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Mayors Address International Council of Shopping Centers Convention
By Judy Sheahan May 29,
2000
Five Mayors addressed an audience
of the nation’s leading retailers and developers on public-private
partnerships in retail development. The panel took place in Las Vegas last
week at the annual International Council of Shopping Centers Meeting
(ICSC)—a convention that drew over 28,000 people this year. The mayors
used the session to explain how cities were untapped markets of potential
retail opportunities. Panelists included Mayors Sharon Sayles Belton of
Minneapolis, Tom Murphy of Pittsburgh, Preston Daniels of Des Moines,
Jerry Brown of Oakland and Ron Kirk of Dallas, all of whom offered their
views on retail in their cities and what their city offered to potential
developers.
The following are summaries of
various comments by the mayoral panelists:
Pittsburgh
Mayor Murphy told the group that
since no developer seemed willing to touch many of his brownfield
properties, he had to take on the role of developer himself. "We gathered
$100 million in public and private funds to be used to redevelop the City
of Pittsburgh which has resulted in over $4 billion in additional
investment", Mayor Murphy stated. "The City," said Murphy, "has used some
of that money to acquire and cleanup properties to make it ready for
redevelopment since no one else was willing to take on that risk." Murphy
stressed that one of the greatest strengths of a city was its diversity
and how retail developers had to incorporate that diversity into their
plans. "You can not simply take the same model that works in a suburb and
place it in a city and expect it to work," Murphy said, "you need to
incorporate the diversity of the neighborhood into your plan in order to
make it a success."
Minneapolis
"We are selling Minneapolis as a
24-hour city so that we can provide opportunities that the suburban malls
can’t", says Mayor Sayles Belton. As an example she pointed out that the
City does not consider the famous Mall of America as competition as much
as it is as an asset to the entire region. "We tell everybody that they
can shop at the Mall as long as they come back to Minneapolis to eat at
our restaurants, go to our nightclubs, and stay at our hotels," Mayor
Sayles Belton said. This strategy, along with increasing Minneapolis’s
housing stock, provides many opportunities for retailers to serve a large
population. "I’m looking to provide my citizens with the basic services
they need such as grocery stores, pharmacies, restaurants, dry cleaning,
and shoe repair stores, and there is money to be made by any retailer
willing to locate in the city," she said.
Oakland
Oakland, located between San
Francisco and Berkley, has a population of 400,000 and so would provide
any retailer with a marvelous opportunity to sell their products. Despite
these conditions, Mayor Brown said that only three major retailers were
located in his city. He pointed out several changes in Oakland’s
environment that make the area more attractive for development: reduction
in crime, a mass transit system that links to San Francisco, the increased
traffic congestion throughout Northern California that is encouraging
people to move closer to major metropolitan areas such as his, and the
relatively low cost of retail space in his city. "I’m telling you not to
miss the boat on this one… the time to locate in Oakland is now," Mayor
Brown said.
Des Moines
Mayor Daniels, understanding the
difficulties that are sometimes faced by developers who are interested in
locating in a city, has made it a goal of his city to make the system as
streamlined as possible. In addition to a four-week turnaround goal on
permits, the City has assembled properties and has developed their own
strategic plan for the types of development that they would like to see
happen. "Before, we would simply ask a retailer or developer to come to
our city," Mayor Daniels said, "now we realize that it helps the process
if we have a well laid out plan with the land ready to go."
Dallas
Mayor Kirk told the audience that
as Mayors they all realized that there were challenges for developers—
like crime or workforce availability— in locating in inner city
neighborhoods. He pointed out, however, that these neighborhoods were
hugely underserved by retailers and that money could be made. He did warn
potential retailers that they had to provide quality products if their
store was going to be successful. "These people aren’t fools; you can’t
give people poor quality products in their store when they know they can
go to the other side of town and get better quality products," he said.
Mayor Kirk gave this assurance to retailers interested in locating in a
city, "We’re all here as Mayors to sell you our cities, to encourage you
to locate in our neighborhoods, and we will all work with you to make sure
that it happens."
The Mayor also thanked the ICSC
leadership for their strong commitment in working with the Conference of
Mayors on the issue of internet taxation. He gave special thanks to both
Bill McCabe, Chairman of ICSC who spoke at the Conference of Mayors annual
meeting in New Orleans and to John Riordan, President of ICSC. Mayor Kirk
strongly encouraged the meeting participants to contact their members of
Congress to explain to them the importance of preventing internet retail
companies from having an unfair advantage over main street stores. "You
need to remind Congress," said Mayor Kirk, "about what your stores do for
our communities. You support our symphonies, our little leagues, our job
base and our park." "That commitment and value to our communities," he
continued, "needs to be recognized."
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