Beverly Connection will move forward, as they've already started to retrofit the parking and retail. I support and applaud this project, as it results from the kind of innovative thinking we so desperately need in this city. I can't wait to visit the "new" Beverly Connection!

Here are some renderings of the project:

Beverly Boulevard frontage, showing proposed condominium building over existing retail center

3rd Street frontage, showing proposed senior housing building over existing retail center (Beverly Center at rear)

Southeast corner of Beverly Boulevard and La Cienega Boulevard, showing revamped retail center

Beverly Connection Web Site

It's Been Done

Last Friday I wrote a post about plans to remake the Hayden Flour Mill in Tempe, Arizona. I recieved comments about a similar project in Akron, Ohio in which a former Quaker Oats facility was successfully converted into a hotel. It just so happens the Akron project is highlighted in "How Buildings Learn," an excellent book I own. I scanned the "before and after" photographs contained in the book and would like to share them here:

1979 -- The downtown of Akron, Ohio, grew right around the monumental grain silos (1932) of the Quaker Oats Company. People got used to seeing the structure and would have missed it if it was gone. (Photo by Bruce S. Ford, City of Akron Department of Building and Urban Development)

1990 -- The downtown location made the property central enough to support a hotel. That, plus preservationist incentives from the government, turned a bizarre idea into something economically attractive. The hotel is known as the Quaker Hilton. (Photo by Bruce S. Ford, City of Akron Department of Building and Urban Development)

The development of this hotel, part of Quaker Square in Akron, demonstrates that converting the silos of the Hayden Flour Mill into condominiums is not as outlandish an idea as it may seem. I hope that the City of Tempe is willing to offer financial incentives in the same manner that the City of Akron did if that's economically necessary for making the historic mill into a productive community asset once more.

New Life for an Old Mill?

Both Momz and Paul sent me an interesting news item from my hometown of Tempe, Arizona. The city's Hayden Flour Mill has laid dormant for years and redevelopment of its iconic concrete silos has become a controversial subject. As grandiose plans for the site have been ceremoniously proposed and unceremoniously dropped over the years, some Downtown leaders have advocated for the demolition of the historic mill, claiming it gives the city a "hayseed" feel that belies the Phoenix suburb's cosmopolitan image.

Link to article here (text follows):

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Aussie firm sees condos in mill silos

Katie Nelson
The Arizona Republic
Oct. 6, 2005 12:00 AM

The Hayden Flour Mill silos could become condos if an Australian development firm has its way.

The Sydney-based Constellation Property Group has requested a meeting with city leaders this month to discuss the idea. Constellation completed a similar project in Australia, turning a silo into a sleek, chic place to live.

For the Tempe project, Constellation wants to team up with The Lab, a California-based developer that has built two "anti-malls" - one art- and fashion-based, the other focused on sports and recreation - in Orange County. The Lab could create a similar non-corporate approach to retail on the Mill site as well.

The groups, though, have considerable obstacles to overcome.

Although the mill site is regarded as one of the important pieces of real estate by the City Council and city planners because of it's history and location between downtown and Town Lake, the property's complex history left it with plenty of complications.

For one, there's an ongoing lawsuit against Tempe; the city is the current owner of almost the entire mill site but the former landowner, MCW Holdings, contends the city owes them more than $40 million in damages.

In addition to the lawsuit, there are height restrictions and use restrictions on the site, and a severe lack of parking. Plus, there's the City Council's position that the concrete silos not be destroyed.

Never mind that the structure doesn't have water or electricity.

Mayor Hugh Hallman said people propose ideas for the old mill about once a month. The many restrictions usually scare developers off, he said.

Those same restrictions could make Constellation just one in a long line of now disinterested uninterested suitors.

But Shaheen Sadeghi, the creative juice behind the California anti-malls, said he's not deterred. After visiting the area for years, he sees his focus working in Tempe, because of - not in spite of - the space.

"We like the historical integrity of the building and the location," he said. "And from a cultural standpoint, the area has a lot of potential . . . our approach with specialty art and culture focus would do well there. There are certainly already enough Wal-Marts and Gaps and Banana Republics."

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I like the idea of the Hayden Mill structures being redeveloped into condominiums and an "unconvential" retail center. It is important to respect the historical value of the site, nestled along the western slope of Hayden Butte near the junction of Mill Avenue (Tempe's main drag) and the Salt River. The mill was the brainchild of Charles Trumbull Hayden, who founded the city after establishing a ferry across the river (the town was known as Hayden's Ferry before being rechristened Tempe by "Lord" Darrel Duppa, who is also credited with giving Phoenix its name). C.T. Hayden's original home, La Casa Vieja (birthplace of his son, legendary former U.S. Senator Carl Hayden), is located just across the street from the mill. It would be a grave mistake to demolish any of it.

It's important to note that the Hayden Mill property is currently a "dead spot" between Downtown Tempe and the Tempe Town Lake. Redevelopment of the mill site is key to the city's future vitality. As suburban sprawl took hold in the years following World War II, Downtown Tempe entered an era of decline; by the 1970's its historic buildings had become home to little more than biker bars, tattoo parlors, and other unsavory businesses, offering little to students at nearby Arizona State University or to the other residents of the growing suburb. Largely due to the efforts of former Tempe Mayor Harry Mitchell, Downtown bounced back and is now widely recognized as one of the most exciting and urbane environments in the entire Phoenix region. The recent development of Tempe Town Lake was the culmination of decades of planning, bringing vitality to the formerly dry bed of the Salt River. In addition to providing numerous recreational amenities, Town Lake has attracted development along its shores, the most notable project being Hayden Ferry Lakeside.

I especially like the idea of utilizing part of the Hayden Mill for an "anti-mall." One of the downsides of Downtown Tempe's renaissance is that many local businesses have been "pushed out" by chain stores and chain restaurants. There's a definite need for "alternative" retail, especially stores and services catering to local artists, allowing for the preservation of the "bohemian" lifestyle that has given Tempe a unique feel among Phoenix's "cookie-cutter" suburbs.

I snatched and appended the following image from Google Earth to show the relationship of the Hayden Mill to the larger environment of "central" Tempe (click to enlarge):

Here's a second Google Earth image showing how the Hayden Mill is a crucial link between Downtown Tempe and Tempe Town Lake (click to enlarge):

I'd like to end this post with five photographs of the Hayden Mill taken by Tempe legend G.D. Thurman:

P.U. Blog of the Week: October 4-10, 2005

This week the spotlight falls on my life...and other meaningless drivel. This blog does for musical theatre what P.U. does for malls. Its owner, Chizi, highlights other important issues too, like Marshall Field's, Oprah, etiquette, family history, and that some things are meant to be. I could do without the Huey Lewis bashing, though. I admire that she's been in the blogging game since 2001, long before it became "trendy." Her writing is anything but "meaningless drivel" -- be sure to check it out, you just might learn something.

By the way, a friend recently asked if, when naming this blog Paradox Unbound, I realized it could be abbreviated P.U. The answer is no, but I find it pretty funny. Perhaps I should change my blog description to "P.U. -- It Stinks!"

Hopefully this goes without saying, but if any of you comes across a blog that may be of interest to me and might be worthy enough to recieve my prestigious "Blog of the Week" designation, hit me up.

Downtown L.A. Panorama

Downtown L.A. Panorama (a Flickr photoset)

Last Thursday was an amazingly clear day in Los Angeles -- not a cloud in the sky, hardly any smog. Credit for this beautiful day belongs to the same Santa Ana winds that (sadly) have been responsible for the recent outbreak of wildfires in Southern California.

On such a day, I was compelled to take some photographs from the Los Angeles County Hall of Records, the building in which I work. I was able to take photographs in every direction from the balconies on the 13th and 15th floors. While I've posted the best 16 to my space on Flickr, I'd like to share 10 of them here:

Looking southeast from the 13th floor balcony -- City Hall at left, with the Caltrans Building at its right

Also looking southeast from the 13th floor balcony -- the Caltrans Building at left, with the Los Angeles Times Building at its right

Looking south from the 13th floor balcony towards the Downtown Los Angeles skyline of the Bunker Hill Financial District

Looking down from the 13th floor balcony in a westerly direction at the "Civic Center Mall," a large but underutilized park that is slated to be redeveloped (see Bunker Hill Park, a "team blog" I've joined but have yet to post to)

Looking west from the 13th floor balcony across the "Civic Center Mall" towards the Music Center and the Water and Power Building

Looking northwest from the 15th floor balcony -- the Hollywood sign and the Griffith Park Observatory can be seen at center -- for the record, I can't remember ever being able to see these landmarks from the Hall of Records before

Looking northwest from the 15th floor balcony -- the Cathedral of Our Lady of the Angels is at center

Looking northeast from the 15th floor balcony -- the tower on the near right is the Metropolitan Transportation Authority headquarters building

Looking northeast from the 13th floor balcony -- the Hall of Justice is at center -- this historic building was severly damaged in the 1994 Northridge Earthquake and was deemed unsafe for human occupation soon after, but Los Angeles County plans to retrofit and remodel the building and reopen it in the next few years

Looking east from the 13th floor down Temple Street, showing some of the buildings in the Los Angeles Civic Center, the largest concentration of government employees (City, County, State, Federal) outside of Washington, D.C.

Downtown L.A. Panorama (a Flickr photoset)

Metrocenter Memories

Props to Keith at Malls of America for finding this 1970's Metrocenter postcard

Fellow "mall blogger" Steven Swain passed along this solicitation in the September 24 edition of the Arizona Republic:

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Mall seeking memories

Sept. 24, 2005 12:00 AM

Thousands of Arizona residents have passed through the walkways of Metrocenter since its 1973 debut as the nation's first two-level, five-anchor-store mall.

Metrocenter and its parent company, Westcor, want to collect shoppers' favorite memories of the Valley icon, such as skating at the ice rink and eating at the airplane restaurant.

"Almost anyone who has lived in the Valley for a period of time has visited Metrocenter. Many happy memories have been made here," said Sherry Decovich, senior marketing manager of Metrocenter.

Metrocenter plans to incorporate the recollections in future advertising and redevelopment plans. Stories can be submitted through Dec. 31. Essays can be sent to Sherry DeCovich at sdecovich@ westcor.com or submitted to the management office at 9617 Metro Parkway West, Phoenix, AZ 85051.

For more information on Metrocenter, go to westcor.com.

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As you might expect, I am more than happy to heed this call. Metrocenter is very near and dear to me; in fact, I credit it for jump-starting my insatiable mall fetish. As proof, I offer the following from my All the Malls of Southern California Web Site:

I have been fascinated with all aspects of urban development for as long as I can remember, but shopping centers have always been of particular interest to me. I remember the excitement I felt as a boy growing up in Phoenix whenever my family went to Metrocenter, the largest mall in Arizona. The mammoth building was impressive inside and out, with five department stores, over two hundred smaller stores, restaurants, banks, movie theatres, and an ice rink. Not only was it a major retail development, it was an institution in the Salt River Valley, a social center, a "downtown" in a city that lacked most of the traditional institutions of city life. This mixture of commerce, consumerism, and community fixed the shopping mall in my mind as a unique and essential part of our modern city and our modern society.

I plan on drafting one hell of an essay and remitting it to the fine folks at Westcor. By the way, Westcor is a company I've long admired, as it has been the "king" of mall development and management in greater Phoenix for decades. In the 8th grade, my English class was charged with the task of writing a "business letter" to an actual company, and of course I chose Westcor. I was pleasantly suprised to recieve a warm reply, along with several sets of blueprints I had requested. I was even invited to a lunch with one of the company's executives! (More on this story in a future post) While Westcor was recently acquired by Macerich, one of the nation's largest mall owners, the company has kept its identity and Phoenix headquarters. Buttressed by Macerich's financial might, Westcor has acquired the few Phoenix malls it did not already own and has embarked on its ambitious "Phoenix 20/20" initiative, which will add five more malls to the Phoenix metropolis in the next fifteen years.

I will post my essay on Metrocenter here once it's finished. In the meantime, I'd like to share the mall's history.

In 1971, the era of the "super-regional mall" began with the opening of the massive Woodfield outside Chicago. Westcor realized that fast-growing Phoenix was the perfect place to develop a similar center, and in 1973 Metrocenter opened along the city's northern fringe on former farmland. The mall was the first in the nation to feature five department stores: Diamond's, Goldwaters, Rhodes, Sears, and The Broadway. Phoenix was already home to numerous malls, but Metrocenter dwarfed them all and set a new standard.

Metrocenter featured many innovations that would influence future super-regional malls in Phoenix and across the country. It was built alongside the Black Canyon Freeway (I-17), providing easy access to motorists and unparalleled visibility. When planning the mall, Westcor acquired far more land than was needed, allowing it to develop the center's surroundings with compatible uses and reap the resultant profits on its own. The "ring road" circling Metrocenter became home to numerous other stores and shopping centers, hotels, office buildings, and an amusement park now known as Castles 'n Coasters. It wasn't until the mid-1990's that the last vacant land was developed.

One of the mall's most novel features was an indoor skating rink, a compelling draw during hot Phoenix summers. Metrocenter's food court, along with a cocktail lounge and restaurant shaped like an airplane, looked down onto the ice rink, creating a unique and exciting environment. In the early 1990's, the ice rink was replaced with an arcade and indoor amusement park known as the "Metro Midway." Alas, the Midway proved too loud for the food court patrons above and attracted too many teenagers and was quickly shut down. The atrium was sealed, allowing the food court to expand. The former ice rink/amusement park space was occupied by an expanded Harkins Theatres multiplex.

Metrocenter underwent a major renovation in 1993, the same year that Westcor's new Arrowhead Towne Center mall opened in the northwest Salt River Valley. Westcor realized the new center could cannibalize some of Metrocenter's sales, necessitating a more contemporary look. Numerous skylights were added, along with new fountains, elevators, tile, seating, and other fixtures. The exterior entrances were also revamped. While today's Metrocenter is nice enough, I'll always remember it as it is pictured in the postcard at the top of this post.

There have been many changes in the anchor line-up over the years. Diamond's was acquired by Dillard's in the mid-1980's. Goldwaters was rebranded as Robinson's in 1989, which in turn was rebranded as Robinsons-May in 1993. Rhodes was briefly replaced by Hawaii-based Liberty House in the late 1970's, then by Texas-based Joske's. When Joske's was acquired by Dillard's, the store was converted into a "men's and home" unit. After nearly 10 years of operating two stores at Metrocenter, Dillard's sold the former Rhodes/Liberty House/Joske's to JCPenney, which relocated from the nearby Chris-Town Mall. The Broadway was rebranded as Macy's in 1996. In January, Macy's closed its Metrocenter location due to lackluster sales but the chain will return after it absorbs Robinsons-May as part of the Federated/May merger.

I'd like to mention that Metrocenter was featured in a classic '80's movie, "Bill and Ted's Excellent Adventure." The mall stood in for the fictional "San Dimas Mall" (for the record, there's never been a mall in the L.A. suburb of San Dimas). I love how this movie features the mall as I best remember it, with its original decor, food court, and ice rink.

Sadly, I believe the main reason Westcor is soliciting memories of Metrocenter is that the mall has "lost its way." While not yet in danger of becoming a "dead mall," it has been overshadowed by Westcor's newer super-regional malls throughout the metropolis. Metrocenter has even lost its long-held distinction of being Arizona's biggest mall to Scottsdale Fashion Square. The demographics around the mall have also changed, as the wealthier customers that once frequented Metrocenter have moved to newer suburban areas farther afield. The closure of Macy's is a sure sign of trouble; let's just hope that it has more success in the (soon to be) former Robinsons-May location. The loss of another anchor may set Metrocenter on a downward trajectory that cannot be reversed. I applaud Westcor for asking current and former Phoenicians to share their memories of what once made Metrocenter "special" so that it can reclaim some of its former glory and serve future generations of Arizona shoppers.

Here's an aerial photograph of Metrocenter today that I snagged from Google Earth (click on it for a larger image):

I strongly suggest that any readers with fond memories of Metrocenter send them to Westcor.

Metrocenter Web Site

South Scottsdale's Renaissance

Paul, a childhood chum who now calls Chicago home, sent me an interesting article from Wednesday's Arizona Republic about the dramatic changes occurring in south Scottsdale, the neighborhood in which he grew up. Scottsdale has always been one of Phoenix's ritzier suburbs, but in recent years its southern half (which includes "Old Town" Scottsdale, the original settlement) entered a precipitous decline while its northern half continued its glorious boom. It appears that south Scottsdale is finally bouncing back.

Link to article here (text follows below)

It's interesting that both the decline and rebirth of south Scottsdale can be tied to Los Arcos Mall. Los Arcos opened on November 21, 1969 at the southeast corner of Scottsdale Road and McDowell Road with department store anchors Sears and The Broadway. After two decades of success, the mall began to falter after Westcor acquired the hum-drum Scottsdale Fashion Square, located less than three miles away, and began to expand it into Phoenix's premier shopping destination. As Los Arcos faltered, so did the rest of the retail facilities in the vicinity; the property was in desperate need of redevelopment.

By 2000, Los Arcos was officially "dead" and its owner, Steve Ellman, demolished it to make way for an 18,000 seat arena for the Phoenix Coyotes NHL hockey team, of which he was part-owner. While Scottsdale officials aggressively supported the plan, desperately hoping to inject new vitality into the neighborhood, area residents felt a professional sports facility was not in their best interest. The ensuing political wrangling frustrated Ellman, who eventually dropped his plans and instead built the arena on vacant farmland adjacent to the new Loop 101 Freeway in the suburb of Glendale, the opposite end of the Phoenix metropolis.

Ellman's next proposal was Los Arcos Town Center, a 540,000-square-foot "power center" to be anchored by Wal-Mart Supercenter, Sam's Club, and Lowe's Home Improvement. For the most part, area residents didn't support this plan either, as they didn't like the design, worried about traffic impacts, and didn't think a massive influx of big-box retail was a panacea for the community's woes. The fact that Ellman was seeking financial incentives from the City of Scottsdale was contentious as well. The Los Arcos site continued to be a "political football," and with no resolution in sight, Maricopa County Sheriff Joe Arpaio went so far as to propose that one of his famous "Tent City" jails be erected on the property. The only thing more embarassing for south Scottsdale than living with the rotting remains of a "dead mall" would be to see it transformed into a gigantic outdoor prison.

In a somewhat sudden and suprising development, Arizona State University arrived to become the "savior" of Los Arcos in June 2004. The school announced its intention to build the "ASU Scottsdale Center for New Technology and Innovation," a high-tech research park that would create 4,000 jobs. Residents and City officials were ecstatic to have a classy university-affiliated tech park with high-paying jobs instead of a garish traffic-generating big-box center with minimum-wage employment opportunities. Steve Ellman was more than happy to rid himself of a property that had been a thorn in his side for four years. The "Los Arcos problem" had, at long last, been solved.

Here's an aerial shot of the vacant Los Arcos property I snatched from Google Earth -- click on it for a larger image:

While ASU has yet to construct a single building on the Los Arcos site, its plans are spurring the development of numerous high-end condos to house future tech center employees as well as the revitalization of several flagging shopping centers nearby. The positive vibes are also affecting "Old Town" Scottsdale, which has been struggling. Although Scottsdale Fashion Square is nearby, the mall has proven to be an "island" unto itself. I look forward to the completion of the long-anticipated "Scottsdale Waterfront" development along the Arizona Canal. Few outside Phoenix may know that the city boasts an extensive network of canals, based on a system constructed by the Hohokam Indians centuries ago, that allowed the arid Salt River Valley to become an agricultural powerhouse. In the time since the metropolis developed, the majority of the canals find themselves in an urban context, presenting a unique development opportunity. If Scottsdale Waterfront proves to be successful, similar projects will be encouraged, allowing the canal network to become an urban asset full of unique environments.

The article raises a very important issue for urban planners: gentrification. While it is important not to neglect Phoenix's older suburbs as the metropolis sprawls further into the desert, it is disheartening to see that south Scottsdale's revitalization is "pricing out" existing residents and making housing there unaffordale to a large segment of the population. I feel the biggest challenge facing planners today is finding ways to encourage urban renewal while preserving affordable housing -- a goal that may be unattainable in a capitalist system where land is primarily a commodity. We in the United States must ask ourselves if the true purpose of a city is to generate profit for a few or to provide a supportive environment for all.

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Scottsdale's south mirroring pricier north

Changes may force out residents

Lesley Wright and Casey Newton
The Arizona Republic
Sept. 28, 2005 12:00 AM

Every day, Scottsdale's working-class south moves a bit closer to resembling the moneyed north.

Small ranch homes built for Motorola workers now fetch luxury prices.

One-bedroom condos are starting at $400,000.

And Arizona State University is planning a high-tech research park in the area to attract the "creative workers" of the "knowledge economy."

Not bad for an area of town once best known for its strip clubs, adult bookshop and a glut of payday-loan stores.

Although city officials are pleased at the quick turnaround, they also are dealing with the unintended consequences: a city where teachers, firefighters and regular people can no longer afford to live, an elderly population facing dispossession and growing traffic concerns.

Still, the bloom of new development is sweet.

"Five years ago, you couldn't pay people to live downtown. Capital was fleeing. All the development was up north. Downtown was running risk of becoming a shell of its former self," said John Berry, a zoning attorney who helped shepherd through many of the high-end condominiums being built.

"Now, I think it will be the hottest property around. The next five years or 10 years is going to be the most exciting time to be participating in Scottsdale all the way down to Tempe," Berry said.

The national real estate boom has sent home prices skyrocketing, allowing most "fixer-uppers" to fetch at least $200,000.

The Scottsdale Waterfront, remodeled Hotel Valley Ho and planned W Hotel promise to bring hip, sophisticated urban living to the West's Most Western Town.

Even Babe's Cabaret, a local skin joint, is getting a high-end makeover by adult-film star Jenna Jameson.

Study prompts change

The transformation was prompted in part by a 2003 report by ASU's Morrison Institute for Public Policy, which chided Scottsdale for resting on its fading image as a resort town.

Scottsdale leaders, mortified about the ceaseless bickering over redevelopment plans for the former Los Arcos Mall site, opened Scottsdale's prodigious wallet.

The result: In the past three years, about $2 billion in public and private investment has poured into south Scottsdale.

Nearly 2,600 expensive condominium units are attracting the type of well-heeled residents who until recently would not have considered living south of Frank Lloyd Wright Boulevard.

A long time coming

Four years ago, merchants in south Scottsdale were watching their incomes nosedive. City officials were wooing developers with tax giveaways.

And Sheriff Joe Arpaio was contemplating a new tent city jail at the blighted Los Arcos Mall, the epicenter of every major political debate since the mall finally shut down in 2000.

Scottsdale leaders battled with landowner Steve Ellman, who first wanted to build a professional hockey stadium and then a big-box Wal-Mart center at Los Arcos.

Neighbors lived with half-razed buildings and empty stretches of concrete.

Then along came ASU.

The deal with the university, which called for Scottsdale to invest $130 million of taxpayer funds, was not without controversy.

But the City Council approved the partnership last year, and groundbreaking is expected next year on the $340 million ASU Scottsdale Center for New Technology and Innovation.

"I don't think there is any question that this will be anything short of a major revitalization of that part of town," said Rob Melnick, ASU's associate vice president for economic affairs.

Melnick also directed research for the influential "Which Way Scottsdale?" report, released in March 2003, which since has served as a blueprint of sorts for the overhaul of Scottsdale's oldest neighborhoods.

Effects already seen

The tech center, which promises to produce 4,000 high-paying jobs, has become a major catalyst for change.

A local development company has acquired the ground lease under south Scottsdale's ailing Kmart, another beacon of south Scottsdale's former deterioration.

An announcement about the future of the Kmart site is expected soon.

Smaller strip malls that dot major thoroughfares, such as Scottsdale and Hayden roads, along with older low-end apartment complexes, are likely to fall to the condominium craze.

"Here, in the next one or two years, it will be very obvious what's happening," said David Roderique, Scottsdale's economic vitality director.

"Things have gotten a lot better," Roderique said of the gentrification of neighborhoods as well as the new housing. "All of a sudden, this is becoming a hot area. We've got retailers coming to us as opposed to us having to beg."

Some families shut out

Scottsdale has worked in recent years to jump-start older neighborhoods by building parking structures, waiving fees for renovation, and other small steps.

But the result, huge increases in home prices, has left some would-be Scottsdale residents out in the cold.

After three years of renting an apartment at Thomas Road and 68th Street, Josh and Alicia Cline were looking forward to raising their two young sons here.

The Valley natives love south Scottsdale: its central location, its proximity to art and cultural events and the diversity of the surrounding community.

Best of all, they thought, the area is home to Scottsdale's most affordable real estate.

But a year ago, as the speech pathologist and his homemaker wife began looking for a more permanent residence, they couldn't find anything for under $200,000.

"There's a pretty low bracket living down here, but yet we're not able to find a way in," Alicia said. "That is very frustrating. We're shut out."

The median sales price for south Scottsdale homes increased 11.8 percent during 2004, to $189,000, but costs have shot up even higher since. In August, the median home price was up 54 percent, or more than $100,000, to $291,500.

Nationwide phenomenon

The city doesn't control all the forces changing south Scottsdale.

The housing boom is a nationwide phenomenon, and the improved economy has driven much of the effort.

Still, Scottsdale Mayor Mary Manross said she worries about the affordability crisis.

"Of course it's a concern," Manross said. "We want to make sure we have a diverse, balanced community. I want to make sure it's a place our city employees, our neighbors and your friends and mine can live. And it's getting more difficult."

Real estate experts working on the ASU site are thrilled south Scottsdale is starting to provide the urban setting that creative high-tech wunderkinds will appreciate.

"There may not be a better place in the region to attract the knowledge worker, the creative worker," said Sharon Harper, president and chief executive officer of the Plaza Cos., one of the local development partners.

"When you look at the demographics of where these great workers live and go to school, we are not far away from any of that. That's very important for our companies locating there."

Seniors are threatened

Developer attorney Berry said that the new projects might mean Scottsdale could lose its can't-do "Stopsdale" reputation. But the Valley likely will have even more reasons to call the city "Snobsdale."

Earlier this year, a developer triggered a firestorm when it attempted to redevelop the Wheel Inn Trailer Ranch, home to scores of elderly people living on fixed incomes, into condos that would be marketed to the tech-center workers.

WestStone Properties withdrew its proposal in the wake of fierce public opposition. But no one doubts that other redevelopment projects will be proposed, potentially displacing a vulnerable population that can't afford to live elsewhere in Scottsdale.

"If you are talking about downtown, regular people won't be able to live there," said Rick Kidder, incoming president of the Scottsdale Area Chamber of Commerce. "For a city that already imports half its workforce, that's a problem. What we have is a growing affordability gap."

Reaching critical mass

Scottsdale officials say that they can control some things and that those things are quickly reaching a critical mass.

Transportation, both by car and mass transit, needs an overhaul, according to elected officials, who already are having nightmares about traffic between Loop 101 and Scottsdale Fashion Square.

Scottsdale is putting together a transportation master plan this year in an effort to address the coming explosion in traffic downtown.

Other concerns remain, including a southern stretch of Scottsdale Road that seems resistant to revitalization.

Significant strides

And critics still are wary of the tech center, which has yet to announce a single corporate tenant.

But few disagree that the area has made significant strides in recent years.

"It is just phenomenal, the things that have happened," said Councilman Wayne Ecton, who will move into a luxury condo on downtown's Main Street next year. "If you look at where we were 15 years ago, and where we are now, it's amazing."

A view of downtown Scottsdale (above) highlights where the Waterfront District will be. An artist's rendering (right) shows the Waterfront Residences.