AGENDACOMMUNITYCOMMIT TEE December 16, 2020
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Committee Members: Frank Menn Ryan Vickers Brenda Wagner Harry Zimmerman Bill Poletti A G E N D A C O M M U N I T Y C O M M I T T E E December 16, 2020 – 7:00 p.m. Fairview Heights City Hall 10025 Bunkum Road Recreation Room at City Hall (Door entrance is on the south end of the City Hall Bldg. Parking behind the Police Department) 10025 Bunkum Road Fairview Heights, IL 62208 or via Webex or conference call Phone Number: 1-650-215-5226 Access Code: Public Participation Approval of Minutes – Parks & Recreation Alderman Brenda Wagner, Chairman 1. Director’s Report Development Alderman Bill Poletti, Chairman 1. Director’s Report Planning Alderman Harry Zimmerman, Chairman 1. Director’s Report 1 INTER OFFICE MEMO TO: Elected Officials FROM: Angela Beaston, Director of Parks and Recreation DATE: December 11, 2020 SUBJECT: Parks & Recreation Committee Agenda Overview Director’s Report: The following is a synopsis of the Parks and Recreation Department: Parks and Recreation Department: The Recreation Department continues to operate with very limited resources due to the impact of Covid-19. As a Department, the decision was made to postpone all programing and reservations until May 1, 2021, in hopes that the restrictions will open up for sporting and recreational activities. Parks Department: Reservations for 2021 will start on January 1, 2021, we will take reservations for each of our rental facilities for dates after May 1, 2021. The REC Complex: The REC continues to operate under limited hours until the demand is met to extend the hours for usage demands. The last Covid mandates have definitely slowed the daily usage number but the facility does still continue to see the purchase of new memberships. The REC will continue to allow members to freeze their accounts without a penalty until March 2021 due to Covid. MEMORANDUM TO: Elected Officials FROM: Paul A Ellis, Director of Economic Development DATE: December 11, 2020 SUBJECT: Economic Dev. Dept. - Director's Report St. Clair Square 1. CBL Properties, owner and operator of St. Clair Square, is transforming its retail portfolio nationwide as it works through Chapter 11 restructuring. 2. Major national tenants like JC Penney and stores from Ascena Retail Group have successfully worked out solutions to financial woes that had driven them into bankruptcy and have regained stability (for now). 3. Other than the shutdown period in April and May, St. Clair Square has seen a steady flow of shopper traffic, albeit at a significantly lower volume than in years past, and the mall outdraws other retail centers outside Fairview Heights in the Metro East. 4. Redevelopment plans have been prepared but are being held up by the refusal of Transformco (formerly Sears Holdings) to offer the former Sears store, which they own but have left empty, for sale for a reasonable price. 5. Local mall management has reached "out of the box" to promote increased shopper traffic via, among other strategies, providing parking lot space for COVID testing and, in the new year, vaccine distribution. 6. The Director continues to work with General Manager Michael Hagen and other representatives from CBL Properties to seek out ways to update and diversify the mall's offerings and to increase sales per square foot. Business Creation 1. The Metro East Business Incubator (MEBI) is about to launch its virtual platform via Startup Space and assemble clients; a formal kick-off for the MEBI and its services is planned for the second week of January.• 2. The Director is working with real estate brokers and investors to identify and purchase underperforming commercial properties so as to make more space available for startups emerging through the Metro East Business Incubator (MEBl).W Business Recruitment 1. The Director continues to work with property owners and real estate brokers to find and/or facilitate retail tenants as spaces become available; current projects included: a. 15 Ludwig Dr. - restaurant space vacated by TBD Social; b. 81 Ludwig Dr. - big box vacated by Gordman's; c. 6101 N. Illinois St. - box vacated by Pier 1 Imports; d. 10716 Lincoln Trail - former Fortel's Pizza Economic Dev. Dept. - Director's Report (continued) 2. For the longer term, the Director has been working with property owners to increase the amount of retail space available by means of division of parcels consolidation of smaller lots and/or new construction, including: a. 4101 N. Illinois St. - subdivision of an existing parcel to support new retail uses; b. 6100 N. Illinois St. - construction of a new retail box in the parking lot adjacent to Kohl's; c. East side of N. Illinois St. - consolidation of smaller parcels to support construction of a new strip center 3. The Director is also working on even longer term projects with significant potential retail sales impact, including: a. Project Vagabond, a large acreage sales facility hoping to consolidate parcels on the north side of 1-64; b. Project Pantry, a big box retailer exploring new development in the 72 acres across from The Fountains. Business Retention 1. Through the holiday shopping season, the Director has been working with The Fource and local merchants to boost sales per square foot via venues like the "All In" campaign and various other social media promotions.•. 2. The Director has been working to inform local retailers about the new retail and hospitality training programs offered through the CALC Institute of Technology to retail and hospitality employees.• Paul A. Ellis Director of Economic Development Attachments: a. JV places major bets on malls [Shopping Centers Today] b. Record Surge in Business Startups [BarberMURPHY Group] c. Thanksgiving weekend shoppers preferred online [Shopping Centers Today] d. Elure Beauty Supply perseveres and expands amid pandemic [Illinois Business Journal] Also for Review (will be sent separately): Development Dashboard - December 2020 November 22, 2020 JV places major bets on malls By Ben Johnson Contributor, Shopping Centers Today COVID-19 is putting a major strain on most U.S. shopping centers and malls, but one group of investors is taking the opportunity to pick up assets and reinvent them to benefit local communities. Namdar and Mason Asset Management formed a joint venture 10 years ago to acquire well located retail properties, primarily shopping centers and enclosed malls, whether they are stabilized or value-add opportunities. Their deals range from $5 million to $150 million. Namdar focuses on the financial and property management side while Mason handles leasing, sales, asset management, redevelopment and marketing. Together, they own and manage over 180 properties, including around 60 malls, totaling more than 55 million square feet. The partners have been on a shopping center binge this year, buying: • Belknap Mall in Belmont, New Hampshire • Berkshire Mall in Wyomissing, Pennsylvania • Concord Mall in Wilmington, Delaware • Eastdale Mall in Montgomery, Alabama • Hickory Point Mall in Forsyth, Illinois • Meriden Mall in Meriden, Connecticut • Mesilla Mall in Las Cruces, New Mexico • South Park Mall in San Antonio • Tops Plaza in Cortland, New York • West Valley Mall in Tracy, California • Westgate Mall in Amarillo, Texas Namdar and Mason have a playbook once they acquire a shopping center. "When we acquire a new property, we often take an aggressive leasing approach to bolster the tenancy in place with new opportunities, and it's our goal to continue to add value by further leasing and developing the site," said Mason Asset Management president Elliot Nassim. "To that end, we look at all sorts of tenant options and the associated credit risk. We work right alongside our tenants to create new concepts and strategies to attract patrons. Our goal is always to capitalize on the value for local communities, regardless of the present state of a mall." Additionally, "redeveloping those properties to optimal performance is always the goal," he said. The JV's redeveloped properties often include mixed uses: traditional retail, entertainment like bowling alleys and theaters, fitness centers, office and residential. "The partnership works diligently to determine what use for the property will best benefit the surrounding neighborhood and reinvigorate the local community," Nassim said. The pandemic also has given the partners an opportunity to invest beyond real estate. Recently, they purchased Jennifer Furniture. It has six locations in New York and New Jersey, and the JV is looking to grow the footprint throughout the country. "While the pandemic has made many asset classes vulnerable, Jennifer Furniture is a well-known brand that is well-positioned for growth," Nassim said. "Especially with more people working from home, we see the home furnishings and decor market segment as one that is poised for growth." The JV also acquired Goodrich Quality Theaters, which has 22 locations in Michigan, Missouri, Illinois and Indiana. "We feel that the theater industry is currently characterized by significant pent-up demand, and we anticipate that people will want to go out for entertainment when it is safer to do so," said Nassim. Looking ahead, he sees no slowdown in retail property acquisition targets. "Given the nature of this year, we expect to see a flurry of deal flow in early 2021," he said. December 4, 2020 Thanksgiving weekend shoppers preferred online shopping By Brannon Boswell Executive Editor/SCT The pandemic had a chilling effect on traffic at shopping centers on Thanksgiving weekend as consumers stayed home and used their smartphones and laptops to shop. According to the National Retail Federation, in-store shopping was down, given both COVID-19 and the number of retailers that opted to close on Thanksgiving Day. As consumer traffic moves to online channels, the number of in-store shoppers on Thanksgiving Day dropped by 55 percent from last year and by 3 7 percent on Black Friday.