INSIDE: Chow Public Market and Eatery

VOLUME 4, NO. 4 IDAHO BUSINESS REVIEW 2018

A QUARTERY SUPPLEMENT OF THE IDAHO BUSINESS REVIEW 2 | SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | October 19, 2018 | www.idahobusinessreview.com

950 W. BannockIDAHO St., Suite 1100 #1136 I Boise, ID 83702 • Retail on the Rise EDITOR BUSINESSKim Burgess — 208-639-3518 [email protected] By Kim Burgess WEB VolumeEDITOR Liz 4 Patterson No. 4 OctoberHarbauer — 19, 208-639-3510 2018 [email protected] For the past few years, the story of Idaho community. As Rediscovered Books co- ground. 950 W. Bannock St., Suite 1100 #1136 I Boise, ID 83702 WRITER Teya Vitu• — 208-639-3515 has been one of unprecedented growth as owner Laura DeLaney puts it in her With the Community Planning [email protected] EDITOR people from across the country relocate to commentary, “independent retailers are the Association of Southwest Idaho, or Kim Burgess — 208-639-3518 [email protected] Sharon Fisher — 208-639-3524 enjoy the Gem State’s excellent quality of city’s ambassadors.” COMPASS, estimating that the Treasure [email protected] life. That, in turn, has fueled a boom in the “Boise’s local culture is what has garnered Valley will be home to more than 1 million WEB EDITOR Liz Patterson Harbauer — 208-639-3510 ASSOCIATE [email protected] Cindy Suffa — 208-639-3517 retail sector, with new offerings sprouting up its national attention as a great place to live,” people and almost 400,000 households by [email protected] all over, including The Village at Meridian, she writes. “Exploring and supporting ways 2040, the retail boom won’t be slowing down WRITER Teya Vitu — 208-639-3515 a destination mixed-use development that to work with local business serves multiple any time soon. [email protected] SALES EXECUTIVE Jeanette Trompczynski — 208-639-3526 features shopping, dining, office space and a purposes in our community, but the most Brenda Sherwood, the city of Meridian’s [email protected] Sharon Fisher — 208-639-3524 movie theater; as well as Chow, which brings important mandate is to fill our downtown administrator for economic development, [email protected] MULTIMEDIA SALES EXECUTIVE the popular food hall concept to Idaho. with local people, local places and local predicts that many more major national ASSOCIATE PUBLISHER Cindy Suffa — 208-639-3517 [email protected] Kersey — 208-639-3519 The Treasure Valley is also home to a personality.” retailers will be moving into Idaho soon. [email protected] growing array of multicultural grocery stores Of course, growth can be challenging – “In the past, they’ve wanted big incentives MULTIMEDIA SALES EXECUTIVE that offer diverse cuisines ranging from hence the term “growing pains.” We also cover and free land,” she said. “I think they are ADMINISTRATIVEJeanette TrompczynskiASSISTANT/PUBLIC — 208-639-3526 NOTICE/REPRINTS [email protected] Clements — 208-639-3528 Basque to Middle Eastern to Asian. some of the complexities of the planning going to have to come in. I think they are [email protected] In these pages, we are telling the process, such as the effort to integrate seeing that the stores that are not here should MULTIMEDIA SALES EXECUTIVE Autumn Kersey — 208-639-3519 stories of this exciting retail surge while national logos and signage with a city’s style. be represented here. … There are exciting GROUP PUBLISHER [email protected] Blossman — 504-834-9292 also recognizing the value of more old- For instance, Hailey, a small mountain resort things happening. It is definitely a busy time, ADMINISTRATIVE ASSISTANT/[email protected] NOTICE/REPRINTS school establishments – the farm stands community, asked McDonald’s to forego its but I think we are handling that challenge Laura Clements — 208-639-3528 and independent bookstores that add iconic tall, free-standing golden arches signs very, very well.” [email protected] [email protected] a distinctive character and sense of in favor of a subtler monument sign on the GROUP PUBLISHER Lisa BlossmanPUBLIC —NOTICES 504-834-9292 [email protected]@nopg.com

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ON THE COVER: Chow Public Market and Eatery brings the popular dining hall concept to Idaho. Photo by Pete Grady. October 19, 2018 | www.idahobusinessreview.com| SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | 3

Staff at Purdum’s Produce in Fruitland. The farm stand opened last year after a five-year hiatus. Photo by Pete Grady. Farm stands thrive as culture changes

By John O’Connell more, shelf-life comes first, and taste takes a back seat. That’s a big Special to the IBR selling point for us.” Leah Clark manages ISDA’s Idaho Preferred program, promoting Idaho food and agricultural products. Clark said Payette farmer Galen Crawford has made a good living by 15 farms that participate in Idaho Preferred now operate farm selling melons, squash and pumpkins to major retailers, such as stands, mostly in the Treasure and Magic valleys. Walmart, Albertsons and WinCo Foods. “In the last five years, I’d say that number has doubled,” Clark This year, however, Crawford has placed greater emphasis said. “The whole farm-to-table movement has been growing for on removing the middleman, selling more produce directly to probably the last 15 years. People are more interested in who’s customers through an expanded farm stand. growing their food and how it’s being grown.” Officials with the Idaho State Department of Agriculture say Clark sees evidence of the growth in direct-to-customer sales Crawford is among a growing number of farmers who have from Idaho farms in the increasing number of state farmers been selling their products directly to customers. The public has markets. This year, the state had 40 farmers markets, twice the increasingly shown a preference for local food, and for knowing number that were operating in 2002. more about who produced it. In addition to selling at farmers markets, Clark has seen Crawford said 25 of the 100 acres he farms are now dedicated Idaho food producers selling directly to school lunch programs, Jessica Moncada (left) and Miguel Perfecto at Purdum’s in to supplying the farm stand, located in a small, red barn along supplying local restaurants and delivering directly to retailers Fruitland. Photo by Pete Grady. U.S. Highway 95 near Fruitland. with their own refrigerated trucks. She In the past, Crawford has sold produce said there’s also been strong growth in Purdum enjoys looking at addresses on checks following a raised on a few acres through a farm community-supported agriculture, which busy day at the stand, from customers between Salt Lake City and stand at his in-laws’ rural home. He took involves community members buying Portland, Oregon. over the barn-based farm store and some shares in a farm and picking up produce “People want to know where their produce comes from and be additional acreage after another local boxes at regular intervals throughout able to drive by and see where it’s picked,” Purdum said. farmer relinquished the lease. He’s had harvest. Most of the produce raised at Grove City Gardens – a 20-acre to grow a much wider variety of produce Clark believes Idaho vineyards have been vegetable farm based in Blackfoot – is sold directly to customers to supply the stand – raising between 20 especially good at capitalizing on the farm- through a farm store. and 30 different crops. He also purchases to-table trend, promoting wine sampling in The store is located in a small building at owner Richard tree fruit from other local farmers and their own tasting rooms, as well as tours of Johnson’s rural home. Rather than worrying about finding berries from Oregon. He plans to soon their operations. She explained the Idaho workers to staff the store, Johnson relies on the honor system, offer beef sourced from his family’s cow- Wine Commission offers maps of “wine allowing customers to pick up their orders and leave the calf operation in Ontario, Oregon, and trails” throughout Idaho wine country to appropriate payment in a cash box. Johnson said he’s never had a he’s also involving himself in agricultural help visitors plan wine-tasting trips. problem with his trust-based business approach. tourism, planning to open a small corn It’s no surprise to Clark that the Idaho Customers get a discount if they pick their own sweet corn, maze and hayrides. wine industry has grown from 11 wineries strawberries, raspberries, beans or peas, which also helps Johnson Staff to man the stand has been hard in 2002 to 52 today. minimize his labor costs. to find. Furthermore, producing and In 2017, Purdum’s Produce reopened a Johnson believes his produce is safe, tasty and picked at the harvesting a broader variety of specialty farm stand along U.S. Highway 30 between “peak of ripeness.” crops requires a great deal more work Fruitland and New Plymouth, after a five- “Buy one of my strawberries and you find a huge explosion of than specializing in just a few crops The “crazy corn” stand operated year hiatus. flavor and sweetness,” Johnson said. for wholesale. But Crawford has been by Grove City Gardens. Most of Robyn Purdum said her family farms Johnson also sells produce at the farmers market in Jackson encouraged by his preliminary results, as the produce grown at the 20-acre Hole, Wyoming, and supplies produce directly to restaurants in vegetable farm in Blackfoot is sold 400 acres, raising green bell peppers for a he aims to establish and grow the barn- directly to consumers at the farm processor, as well as onion seed, carrot seed, that area. For a couple of years, he partnered with a local dairy based farm store in his trial year. stand on the honor system. Photo dry beans for seed, wheat, sweet corn and that has milk routes, and was willing to also deliver his produce “When the opportunity came up, I courtesy of Grove City Gardens. other crops. About 20 percent of the farm’s to customers’ homes. jumped at the chance,” Crawford said. revenue comes from the farm store. During Grove City Gardens is involved in the catering business, serving “Next year, I’d like to extend the season a the time in which the family took a break its popular Mexican crazy corn, made from farm-raised sweet little more.” from the store, they switched from raising sweet corn to field corn. corn, at wedding receptions, business functions and community Customers travel a long way to shop at his barn – he estimates The farm stand opened in 1996, and was operating in earnest events, such as the Eastern Idaho State Fair. Agricultural tourism about half of them aren’t local. by the following year. Purdum agrees finding labor is a challenge also represents a significant portion of the farm’s income. “They know it wasn’t picked two or three weeks ago, and we for a farm stand. While the stand once opened every day of the Johnson’s annual Wild Adventure Corn Maze, open from mid- try to raise varieties that have a good taste,” Crawford said. “Any week, it now operates just three days per week. September through late October, includes 6.5 miles of paths. 4 | SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | October 19, 2018 | www.idahobusinessreview.com

Visitors at the Village at Meridian, a large shopping development built in 2013 by California company CenterCal. Photo by Sharon Fisher.

Old-school retail flourishes in Idaho

By Teya Vitu Idaho Business Review This is the golden age for retail in Idaho, whether that’s a chain Modern town square store or an independent, downtown or in a mall. National and regional retailers continue to discover the Treasure Hawkins Companies, a Boise commercial developer Valley, local merchants are thriving, downtowns are being in 23 states, pretty much abandoned 20th century retail energized by new construction and new visitors, and Boise Town concepts at its North Pointe and Bridges at Lakemoor Square and The Village at Meridian are 95 percent occupied. mixed-use developments in north Boise and Eagle. Its Upheaval is the norm in the retail world these days, with legacy intention was to lure people “off the couch and away from retailers disappearing, department stores leaving vast vacancies in Netflix,” in the words of Beau Manwaring, senior leasing their wake, and national media reporting the pending death of malls. manager at Hawkins. But the retail world in Idaho is proving nimble in finding North Pointe presents a modernized town square new uses for vacancies and coming up with new ways to build setting with a main entrance boulevard, flanked by the shopping centers. This is leading to a number of interesting twists first four retail buildings built around a town square in retail. Large shopping centers without anchor stores are finding intersection. The buildings are small, 5,000 to 7,400 new life as paint ball businesses, trampoline parks, libraries and square feet, with limited angled parking in front and churches move in next door to shoe stores and bookstores. more parking in rear. The new-format Albertsons at Broadway and Beacon Street Black Bear Diner is in a fifth commercial building off to has an upstairs bar and other innovations unseen elsewhere in the the side, and four more North Pointe commercial buildings huge grocery chain. The Broulim’s supermarket in Ammon has Nampa Gateway Center has about a dozen tenants are planned. None of the retail buildings will be more than filling about half the shopping center. Photo by a Korean barbecue booth. Boise Towne Square staged a Cirque 7,460 square feet. Teya Vitu. Italia in its parking lot in July. Boise Spectrum in spring added Hawkins partnered with Bach Homes of Draper, Utah, the region’s first food hall, a concept capturing the nation’s fancy to pair the retail with 323 units in 27 four-, three-, two- be built). We also want to provide services for people in the past 10 to 15 years. and one-story structures called Kensington Apartments at living there.” Some new shopping centers veer entirely away from strip centers North Pointe. Neither Hawkins nor Bach had ever done North Pointe already has a chiropractor, nail salon and and big boxes. Others are mixing office and residential with retail. such a mixed-use development. massage therapist among the fast food and fast casual dining. Food trucks are innovative retailers on two fronts. A bit over “We’ve been very picky on our (tenants),” said Shaun With all the new retail centers emerging, perhaps 10 years ago, they were seen mostly as taco trucks at construction Greear, Hawkins’ leasing director. “We’d like to see the ripest opportunity for retail innovation and sites. Over the decade, they have evolved into mainstream high- more service type uses (in the next two buildings to experimentation is with the largely vacant Nampa Gateway end dining options that are now universal around the country. Center. It could be seen as hailing from another era; 2007 is In the meantime, many Boise food trucks now have storefronts. a very long time ago in the retail world. “That’s a wonderful example of operators starting out small, Nampa Gateway wins for location. Right on the freeway, getting the business going, to go into a brick-and-mortar the year-old Saint Alphonsus Medical Center Nampa scenario” said Holly Chetwood, retail brokerage services at I-84/Garrity is across the street, WinCo is at the edge of Thornton Oliver Keller in Boise. the center, the 256-unit Station Apartments at Gateway is “I think that’s the coolest thing downtown,” said Brianna neighboring to the south, and Meridian and Nampa have Miller, also TOK retail brokerage services. “These are people who become the state’s second and third biggest cities. have a cult-like following.” Yet Nampa Gateway never recovered from opening Idaho retail flourishes because it has a captive audience and a few months after the Treasure Valley Marketplace, fairly limited options, unlike bigger metros with multiple malls which snagged all the ripe fruit from the retail that predominantly serve just a section of their cities. Any of tree. Nampa Gateway’s developers, DDR Corp. of Idaho’s malls have customer bases stretching hundreds of miles Beechwoood, Ohio, held on to the property until into neighboring states. finally selling it in November to RCG Ventures of The retail hubs of Boise, Twin Falls, Pocatello and Idaho Falls Atlanta, Georgia. draw shoppers from as far off a La Grande, Oregon; Elko, Nevada; “It’s going to take someone with the right vision,” Jackson, Wyoming; and West Yellowstone, Montana. They also said Chetwood, suggesting a redesign to the center’s serve the booming Idaho population. North Pointe combines retail and residential on State Street across from Walmart. Photo courtesy of layout, possibly multifamily housing in a portion of the “We’re seeing traffic increasing steadily at the mall,” said Hawkins Companies. center. Darren Howard, general manager at Towne Square, which for the past two years has supplemented shopping with various events October 19, 2018 | www.idahobusinessreview.com| SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | 5

Regional markets Treasure Valley: 750,000 residents Magic Valley: 220,000 residents Eastern Idaho: 255,000 residents

Retail lease rates Downtown Boise: $20/SF Meridian: $17.50/SF West: $14.50/SF Caldwell Blvd: $15/SF Older strip centers: $10 to $15 New construction: $30 Olive Garden is under construction at the Magic Valley North Pointe: $25 to $30 per square foot Mall in Twin Falls. Photo by Laura Clements. Idaho Falls - Grand Teton Mall area: mid-$20s Idaho Falls – elsewhere: $10 to $12 Retail loves Twin Falls

Retail is hitting all pistons in Twin Falls, a newly Retail Projects of Note anointed metropolitan statistical area after reaching Village at Meridian - 220,000 square foot expansion and remodel/expansion of movie theater 100,000 residents in Jerome and Twin Falls counties. The Magic Valley Mall took a punch in the gut when North Pointe – nine retail buildings, 323 residential units Macy’s and Sears announced store closures, but before Lakemoor - seven retail buildings, two office buildings and an 11-screen cinema Macy’s even shut down in March, Hobby Lobby announced it would fill Macy’s anchor space. Costco Meridian – 165,000-square-foot store planned for Chinden Boulevard and Ten Mile Road “The thing that surprised me was the speed that Macy’s Albertsons Main Street – under construction at Fairview and Eagle in Meridian, same concept as new Albertsons on Broadway in Boise filled up with Hobby Lobby.,” said Dan Wilhelm, retail Magic Valley Mall – movie theater expansion and renovation, Hobby Lobby filling Macy’s space brokerage services for Thornton Oliver Keller in Twin Falls. “That shows the strength of the market. The interest is so Twin Falls downtown – numerous local retailers opened this year strong, particularly at the canyon. There’s a lot of interest by Northgate Pocatello – First 100 acres of mixed-use development starting on potential 4,500-acre project Walmart at Blue Lakes and Washington.” Department store closures didn’t discourage the mall’s Sandcreek Commons Ammon – 12 retail structures have been built at eastern Idaho’s second largest shopping center Magic Valley Cinema from expanding from 13 to 20 Jackson Hole Junction Idaho Falls – construction just started on a 100-room hotel at what will become eastern Idaho’s third largest shopping center screens, converting to luxury recliner seating and adding a large-format screen. Suburban retail has been the no-brainer in U.S. retail for the past 40-plus years. Suburban retail just caught fire in including choir concerts and car shows outside. “There’s a services at Colliers International in Boise. “It’s the opposite Twin Falls in the past few years, and downtown retail has direct benefit to be part of the community, to have people of stores that supplement by online. The big thing in retail is been red-hot barely since last Christmas. come in and utilize the property. A very large percentage of how do you create an experience. It can’t be something you “I was just in Twin Falls. What they are doing downtown people say, ‘I’m at the mall, might as well check it out.’” do online.” is really neat. It’s moving back to local retailers,” Schnebly Idaho falls in line with the Pacific, Southwest and Creating an “experience” is the buzzword that rings loudest at Colliers said. Mountain regions as the top three U.S. regions for retail net in retail circles now, a concept unheard of in the 1970s and Local retail instantly responded to the $20 million operating income gains, according to Trepp, a New York City 1980s when malls had no food courts and, often, not even downtown redevelopment blitz that the city has undertaken commercial real estate research and analytics firm. public restrooms. over the past few years. The city entirely rebuilt Main For the last several years, pundits have closely watched The Village at Meridian brought an upscale mix of retail Street and its sidewalks, conjured a sleek new city hall out online shopping to see if it would damage traditional brick- and office to the Treasure Valley in 2013 with a 10-story- of a half-century-old furniture store structure and gave and-mortar stores. So far, the online threat is still a ways off. tower-worth of office on one or two levels above the stores. downtown Twin Falls its first gathering place for hundreds The U.S. Census Bureau reported first-quarter e-commerce “We don’t have the traditional department store anchors,” with the July opening of the Downtown Commons plaza. sales at 9.3 percent, though that is more than double the 4.1 said Hugh Crawford, The Village’s general manager. “The retail “What’s really exciting is what’s going on downtown,” percent in 2010. stores (typically found) between the anchors are the attraction. Wilhelm said. “City Hall really spurred downtown. There “It’s not a competition with online,” Miller said. “They blend The formula we follow is ‘entertainment is our anchor.’” is a lot of boutique retail. The young crowd is finding a their sales online with the store. It’s about West Elm. It’s just The Village has the outdoor fountain and also entertains foothold in downtown and helping it explode. Twin Falls a showroom (in downtown Boise). You have to order online.” with fine arts, RV shows, the movie theater, restaurants and can draw young people now.” “We do see people who have online businesses that want yoga on the green. The Village will keep drifting away from to be brick-and-mortar,” said Kelly Schnebly, retail brokerage old-school retail with plans to add a hotel and housing. Retail development heads east Farther east, Idaho’s most expansive “Adding 300,000 square feet in a market development is just getting started with our size is very ambitious,” Wilson said. “The the Northgate Development, a public- project is doing very well.” private collaboration among Utah developer Also on Sunnyside Road but at Interstate Buck Swaney, the cities of Pocatello and 15, local developer Matt Morgan is scheduled Chubbuck, Bannock County and the Idaho to start construction in November on a Transportation Department. 100-room Holiday Inn hotel to launch his A new freeway overpass set to open in 44-acre Jackson Hole Junction mixed-use October 2019, partly funded by Swaney’s development. group, will serve Northgate and give freeway Meanwhile, Wilson in August represented access to northeast Chubbuck and the newest the sale of two former Kmart properties section of Pocatello. in Idaho Falls and Ammon to U-Haul, the Road work, curbs, gutters and the moving and storage company. utilities for the first 100 acres were set for “Taking 200,000 square feet off the (retail) completion by the end of September, but market is very significant,” Wilson said. ultimately Northgate is master-planned as “Otherwise, mid-box and big-box will have a 4,500-acre community with as many as to race to the bottom.” 10,000 homes. North Idaho has had less robust retail Construction of the first 54 homes development since WinCo opened in Coeur by Portneuf Development in a gated d’Alene in November 2013. development was expected to start in “We haven’t had much in the way of new September with the first 16,000-square- retail in a while, probably in the last five foot retail/office building possibly starting Blaze Pizza and Costa Vida will fill the newest building at Sandcreek Commons in years,” said Chris Schreiber, associate broker in November, said Don Zebe, a Colliers Ammon. Photo by Teya Vitu. at Spokane-based Kiemle Hagood’s Coeur International commercial broker based in d’Alene office. “We are waiting to see what Pocatello and leasing agent for Northgate. center; and 150 acres of other mixed use early and later phases of construction in a will happen with the old Kmart (which closed “We definitely will have commercial including single-family homes, condos region already stocked with abundant retail, in October 2017). We heard rumor of Hobby buildings going up in 2019,” Zebe said. and apartments said Brent Wilson, commercial real estate Lobby. It looks like it will be retail. The nice Swaney told the Idaho Business Review “It’s going to bring opportunities to our broker in Thornton Oliver Keller’s Idaho Falls thing is it’s an existing building. It has a great earlier in 2018 that he envisions the first community that we have never seen here,” office. location. My guess is it will be broken into at 300 acres including a 60-acre lifestyle Chubbuck Mayor Kevin England told the IBR Wilson looks at Sandcreek Commons, least two pieces.” center/outdoor mall with potential office in February. ”It will create jobs that will keep which since 2015 has brought Ammon Retail was not the answer for the former and retail; 65 acres for a tech/office park; our children here.” a Broulim’s supermarket, Hobby Lobby, Sports Authority at Coeur d’Alene’s Silver a 20-acre medical campus, where Portneuf Farther east, the second and third largest Cabela’s and other retailers to Sunnyside Lake Mall, where Philippines-based SPi CSM Health Trust plans to build a surgery shopping centers for eastern Idaho are in Road and 25th Street. opened a call center in November. 6 | SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | October 19, 2018 | www.idahobusinessreview.com

Chow features a variety of retail and restaurant offerings. Photo by Pete Grady.

Chow By Kim Burgess Idaho Business Review

Across the country, a unique dining concept is gaining popularity that combines the convenience of a food court with the ambiance of an upscale restaurant. The multivendor food hall offers a mix of dining options, retail space and often, fun community events. Currently, there are over 100 food halls nationwide, with the potential for that number to double quickly, according to research from global real estate services company Cushman & Wakefield. Now, the Treasure Valley has its own addition to the trend in Chow Public Market and Eatery at the Boise Spectrum on 7609 W. Overland Road. Launched in June, Chow’s 7,200-square-foot space includes Good Burger, Aladdin’s Egyptian Cuisine, Bluwave Street Tacos, Bar 76, la Gelateria and more. After their meal, patrons can shop for gourmet chocolate and cheeses, along with locally-made products like jewelry, lotion and sunglasses. Chow also emphasizes chic interior design. The open floor plan has an industrial feel, with floor-to-ceiling windows, mid-century modern furniture and a large mural on the back wall. Nicholas Jones, Chow’s creator, said he envisions a place where families can stop and find something that appeals to each person – from gelato made in-house for the kids to cocktails for mom and dad. Located across from Regal Cinemas’ Edwards Boise Stadium 21 & IMAX, Chow is a convenient spot to stop before or after a movie. “We have had good word of mouth, so it’s taking off,” Jones said. “This whole idea is becoming more mainstream, and people are receptive.” Chow was two years in the making, with Jones taking research trips to other food halls across the country. He incorporated the best of what he saw into Chow’s layout. Ken Somerville, Chow’s co-owner, said he and Jones worked hard to offer a good variety of food and retail. Chow also hosts cooking classes throughout the year featuring their in-house chefs.

Popular Food Halls Around the Country Zeppelin Station, Denver Hudson Yards, Manhattan The Bourse, Philadelphia Grandview Public Market, West Palm Beach, Florida Morgan Street Food Hall, Raleigh, North Carolina Legacy Food Hall, Plano, Texas Isabella Eatery, D.C. Metro Area The Barn, Lexington, Kentucky Portland Food Hall, Portland, Oregon

Chow aims to be a destination that offers something for everyone. Photo by Pete Grady. October 19, 2018 | www.idahobusinessreview.com| SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | 7

For Lisa Black, owner of Meridian-based chocolate company Truffles, Etc., Chow offers a space for her to showcase her products to a local audience. “Because of this, my chocolates are beginning to be recognized and enjoyed throughout the valley,” Black said. “I think the community is still learning about Chow, and the vendors located within Chow, but by the holidays I hope to have become a go-to destination for those with cravings for delicious, beautiful and unique chocolates.” Another fan is Brenda Sherwood, the city of Meridian’s administrator for economic development. A Chicago native, Sherwood said Chow reminds her of some of her favorite local spots back home. “I love Chow,” she said. “When I saw it come here, I thought it was great because I’m originally from Chicago, and when I go back to Chicago, I see places like that throughout. … One of my favorite places in Chicago is called Eataly, and it is an Italian place. They will fill your cannoli in front of you – it’s that kind of experience. I think you will see more of that with people saying, ‘Let’s have an experience.’” Sherwood predicts more food halls will open in the Treasure Valley, which she calls “the ideal place for farm-to-table.” To succeed in Idaho, a food hall needs to have a family-oriented atmosphere, Sherwood said, as opposed to other areas that try to appeal to young, single people or retirees. “To see Chow pop up, hopefully everyone will love that concept, and I would love to see that concept throughout (the Boise metro area),” Sherwood said. “I would think we would have more like that pop up because we come from a valley full of entrepreneurs, and we live in the center of agriculture surrounding us. I think there is a huge demand for it. We hear it all the time that people say they like chains, but they would like to see more of an experience or something new. Chow fulfills that.”

Boise Spectrum incorporates walkability into its design. Photos by Pete Grady.

Accelerating success.

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By Sharon Fisher Idaho Business Review

If you’re heading for the McDonald’s in Hailey, don’t try looking for tall golden arches. They don’t exist. Similarly, the Albertsons grocery store on State Highway 75 doesn’t look like a typical Albertsons. Instead, it’s a plain beige- sided storefront, with a flat Albertsons logo on it. A number of Idaho cities, particularly resort communities like Hailey, have the clout to ask national retailers with recognized branding to design their buildings to fit in better with the community. “We require design review on all commercial buildings with standards that talk about scale and compatibility,” said Lisa Horowitz, community development director for Hailey. For example, because the city doesn’t allow tall, free-standing signs, the McDonald’s, built in the late 1990s, has a monument sign on the ground with golden arches on it. “I think they know when they go in certain environments they have to change their design,” she said, noting that it resembles the McDonald’s in Aspen, Colorado. Albertsons, built in the early 2000s, was limited by a regulation that a single tenant can’t be larger than 36,000 square feet, Horowitz said. “I think it’s the smallest Albertsons in all of Idaho,” she said. Downtown Sandpoint buildings retain their pedestrian-friendly character by fronting onto the sidewalk. File photo. “They have embraced the design standards we have here.” The city is now working with Marriott on its new Fairfield and Kings, he said. “Driggs prides itself on its unique retail and to work to blend the building in more with the community, and Marriott. “It has unusual building colors and design,” as well as restaurant businesses and attractive, pedestrian-oriented shopping that work is underway, he said. a different look to its porte-cochere, where cars drive up to the areas, where sales have increased every year since the recession, Typically, such negotiations are lobby, she said. despite the internet takeover of retail in general,” he said. done during design review. “We Some areas don’t have restrictions specific to chains, but In response, some cities that try, as staff, to head that off before have general restrictions in zoning code. For example, because aren’t resort communities are it gets to the hearing,” said Hood. Sandpoint wanted to maintain the traditional development pushing back as well. In 2008, “It’s not too often that the council pattern of downtown commercial areas, the city requires buildings Kuna pressured Walgreens to come says, ‘We don’t like that design, built to the street, with parking to the side and back, said Aaron up with a more attractive design. try again,’ because we were able Qualls, director of planning and economic development. “They proposed a vanilla box to work with applicants and get a “For some national retailers, their contemporary design with almost nothing special to it,” design that works,” he said. pattern is to set the building far back from the street,” with said Troy Behunin, senior planner. “Not every community has a parking between the street and the building, he said. “It’s built “At the Design Review meeting, design review, but those that do are more for cars than for people.” the committee asked why the Eagle more likely to have a keen interest Other design restrictions include some sort of delineation of store was given a lot more aesthetic KK Lipsey in how buildings will look in their floors “so you don’t get blank, huge, monotonous walls,” a certain considerations. The committee had community,” said KK Lipsey, business amount of window coverage on the ground floor, and some Troy Behunin the courage to require them to step development director for CSHQA. breakup of the facade for buildings over 50 feet, Qualls said. up their game and follow the Kuna Some cities, such as Eagle Driggs and Victor have similar restrictions, said Doug Self, architectural guidelines.” and Idaho Falls, said they don’t community development director for Driggs. “Contemporary Walgreens responded with a do much to regulate national interpretations of Driggs’ agricultural ranching history and rural- different color and exterior rock branding. mountain surroundings are required,” notes its code about chain added for texture and contrast. “The city of Idaho Falls does not stores. “Designs that detract from Driggs’ sense of place and “It was a good compromise,” currently regulate colors and so on uniqueness are not permitted,” such as large blank walls, chain Behunin said. that a business might use to brand store designs seen in other communities, suburban strip malls, Similarly, in Meridian, neigh- them,” said Kerry Beutler, assistant and highly reflective glass, the code continued. boring residents are negotiating planning director. “The city does have National chains locating in Driggs have had to add “base” and with a proposed Costco to make it sign regulations related to height and “top” elements to the facade, remove floor-to-ceiling storefront look nicer, said Caleb Hood, plan- Robin Collins size, but not for content and color.” windows, incorporate materials such as stone and timber, break ning division manager. “Eagle never asks a business up large blank walls, and add canopies over sidewalks and Caleb Hood “When Costco originally came to change anything that has to do with content in their signs or walkways, Self said. In addition, like Sandpoint, Driggs doesn’t in and requested annexation, they brands,” said Robin Collins, economic development director. allow parking between the street and the building. had a prototypical building proposed,” he said. “The Council “Eagle might, on rare occasions, ask that an aesthetic architectural In an era where brick-and-mortar stores have declined, Driggs’ wasn’t overly enamored with the design, and neither were the element be added to the signage to make it more compatible with approach has been successful, Self said. Since 2006, national neighbors. It had a warehouse feel.” the architectural design of the building, or to soften a color ever chains located there include Family Dollar, O’Reilly Auto Parts, While the council approved the project, it told Costco it needed so slightly so as to not be so bright.”

Thrift stores change with the times

By Anne Wallace Allen are adjusting to meet changing trends and responsible and ecologically responsible. A Idaho Business Review consumer preferences. lot of things you hear from consumers really One is the tendency of stores that attract a support that.” Idaho technology companies aren’t the only lot of browsers, like antique stores, to cluster As a result, clothing sales at the Youth Ranch Introducing ones looking to Silicon Valley for inspiration. together. According to America’s Research have become increasingly strong over the last Two years ago, a team of leaders from the Idaho Group, a consumer research firm, thrift stores six to 12 months, Myers said. the queue line Youth Ranch, which helps pay for its social only began doing this recently. The southwestern Idaho St. Vincent de It’s not clear if the industry is actually Paul, which operates six stores in Boise, services programs through revenues from its One of the best ideas Myers took growing - there’s little good data to show Mountain Home, Caldwell and Meridian, two dozen second-hand stores, traveled to San from the Silicon Valley trip was the those trends, Myers said. But it’s definitely is looking for a spot in southwest Boise to Jose to share best practices with Goodwill store “queue line,” which the Youth Ranch changing. Most of the chains now do a brisk move its Boise Orchard Street store. Ralph operators there. recently tried out at its Orchard Street business selling donations such as jewelry, May, executive director of the southwestern Not surprisingly, Silicon Valley stores get store. The line, a fixture at many other books and collectibles online as well as in Idaho St. Vincent de Paul, said the nonprofit some very high-end donations, said Jeff Myers, large stores already, takes customers stores. The Youth Ranch has a large presence is looking for 10,000 to 15,000 square feet vice president of social enterprise, marketing & who are waiting in the cash register line on eBay and Etsy, and a small staff dedicated with loading access in the back, probably communications for the Youth Ranch. through a labyrinth lined with tempting to valuing items such as coins, jewelry in a strip mall. The change is prompted by “They get incredible donations; I was a little small items for sale. The Youth Ranch and musical instruments. Myers fondly population growth in southwest Boise, May jealous,” said Myers. But he noted that the area purchases new items for its queue line, remembers a donated guitar that brought in said. also has its own problems. such as pet supplies, beauty products, $5,000. “A former big-box store, or a portion of that, “The cost of living is so astronomical that candles, sheets and candy. Shoppers have also turned away from low- would be great,” May said. there are a whole lot of folks who are really “They had really well-planned queue price, low-quality “disposable” clothing that Thrift stores need plenty of space out back for struggling,” Myers said. “So it’s a little bit of a lines for all their stores,” Myers said of was popular a few years ago. Now, a trend accepting and sorting donations. And they need different business. They have a really helpful the Goodwill in San Jose. “They shared toward reuse and recycling is sending more storage for the items donated out of season. For model there for people.” their numbers with us, and it was like, people into second-hand stores seeking items that reason, thrift store real estate managers The Idaho Youth Ranch is a big player ‘Wow, this could be profitable.’ You’ve that will last. have some very specific needs when they go out in the Idaho thrift store market. So are already spent the marketing dollars to “That created challenges for a while, but looking for space. Goodwill, Deseret Industries and St. Vincent get them into the store. If you can add with the younger generation, the millennials, Goodwill of the Northern Rocky de Paul, all of which operate stores in the $1 or 50 cents per transaction, that there’s a significant portion rejecting that,” Mountains, which owns and manages Treasure Valley and elsewhere around really drops directly to the bottom line.” Idaho. As they compete for both shoppers Myers said of the disposable clothing. “It’s a and donations, all of the larger thrift chains combination of wanting to be more socially See THRIFT, page 12 October 19, 2018 | www.idahobusinessreview.com| SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | 9 A word with Brenda Sherwood, Meridian’s administrator for economic development

By Kim Burgess Idaho Business Review

When Brenda L. Sherwood moved to the Treasure Valley from Chicago almost a decade ago, a local told her something that she still quotes today: “The community can be as big or as small as you want it to be.” With that spirit, Sherwood – Meridian’s administrator for economic development – has enjoyed watching the area grow and offer new concepts in housing, office space and retail. “There are exciting things happening,” she said. “It is definitely a busy time, but I think we are handling that challenge very, very w e l l .” With over 20 years’ experience in economic and community development at the federal, state and local levels, Sherwood has broad expertise, including business retention, attraction, government assistance programs and public policy. She has held her position with Meridian since 2010 and previously served on the team that developed the Homeland Security Market Development Bureau for the Illinois Department of Commerce - Chicago, the first vertically focused technology program at the State of Illinois. Sherwood has a B.A. in sociology from Northeastern Illinois University and Master’s in Urban Planning – Economic Development/Public Policy. She recently sat down with the Idaho Business Review to discuss Meridian’s future. Q: The Village is a big retail success story in Brenda Sherwood, Meridian’s administrator for economic development, in the lobby of the Idaho College of Osteopathic Meridian. Do you foresee more development Medicine. Photo by Pete Grady. there in the future? office and your residential support your retail. I think you will That is the busiest intersection in the state of Idaho, and obviously A: It’s definitely a destination. I’ve said that it has been the continue to see The Village grow. They are getting to their next the busiest intersection here in Meridian. We’ve had a lot of epicenter for retail for the Valley. The Village is an experience phases where they are putting more retail up front on Fairview companies that have moved from other parts of the city over with a variety of different stores, something that would appeal to and on Eagle. They also have some space still, and they would near The Village and doubled their revenues. It will continue to anyone. There are also things to do – they have concerts. It has love to have an anchor office setting there. The field across the grow. It’s a half-a-billion-dollar development, and we are getting huge appeal for families in Meridian, but it is a destination for street – they’ve asked a pretty high price, so the right user hasn’t beyond that. people throughout the Valley. come along yet, but I think it will happen. One of the things about a mixed-use development is that your I had a huge retailer tell me they want to be by The Village. See SHERWOOD, page 20

Building a Better Boise

commercial industrial

interior architecture multi-family

medical office residential

By Sharon Fisher Idaho Business Review

Idaho may be famous for its potatoes, but increasingly you can find masa, doubanjiang, piment d’espelette, and za’atar in its grocery stores. While some of these ingredients require a visit to a multicultural specialty grocery that carries international food, traditional grocery stores are starting to carry these items as well. Boise contains the largest number of such markets, but other parts of Idaho have international specialty groceries as well. The grande dame of multicultural specialty groceries in Idaho is Oriental Gifts & Food, which has been in Northern Idaho for 48 years. For 30 of those years, the store has been at its current location in the Post Falls outlet mall, now refashioned as the Tedder Business Center. “You name it, we have it,” said the said 70-something Hong Newman, store manager, who came from Vietnam after marrying an Iraqi immigrant Asam Mujili and his Boise’s Basque Market features a number of groceries imported from the Basque region. family own Ishtar Market, a combination Idaho solider, who passed away four years Photo by Pete Grady. restaurant, market and bakery in Boise. File ago.“You see it, you go, ‘Oh my God.’” photo. The Basque Market, located in Boise’s Basque – not just in large cities, but in cities the size of Newman helps visitors by showing them how Block, was started in 2001 in a former telephone Boise,” Tam said. to cook traditional food using the ingredients in geared toward a particular ethnicity, increasingly substation, along with Bardenay, a restaurant While the area currently has a number of Asian her store. “I give away free recipes and show them they are serving a broader clientele as well, store that shares the space markets, they are segregated by ethnic group, he how,” when they discover that trying to use non- operators said. “Bardenay is where they would drive their said. “We see a need for one large place that can traditional ingredients or groceries they bought “The majority of our clients are not Basque,” service vehicles in,” said Tony Eiguren, who has co- provide to all Asian groups.” online don’t make the dish taste right, she said. Eiguren said. owned the market with his wife, Tara, for 11 years. The plaza is also expected to include three “They need me because they want to eat real Similarly, while the Treasure Valley hosts 20,000 “We were the radio room.” The market is or four Asian-themed restaurants, as well food,” she said. “You want the real thing, go down Asians, “the majority of the business and the about 900 square feet, while a kitchen and as keeping the existing library and Sockeye here.” She also attributed her success to hard work. clientele we expect to be the general population,” pantry bring the total space to about 1,500 Brewing as tenants, Tam said. The grocery store Similarly, Ishtar Market, in Boise, has a small Tam said. “We are expecting more non-Asian square feet, he said. renovation is expected to cost between $1.3 restaurant in its 3,000-square-foot store on customers than just Asian.” Demand for Asian groceries in the Treasure million and $1.5 million, he said. The plaza is Overland, which is leased and opened in 2010, said Oriental Gifts & Food caters to summer Valley has led to a new planned Asian-themed also scheduled to include a Chinese-style gate at owner Asam Mujili. About 500 Middle Eastern residents of Coeur d’Alene and Post Falls, plaza at Library Plaza, on Cole and Ustick. The the entrance, he added. students who attended Boise State University have Newman said. Idaho Capital Asian Market will open with 18,000 A number of multicultural specialty grocery left, which “hurt the business a little bit,” he said. Being on the Basque block helps the Basque square feet, including meat and fish and dry goods. stores have found that they need to turn to Other colleges, such as Idaho State University, market pick up a lot of tourists, which means “There’s a little over 10,000 different type of offering prepared food, either through catering have also reported losing some Middle Eastern Eiguren often fills in for the Basque Museum if products,” including Chinese, Korean, Japanese, or serving to customers, to survive. students, according to the U.S. Student and they’re closed. Indian, Vietnamese, and Thai ingredients, said “My wife and I, before we bought the market, Exchange Visitor Information Systems. “We sell memories,” he said. Marcus Tam, an agent with Boise Premiere Real we were doing catering already,” he said. “It Ishtar sells Middle Eastern groceries such as Estate, who represents the owners, China Town wasn’t a huge stretch to push that a little more.” candies, cheese, coffee, beans and spices, and Traditional grocery stores stocking Plaza, of Murray, Utah. Without the catering, the market might not prepares food such as falafel, hummus, eggplant, international ingredients “Across the country, there are quite a few of have survived the recession of 2007-2008, he and kabobs, Mujili said. Increasingly, traditional grocery stores such these Asian grocery stores popping up everywhere said. “Hopefully we’re past that.” While multicultural specialty markets may be as Walmart, WinCo, Fred Meyer, and Albertsons are stocking international ingredients, as are specialty grocery stores such as the Boise Co-op and Whole Foods. “We listen to a lot of the needs they’re asking for,” said Tracy Hansen, store manager of the Twin Falls Walmart Supercenter, which has expanded its selection of Hispanic foods a little, and Asian groceries more so, as well as Indian food. “If it sells, we bring more in, and if not, it shrinks back down,” he said. “The response has been good. Whenever we expand something, it usually sells.” While Twin Falls has been known as a community where refugees have been settling, Hansen wasn’t aware of any specific requests from these communities. “I treat all the requests the same, and if I can get it in, I get it in,” he said. In addition, while Walmart does have special sections for Hispanic food and so on, the international groceries are integrated with other types of food as well, Hansen said. For example, a chocolate mix that is geared toward Hispanic customers is situated with the cocoa mixes as well as on the Hispanic aisle. Walmart doesn’t track who’s buying the food, to see whether it’s people from that ethnic group or not. “My opinion is that everybody is purchasing that kind of food,” Hansen said. “There’s not any Oriental Gifts & Food is located in the former Post Falls Outlet Mall, now known as the Tedder Business Center. File photo. one ethnicity buying that food.”

The Idaho Capital Asian Market will be located in the The Basque Market was able to survive the recession by Ishtar Market, in Boise, features a variety of Middle Eastern former Library Plaza at Cole & Ustick. File photo. adding dining and catering. Photo by Pete Grady. groceries as well as an attached restaurant. Photo by Pete Grady. October 19, 2018 | www.idahobusinessreview.com| SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | 11

Right: Maftoul is Palestinian The Basque Market, couscous, a located in Boise, wheat-based includes traditional product. paella pans as well as Photo by groceries. Photo by Pete Grady. Pete Grady.

Below: Fava beans are a broad bean, in the same family as lima beans, but from In addition to a variety of packaged sweets, Ishtar Africa. They Market also sells several kinds of housemade baklava. are prepared Photo by Pete Grady. in a variety of ways. Photo by Pete Grady. Below: Jamón, or Basque ham. Photo by Pete Grady.

Below: The Basque Market also includes wine to go with the food. Photo by Pete Grady.

Items at Ishtar Market range from familiar American foods like tomato paste and mayonnaise to more exotic ingredients such as tahini or sesame butter. Photo by Pete Grady.

Right: Customers of the Basque Market aren’t necessarily Basque themselves, just Right: In addition to processed people who foods, Ishtar Market sells like the cuisine. spices so you can prepare Photo by Pete Middle Eastern foods at home. Grady. Photo by Pete Grady.

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Mona Warchol is executive director of Boise’s popular Capital City Public Market. Warchol used to work in the movie industry in California, and she calls the market’s volunteers “production assistants.”Photo by Fiona Montagne.

Capital City Public Market credits events, hotels for growth

By IBR Staff who was hired two years ago to manage the since January 2017, all within six blocks of the Lake City is about twice the size of Boise’s. market. market. While most of her focus goes to the logistics, Mona Warchol is executive director of the Warchol, who previously owned a “We are a phenomenal tourist destination she’s also thinking strategically, and would Capital City Public Market, which fills several restaurant in Seattle and worked as a video now. We have exploded this year in the volume like to start other similar markets around blocks of downtown Boise with locals and out- producer, said Boise’s population explosion of people every Saturday,” Warchol said. Idaho. of-towners every Saturday morning from April has had a predictable effect on the market, “Luckily we had a foundation in place, but we “We were asked to do one in Meridian, through December. where sales are soaring. She said she often never in our wildest dreams thought it would be and we didn’t because we weren’t ready,” she More than 125 vendors at the 24-year-old meets market patrons who are visiting for like this this year.” said. Now that they are, she’s looking at Bown market sell produce, baked goods, art and crafts conventions or events and have stayed for the Warchol doesn’t know exactly how much Crossing next. at the market. Wares are required to be made or weekend, and attributes much of the growth the market has grown; her estimates are based The University of Idaho Extension studied grown by the vendors. this year to the new hotel rooms downtown. on her experiences every Saturday when the Capital City Public Market on one day in “That is the criteria of the market so it Four new downtown hotels with a combined she and her crew are out in the market with July 2016 and counted 120 vendors and about stays local and made in Idaho,” said Warchol, 580 rooms have opened in downtown Boise walkie-talkies. She said the market in Salt 15,000 visitors on that day.

THRIFT Continued from 8

Goodwill stores in Montana, southern Idaho and Utah, found the perfect spot at its new Idaho Falls store, which opened in August. “For us, the Idaho Falls location really is an ideal location,” said Tim Bleymaier, the assistant VP of retail for Goodwill. The 21,000-square-foot former Hastings store is on the corner of a busy intersection, visible to a large amount of traffic, said Bleymaier, who works in Goodwill’s Boise administrative office. “We tend to prefer corner locations in a center or a stand- alone building because that gives us flexibility about where to put the donation drop-off area and flexibility for trucks,” said Bleymaier. “We have the covered drop-off area, we have visible easy access, and it allows us to handle a couple of cars at a time if that is the case. “We don’t necessarily need multiple docks at the back, like you might see at a Target.” Thrift stores also tend to need more space than traditional retailers because they have to display all of the items they have for sale. They can’t display just one, keeping the bulk of identical items in the back, the way a traditional shoe department can, for example. Pricing is also much more labor-intensive. “With a traditional retailer, it arrives on hangers, with price tags on,” Myers said. “A thrift store requires a lot more labor per dollar sold; you’ve got to sort it and price it, hang it up.” The one-off nature of donations presents extra expense online as well. “You only have one, but you have do the same amount of labor: writing the copy, taking the pictures, posting it, as if you had 1,000 to sell out of inventory,” Myers said. “The economics of resale are not nearly as enticing.” But working in favor of thrift stores is the thrill of the hunt, which draws in people from all different income levels. “That’s something that isn’t really replicated in an online sense,” Myers said. “So we don’t have same pressures that a Jeff Myers, vice president of social enterprise, marketing and communications for the Idaho Youth Ranch. The nonprofit traditional brick-and-mortar store does.” organization announced earlier this year that it was closing five stores. Photo by Fiona Montagne. October 19, 2018 | www.idahobusinessreview.com| SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | 13 U-Haul buys former Kmart buildings in Idaho Falls and Ammon

By Teya Vitu Idaho Business Review

U-Haul, the Phoenix-based moving and storage company, has bought the former Kmart buildings in Idaho Falls and Ammon to convert into the company’s largest climate-controlled self-storage centers in Idaho. The Ammon sale closed Aug. 15 for an undisclosed price, and the Idaho Falls sale has not yet closed, though U-Haul has already been operating in the building under a lease for a month. The Idaho Falls buildings are the first Kmart buildings U-Haul has bought in Idaho, but the company is seeking to buy more and also looking at vacant Walmarts or other large structures, said Casey Jones, U-Haul’s market company president in Idaho. “We’re interested in any large-space building,” Jones said. U-Haul is buying up vacant Kmarts across the country, with several properties bought over the past year. The 103,997-square-foot Ammon facility will have about 800 storage units and the Idaho Falls facility will have 700 units. It has not been determined when the units will be built, but U-Haul already has mobile storage containers in Idaho Falls, and Jones said he expects to be open in Ammon for customers with equipment rentals and mobile storage containers on Aug. 20. U-Haul recently opened a 400-unit storage center on Orchard Road in Boise. The company has other Idaho storage facilities in Garden City, Nampa, Twin Falls and Pocatello. The Kmart acquisitions across the country are driven by U-Haul corporate sustainability initiatives. The company is embracing adaptive reuse of existing buildings, U-Haul said in news releases. U-Haul bought the former Kmart store in Ammon that closed in February. Photo courtesy of U-Haul. “(This) helps cities reduce their unwanted inventory of unused buildings,” news releases read. Oliver Keller broker based in Idaho Falls. the neighboring eastern Idaho cities. The former Kmart in Idaho Falls was an Ernst Home Center The Kmart in Ammon closed in February. Wilson is pleased to find a non-retail tenant, as he said the until closing in 1996. It hasn’t had a permanent tenant since then. Wilson said U-Haul first approached him three years ago Idaho Falls metro area has abundant retail. The building has had RV sales, furniture sales, concerts and other about the Idaho Falls store but then backed away. He reached out “We just converted obsolete retail space to more productive seasonal events over the years, said Brent Wilson, a Thornton again three months again, and U-Haul bit on both buildings in use in line with our current economy,” Wilson said.

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Tanya Spaulding, a principal with Shea Design, visits a “future forward” taste bar her agency created within the Ridgedale Center Macy’s store in Minnetonka, where customers can sample and buy gourmet food products. “The whole key is giving them a chance to taste, touch and feel things you can’t experience online,” she says. BridgeTower Media photo. How stores click with shoppers in internet age

By Dan Emerson said. That means combining convenience with and retail design at the Cuningham Group in equipment on a small sheet of artificial ice BridgeTower Media Newswires the “curated” experiences people crave. Minneapolis. “Many of the big-box retailers are before they buy. “You really have to create interesting things still based on commodity, not experience, and Connecting the online and brick-and-mortar At some Neiman Marcus stores nationwide, for them to focus on from the minute they walk that is hurting them,” he said. shopping experiences is essential for retailers, dressing rooms are equipped with digital in the door,” Spaulding said. Disney, which has been focused on providing said Reggie Reyes, vice president of brand “memory mirrors” that can record an eight- Spaulding cites a “future forward” taste bar experiences since the original Disneyland experience at KNOCK Inc., a Minneapolis second video of shoppers when they try on her agency created within Macy’s Ridgedale opened in 1955, has applied that expertise creative agency. For retailers, it’s important to clothing. have the “right” content online that reflects what It’s not for security purposes. Shoppers can is in the store, he said. get a 360-degree view of the outfit they’re trying “Many of the big-box retailers are still based on “Retail is evolving, and the key to the future is on and text the video to a friend for feedback. having the right balance of online and physical That’s one of the leading-edge examples of commodity, not experience, and that is hurting them.” store,” Reyes said. how the internet and related technology are For the Mall of America, KNOCK developed reshaping the design of brick-and-mortar stores. —Greg Houck, the Cuningham Group, Minneapolis. a smartphone app to help shoppers navigate To compete successfully with online retailers, the Bloomington megamall’s exhaustive range brick-and-mortar retailers are learning to build Center store in Minnetonka, Minneapolis, to entertainment-based retail, Houck notes. of retail choices. Retailer apps have also been on the sensory experience of shopping that the where customers can sample and buy gourmet “They treat people as guests, not customers,” developed to “track” shoppers who opt-in, to internet can’t provide. food products. he said. develop “heat maps” of where shoppers are The retail industry, of course, is in the midst “The whole key is giving them a chance to As the internet has made the world seem lingering in the store and how much time they of what designer Tanya Spaulding calls “a great taste, touch and feel things you can’t experience smaller, “people have gotten to see what good spend lingering at certain displays. cultural shift.” Retailers are trying to get people online,” she said. design is in different parts of the world,” he said, Some retailers are doing the same thing by to take a break from their smartphones and A certain amount of trial and error will “so our expectations are higher for store design. asking selected shoppers to wear eye-tracking computers. continue, but more retailers are experimenting “Millennials in particular are very discerning glasses. “People are looking for compelling reasons with small “pop-up” kiosks or other small about design,” Houck said. Reyes noted that the merging of online not to do everything with their phones,” displays to test the waters. That designed experience is what will draw and real world shopping is continuing with a said Spaulding, a principal with Shea Design “Until people come and try them, you don’t people out to go shopping. Houck says he heard counter-trend: Some successful retailers who in Minneapolis. “As designers, we have to know. The key is to try smaller things without someone characterize the typical modern store started as online-only businesses are developing capitalize on that and create compelling reasons making a commitment,” Spaulding said. Even as 30 percent entertainment, 70 percent retail. physical stores. Two examples are the mattress- for them to get out and do something engaging the heavyweight champ of online retailers, “That mix is going to slowly flip,” he said. maker Casper and the eyeglass brand Warby and interactive.” Amazon, has been trying small pop-up shops. One local example of integrating Parker. To give people reasons to leave technology Not all brick-and-mortar retailers have entertainment and shopping is the Bauer “‘Physical’ retail will always be there,” Reyes behind and go out shopping, retailers need to caught up to the change, yet, said Greg Houck, Hockey Experience store in Bloomington, said. “We, as humans, really want to see, touch appeal to all five senses — not just sight, she an associate principal specializing in restaurant where shoppers can try out skates and other and feel.” October 19, 2018 | www.idahobusinessreview.com| SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | 15 KLNB’s Menick: Online retailers are boosting brick and mortar

Marc Menick

By Adam Bednar think Kohl’s, and Best Buy, and Sears, they’re all forging alliances BridgeTower Media Newswires with Amazon. My general sense is everybody is waking up and figuring out Online retailers are finding growth opportunities in an this, they all ran out in the last 10 or 15 years and got a huge unexpected place: the traditional brick-and-mortar retail store. online presence because that’s what everybody’s talking about. After years of dire predictions about the future of actual stores, “You gotta be online, you gotta be online, you gotta be online.” Marc A. Menick, president of the KLNB commercial real estate And everybody’s done that, and they’ve done a good job of company in Washington, D.C., said even online behemoths, it. Now everybody trusts the internet and ready to buy on the such as Amazon, realize they need physical spaces to reach more internet. But I feel they’re all running back and recognizing the customers. value of bricks and mortar stores to complement that online, to Below is a condensed version of a telephone interview with grow (their business). Menick. The interview has been edited for clarity. The Amazon fulfillment center in Baltimore. “I think people AB: I just saw a report that some of these are realizing that even online retailing can’t stand alone Adam Bednar: So, let’s start broad. What are as simply just online retailing,” KLNB President Marc A. big-box places are doing really well in some of Menick says, “or its growth is capped without the presence some of your general observations about of brick and mortar.” File photo. the suburban D.C. markets, particularly in the how the retail (sector) is performing in the closer to their consumer, and allow their consumers to maybe College Park area of the world. (Maryland) metro areas right now? bring products back, and get them to shop for more products. MM: Right. We’ve seen that there’s been closures. Circuit City. I feel like the internet taking over retail now has been talked Mark Menick: Quite honestly, we’re feeling at KLNB... really Linens ’n Things. hhgregg. We’ve seen this year after year, wave about, I feel like 15 years, and the concern seems to have shifted… good about where the market is in the Washington D.C., Baltimore after wave, retailers that are liquidating and going out of business. from concern to opportunity. area. We’re primarily known as a retail firm, but we’ve actually But this area has done an exceptional job of absorbing those and got a lot of brokers... that specialize, in office, industrial, and we’ve had a large part filling those spaces with a lot of our clients, AB: That’s really interesting, and I’m thinking such as Sprouts (Farmers Market), and Total Wine, TJMaxx. warehouse. And we’re seeing a nice boost in all those disciplines. TJMaxx is in tremendous growth mode. And a lot of it, counter to what the press is saying, that the about it as I’m sitting here in my Warby Parker A lot of these off-price retailers seem to be thriving in this doom and gloom of online has for bricks and mortar, we’re seeing market place. TJMaxx is a great example of them. that a lot of our successes are coming because of (online stores glasses that I bought at the store. needing retail). MM: Right. Warby Parker is the perfect (example). There are AB: I did a story recently about (Ellsworth (Online shopping is) a disruptor in the marketplace that more and more Warby Parkers of the world that have realized that is causing a lot of shifts, and in a lot of ways those shifts, at a they have a tremendous presence online. ‘But now what? How do Place) in Silver Spring that recently traded for granular level, for us as a company, are good. That means people we grow?’ And the way to grow is to get out there on the street. are moving around, and need space, and need real estate experts $92 million, and (buyer GT Realty Corp.) had to fill the space. AB: So is there any specific product sector that do TJMaxx as an anchor tenant way up (in the But it’s also exciting, as a consumer, because you’re seeing retailers waking up, some that have been asleep at the wheel for a well with this? Is it clothing retailers? Is it, like we announcement). So, they wanted it known that long time, and waking up and trying to figure out how to capture the dollar of the consumers... I think the pendulum has really said, eyeglass places? Anything like that? place had a TJMaxx in it. swung. MM: Apparel is really starting to figure it out, too. MM: That asset you’re talking about in Silver Spring has a large I think people are realizing that even online retailing can’t There’s a brand called UNTUCKit. UNTUCKit was just an entertainment component to it to. I think they took the entire top stand alone as simply just online retailing, or its growth is capped online presence, and now is opening stores, and Suit Supply is floor and made it into a Dave & Busters. without the presence of brick and mortar. another one. And I know that the Peterson Cos. in Gaithersburg is adding Amazon is proving that in everything that you’re reading The apparel guys are figuring it out later than maybe some a Dave & Busters to their RIO Washingtonian development. about them, and their purchase of Whole Foods to get closer to other categories, but they’re starting to now realize and figure it So these entertainment uses are another category that are the consumer, and their opening of their small format, sort of, out. proving you can’t do everything online. The consumer wants an bookstores. We’ve seen that clients of ours, and just retailers in general, are experience, and places like Dave & Busters have been doing a They just opened one in Bethesda. (It’s) another way to get forging alliances with Amazon, and having stores within store. I good job of filling a lot of these larger vacancies as well. 16 | SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | October 19, 2018 | www.idahobusinessreview.com

Eagle’s first movie theater will join TSheets at Bridges at Lakemoor

The first two retail buildings are complete at the Bridges at Lakemoor in Eagle. Photo courtesy of Hawkins Companies.

By Teya Vitu The target opening for Luxe Reel is November Idaho Business Review 2019. Casper owns six Reel Theatres – three The Bridges at Lakemoor, ostensibly screening first-run movies in Caldwell, Ontario a planned retail-heavy center, started and Anderson, California, and three screening construction in 2016 with the new corporate second-run movies in Boise and Nampa. The headquarters for the swiftly growing tech theaters have a combined 48 screens. startup TSheets. Eagle-based time tracking software producer The first two retail buildings, each 11,000 TSheets moved into the newly built, three-story square feet along a pond and Eagle Road, arose 65,000-square-foot office at Lakemoor in May in the past year with two tenants open now, 2017. Hawkins plans to build a second identical his-and-hers fitness studios F45 and Barre3. office building next to the movie theater at the Eugene-based Café Yumm! will open its first south end of the property, said Hawkins senior eatery outside its 22 in development director Oregon and Washington Paul Stephens. at Lakemoor toward the “We like the mix with The property still has end of the year. four pads available, three The buildings stand the office space. That at the north end of the next to each other, end property at 12,500, 7,050 to end, with a joint patio creates some synergy for and 5,224 square feet and capped with the frame of a a 4,219-square-foot pad stylized barn roof. at the southwest corner at Bridges at Lakemoor evokes a modern farmhouse feel in its design. Photo by Teya Vitu. The three buildingsparking. The office hours one of Lakemoor’s three stand alone now on 25.5 bridges. acres in Eagle, north of are the opposite of the BRS Architects was the Chinden Boulevard, but architect for the $14.5 Boise developer Hawkins movie theater.” — million TSheets building, Companies has elaborate and Hawkins is designing plans for Lakemoor that the retail buildings in- eventually involve 11 Eldon Sorensen, Casper’s house. Radix was the structures, including the general contractor for first movie theater complex business manager. TSheets and PETRA is the for Eagle. general contractor for the Next in line for construction is an 11-screen $9 million first pair of retail buildings. Luxe Reel Theatre, the second Luxe brand Stephens estimates 600 to 700 people will that local theater chain The Reel Theatres is be working at the center’s businesses when building after the Luxe Reel opened June 8 in Lakemoor is built out. The second office should Caldwell. Later this year, the Ontario Reel will start construction in spring and open in spring be converted to Luxe. 2020. The 28,301-square-foot Luxe Reel Theatre At the property’s northwest corner, Beau 11 in Eagle will be the first with all recliner Manwaring, senior leasing manager at seating for Casper Management, which owns Hawkins, hopes to land an organic grocer for the Boise-based six theater Reel Theatres the 12,500-square-foot structure, the largest chain. Caldwell has a mix of luxury rockers proposed retail building at Lakemoor. and recliners. The idea is for Bridges at Lakemoor to be Casper will be the first movie theater operator walkable. Fast-growing tech startup TSheest, Barre3 and F45 are the first three tenants at the in Eagle. The company was drawn to the mixed- “We have a large amount of pedestrian Bridges at Lakemoor in Eagle. Photo by Teya Vitu. use Lakemoor project. (walkways) that are stamped and colored,” “We like the mix with the office space,” said Stephens said. buildings have flat and peaked brick facades sits outside TSheets and two other retail sites. Eldon Sorensen, Casper’s business manager. Hawkins chose a “modern farmhouse” and cement fiber siding with the appearance Hawkins avoided big boxes; the longest “That creates some synergy for parking. The architectural design with an A-frame roof, of wood. building is 177 feet long. office hours are the opposite of the movie wood beams, a metal seam roof and the Lakemoor has two long lagoons between “We’re trying to have each tenant create their theater.” signature framed barn over the patio. The Eagle Road and five retail sites. A round pond own experience,” Stephens said. October 19, 2018 | www.idahobusinessreview.com| SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | 17

Independent retailers are the city’s ambassadors

By Laura DeLaney

Independent retailers are driven by a in downtown Boise. Lil frequently supports passion for the products that are available in The first ambassadors for our city are the people who local charity Artisans for Hope by giving them their stores and the needs of the community a space to retail their goods at the Saturday they live in. work at independent retailers and restaurants. market. Local retailers are more generous At our shop, Rediscovered Books in Boise, with their time and treasure because their every book on our shelves is there because all aspects of their work. without millions of dollars in tax breaks, we generosity has a direct and measurable impact someone on our staff advocated for that Indies are an economic powerhouse are essential for the health and strength of a on the place where they live. book. Our booksellers are committed to that needs greater consideration and local economy, and we promote culture and Indie bookstores have successfully grown finding a book that the customer will love. acknowledgement. Local business recirculate community connections. while major chains have faltered. To succeed At every indie shop downtown, you will find dollars in a community many more times than Indie retailers are open-handed in charitable in this business or in any other local business, someone dedicated to finding that perfect fit corporate chain stores and online retailers like giving. On average, independent businesses you must invest, be creative, collaborate for the customer. Indie retailers create places Amazon. donate around 10 percent of their profits to and connect with others, and you must find where people can connect to others around Not only are independent stores better for a mostly local organizations. This is a much the path that works best for you. It pays off: shared interests. Those connections spill into local economy, Amazon significantly damages higher rate than the 2.8 percent donation customers show that they want to frequent our community and evolve into new ideas, local economies. In 2016, Amazon and its rate of the top 1 percent of income earners. local retailers that reflect the personality of a friendships, and collaborations. third-party sellers sold $547 million of retail Donations from local businesses include time city. One example: The number of independent Indie retailers reflect the growing and goods in the state of Idaho, displacing 1.6 and space in their establishments as well bookstores increased over 35 percent nationally changing culture of our city. When presented million square feet of retail space, 2,616 jobs, money and products. Independents typically between 2009-2015. The opportunity has new circumstances, local owners can make never been brighter for individuals who want decisions and implement new ideas in ways to create a community-centric retail store. that national chains cannot. The independent Rising rents and population influxes are Boise has entered a new era of downtown retailer is the creator of fashion that is copied growth, and we need to make a commitment in national markets. Our brands are often creating pressures that will force independent to what Boise’s downtown is going to look quirky and individual because an independent like. Rising rents and population influxes are business can never be complacent. Our creating pressures that will force independent willingness to try out new ideas is a key part of retail and retail workers out of downtown. retail and retail workers out of downtown. what keeps our downtown lively and friendly. Without active investment, Boise will follow The first ambassadors for our city are the Without active investment, Boise will follow the the pattern of other cities and push its local people who work at independent retailers and businesses out of the downtown core. Boise’s restaurants. Retail staff are the local guides for pattern of other cities and push its local businesses local culture is what has garnered its national what is best and unique about Boise. Helping attention as a great place to live. Exploring and people find Freak Alley, the Anne Frank supporting ways to work with local business memorial, the best local coffee spot, and other out of the downtown core. serves multiple purposes in our community, places off the beaten path is the way we create but the most important mandate is to fill our the reality of “Boise Nice.” As independents, and $27 million to $30 million in uncollected choose local causes to support, causes that downtown with local people, local places and our success or failure is driven by the expertise sales tax. These numbers come from a Civic are connected to the interests of the owners local personality. and ability of our staff, and we invest in helping Economics study completed in 2018. of the business. One excellent example is Lil Laura DeLaney is co-owner of Rediscovered them acquire the knowledge and expertise for Unlike large corporations, we create jobs Kurik, owner of American Clothing Gallery Books in downtown Boise.

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2018-10-10 IBR.indd 1 10/10/18 11:55 AM 18 | SQUARE FEET quarterly IDAHO BUSINESS REVIEW publication | October 19, 2018 | www.idahobusinessreview.com ‘Wayfair’: for small online retailers, future is uncertain By Jon S. Barooshian

On June 21, the U.S. Supreme Court upended the online Complete Auto The law after ‘Wayfair’ retail industry, giving states the power to force online retailers to collect sales tax from sales to consumers. Ten years later, a unanimous Supreme Court ruled in favor Writing for the majority, Justice Anthony Kennedy stressed The Supreme Court’s 5-4 decision in Wayfair overruled 50 of Mississippi in Complete Auto Transit, Inc. v. Brady, 430 U.S. the impact of modern technology. years of precedent and dramatically altered the tax rules for 274 (1977). “It is not clear why a single employee or a single warehouse should states, online retailers, and brick-and-mortar retailers. Complete Auto was an auto transporter that moved vehicles create a substantial nexus while ‘physical’ aspects of pervasive The decision creates a level playing field for brick-and-mortar from the railhead at Jackson, Mississippi, to dealerships. modern technology should not,” Kennedy wrote. “For example, a retailers by allowing states to collect sales tax that has evaded The Mississippi State Tax Commission levied a tax on company with a website accessible in South Dakota may be said to collection in many online transactions. Small businesses with an Complete Auto “for the privilege of engaging or continuing in have a physical presence in the State via the customers’ computers. online retail business, however, are now faced with substantial business or doing business” in the state. Complete Auto argued A website may leave cookies saved to the customers’ hard drives, or increases in their cost of doing business. that the tax was unconstitutional because Complete Auto was customers may download the company’s app onto their phones.” part of an interstate operation and that such a tax is therefore a Although the court struck down Quill, it said the four-pronged History violation of the commerce clause. test from Complete Auto remains the standard for commerce The Supreme Court held that businesses involved in interstate clause disputes. The court did not rule whether South Dakota’s The 5-4 decision in Wayfair overruled the Supreme Court’s commerce should assume a just share of the state tax burden economic nexus law would be valid under the Complete Auto divisive 1992 rule in Quill Corp. v. North Dakota, which states and established four criteria to be met for a state tax to be valid analysis and remanded the case for further proceedings. have tried to “kill” for years through lawsuits and regulation. and not an unreasonable burden on interstate commerce: The Justice Kennedy’s opinion, however, suggested that South Dakota’s To understand the significance of Wayfair, it is necessary to tax must be (1) based on an activity connected to the state, (2) sales tax law would likely pass muster and noted the following in understand some history. fairly apportioned, (3) nondiscriminatory, and (4) related to support: (1) the $100,000 sales and 200 transaction “safe harbor” state services provided by the state. that could not be exceeded “unless the seller availed itself of the National Bellas Hess substantial privilege of carrying on a business in South Dakota”; (2) the law’s protection against retroactive application; and (3) South In National Bellas Hess v. Department of Revenue of Illinois, Quill Dakota’s adoption of the Streamlined Sales and Use Tax Agreement. 386 U.S. 753 (1967), the Supreme Court ruled that a mail-order In 1992, the Supreme Court revisited National Bellas Hess In the dissenting opinion, the Chief Justice John Roberts wrote reseller was not required to collect sales tax unless it had some and Complete Auto in Quill Corp. v. North Dakota. that it should be left up to Congress to regulate commerce and physical contact with the state. North Dakota argued that under due process, Quill Corp. that the court’s ruling may have torpedoed attempts by Congress Located in Missouri, National Bellas Hess was a mail-order had established a presence in North Dakota as the floppy disks to find a legislative solution that could apply to all states. seller of various consumer products. It owned no tangible holding Quill’s software provided to North Dakota customers “Armed with today’s decision, state officials can be expected to property in Illinois and had no sales outlets, representatives, were physically located in their state. redirect their attention from working with Congress on a national telephone listing, or solicitors in that state. It mailed catalogs The court stated that the commerce clause gives the federal solution, to securing new tax revenue from remote retailer,” Roberts to customers, and orders for merchandise were mailed to government power to regulate interstate commerce and prohibits wrote. Small businesses with an online retail business are now faced its Missouri plant. Goods were sent to customers by mail or certain state actions, such as applying duties that interfere with with substantial increases in their cost of doing business. common carrier. trade among the states. The court also concluded that Complete The state of Illinois attempted to force National Bellas Hess Auto did not limit or undo its holding in National Bellas Hess. to collect sales tax from its customers. The Supreme Court held The court held that a corporation can have the minimum Soaring costs that the commerce clause prohibits a state from imposing the contacts required by due process and still fall short of the Small businesses with an online presence will now need to duty of use tax collection and payment upon a seller whose only substantial nexus required by the dormant commerce clause. comply with the laws of as many as potentially 10,000 or so connection with customers in the state is by common carrier or The court also stated that the bright-line rule of National Bellas by mail. Hess “furthers the ends” of the dormant commerce clause. See WAYFAIR, page 20

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Research leads retail interior trends

By Janice Stevenor Dale

New research is yielding data that helps color spectrum. Babin, Hardesty & Suter us determine how retailers can best meet Multisensory cues are those that complement vision in found that “for fashion-oriented stores, blue shoppers’ emotional and behavioral needs. interiors are associated with more favorable Preferences change over time, and a store atmosphere, such as the addition of scent in an evaluations, marginally greater excitement, retail interior design needs to change high store patronage intentions, and higher all the time too. Market changes, such as a otherwise odorless store environment, or music in an purchase intentions than orange interiors.” growth in the Hispanic shopper population, Consumers responded more favorably to can prompt adjustments; so can attitudes blue interiors when they were brightly lit as about consumption. The goal of retail space originally rather quiet retail setting. opposed to softly lit. designers is to create environments that Beyond the light quality of a space, other Contingency Framework, (Anderson & unions also may include “a business center to motivate people to return after an initial visual and multisensory stimuli demonstrate research online investments, stock, real estate, purchase. Srinivasan) a positive effect on shoppers’ emotions and Successfully adjusting to retail trends Empirical Testing of a Model of Online etc.” cites the 2004 Strategic Environmental purchase behavior. Multisensory cues are requires research. One great source is Paco Store Atmospherics and Shopper Responses, Report by ASID. those that complement vision in a store Underhill’s bestseller “Why We Buy: The (Eroglu, Machleit,& Davis) With an aging population, it is important atmosphere, such as the addition of scent in Science of Shopping.” It offers observational Meanwhile, retailers are under pressure that environments are legible. This translates an otherwise odorless store environment, research as well as demographic, competitive/ to maintain their in-store sales, even while to clarity of store positioning and circulation or music in an originally rather quiet retail market and financial data, with a goal to reducing their display budgets. As a result, paths, with resting zones featuring chairs setting. defining the qualities of an environment that is even high-end brands employ whimsical that don’t impede shoppers and contribute This layered atmosphere has been observed meaningful to shoppers. environments that use graphics and other to shopping couples. These zones provide for “to exert a superior impact on cognition, These days, researchers look closely at design elements to save money. They have greater time spent in the retail environment and emotion and behavior.” Consistency between the interplay of online information, social renewed their focus on attention to detail, communicate important social values. With the sort of music heard by shoppers and the media and physical stores. Store fixtures have creativity and ingenuity. marketplaces that have an integral relationship products sold is key. An example within a become increasingly modular and changeable Another big change the design world is with nature, a natural environment should also florist shop: Flowers are regularly linked to to reflect information gathered from social seeing in retail right now is gender-related. be reflected. Commitment to the environment romance. Love songs and romantic music media. The repetition of design elements Traditionally, research has long shown that should be genuine and consistent. conditions were found to lead to an increase in across platforms from the physical to the women make most purchasing decisions, Clearly a thing of the past is the cookie- sales. Retail managers would be wise to focus virtual increases continuity, branding and even in areas such as electronics. But research cutter approach to store design, where no on designing store atmosphere through multi- customer comfort. by Moseman, Boyer & Bourbon finds that connection to the local culture is visible. The sensory congruent cues to “ensure a stronger The app Retail Diva inspires shoppers the influence of gender on retail design is amount of goods shown on display responds to appeal to the five human senses.” through daily bites of integrated marketing changing, and stores are paying more attention local tradition, brand norm and material/finish Of course, all concepts need to be tested insight. The following articles on consumer to male shoppers. Some stores are adapting practices. An “understandable and deliberate with consumers. Retail design is evolving and behavior are interesting and valuable resources by employing gender-neutral design, and by attempt to respond to local (consumer) new data emerging that informs our work to for people integrating e-commerce websites: focusing on brand rather than gender. culture” is encouraged. transform retail into highly successful spaces. E-Scapes: The Electronic Physical Brand evolution within credit unions is Consumers generally respond more Janice Stevenor Dale, FIIDA, CID, NCDIQ is Environment and Service Tangibility, a good example. We have seen more credit positively to cooler colors. This news president of JSDA Inc., an award-winning design (Koerning) unions displaying items such as cars and boats reinforces the use of low-energy LED lighting, firm in Boise, actively preserving landmark E-Satisfaction and E-Loyalty: A in promotional materials for loans. Credit associated with the daylight/blue end of the structures since 1987.

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SHERWOOD Continued from 9 WAYFAIR Continued from 18 Q: What about Ten Mile Crossing? What are with the growth because of our infrastructure and our ability state and local jurisdictions across the country. As Chief Justice to build that up. At this point, we are doing fairly well. We are Roberts argued in his dissent, states applying their own rules you seeing there for the future? working on our plan, and one of the things we don’t want to do and regulations to the collection of sales taxes from online is sprawl, so you will see more of those mixed developments. sellers “will likely prove baffling for many retailers,” with the A: Where offices develop, retail usually follows. You don’t We have had to hire more planners, and we brought our burden falling “disproportionately on small businesses.” usually see retail come in first. You’ll see the office and the building inspectors in-house. It is definitely a busy time, but I Take the following examples noted in Chief Justice Roberts’ residential that can support that retail. At Ten Mile Crossing, think we are handling that challenge very, very well. opinion: “Texas taxes sales of plain deodorant at 6.25 percent there is huge demand for restaurants, and the retail will be coming One of the things employers look for when they come but imposes no tax on deodorant with antiperspirant,” Roberts in right behind it. I think at full buildout, there will be well over from out of state is available workers. Right now with our wrote. “Illinois categorizes Twix and Snickers bars — chocolate 2,000 jobs in that area. It is a mixed-use, so it will be another area unemployment under 3 percent, it is a challenge for us. That and caramel confections usually displayed side-by-side in the where people can live right across where they work. in-migration means that we are refreshing that workforce and candy aisle — as food and candy, respectively (Twix have flour; creating opportunities. Snickers don’t), and taxes them differently.” Q: Mixed-use seems to be really growing Although the majority opinion noted the availability and in popularity. Q: Costco has caused a lot of conversation anticipated proliferation of sales tax management software, it remains to be seen whether software that is robust enough to A: A lot of us (Idaho newcomers) are coming from urban in Meridian. What is your take? keep up with changes in sales tax laws across 10,000 jurisdictions settings, and that is appealing. It’s great for quality of life to not A: That got pretty big. I got a lot of records requests about will actually be cost-effective. Moreover, software does not be spending that time in traffic. Whenever we can create that, it that. Definitely a lot of press around the Costco. We went to prevent audits. is a win. Right now we are working on our comprehensive plan, our community and asked, ‘What are your thoughts about Indeed, anyone who has endured a sales and use tax audit in and that is definitely on the forefront, even for downtown as well. this?’ Seventy percent said they were definitely for it. That Massachusetts knows that it is a tedious and time-consuming is an area that is growing up – lots of homes off of Chinden. process. Retailers must have all transactions documented Q: To segue into downtown, what do you They want to see those amenities close to them. People love properly and be prepared to have register tapes or whatever forecast for growth? Costco and they do pay a decent wage. Once the community other information is used to record individual transactions, supported it, we supported it. including exemption certificates. A: We are pretty excited right now because the RFP went The auditor will have the right to require the business to show out for a mixed-use development with first-floor retail and Q: Is there anything else you’d like sales tax returns; excise tax returns; documentation for use tax, office space, then housing above that. That is so important retail sales tax, business and occupational tax; and all critical to a downtown. Once again, we have the retail come in, but to highlight about Meridian’s future records related to the business. there are not as many people walking around. When we have development? In addition, the auditor will require a business to produce three to five hundred apartments, we will have people walking bank records to compare the sales tax returns to actual sales. around in downtown. That always brings the services, retail A: We are not going to grow out of our congestion. We and restaurants. And this year, right down the street at Pine know that the congestion is just going to get heavier. What we Takeaway and Locust Grove, the Idaho College of Osteopathic Medicine, can do is bring some of those family-wage jobs closer to where their student housing is right there. I foresee a very cool mix of people live, going back to that mixed-use. On the retail front, The Wayfair decision gives states that rely on sales tax as a unique stores in our downtown. You’ll have college-age people there will be exciting things happening. I had a site selector source of revenue the opportunity to collect what is owed and and IT companies downtown. It will be an opportunity to live come in from out of state say, ‘You have a water park. You levels the playing field somewhat between online and brick-and- and work and play in this mixed-use area. have The Village. You have these great opportunities for these mortar retailers. family experiences. Keep attracting those.’ I think you will see Large online retailers, such as Amazon, that already voluntarily Q: The story for Idaho is really one of stores that really offer a family experience coming in. collect sales tax will be able to absorb the additional cost of doing I also think some of those larger stores that really put business much easier than small businesses. Small online retailers population growth. What are your thoughts demands on us about customer demographics and lifestyle are left with a great deal of uncertainty over when to collect sales demographics are not going to be able to ignore us anymore. tax, how to do it efficiently and how to comply. The bottom line: on the benefits and challenges for Meridian? In the past, they’ve wanted big incentives and free land. I think Their cost of doing business likely just increased. A: When I came here in 2010, it was right after the they are going to have to come in. I think they are seeing that Jon S. Barooshian, a former state prosecutor, is a trial lawyer at downturn. The opportunity we had at that time was to catch the stores that are not here should be represented here. We Bowditch & Dewey in Framingham. He concentrates his practice up with infrastructure. We were able to face this challenge have a couple that have just called. on tax litigation.

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