Foothills needs additional anchor, consultants say

FORT COLLINS – The linchpin for a truly successful redevelopment of the
Foothills Mall is an additional department store anchor, namely
Dillard’s, according to a team of experts studying the city’s commercial
center.

Consultants hired by the city of Fort Collins presented several
redevelopment options for the mall and larger Midtown Commercial
Corridor at a public meeting Wednesday evening. Jamie Russin, principal
for project lead ELS, indicated that the team’s work was about
two-thirds complete.

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The general recommendation for redevelopment along the west side of
College Avenue, from Prospect to Harmony roads, is to create town square
commercial centers that incorporate public open space and additional
access points. The consultants also suggested that the Mason Corridor
project, which will include a bus rapid transit system, could be
leveraged to add more residential options to the area.

The group offered two possibilities for revamping the Foothills Mall –
renovation and expansion or a complete redevelopment. Both options will
be costly and complex, and retain the property’s focus on retail. Both
also include an additional department store, which the consultant team
agrees is key to maximizing its potential. While Dillard’s has
acknowledged its interest in the market, there is little to no activity
among department stores right now.

Consolidation has made the mall industry difficult to navigate,
according to consultant Warren Wilson, who has decades of experience in
the mall development industry – most recently with Foothills owner
General Growth Properties. Most mall developments are held by a handful
of national firms and the number of department store chains has dwindled
in the past decade. For a market the size of Fort Collins, Macy’s and
Dillard’s are the two major players.

“Those companies seek growth,” Wilson said. “Their shareholders demand
growth.”

“We haven’t seen anything like this in our life times,´ said Dave Cuthill, vice president of development for GGP, of the currently economic conditions.

Cuthill was in town as part of a strategic planning process GGP launched at the start of the year aimed at evaluating each of its properties. Cuthill attended last night’s meeting. Cuthill responded to an audience question about the ability and willingness of GGP to put some capital into Foothills.

“There now appears to be a lot of light at the end of the tunnel,” he said, referring to the progress being made in GGP’s bankruptcy case. “We’re much more confident now than 30 days ago.”

All capital expenditures, especially during this tight credit market,
will be closely analyzed for the return on investment potential. Also
adding to the complexity is the mix of property owners on the site. GGP,
Russin pointed out, positioned the property for redevelopment by
purchasing the two vacant anchor spaces. However, Sears and Macy’s still
own their buildings and parking lots. All of the owners will have to
agree on a course of action.

“Foothills is probably the right size, but it’s not the right
configuration,” Wilson said.

The renovation and expansion option would retain Macy’s and Sears space
along with the stretch of inline retail connecting the two. The rest of
the existing facility would be demolished to make way for new retail,
restaurant and entertainment along College Avenue and in the
under-utilized southeast corner of the property.

The redevelopment option would require a complete demolition of the
existing buildings and a conversion into an open-air mall – like the
Promenade Shops at Centerra in Loveland or Front Range Village on East
Harmony Road. The project would have to be done in phases to accommodate
the current tenants.

“We do not believe the mall could cease operation, rebuild and then
reopen,” Russin said, explaining that the tenants would not be likely to
come back.

The team feels that the first concept – renovation and expansion – would
be the least risky and less costly option. However, both concepts will
be expensive to the point of requiring a public-private partnership to
make feasible.

The consulting team will now focus their efforts on identifying
potential public financing tools that could be exercised, continuing
discussions with stakeholders and meeting with the Fort Collins City
Council. A work session is planned for late April.

See related stories in NCBR:

Midtown study starts with Foothills Mall question

Fort Collins studies midtown corridor