Observations & Conversations
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Observations & Conversations

It’s been a fast paced few weeks since I last wrote. I attended the International Council of Shopping Centers (ICSC) South Central States Idea Exchange in Dallas, where I heard a panel of industry experts discuss the future of entertainment development. Yaromir Steiner, president of Steiner & Associates, the developers of Ybor Center which was highlighted in our November issue, spoke about his ideas and philosophy on developing entertainment/specialty projects. Steiner concisely defined the elements of success for entertainment projects as having entertainment, food and retail, located near an attraction, with human scale architecture and the creation of a place where the customer’s purpose is to spend leisure time and encounter an experience. Also, on the panel were John Gerdes of The L&B Group, Jay Jostrand of Cinemark, Robert Snowden of World Entertainment Centers and David Zorba of The Limited/Gaylans. If you didn’t attend this seminar, you really missed an insightful event.

Immediately following the ICSC show, I spent some time exploring South Padre Island and Mexico before hitting the International Association of Amusement Parks Convention (IAAOP) also held in Dallas. What a contrast, seeing the entertainment venues of Mexico, compared the high-tech glitz being staged at the IAAOP show. I think the major difference in the entertainment components, was that in Mexico people were the focus of the audiences’ attention, whereas stateside, it was machinery soliciting reactions from the crowd. Which brings up a conversation I had with a mall developer on creating more entertainment in their traditional malls, without bringing in the likes of GameWorks, IMAX or a sports arena to his centers. My point being, people find watching other people has entertainment value. On a small scale with the expense of human labor, rather than several $250,000 machines, developers can bring entertainment to their projects. The mercados (outdoor markets) of Mexico were just one more example. They were busy with tourists and locals, while mariachi bands played, children chased costumed characters and street vendors sold their wares.

Moreover, during my Christmas shopping, I went to Lahaska, Pennsylvania, an area with quaint shops and outlet centers about forty-five minutes from Philadelphia. On my way, I passed through New Hope, an East Coast mecca for artisans, frequented by tourists. New Hope has very few street attractions, although it offers a water front, cultural surroundings and a vast array of eclectic shops. New Hope was deserted and my first thought was great, the weather’s beautiful and I am not going to hit any crowds, if this is any indication of what lies 15 minutes ahead in Lahaska. Was I wrong! Lahaska was teeming with shoppers, so much so that I left several shops after getting three feet past the entrance because they were so crowded. It was a bottleneck from aisle to aisle. Note, many of the stores in Lahaska also operate shops in New Hope, so why the drastic difference? Lahaska had sand castles of Christmas scenes, Santa Claus on hand, fire was being juggled, chorales being sung, ladies walking on stilts, pony rides, hot apple cider, marshmellow roasting and the fun went on and on, at no cost to the shoppers or people watchers. Dads were entertaining the little ones, while the moms shopped. It was a Norman Rockwell setting if I ever saw one, and people were buying by the car loads. The entertainment didn’t cost a lot, it wasn’t high tech, it wasn’t glamorous and there weren’t celebrity endorsements, but it worked.

On the other end of the spectrum, the IAAOP convention was a teenage boy’s dream come true, specifically my son who attended with us and tried every game and every ride at least twice. I bumped into David Brent of The Nutty Bavarian, see E.S.P.’s October issue, Mel Getlin, one of the grandfathers of the arcade business, and walked the show with the operators of New Jersey’s oldest family-ran arcade. What an eye opener, I talked with a manufacturer of water slides that contracted with a city to install slides to add to its recreational attractions, numerous designers and architects, wholesalers of redemption merchandise, makers of rides and games, food vendors, and so on. But the developers of the real estate that these companies lease space from were no shows. It’s an event that all our readers should attend next year and we’ll keep you posted on upcoming show dates.

This issue features an article on Jillian’s, instigated by a poor review I gave of the Jillian’s in Boston, which by the way is not a part of the company that owns the other Jillian’s locations. A spokesperson from Jillian’s called and asked us to look at the company again. Well we did, and what a story. I have to give Steve Foster, co-founder of the concept, credit since he was willing to bet the house on each new opening. Of course, most of the money spent was other people’s, so it did allow for a nothing ventured, nothing gained attitude. After years of losses, mounting debt and creative financing, the company finally got a break and a healthy cash infusion thanks to J.W. Childs. Now, it’s sitting pretty and growing fast.

While researching the article, I spoke with several vendors, investors and competitors of Jillian’s. The vendors, former ones as well as existing, all said the company pays its bills and on time. I spoke with some investors and the chorus I heard was that management in place prior to the sale to J.W. Childs was its biggest downfall. Seems as though the former company’s management was regarded by a few as quite the arrogant sort and until a new modus operandi was implemented the growth of a good concept would be terminally stunted. Then I talked to some competitors that go way back to the heyday of roller skating and one of these competitors had discussions with Foster about purchasing his skating rink. Their memories of the talks were that Foster was cocky, but very effective in selling his ideas. He has shown a real entrepreneurial spirit, but often the father/mother has to take a step back so their offspring can become a mature healthy entity. I think the new Jillian’s can be a force in the industry. Backing my opinion is the fact that The Mills Corp. is talking to them about six projects and a reliable source told me that the discussions included $36 million in tenant improvement allowance. Seems like J.W. Childs has the Midas touch.

Also in this issue, a story about Chelsea, Massachusetts tells of a resurrection in process that is looking for a partner to handle the retail/entertainment component of its Urban Renewal District. This suburb of Boston is strategically located, yet in need of a make-over. But, with the leadership in place from the public and private sector, the outcome will most likely be another positive step taken on behalf of its community.

Another community benefiting from mixing entertainment, educational, medical and residential facilities is Trenton, New Jersey. I had a chance to break bread with Nicholas Sands and Tony Carabelli, both involved in bringing new life to an area of vacant buildings. After too many years, I am skeptical when a developer tells me he’s building for the betterment of the community and especially wary of what any politician says, but I walked away feeling both of these gentlemen were working firstly to create a better place, secondly to generate revenues for both the public and private sectors and with the melding of these goals, they indeed will improve a community. Trenton by no means is unhealthy. The vacancy rate for retail space is almost nil. There are parts of the area that feature stately homes and others that offer row houses, but on the whole it is a neighborhood with many of the same dynamics found in any of our hometowns.

Next up is Oklahoma, with TMK/Hogan underway on the initial development of a 400,000-square-foot entertainment/specialty project. When I first heard about the project, I was apprehensive if it would get off the ground, since the developer is new to this specialized type of project. However, when I learned Edwards Theatres is the anchor and Perkowitz+Ruth Architects is handling the design, my concerns were entirely squelched, since these two players definitely know how to create successful projects.

One of the retailers featured this month is Cabela’s. Speaking from experience as the mother, sister and daughter of avid hunters and fishermen, this company’s product and catalog service is equal to none other in the true sportsman field. I don’t think you’ll see the same pace of growth from Cabela’s as Bass Pro Shops or Gaylan’s with the opening of stores, but the company seems to be focused in the right direction for a steady, well-executed expansion.

Another retailer is this issue is R-Ranch. I met the president of R-Ranch at a trade show in Palm Springs. He told me a story that made me have a lot of respect for the company. He was approached by an inner city to take over a vacant supermarket, including all the needed fixtures, plus a substantial tenant allowance that would make anyone take notice and probably require a bigger person than myself to turn it down, even if the store didn’t turn a profit quickly or ever. But R-Ranch felt as though they couldn’t make money in the location for the long run. Yes, some retailers do turn down money and for the right reason . . . because they didn’t feel it had the keystone to a profitable store, i.e., the location must make sense.

 

 Ann O’Neal, publisher