2004 Corporate Sponsors Adolfson & Peterson Construction The Avalon Group Benson-Orth Associates, Inc. Bremer Bank, N.A. Brookfield Properties (US) LLC news The Business Journal Cambridge Commercial Realty CB Richard Ellis Volume 18, Number 9 September 2004 The Collyard Group Commercial Partners Title, LLC Construction 70, Inc. CSM Corporation FeatureLifestyle Center Turns One Year Cuningham Group Architecture, P.A. Dalbec Roofing Old! A Unique Experience Exeter Realty Company Faegre & Benson LLP General Growth Properties, Inc. by Christopher M. Naumann, KKE Architects, Inc. Glimcher Properties/Northtown Mall Gray Plant Mooty t is a summer afternoon in Minnesota and a He looks forward to dining on an outdoor patio Great Clips, Inc. man is sitting on a park bench overlooking of a nice, nearby restaurant later in the evening. H.J. Development, LLP a courtyard filled with flowers. The shade I This is the experience of a visitor to the Shoppes Heitman Financial Services LLC provided by an overhead trellis is just enough at , a unique 411,000 square foot J.L. Sullivan Construction, Inc. to keep the glare off his book, which he just lifestyle center located in the bustling northwest Jones Lang LaSalle purchased at the corner bookstore. Since his suburb of Maple Grove, Minnesota. Developed KKE Architects, Inc. two teenagers are enjoying pizza and a movie by partners Opus Development and RED Kraus-Anderson Companies down the street, he now has as chance to relax Development, the center represents the first of a LandAmerica Commonwealth and read. A cup of coffee that he grabbed new type of retail format for Minnesota, and Landform from a nearby coffee shop will keep him Larkin, Hoffman, Daly & Lindgren, Ltd. this month, it is celebrating the first anniversary settled as he awaits his spouse, who is LaSalle Bank of its grand opening. shopping the boutiques that line the block. M & I Bank Madison Marquette Lifestyle Center continued on page 2 m The Marshall Group Messerli & Kramer, P.A. Midwest Maintenance & Mechanical, Inc. Minnesota Roadways Snapshot North American Properties, Inc. Egret Plaza NorthMarq Capital, Inc. Oppidan, Inc. Location: SE corner of Radisson Road Opus Northwest LLC (2 miles north of 109th Avenue) and Cloud Park Midwest Commercial Real Estate Drive in Blaine, Minnesota Paster Enterprises, LLC Opening: Currently under construction – to Reliance Development Company, LLP be completed Fall 2004 RLK-Kuusisto Ltd. Robert Muir Company Developer: Oakwood Land Development Robins, Kaplan, Miller & Ciresi LLP Leasing Agent: Anita D. Johnson, RSM McGladrey, Inc. AJ Commercial Real Estate, Inc. (763) 502-8500 RSP Architects Architect: Rosa Architectural Group, Inc. Construction Style: Wood frame building Ryan Companies US, Inc. with block, brick and stucco. Gable roof. SuperValu Inc. Construction Contractor: Daily Additional Facts: Tenants dream come true. Construction New construction with rates under $20 p.s.f. in TCF National Bank Minnesota GLA: 12,500 square feet Towle Financial Services Blaine. It’s a gold mine. Situated next to “The United Properties # of Stores: Approximately 8 Lakes” residential development with 3,700 U.S. Bank homes, and across from the TPC golf course Anchor Tenants: Mobil Gas Venture Mortgage Corporation with 750 existing new homes. Average Station/Convenience Store Weis Builders, Inc. household income is $92,972 for 1-mile radius, Wells Fargo Bank, N.A. Market Area Served: Blaine $75,213 for 3-mile radius. $16-19 psf net rent Welsh Companies, LLC and estimated CAM/tax is $3.00 p.s.f. Minimum Westwood Professional Services bay size is 1,250 s.f and up to 6,250 s.f. Witcher Construction Company LIFESTYLE RATES continued property along I-94. Opus then forged a experienced strong sales over the holidays. partnership with lifestyle center specialists The figures generated in the spring and Lifestyle Center Basics RED Development, and hired a design summer months were surprising. team led by KKE Architects, Inc. and According to Michaelis, sales from the A lifestyle center is an open-air retail format Damon Farber and Associates. The team month of March were nearly as strong as that allows for high concentrations of small embarked on an intense design process that sales from the holidays, and the month of boutique stores and entertainment venues. yielded a plan with eight retail buildings June exceeded March sales figures by as The format tends to shy away from big box connected by a street system that flanked a much as 20%. These figures prove that a retailers and traditional department store grand courtyard. This courtyard contained lifestyle center format can thrive, even in a anchors to focus instead on unique retailing a mix of gathering spaces and landscapes. cold weather climate. environments. Although it is currently a Medium box tenants provided some retail hot concept in the retail industry, the idea is Besides the strong sales, the center has also anchors on the center’s perimeter along not new. Open-air centers have been experienced strong tenant occupancy, with with traditional outlots. The center would common in the American south for 90% occupancy expected by the end of this be tied to an existing movie theater and a decades. However, the label “lifestyle year without any tenant turnover. The neighboring regional commuter park-and- center” was tagged to high-end open-air center just opened Gymboree and expects ride station. centers in the late 1990’s by developers to open GAP, and the restaurant Biaggi’s who began to evolve the concept. By Just over a year and a half later, on later this fall. Its outlot development is today’s definition, a lifestyle center is a September 12, 2003, The Shoppes at Arbor also finishing with concepts Boston Pizza format that offers a diverse grouping of Lakes conducted its grand opening. The under construction and the upscale Granite retail options, in a pedestrian friendly, open center, although not fully complete, was City Brewery is now open for business. air-environment. Typically, these centers over 80% leased and featured many According to Michaelis, the center is also have great amounts of building design and national retailers, some opening their very having a tremendous impact on the detailing, and offer amenities that create first stores in the market. The center also community, drawing patrons from beyond truly unique shopping experiences. offered a mix of unique local operators who the expected trade area, including added a level of retail diversity not found From a developer’s point of view, lifestyle communities as far south as Minnetonka, with any other establishments in the region. centers are becoming extremely desirable Plymouth, and Wayzata. Out-state travelers formats to pursue. They cost considerably The lifestyle concept had finally arrived in have also been visiting as they travel the I-94 less to develop and operate over time when Minnesota, but not without controversy. corridor, not only shopping at the Shoppes, compared to a traditional regional mall, yet Some critics called the center a suburban but also filling hotels and bringing business they still generate top rents when “fake-town” with no real sense of place to into the city of Maple Grove. compared to malls in similar markets. draw retailing energy. Others doubted the It seems that shoppers aren’t the only ones According to the International Council of potential of the open-air concept for the who have noticed the new center. Just Shopping Centers, an average person who Midwest; exalting the inclement winter before Christmas of last year, only four shops at a lifestyle center spends weather Minnesota faces and how it would months after opening, Opus sold the approximately $84 per hour while the have a negative impact on shoppers. Shoppes at Arbor Lakes to The Prudential typical traditional mall customer only Insurance Co. of America for a sum of $87 spends $58 per hour. Lifestyle-center sales million, or $211 per square foot. Opus average $298 per square foot vs. traditional purchased the land for $15 million in 2002 malls’ average of $242 per square foot. prior to development. These facts, combined with lower CAM costs that are typically found with lifestyle The lifestyle concept has certainly arrived centers, make lifestyle centers more into the Minnesota landscape with a roar. desirable locations from a tenant’s The concept has been so successful that perspective. From a consumer’s point of another center is already being proposed view, lifestyle centers provide a wider for the east metro by the same developers. variety of retailing options. These centers Given the success of the Shoppes at Arbor support both quick shopping trips and full- One Year Later Lakes over the past year, there is no doubt day excursions in one location. This added we will be seeing more of these retail convenience and unique experience make During the course of the past year, the formats in the future. the lifestyle center format the best overall Shoppes have generated much debate, but how have they lived up to expectations? destination for many consumers. Do you know what “Micropolitan According to Scott Michaelis, general Statistical Area” is? It is a new government Brief History of the Shoppes manager of the Shoppes at Arbor Lakes, designation describing and acknowledging at Arbor Lakes the center is surpassing projections. that smaller growth towns located between Although this past year’s exceptionally larger metropolitan cities along the nations Over three and a half years ago, Opus cold and snowy winter months did affect highways and byways. These micropolitan Northwest LLC began plans for its next performance, as it affected most all retail towns attract business, retail and housing and project in Maple Grove. They proposed a centers during the same period, the center need to be identified and tracked. high-end retail center for 55 acres of msca news 2004 2 www.msca-online.com MarketFargo-Moorhead Update by Jon and Ross Dahlin, Itasca Funding Group, Inc.

ed by a pro-business tax climate and strong land parcels still available, expect this area to employment growth in healthcare, continue to be the premier location for new education, agriculture, and insurance, the retailers to enter the market. L 2004 LEADERSHIP Fargo-Moorhead metropolitan area continues to 13th Avenue South connects West Acres with OFFICERS be a robust market for the retail industry. With a downtown Fargo, and is the main commercial President population of nearly 180,000, the Fargo-Moorhead Michael Sims, United Properties strip in the city. Downtown is undergoing a area is large enough to attract the interest of every 1st Vice President renaissance, according to a recent Los Angeles Peter Austin, Welsh Companies, LLC major retailer from around the world. Times article. Many new independent shops, 2nd Vice President One just has to travel in and around the West restaurants, and residential developments have Paul Sevenich, CCIM, Kraus-Anderson Co. Treasurer Acres Mall to see what exists, and the potential sprung up near and along Broadway Street, Kenneth Vinje, SCSM, Kraus-Anderson Co. for additional development. “Being the only which recently completed a nine million dollar Secretary regional mall in town has many benefits,” upgrade. During the past four years, nearly 80 Sara Stafford, KKE Architects, Inc. according to Bradley Schlossman, owner of projects on 35 city blocks have undergone DIRECTORS West Acres. “We are basically 100% leased, redevelopment. Wendy Aaserud, Madison Marquette Brett Christofferson, Weis Builders, Inc. and every retailer who can’t find space in the It has been a challenge for over 20 years for the Lisa Diehl, McDonald’s Corporation mall wants to be right next to us.” Recently Gary Jackson City of Moorhead to re-establish South bankrupt Kay-Bee toys is the only vacant space Kevin Krolczyk, Dalbec Roofing, Inc. Moorhead as a strong retail/commercial node. Bob Lucius, RSP Architects Ltd. in the 950,000 s.f. mall. West Acres is one of While the five-year-old Brookdale Shopping Mary Wawro, Ryan Companies US, Inc. the very best regional malls in the entire US in Center, anchored by a 66,000 s.f. Sunmart COMMITTEE CO-CHAIRS terms of sales per s.f., attracting customers Foods grocery store, is well occupied, the Awards from over a 100 miles radius, nearly 600,000- Brett Christofferson, Weis Builders, Inc. redevelopment efforts for the old Holiday Mall Ronn Thomas, United Properties person trade area. site in the northeast quadrant of I-94 and South Community Enhancement Wendy Aaserud, Madison Marquette Many big box and strip centers have developed 8th Street may well have been overly ambitious. Elizabeth Lee, The Wall Companies in the area around West Acres. Recent big box To date, the developers have completed a new Golf developments include: Home Depot, Lowe’s, Marriot Courtyard Hotel; several pad develop- Matt Alexander, Contractor Property Developers Co. Sam’s Club, Gordman’s, Scheel’s (announced). ments and a two-story ±125,000 s.f. retail/ Chris Hussman, Aspen Waste Systems, Inc. Gander Mountain, Sportsman’s Warehouse, and office building. The second story office space Legislative Wal-Mart expansion to Wal-Mart SuperCenter is mostly filled, but the first floor retail space is Howard Paster, Paster Enterprises are all under construction. Multi-tenant languishing and likely will be very slow until Todd Johnson, Steiner Development, Inc. Marketing developments include: The Colonnade, Pioneer the development attracts some major retailers. Peter Austin, Welsh Companies, LLC Center, Times Square, and 45th Street Kelly Slawson, RSM McGladrey, Inc. The east side of Moorhead along Highway #10 Marketplace adjacent to Home Depot. Three Membership is the second largest concentration of retail Kevin Krolczyk, Dalbec Roofing, Inc. major sporting goods retailers are building new space in the Fargo/Moorhead market. Wal-Mart, Nick Reynolds, Welsh Companies, LLC facilities around West Acres at the same time. Target, Kmart and Cash Wise Foods all located Newsletter Plans also call for a 150,000 s.f. power center Lisa Diehl, McDonald’s Corporation here to intercept the traffic from Detroit Lakes, Betty Ewens, Kraus-Anderson Co. next to the Home Depot within two years. Park Rapids and other areas of northwestern Program Infrastructure upgrades along 13th Avenue Minnesota. The retail activity remains strong, Tony Pasko, Bremer Bank South and 45th Street South with a new Peter Berrie, Faegre & Benson LLP but there has been little expansion since interchange at I-94 have alleviated congestion Research Slumberland and OfficeMax built stores Janet Goossens, Kraus-Anderson Co. in the shopping area. With many commercial approximately five years ago. Holly Rome, Jones Lang LaSalle Sponsorship Ned Rukavina, United Properties Bill McCrum, RSP Architects Ltd. Search Me U.P.C. Bar Code Turns 30 Technology Paul Sevenich, CCIM, Kraus-Anderson Co. Access America at www.accessamerica.org The U.P.C. bar code celebrated its 30th Cindy MacDonald, Kraus-Anderson Co. is a U.S. Chamber of Commerce program birthday this summer. The first U.P.C. bar MSCA STAFF initiated to help access to capital markets code was scanned on a pack of Wrigley’s Executive Director - Karla Keller Torp chewing gum at a Marsh Supermarket in Troy, (P) 952-888-3490 (C) 952-292-2414 for women and minority business owners. [email protected] Access America also facilitates strategic Michigan. The U.P.C. bar code was developed to speed up the checkout process and Associate Director - Stephanie Salo alliances and investments for these (P) 952-888-3491 (C) 952-292-2416 eliminated the need for manual pricing, which [email protected] entrepreneurs. resulted in lower-priced items. 8120 Penn Avenue South, Suite 555 Bloomington, MN 55431 (F) 952-888-0000 msca news 2004 3 www.msca-online.com RetailerIt Takes a Village: Profile The Department 56 Story by Albi Albinson, Architectural Alliance

nspiration for Department 56 was born More recently there has been a broadening Florida Mall in Orlando, Water Tower one Christmas Eve when a group of of themes to encompass the entire year, Place in Chicago and Pier 39 in San Ifriends marveled at the quaint, snow- including Halloween, Easter, Independence Francisco. There are plans to open more covered country inn they were visiting for Day and Valentine’s Day to name a few. In stores in selected locations as the appropriate dinner, imagery spurring conversations addition, everyday cultural icons, such as opportunities present themselves. about memories the tiny town had evoked. Krispy Kreme and Caribou Coffee can be Design-wise, Department 56 presented the The idea for a smaller scale, lighted found in their stores. challenge of creating a totally flexible Christmas village was discussed that night. environment that would showcase their Soon after, in 1976, the first products were merchandise while providing a sense of displayed in Bachman’s, which used a journey through the space. A serpentine numbering system to identify each pathway leading to the back of the store, department and the wholesale gift imports reflected in a similar ceiling treatment, division was identified as Department 56. multiple dioramas of product collections, Enormous success followed. a centralized cashwrap and a uniform Headquartered in Eden Prairie, Department fixturing concept provides the desired 56 has become a leader in the giftware, flexibility for their product groupings collectibles and holiday decorating and display. An architecturally detailed industry, and is best known for their Currently there are six retail flagship arched loggia design along the perimeter handcrafted lighted villages, Snowbabies stores. The first three built are in Mall of walls creates a consistent rhythm of bays figurines and extensive lines of holiday America, Downtown Disney in Anaheim to display the various collections. The and home decorative products. and Desert Passage in Las Vegas. In 2003, fixturing provides integrated power Historically the emphasis has been on Architectural Alliance was retained to capabilities and allows for variety in the winter scenes such as the Snow Village, develop a new brand image for their stores, assemblage of displays to properly Dickens Village, New England Village, and has developed a new design that has reinforce the desired brand image. Alpine Village and North Pole Series. been realized in three new stores, including www.department56.com

Press releases are printed based upon availability of SeptemberMember News space and relevance to the local market.

New Stores at Burnsville Center 7860-80 Century Boulevard in the KKE Working on Nicollet Plaza Arboretum Business Park in Chanhassen. Burnsville Center announces the addition KKE Architects, Inc. is working with Opus Tenants include CB Styles, Subway and of three new stores, Presents, Corda-Roy’s Northwest, LLC on Nicollet Plaza, a Metro Karate. and All Rustic, to the center’s tenant mix. mixed-use project located in the Heart of “We are very excited to bring three new Griffin to Market Best Buy’s the City redevelopment at Nicollet and concepts in to the center,” said Lisa Foss, Woodbury Store East Travelers Trail in Burnsville. The Burnsville Center Marketing Director. development includes a 20,000 s.f. “We believe our customers will enjoy these Best Buy has recently selected Griffin office/retail building, an 83,000 s.f. retail fun specialty stores.” Also scheduled to Companies to market for lease their 35,250 center ancored by Cub Foods, and 233 open this Fall is a 5,700 s.f. Ann Taylor s.f. store in the Shoppes of Woodbury units of housing. Construction will start Loft store, which will be one of the largest Village on Valley Creek Drive in Woodbury. early this fall with a projected summer in Minnesota. Best Buy is vacating the store to move to a 2005 completion date. new store in the Shoppes of Tamarack, a Steiner Completes retail center being developed in Oakdale. Directory Update Correction: Chanhassen Retail Center Shoppes of Tamarack is expected to open in April of 2005. The Valley Creek Drive The phone number for Robin Keyworth, Steiner Construction Services has location will be available for occupancy in Keyworth Company should have been completed a 10,000 s.f. retail center at spring of 2005 as well. listed as (612) 377-6774. msca news 2004 4 www.msca-online.com ProgramHome Furnishings Recap Industry by Peter Berrie, Faegre & Benson LLP

he home furnishings industry has Even though spending has been helped In the top 100 national furniture retailers, become increasingly fragmented because of high national housing sales, the following are based in the Twin Cities: Twith competition among traditional consumer spending on home furnishings is Gabberts, HOM, Room & Board, furniture stores, department stores, general less over the last ten years (0.97% in 1994 Slumberland and Select Comfort. Wight merchandisers (Target/Wal-Mart), specialty to 0.91% in 2003). Also, the percentage of believes that the recent addition of IKEA niche stores (Pier 1/Crate & Barrel), home sales from furniture stores has been will not have a big effect on the local shopping, limited-access stores (Costco), declining (from 78% in 1994 to 73% in market, but that it will attract many buyers and even non-furniture specialty stores, 2003) with warehouse clubs and general at the lower end of the market, especially such as Ann Taylor and Eddie Bauer. merchandisers becoming more popular younger and trendy shoppers. Wight sees Alvin Wight, President of Strategic places to buy furniture and home many growth opportunities in the Twin Decisions, a home furnishings market furnishings. Part of this trend results from Cities metropolitan area for existing strong research and consulting firm based in consumers’ indifference to the origin or furniture retailers, special format/trendy Thomasville, Georgia, spoke at the MSCA manufacturer of products. stores like Room & Board, accessory August 3rd program about current trends stores, single brand specialty stores, and Today, consumers are motivated by quality, in the home furnishings industry. home furnishing centers, centers that selection (size of store and types of style, including many specialty stores like a tile Changing Consumer but also specialty stores with lots of store or kitchen store. choices), convenience and service, Over the last ten years, the typical home perceived “value”, and immediate furnishings consumer has changed gratification (i.e. same-day delivery). dramatically. Presently, more couples are involved in the decision-making process, Retailer Perspective although 70% of decisions are still made Like the cliché, home furnishings retailers by women. Because consumers are now are concerned mostly about location, more time-constrained, they look for more location, location. Visibility and exposure convenience and “one-stop shopping.” are important because consumers won’t Consumers want to get in and out quickly stop if they can’t perceive from the street a when buying furniture. store’s large selection. Furniture retailers also want compatible retailers to increase floor traffic. Grocery stores typically do MSCA President, Mike Sims, congratulates Brooke for her winning t-shirt design for the not generate traffic for furniture stores, but 2004 Caring Tree Campaign. Brooke was clothing stores, with similar target markets recognized at the August program and received as the furniture store, do generate traffic. a back-to-school prize pack valued at over $300.

August Program Co-Sponsors Presenter Al Wight stands with program Benson-Orth Associates, Inc. provides moderator, Tom Madsen general construction and design/build services for a wide array of clients in The most important age segment for the retail, multi-family housing and furnishing sales is the 35-54 age group, but manufacturing sectors, and is one of the with our population aging and more people leading general contractors in the home buying second homes, the 55-62 age group furnishings industry. Tom Madsen and is becoming more important. This trend Tom Osterberg are pictured. will only increase because of the anticipated huge transfer of wealth through inheritance, Kraus-Anderson Construction which is typically received by older adults. Company specializes in providing general A major challenge of home furnishing construction, design/build and retailers is convincing people to become construction management services, more fashion-oriented about their facilities planning and management, and furniture, and to replace it more often small project expertise. Jennifer Parent based on style and trends, rather than if it and Natalie Price are pictured. is worn-out or broken. msca news 2004 5 www.msca-online.com Retail Sales Bounce Back in Committee Profile July as Parents Prepared for The Caring Tree Board Back-to-School Consumers took a breather in June but Officers: President – David Stradtman, SuperValu, Inc.; Vice President – Michael were back in the stores in July, shopping Sims, United Properties; Secretary – Deb Garvey, Garvey Communications; at general merchandise, sporting goods Treasurer – Whitney Peyton, CB Richard Ellis and furniture stores. “The strength of Directors: Kathy Anderson, Architectural Consortium LLC; Peter Austin, Welsh July sales demonstrates that June’s Companies; Martha Capps, Capps Companies, Inc.; Kelly Doran, Robert Muir weakness was simply a blip on the Company; Linda Fisher, Larkin, Hoffman, Daly, & Lindgren, Ltd.; Tom Hardin, radar,” said National Retail Foundation CEAP; Valjean Levercom, Boys & Girls Club; David Molda, Adolfson & Peterson (NRF) Chief Economist Rosalind Construction; Clarissa Walker, Sabathani Community Center Wells. “July’s sales indicate that retailers are clearly poised to benefit Staff: Karla Keller Torp, Executive Director; Stephanie Salo, Associate Director from healthy back-to-school sales.”

he Caring Tree 2004 Board of lengthen and families struggle with layoffs July retail sales released by the U.S. Directors has been making strategic and job loss, many Minnesota children Commerce Department showed that Timprovements to the back-to-school find themselves ill-prepared to return to total retail sales rose 0.7 seasonally program that was created by the Minnesota school. The 2004 back-to-school adjusted over June and increased 7.1 Shopping Center Association in 1993. As Campaign has ended at participating percent unadjusted year-over-year. “Not you may have noticed, The Caring Tree has shopping centers, Herberger’s/Younkers only is July a transitional month, it is a changed its name (formerly Caring Tree stores and Cub Foods, but The Caring Tree clearance month,” said NRF President Foundation) and updated its mission continues to accept bulk school supplies and CEO Tracy Mullin. “Apparel has statement: The Caring Tree promotes and financial contributions to assist been so strong this year that, by July, education success for Minnesota’s K-12 students in need. Visit www.caringtree.org there was not much merchandise for students in need by ensuring that they have for more information on how you can clothing stores to mark down.” the appropriate school supplies. participate. Look for The Caring Tree’s Back-to-school final sales will not be 2004 program results in the MSCA As more educational cuts rampage our in until the end of September. The October News. schools, required school supply lists NRF is forecasting sales growth for 2004 to grow 6.0 percent over last year.

2004 Schedule of Events Member Profile Our monthly program meeting date Wendy Aaserud is the first Wednesday of the month (with the exception December). All Occupation: Job History: Madison Marquette since meetings will be held at 8:00 a.m. at Commercial Property 1995; Prior ten years in the Multi-Housing the Sheraton Bloomington Hotel unless Manager industry otherwise noted or publicized before the program. Program topics and Primary Career Very First Job: Burger King and Dayton’s location are subject to change. Focus: Retail Ticket Office Property October 6 – Mall Focus: Calhoun Dream Job: Current Position (I love real Management Square estate!) November 3 (Afternoon) – Annual Company: Madison Marquette Realty Favorite Food: Italian and most desserts Retail Real Estate Report Services MSCA Involvement: MSCA Board of December 7 (Tuesday Evening) – Title: Senior Property Manager Directors; Community Enhancement Year End Ceremonies/STARR Hometown(s): Ramsey, MN and Brooklyn Committee Co-Chair Awards/Holiday Party Center, MN Education: A.A.S. in Law Enforcement, Bookmark North Hennepin Community College The Future of Work: How the New Order of Business Will Shape Your Organization, Family: Husband, Dave and Sons, Ryan Your Management Style, and Your Life by Thomas W. Malone sketches out what (19) and Adam (15) your work life may be like in the near future, whether you are ready or not. He extrapolates from historical patterns and trends in the present world of business to Hobbies: Travel, dancing and reading discover what the future may hold. msca news 2004 6 www.msca-online.com FeaturedThank Corporate You! Sponsors

The Collyard Group L.L.C. J.L. Sullivan Construction, Inc. Company Vision: To be the leading merchant real estate developer of community Industry Focus: Mixed-use land Industry Focus: Design/build, general shopping centers in the Midwest, providing development including medical, retail, contracting and tenant improvements. our customers retail space for the lowest restaurant and entertainment brokerage. Company Vision: To provide outstanding possible cost with our open book Company Vision: To perpetuate the commercial construction expertise and development approach and processes. equation that Competency plus service which exceeds our customer’s “MSCA provides a link to our customers, Performance equals the Success of needs and expectations. industry peers and continues to provide us Client and Company. “MSCA presents an excellent forum for insight on the Minnesota retail industry.” “MSCA provides us with critical understanding our clients needs and building Jay Moore educational updates salient to the industry, long-term relationships.” John L. Sullivan Ridgedale Center as well as a platform for networking and business camaraderie.” Gary Collyard M & I Bank Industry Focus: We operate more than 150 properties encompassing retail, office, Faegre & Benson LLP Industry Focus: The Bank’s commercial real estate group primarily focuses on research and development, and industrial Industry Focus: Faegre & Benson offers construction and term loans. space in 22 states. the largest team of lawyers serving the Company Vision: Full-service commercial Minnesota real estate community. Company Vision: To improve the quality bank with significant emphasis in of life in communities where we operate, Company Vision: Service and commercial real estate lending. provide people in the Company with responsiveness. Named among the top “We value the time spent with our opportunities for fulfillment, and produce U.S. law firms for client service two years customers and friends, as well as the financial results that will reward those who in a row. opportunity to meet new people. MSCA invest with us. “We have a long and successful also enables us to keep abreast of changes “MSCA provides us with information that relationship with MSCA, including both in the industry and market.” Mark Johnson is relevant to our industry. The program- the organization and its members. They’re Oppidan, Inc. ming and networking opportunities are a valued client and a major face for the outstanding.” Laurie Paquette economy in our region.” Richard Forschler Industry Focus: Grocery/big box retail community center development. J.L.

AroundRetail Tidbits the Marketplace compiled by Tim Hilger, Diversified Acquisitions, Inc.

● Target Corporation has a definitive ● The Connecticut Supreme Court ruled OshKosh anticipates 14 stores by year end agreement to sell the 257 Mervyn’s store that commercial landlords can restrict and 25 additional in 2005. chain to an investment group for $1.2 noncommercial speech inside their ● A court-appointed special master shopping centers. Similar rulings have billion. The investment group consists of decided in favor of the Ghermezian family been decided in New York, Pennsylvania, Sun Capital (the Musicland buyers), in their dispute with Simon Property Minnesota and other states according to Cerberus Capital Management and Group in the ownership interest and the ICSC’s Xtra publication. Lubert-Adler and Klaff Partners. Their management of the . plans are to operate the retail business and ● Traditional children’s retailer OshKosh ● Lunds and Byerly’s became the first close only the poor performing stores. is expanding its customer and product base Midwest supermarket to gain organic May Department Store closed on the by adding a chain of “family lifestyle certification for its produce departments purchase of the Marshall Field’s in July. stores,” offering clothes for the entire family. and produce distribution center. The May also owns After Hours Formalwear, Maple Grove, MN, Colorado Springs, Co., program is called Living Wise. David’s Bridal, Gary’s Tux Shop, Gingiss Marietta, GA, Plano and Southlake, TX are Formalwear, and Priscilla of Boston. the first stores of this new concept. Tidbits continued on page 8 m msca news 2004 7 www.msca-online.com Minnesota Shopping Center Association 8120 Penn Avenue South, Suite 555 Bloomington, MN 55431

MARK YOUR CALENDAR! 2004 Retail Report Released

on November 3rd

7.3%. Total sales were less than revised than less were sales Total 7.3%. pay spectrums, such as assembly and other and assembly as such spectrums, pay

expand and be sold again in a few years. few a in again sold be and expand

discounting, however, total sales increased sales total however, discounting, losses have been in mid to lower end of the of end lower to mid in been have losses

insiders are speculating both chains could chains both speculating are insiders

store sales fell 1.8% due primarily to heavy to primarily due 1.8% fell sales store medical and professional. The largest The professional. and medical

investment group for $1.5 billion. Industry billion. $1.5 for group investment

reported that first quarter same quarter first that reported 1 Pier added in top paying jobs like construction, like jobs paying top in added

● ●

was recently sold to another three partner three another to sold recently was

that a large number of jobs have been have jobs of number large a that

Lowe’s Cineplex Entertainment Cineplex Lowe’s billion. ignored. have competitors primary

Bureau of Labor Statistics reports shows reports Statistics Labor of Bureau

for $2 for Management Apollo and Partners their which markets, small targeting

occurring. Great news for retailers. The retailers. for news Great occurring.

JP Morgan JP to chain Theatres AMC now are they announced dinning, casual

indicate a strong economic recovery is recovery economic strong a indicate

is selling its 232 its selling is Entertainment AMC of chain growing fastest the , Applebee’s

● ● ● Manufacturers Alliance Manufacturers the and Statistics

Bureau of Labor of Bureau the from Reports as a fashionable, edgy and affordable. and edgy fashionable, a as 2004. October by completed be should ● ●

marketing emphasis into its private brands private its into emphasis marketing purchase The stores. 47 has Galyan’s

downgraded to “junk.” to downgraded

As a result, the retailer is putting more putting is retailer the result, a As and stores 216 has Dick’s million.

billion in outstanding debt, have been have debt, outstanding in billion

fashion sales are in its private label brands. label private its in are sales fashion Company Trading Galyan’s for $362 for

13 companies, with a combined $11.5 combined a with companies, 13

reports that 40% of its of 40% that reports JCPenney acquiring is Goods Sporting Dick’s

● ● ● “junk” status to their credit ratings. Only ratings. credit their to status “junk”

fewest number of companies it has given has it companies of number fewest identification tags (RFID). tags identification their product designs. product their

that through midyear 2004 its has had the had has its 2004 midyear through that equipped with radio frequency radio with equipped manufactures are acknowledging this in this acknowledging are manufactures

credit and bond rating agency, reported agency, rating bond and credit distribution centers and 850 stores 850 and centers distribution purchase of these household items, and items, household these of purchase

, the U.S. leading U.S. the , Poors and Standard 2005 it will have approximately 19 approximately have will it 2005 become a vital decision contributor for the for contributor decision vital a become ● ●

announced that by the end of end the by that announced Wal-Mart electronics and other items. Women have Women items. other and electronics

● ●

in Albertville, MN. Albertville, in Outlets

items, including vehicles, adult toys, adult vehicles, including items,

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