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Sept. 18, 2009
Chandler changing business plan to meet economic times
By Councilmember Matt Orlando
Chandler’s reputation as an environment where businesses can thrive, coupled with the lowest sales tax rate in the Valley, enable us to retain a competitive advantage despite the economic downturn. However, we cannot ignore the fact that the economy has affected the Chandler business community – as it has communities all across the country.
Negative economic reports tend to obscure some of the successful developments in our City. There is no denying that bankruptcies and closures of major anchor stores like Mervyn’s, Circuit City, Linens N Things, and more recently Bashas’ Supermarkets are adding tremendous pressure to an already weakened retail market.
Vacancy rates in the commercial sector have escalated rapidly this past year and the road to economic recovery may be painful, but Chandler continues to be well positioned to maintain a strong retail sector. Chandler’s Economic Development staff works diligently to promote Chandler as a desirable community for business – a critical effort given the difficult times.
Despite the current economic slowdown, there are several positive signs for Chandler. In fact, several restaurants have opened or announced their intention to open soon. Native New Yorker recently opened at Mill Crossing, just south of Crossroads Towne Center, while Sandbar Mexican Grill has replaced Bahama Breeze at Chandler Pavilions.
Buffalo Wild Wings recently opened in the former Red Kilt location at Chandler Fashion Center, and a new Chick-fil-A will be built nearby on the site of the former TGI Friday’s at Chandler Festival.
Additional restaurants will include Kiley’s Grill, which is replacing the former Garcia’s restaurant on Alma School between Warner and Elliot roads; Juice – The Wine Café at Downtown Ocotillo; and Siracha Lounge - an Asian fusion restaurant on the square in Downtown Chandler.
BuyBuy Baby has replaced Linens N Things at Chandler Festival. A Subaru dealership is near completion at the Chandler 202 Auto Park on the Santan Freeway, while nearby a Sears Appliance store recently opened and the City’s first JC Penney store is expected to open during the first week of October.
In addition, Jump Street, a family entertainment facility that provides wall-to-wall trampolines, intends to open in early October near the southeast corner of Warner Road and Arizona Avenue. The City has also been informed that the former Circuit City at Chandler Gateway and Robb and Stucky near Chandler Pavilions are in active negotiations for new tenants.
Success in attracting quality retailers like these is one of the reasons why Chandler is performing better than the Phoenix metropolitan area as a whole.
Still, the downturn has forced the City to reevaluate our strategies for attracting and supporting businesses while looking for innovative ways to revitalize older retail centers.
One of the City Council’s priorities for the next few years is to address large retail space vacancies. Economic Development staff has drafted a plan that outlines objectives and implementation strategies focusing on the recruitment of major retailers through trade shows, direct contacts and public relations campaigns, as well as promoting the new Infill Incentive Plan approved by City Council earlier this year.
The Infill Incentive Plan is directed at property owners who undertake the complete redevelopment of an existing commercial center in order to introduce a new mix of uses, such as residential and/or office components. Particularly, it focuses on assisting developers with the demolition of existing commercial space in the 18 square miles of the redevelopment area primarily along the Arizona Avenue, Alma School Road and Dobson Road corridors. Retail centers at these locations have experienced a significant decline in activity, which is primarily attributed to shifting traffic patterns as a result of the opening of the Santan Freeway.
The new incentive program correctly recognizes that some of the City’s existing commercial sites may no longer represent the highest and best use of the property, and that redevelopment of these sites may have significant positive impacts on the community.
Slowly but surely, new development activity is starting throughout the City, including interest in the reuse of existing retail space. An example is an educational institution that is in the process of purchasing a former grocery store at the southwest corner of Warner and Alma School roads and plans to convert the site into a school.
The City of Chandler may not experience the economic growth we enjoyed just a few short years ago. But there are certainly opportunities to build and/or renovate diversified and sustainable developments. And we will continue to assess the way we do things to make sure we have the best strategies in place to meet the demands of a turbulent economy. |
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