Once again, "developer gamesmanship" - - The Deal - - seemed ready to overwhelm common sense.
"Two local retail sources who did not want to be named said rumors of General Growth's decision to pull out have been circulating for weeks. They suggested the site has not been attracting as much interest from retailers as expected because of the lack of population in the Oconomowoc area."
Masters of the obvious.
In The Political Environment: Don't Build The Interchange To Nowhere, James Rowen writes:
So the developer of the million-square-foot upscale mall at Pabst Farms is pulling out; maybe asking them to pay 7% of the cost of the $25 million Diamond Interchange so shoppers could get to the mall was asking too much?
...The mall would have added hundreds of additional relatively low-paying jobs to the entire project's commercial components, yet Pabst Farms has no transit service and no market-rate, apartment or multi-family housing for people who might work at Pabst Farms properties.
Is this planning?
And, again picked up from The Political Environment blog: General Growth seems to be rethinking the whole idea of malls in an article on the Congress For The New Urbanism's website:
General Growth Properties, the nation’s second-largest owner of shopping malls, has decided to start redeveloping its more than 200 properties by adding housing, offices, hotels, and other elements — and applying New Urbanism’s techniques in some locations. Thomas D’Alesandro IV, senior vice president of the Chicago-based company, told a session at CNU in Philadelphia that he foresees “the reinvention of existing malls into mixed-use centers.”
The firm has quietly had Duany Plater-Zyberk & Co. work on a plan for redeveloping Utah’s first enclosed shopping mall — the Cottonwood Mall in Holladay, just south of Salt Lake City — into a mixed-use development. That project, whose design has not yet been made public, joins mixed-use redevelopment projects that the company is pursuing in Columbia, Maryland, Natick, Massachusetts, Rock Springs, Wyoming, and elsewhere.
From the Milwaukee Journal Sentinel:
Pabst Farms may lose builder
Developer seeks backup firm for massive Oconomowoc mall
By AMY RINARD
[email protected]Posted: Oct. 3, 2007
Oconomowoc - Developers of Pabst Farms are shopping for another company to build a large upscale mall at I-94 and Highway 67 because General Growth Properties Inc. looks like it is bowing out of the high-profile project.
Peter Bell, president of Pabst Farms Development Inc., said he still intends to open a large regional shopping mall at Pabst Farms in 2010 and has been in discussions for several months with other companies that are interested in taking on the project on that schedule.
"We're talking to other national developers," Bell said in a phone interview Wednesday from Florida, where he was touring a shopping mall built by a developer he said was interested in the Oconomowoc project.
"If (General Growth) has some internal reasons for slowing down or are unable to execute on this site, I've got a timetable to maintain; I'm moving forward."
General Growth properties Senior Vice President Louis Bucksbaum did not return phone calls Wednesday. The company, a publicly traded real estate investment trust, reported in its latest financial results July 31 that its funds from operations were 71 cents a share in the second quarter, which fell short of the 74 cents a share that analysts had expected.
However, the company said in July that it still expects to match its predicted financial results for 2007, and last week it announced plans to team up with another firm on a $450 million hotel, condominium and retail development in downtown St. Louis.
Two local retail sources who did not want to be named said rumors of General Growth's decision to pull out have been circulating for weeks. They suggested the site has not been attracting as much interest from retailers as expected because of the lack of population in the Oconomowoc area.
Bell said General Growth's withdrawal from the project was not being contemplated for financial reasons but because of internal discussions in the company about a shift in business strategy and the number of projects it can take on at one time.
Officials of General Growth, the second-largest developer of malls in the country and the owner of Mayfair Mall in Wauwatosa, have more than once come before the city's Common Council to present their plans for the 184-acre, 1 million-square-foot Pabst Farms Town Centre, intended to attract shoppers from a broad swath of Wisconsin. Aldermen have approved those plans.
A large drawing of the latest version of the mall design hangs on a wall in City Hall for review by city staff.
"Because of the investment of time we've put into this process, I'd be disappointed," Mayor Maury Sullivan said Wednesday when told about a possible change in mall developers.
"But whatever the reason might be, life moves on, and there's no reason why the concept cannot go forward with a different player. The city still is expecting it will be a regional mall of a pretty large scale and a quality development."
Meanwhile, the Waukesha County Board is expected later this month to vote on a plan to build a new freeway interchange at I-94 and County Highway P designed primarily to serve the mall.
The county would contribute $1.75 million toward the cost of the $25 million freeway project, with Pabst Farms contributing another $1.75 million and the city $400,000 from revenues generated through the tax incremental financing program created for part of the 1,500-acre Pabst Farms development. The state Department of Transportation would fund the remainder of the project.
The interchange project was expanded and its scheduling accelerated after General Growth announced plans last year for the mall.
County Executive Dan Vrakas said Wednesday that it makes no difference to the interchange funding agreement he brokered if General Growth backs out of the mall project, as long as a large retail center is built at the Pabst Farms site.
"To me this was never about General Growth," he said. "To me this is about having a regional shopping mall there."
General Growth Properties has proposed a mall that would include a multi-screen cinema and two hotels.
The main section of Pabst Farms Town Centre would be an enclosed multistory structure with two or three large anchor stores; two smaller anchor stores, such as a bookstore, and 100 to 120 smaller shops.
West of the enclosed mall would be an open-air mall. A 16-screen movie theater and restaurants are planned east of the enclosed mall.
A 44-acre parcel east of the cinema would be for stand-alone big-box stores.
Bell said he believes a mall at Pabst Farms still is on track to open in 2010.
He said several developers of high-quality regional retail centers are talking with him about building the mall at Pabst Farms and that having a plan in place to build the interchange is essential to moving the mall plan forward.
Tom Daykin and Doris Hajewski of the Journal Sentinel staff contributed to this report.
Mobile's Take: "Don't reduce bus routes and cut fares."
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