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Macy's closure bad news for Westminster Mall
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Contributed by: Joseph Kirchmer/YourHub.com on 1/18/2009
http://denver.yourhub.com/Westminster/Stories/News/General-News/Story~569882.aspx
The impending closure of a major anchor tenant at the struggling Westminster Mall might well result in a further decline in customers and a heightened effort from the city to redevelop the shopping center.

Macy's Inc. announced Jan. 8 plans to shutter 11 underperforming stores, including the location at Westminster Mall, 5433 W. 88th Ave. The company also will close a Colorado Springs store.

The announcement is bad news for the mall, which has struggled to compete against other shopping centers in the area, including Flatiron Crossing mall in Broomfield and the Westminster Promenade. Revenues from the mall, which is nearly half-empty, are down 21 percent on a year-to-date basis, according to Tammy Hitchens, the city's finance director.

Westminster's effort to redevelop the mall, which has been in the works for more than five years, is first and foremost on the minds of city councilors and economic development officials, said Susan Grafton, economic development manager for the City of Westminster.

"It couldn't be any higher," Grafton said of the redevelopment. "It's on the top of our to-do list."

The mall, which opened to shoppers in 1977, was at one time one of the main contributors to the city's sales tax base. A taxpayer-funded upgrade to its façade in 2000 helped reinvigorate the mall, but increasingly shoppers appear to be spending their dollars elsewhere.

The closure of Macy's leaves three major tenants standing, including Sears, Dillard's and JCPenney.

"We were disappointed with Macy's closing, but right now in the current economic climate, it doesn't come as a complete surprise," Grafton said. "It just means we have to continue working diligently on what we're planning on doing."

Those plans include working with the mall's owner, Westminster Mall Co., on a plan to completely redevelop the facility. The city has a pre-development agreement with Westminster Mall Co. on a plan to transform the 100-acre parcel into a mixed-use retail center, Grafton said.

The mixed-use concept, which often includes a blend of office, retail and residential, is a highly popular choice for cities looking to reinvigorate its sales tax base. Similar efforts in recent years have proven successful, such as Lakewood's redevelopment of the Belmar shopping district.

Grafton said the city is not releasing any specific details of the redevelopment plan and didn't say whether taxpayer funds would be used. Westminster Mall Co. contributed some funding for the 2000 upgrade, but the city ultimately picked up the majority of the tab.
The city believes the effort can be a success, noting the mall's location along U.S. 36 and opportunities for transit-oriented developments when proposed FasTracks corridors open. The battered economy, however, might play a role in the timeline of the project, Grafton said.

"I think we want to get going on this right now," Grafton said. "But as far as actually getting started on anything, I think that's really going to depend on the economy and the market."

Though the declining sales at the Westminster Mall are a concern, Grafton said investments in other shopping centers such as the Orchard Town Center and the Shops at Walnut Creek have helped keep the city's coffers healthy.