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Outlet Plans at Riverwalk Draw Doubts Developers Bank on High-End Stores to Revive Struggling Mall

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Outlet Plans at Riverwalk Draw Doubts Developers Bank on High-End Stores to Revive Struggling Mall New Orleans $2.00 THE BUSINESS NEWSPAPER OF METROPOLITAN NEW ORLEANS AUGUST 3-9, 2012 Outlet plans at Riverwalk draw doubts Developers bank on high-end stores to revive struggling mall By Jennifer Larino Staff Writer [email protected] THE RIVERWALK MARKETPLACE in downtown New Orleans has been a textbook example for the rise and fall of the American mall since developers first envisioned the retail center on the Mississippi River after the 1984 World’s Fair. The Howard Hughes Corp., which took owner- ship of the mile-long property in 2010, will take another crack at the facility later this year when it invests $70 million to redevel- op it as an upscale urban retail outlet with entertainment and dining. The project will be one of the nation’s first outlet concepts in an urban center. Technical The model has traditionally thrived in suburban and rural areas where developers can inexpensively build large cen- ters and attract low-margin, PAGE 9 high-volume tenants. UPTOWN GROWS Retail analysts call the AS AN OPTION move a gamble with a lot rid- TO MALLS Difficulties ing on the caliber of tenants developers can attract, but PAGE 7 some real estate experts feel the plan will work. “I think what they’ve come up with is a homerun, actually,” said Marty Mayer, CEO of Stirling Properties, which owns Clearview Mall in Metairie and is developing the Mid-City Market. No one questions the Riverwalk’s location, wedged between the French Quarter and the Convention Center, is prime retail real estate, Mayer said, but it has LOCAL IT SERVICE long been in limbo trying to compete with traditional malls such as Lakeside Shopping Center, Clearview FIRMS FACE NEW and The Esplanade. The outlet concept is more con- ducive to the space, he said, and allows its owners to COMPETITION FROM introduce a different retail mix to local shoppers and the 8 million visitors the city sees each year. But Pamela Kennett-Hensel, a marketing profes- APPLE, BEST BUY sor who studies retail at the University of New Orleans, is unsure the property is outlet-friendly. She said malls such as the Tanger Outlets in Gonzalez, the Gulfport Premium Outlets in Mississippi and See RIVERWALK, page 8 PAGE 5 ON THE BLOCK Tourism rebound can’t save hotel from auction Visit our website at PROJECT PROGRESS PAGE 12 www.neworleanscitybusiness.com State dips toe into design-build at ports Boost your business with an ad in the 2012-13 Jefferson Chamber Membership Directory Take advantage of this opportunity to position your company in front of Jefferson Parish business leaders and decision makers. For advertising information, please contact Liz Baldini 504.293.9213 • [email protected] www.neworleanscitybusiness.com New Orleans CityBusiness August 3-9, 2012 3 Editor’s Notes Greg LaRose Dents, dentistry and discovering good customer service IN THE PAST WEEK, I have been forced to it was time to face the Muzak. account. But I still had reserva- the accident with a question: “How are you?” do two of my least favorite things — visit the There appears to be two tions about what my experience Not “are you OK?” or “did you get hurt?” but dentist and file an auto insurance claim. Now schools of thought in running a would be like if I ever had to file “how are you?” that I’ve arrived safely on the other side of both dentistry business. One calls for a claim online. What a small but personal difference the appointments, I’m happy to report customer opulent surroundings and When I recently For the record, I’m not choice of words makes. service is alive and well. Cadillac-caliber services, while against working with a local It will be another week before I get my vehi- I can’t mention the businesses involved for the other offers quality care in a realized I’ve wasted agent. My home and flood cle back from the shop, but the insurance com- ethical reasons, but I can share why my experi- more austere environment. My money on a really insurance are handled in town, pany has made the process as painless as possi- ences, which had the potential to be absolutely preference is the latter because I and I have nothing but glowing ble. Again, I was never made to feel as though I awful, have me signing their praises. walk away from appointments good dental plan for reviews for my representative was neglectful or causing trouble. I don’t plan First, I’m not sure who actually looks for- feeling as though I didn’t just who has gone the extra mile. on being a repeat customer at the claims cen- ward to going to the dentist other than some- foot the bill for the giant flat six years, it was time I went more than five years ter, but I now have that peace of mind that I one in severe pain. It’s not that I’ve ever had a screen TV in the waiting room. to face the Muzak. without needing to file a claim on lacked five years ago. bad experience during a checkup or proce- In addition to a comfortable my auto policy — until last week. As for the dentist, I have to make two dure, and my dental health history is rather Spartan setting, my recent trip to On the day of the accident, I return trips in the next month or so for rou- unremarkable. Other than one dentist who the dentist was made more pleas- spent a little more than an hour tine maintenance. I’m actually close to saying made an Amway pitch while I was in his chair, ant by the fact that no one gave me a hard time on the scene before being able to return to my I’m look forward to it there’s nothing I can say bad about the profes- about my extended hiatus. office. When I got to my computer, I had largely because of how I sion as a whole. I even went back to Dr. As for my auto insurance claim, this marked already received an email from my insurer was treated. Amway because he was a good enough dentist the first time in 13 years I was involved in an acci- informing me a claim was filed. Granted, I But check back with to overlook that breach. dent. Back then I relied solely on the telephone would have rather not been in the accident in me when the anesthetic It has always been convenient for me to find for contact with my carrier. Since then, I have the first place, but there was some satisfaction in wears off.• an excuse to skip a visit here and there: I’ve just done my insurance shopping on the Internet. knowing the process was underway. started a new job; I’m new in town; the sun rose It was an easy decision a few years ago when Later in the day, I received a phone call Editor Greg LaRose can be today. But when I recently realized I’ve wasted going through a local agent would have added from the insurance company, and the claims reached at 293-9299 or money on a really good dental plan for six years, another $200 annually to the cost of my representative started the conversation about [email protected]. YOU You play a lot of positions in life. That’s why we created – patient-centered care that makes you #1. At Blue Cross, we want to make sure you’re not sidelined by illness. So we keep you in the game with: ë'LVFRXQWVRQJ\PPHPEHUVKLSVDQGQXWULWLRQSURJUDPV ë,QWHUDFWLYHRQOLQHKHDOWKWRROVDQGWUDFNHUV ë:HOOQHVVEHQHILWVIRUURXWLQHWHVWVDWQRH[WUDFRVW YOU The science of putting YOU first. 01MK518601MK5186 06/1206/12 7ROHDUQPRUHDERXWRXUZHOOQHVVEHQHILWVYLVLW7ROHDUQ PRUH DERXW RXU ZHOOQHVV EHQHILWV YLVLW www.bcbsla.comwww.bcbslaa.coa.comoom. www.neworleanscitybusiness.com 4 New Orleans CityBusiness August 3-9, 2012 INSIDE 15 12 18 NEWS SPECIAL FEATURES FOCUS Health Care 5 Pilot program takes first step toward public design-build 8 Construction Central: Industry 18 Meditation helps cancer patients cope with disease, stress Cover Story may not recover in 2013 21 Lists: Diagnostic imaging centers 7 IT firms face big name competition for small business clients 10 Business Dashboard 12 Tourism rebound not enough to keep FQ hotel afloat 11 CityBit 14 Typos torment efforts to revamp business park 15 Dining Out: Mr. Gyros excels at more than its namesake OPINION 23 Around Town: People moving up, calendar, building permits 16 Editorial: Unfair TAG program is best left to expire www.neworleanscitybusiness.com New Orleans CityBusiness August 3-9, 2012 5 PHOTO BY FRANK AYMAMI The New Orleans Cold Storage facility at the Port of New Orleans was built using the design-build process, which combines architecture, engineering and construction in one contract. PROJECT PROGRESS Pilot program allows ports to use design-build By Ben Myers port interests to create a pilot program that allows no more Staff Writer than 10 new design-build projects for cargo transport, pro- [email protected] duction, storage or manufacturing. Whether Louisiana moves in the direction of Texas, DESIGN-BUILD CONTRACTING is expanding at which uses design-build for all public projects, remains to be Louisiana ports, if only in a limited fashion. seen. But the pilot program marks a noteworthy consensus Engineers and architects in the past have objected to the among parties previously at odds over the approach. method, which allows government agencies to award a sin- The linchpin for engineers was a requirement that gle contract for simultaneous design and construction on public works projects.
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