entertainment events issues music art hilltopics δΈ€ the university daily kansan monday < 2.15.99 < eight.a < Peeling the core *The recent expansion of Kmart, 3106 Iowa St., is just one example of the building boom on South Iowa Street. This area, which includes Wal-Mart and SuperTarget, drew almost $200 million dollars in 1997. 91409 1324 8917 Some economists warn that the overbuilding in other parts of Lawrence may hurt downtown retailers. KU professor warns that unchecked retail development in Lawrence will deteriorate downtown businesses story by nadia mustafa photos by augustus anthony piazza Commercial zoning in West Lawrence continues with the recent addition of this shopping mall located at Sixth Street and Wakara Drive. Maude Beswick misses the traffic that used to pass through the retail outlet she has worked at for two years. "Sales have dramatically decreased over the past two years," said Beswick, West Palm Beach, Fla., junior, who works at the Bass Outlet in the Riverfront Plaza. "We used to be a huge volume store, but last year's sales were mediocre, and this year's sales are only half that. Things have really gone downhill." The deteriorating situation in the Riverfront Plaza is not unique. Lifeless strip malls and pothole-laden parking lots may become the fate of other areas of Lawrence, including 23rd Street, if the city continues to allow commercial development at a rate that exceeds consumer spending, said Kirk McClure, associate professor of architecture and urban design. Although most city officials disagree, McClure predicts that Lawrence is riding on the coattails of a national overbuilding trend that lets retailers and excess strip malls steal a disproportionate amount of consumer dollars. This could cause older businesses to fail and commercial property to deteriorate. "People think 23rd Street is ugly now," said McClure, who released a study this summer about the dangers of rapid commercial development in Lawrence. "Just wait until they see it with potholes and deteriorating storefronts." The "big box" retailers threatening smaller Lawrence businesses are well known to University students. They include stores on South Iowa Street such as Kohl's, 3240 Iowa St., Super-Target, 3201 Iowa St., JC Penney, 3311 Iowa St., Sears, 2727 Iowa St., and Martt, 3160 Iowa St. McClure said that because consumers searched for convenience, product availability and lower prices, it was inevitable that larger discount stores such as SuperTarget, 3201 Iowa St., and Wal-Mart, 3300 Iowa St., would be the beneficiaries of the shift in consumer spending. But he said commercial strips and neighborhood centers such as the Mall Shopping Center, 711 West 23rd, and Tower Plaza on South Iowa Street should not be allowed to grow so rapidly that they damage the revenue earning capacity of existing shopping districts. When asked about the dangers posed by commercial growth, several students said they were most concerned with preserving the vitality of downtown. "My sense was that there was no demand for those extra strip malls." McClure said. "Now we're overbuilding in apparel and accessories." "The atmosphere of Lawrence as a college town is due to its small businesses," said Brady Swenson, Topeka sophomore. "It's worth more to save that identity than to save a quarter on Kool-Aid." "The atmosphere of Lawrence as a college town is due to its small businesses. It's worth more to save that identity than to save a quarter on Kool-Aid." Brady Swenson Topeka sophomore But, McClure said that most downtown retailers have already hit rock bottom and that those businesses were now experiencing a commercial resurgence of a different type, such as the establishment of coffee shops, eateries and places of entertainment. He said the first floor of Riverfront Plaza, which was originally built to help revitalize the downtown area, was now host to Sprint Telecenter, a minimum-wage telemarketing outfit. McClure said this was a sign of commercial failure. David Longhurst, general manager of the Riverfront Plaza, and president of Downtown Lawrence Inc., 900 Massachusetts St., said he had no doubt that the city was overbuilt. He said the addition of other outlet malls, such as the Tanger Outlet Mall, 1035 North Third St., affected the Riverfront Plaza. "The number of square feet of outlet space has expanded beyond what this region can support," Longhurst said. "The City Commission has been unable to say 'no.' So we decided to consolidate retail space into the plaza's top two floors and rent the bottom floor out to Sprint as office space." McClure said he was more concerned with other areas of town such as Southern Hills Mall at 23rd and Louisiana streets, and the mall on the corner of 19th and Haskell streets that may soon be on the verge of commercial failure despite a booming economy. "Low revenue generators are occupying space in those strip malls. The rent they pay is lower that what is needed to keep the buildings aflat, but some rent is better than none at all," he said. "It's hard to get the city to realize that this is happening even in good economic times." "There is some shifting that we have to do, but we'll always have that neighborhood to serve certain products and services to," he said. "Location is still key." Williams said that he felt the presence of new commercial development but that competition was something everyone wanted. Sean Williams, owner of the 19th Street center strip mall that recently lost a major tenant, said the loss presented a short-term challenge. "Lawrence has become much better by virtue of a growing number of option as it grows commercially," he said. "We have a lot of retail options, but I think the marketplace will catch up in time." Williams said that as a consumer, he was in favor of growth but that he did not want to see older businesses shut down. "I like going to JC Penney's, but I also like going to Weaver's on Massachusetts Street." he said. McClure said the city must weigh the immediate advantages of commercial development versus its long-term effects. As consumers do more shopping in South Lawrence, older businesses in other parts of town that are unable to compete slowly deteriorate and eventually shut down. The city loses property tax revenues and taxpayers end up footing the bill to repair unkept commercial space, McClure said. Erv Hodges, city commissioner, said he was awaiting the market results of 100,000 square feet of recent commercial development on South Iowa Street, but he did not think that Lawrence was overbuilt. McClure said that even though Lawrence was overextended in terms of retail space, its current commercial atmosphere was healthy. His study predicted that the level of consumer spending per square foot of retail space would stabilize, but at a low level. McClure said the city must watch signals to prevent overbuilding within the next few years and not allow more "I regret that there is an assumption that we're overbuilt," Hodges said. "We cannot protect retailers. They must adapt to competition." than 200,000 square feet of new commercial development each year. McClure's study showed that South Iowa Street retailers drew $200 million in sales during 1997, almost as much as retailers on West 23rd Street and in downtown combined. South Iowa Street captured 32 percent of consumer dollars in 1997, while downtown received 18 percent and East 23rd Street collected only three percent. The City Commission has been consistently pro-growth, but recently it adopted McClure's report as a formal aspect of its commercial zoning process. In addition, the city now requires a market study from new retailers detailing potential economic effects on existing retail areas. The commission is also awaiting a report that will suggest ways it can assist small businesses. "In general, blight is a fairly long process," McClure said. "It takes longer than the time an official sits on the City Commission, so it's hard for them to say 'no' to development just because of some mustached professor's projections." Bonnie Augustine, city commissioner, said that she was not particularly worried about overbuilding right now, but agreed that it was an issue that needed to be addressed. He said that if 1998 did not turn out to be a growth in spending year, Lawrence would not be able to absorb its new retail growth. "Overbuilding is something we need to be vigilant about in order to preserve the quality of our city," she said. lengong I'm rere b"