Retail corporations and store owners eyeing cities share a lot in common with the people strolling through the businesses they own. Sometimes they”re just looking. Sometimes they say they”re just looking when they have something specific in mind. And sometimes they come right out and say what they want.
In any case, the staff at the Columbus-Lowndes Development Link plays the role of salespeople.
The majority of The Link”s work is focused on industrial development because, as Joe Max Higgins, chief executive officer of The Link, points out, when an area attracts jobs, “that creates rooftops and the rest takes care of itself.”
At least, that”s the quick explanation. Higgins and Brenda Lathan, The Link”s vice president of economic development, know attracting retail business is “a much more complex animal than recruiting industry.”
Some deals are homegrown, such as Columbus developer Mark Castleberry”s plans to build two hotels on 18th Avenue North with an accompanying plaza of restaurants.
Castleberry says plans are progressing, but expects some deals to “fall apart at the last minute.”
Such is the nature of retail. But Castleberry believes a boost in traffic from the hotels will invigorate the area.
“Success begets success. Retailers are attracted to a market where there”s already successful retail,” he said. “We”re always happy when there are developments occurring and retailers coming in. Even if they”re not on our properties.”
Opportunity for growth
The Link team agrees Castleberry”s developments represent Columbus” best short-term opportunity for retail growth.
“There”s a good chance before Mark gets his hotels built we”ll have a majority of those (vacant) sites filled,” said Higgins.
When it comes to recruiting development from out of town, or out of state, the process gets tricky. Multiple factors must align and remain aligned until a deal gets done; not a small order when you consider how long the average retailer/city courtship lasts.
“There”s generally a three-year period from the time (businesses) start kicking tires to the time they locate,” said Lathan.
The first step in the process seems obvious enough: Businesses must be in the market for new locations.
Sluggish economy
The economy has instilled a sense of apprehension into businesses not seen in years. Even deals that seemed done have fallen through.
Such was the case with a big-box department store which was to be the second “anchor” store for the proposed University Park Mall, near the intersection of Highway 45 South and Highway 82, in Lowndes County. When the economy soured, that chain pulled out, ultimately killing plans for the mall, and has not been heard from at trade shows for 18 months.
The loss of the mall also cost the area national electronics, sporting goods and clothing chains which planned to set up around the anchor stores.
Higgins says the proposed CottonMill Marketplace business and residence plaza in Starkville — at Mississippi State University”s Cooley building — has hit a similar stall due to the economy.
Mark Nicholas, owner of Nicholas Properties, the developer for the project, said the CottonMill project is slow due to the economy. But they continue to work with MSU to secure the property, he said.
Eyeing Columbus
Lathan is maintaining relationships with brokers and representatives for many of the retailers which were eyeing Columbus before the economic downturn and says a “lot of people” remain interested.
“We”re working probably 19 retail deals right now,” she said.
However, the courting process will have to begin again after the economy recovers with numbers reflecting the post-recession demographics of the area.
Those deals, she said, may not pay off until 2012, and that”s assuming everyone keeps their mouths shut.
Everyone is excited about the prospect of new businesses, whether as a potential consumer or as a beneficiary of the tax base. But Higgins says Columbus has a bad habit of scaring off retailers who value confidence above all else with its hyperactive rumor mill.
Bad news travels quickly
The tips come from various sources: Over-eager city councilmen, sign makers, employees in the building department. And once word gets out to the blogs and the coffee shops, retailers stop calling.
“We”re a small town, but we”re worse than most small towns,” said Higgins. “We (at The Link) are playing offense and defense at the same time.”
He says Columbus has enough trouble just convincing businesses to consider locating here.
“Quit shooting people in bars and we”ll get some retail,” said Higgins. “We”ve got a situation where we”re creating jobs but nobody wants to live here because they”re scared.”
Higgins says negative news travels quickly due to the Internet, and retailers are constantly watching. In addition to headlines, they”re tracking demographic numbers to determine how many people and what kind of people will comprise their potential customer bases.
Population decrease
For the past 30 years, Columbus has seen its population steadily decreasing from approximately 30,000 citizens in 1980 to approximately 23,000 in 2009. Starkville, on the other hand, has seen a steady increase over that time, recently overtaking Columbus in population according to census data.
However, Starkville hasn”t stolen Columbus” retail power by a long shot. Higgins says economic data shows Columbus totaled $1 billion in retail sales in 2009. Starkville totaled $529 million in 2009.
“There”s a perception Starkville is just running away and leaving Columbus,” said Higgins.
Columbus was down $34 million in sales from 2008, but Higgins says $32 million of that was in automobile sales. Columbus, one of the state”s major car selling points, sold $135 million in automobiles in 2009.
Aggressive retail campaign
Still, Higgins and Lathan say they”re constantly under pressure from officials to attract retailers. The Link contracts with the city for $100,000 annually to work on retail.
“City leaders accuse The Link of spending all its time on industrial projects,” says Higgins.
He says the city could help its own cause by repairing roads near Leigh Mall, the “most valuable piece of property in Lowndes County.”
Property owners also play a part. Higgins says many vacant buildings along the prime retail real estate of Highway 45 are destined to remain vacant due to exorbitant leases and refusal to allow some buildings to be subdivided.
Getting on the same page
Other businesses have lease agreements which prevent direct competition from opening in close proximity. And nobody is interested in the area north of Bluecutt Road because it”s too far from the intersection of Highway 45 North and Highway 82.
Columbus has averaged 13 retail business openings for each of the past three years, with 12 already in 2010. Higgins says more are possible if local officials and property owners get on the same page and begin looking out for the good of the community. If the city can provide a clean, safe environment and local schools provide an educated workforce, he says Columbus is primed to grow when the economy improves.
Jason Browne was previously a reporter for The Dispatch.
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