Tuesday, May 23, 2000
Other cities fight similar retail battles
By Lisa Biank Fasig
The Cincinnati Enquirer
LAS VEGAS — Cincinnati officials have attracted a lot of controversy in their efforts to bring big-name retailers such as Nordstrom downtown, but their attempts are hardly rare.
Cities across the country are trying similar plans to attract major merchants and entertainment, with the same problems.
The mayors of five developing cities said Monday at the spring convention of the International Council of Shopping Centers that they face the same kinds of issues as those in Cincinnati.
Those challenges center on parking, safety and attracting consumers downtown with improved housing and transportation. But the overarching issue is that elected officials have been forced to act like developers, said Pittsburgh Mayor Tom Murphy, who joined mayors from Minneapolis; Des Moines, Iowa; Dallas; and Oakland, Calif.
“We've ended up being the entrepreneurs — the mayors of cities, the economic agencies,” said Mr. Murphy, whose downtown revitalization efforts involve adding five department stores, including Lord & Taylor. Officials also are working with Nordstrom to locate a store there. “It is very controversial,” he said.
In Cincinnati, officials have cobbled together a $50 million package of private and public incentives to bring Nordstrom downtown.
Nordstrom agreed to the plan this month, after agreeing to build a store in a proposed mall in Deerfield Township.
Downtown developers are now trying to persuade Cincinnati City Council that it would be money well spent. The other mayors say they use the same mixture of common incentives as Cincinnati: tax abatements, tax increment financing and tax credits. It is a necessary expense, they say.
“We've got to spend some money in local government to make some money,” said Minneapolis Mayor Sharon Sayles-Belton, whose downtown rates fifth in the nation for retail, despite being near the nation's largest mall, Mall of America.
“We are surrounded by suburban communities; and if people can shop in the suburbs, they will,” she said.
Added Des Moines Mayor Preston Daniels: “Many Midwestern cities have lost their retail base. Much of our efforts today are to bring that retail back.”
Downtowns have to prove to retailers that they are worthwhile development ground, the mayors said. That can mean having to build their own long-term redevel opment plans or even approaching the retailers themselves.
“The single largest retail opportunity is the $2 billion market called urban America,” Dallas Mayor Ronald Kirk said. “We just have to have developers who can overcome their stereotypes and fears.”
Mr. Kirk illustrated with an example from downtown Dallas. He said the city persuaded Dillard's Inc. to improve its downtown store, arguing that the limited selection and shabby appearance contributed to weak sales — not lack of interest. After investing millions in the store, he said, Dillard's agreed that sales took off.
A similar argument, regarding parking, can be made for Cincin nati and its downtown Lazarus. Officials at Federated Department Stores say sales at the new store have remained ahead of plan, though reduced parking recently has affected performance.
All the mayors agreed that parking is a major issue, as well as access to downtown. Improved housing and mass transit could help the latter they said.
Talking about the development potential that is expected to follow expanding technology businesses, which prefer urban locations, Oakland Mayor Jerry Brown said: “I don't know what's wrong with you retailers. If you don't get there fast, you won't be able to rent anything!”
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