Wednesday, September 14, 2005

Mall of America's next big move looks beyond shopping

Chris Serres
Minneapolis Star Tribune

It will be an "entertainment destination," an "upscale fashion boulevard" and a "mecca for recreational shoppers."

Just don't call it a shopping center.

The developers of the Mall of America on Tuesday unveiled their most detailed plans yet for its $1 billion expansion. And what they promise is more than just a slab-sided box crammed with national retail chains and fast-food restaurants.

The 5.6 million-square foot expansion calls for a 6,000-seat performing arts center, three hotels, up to 300 condominiums, a museum, an ice rink and a stream cutting through its main corridor.

"Don't think of this as a mall. Think of this as a destination," said Greg Hollenkamp, president of KKE Architects Inc., chief architect of the expansion, officially dubbed Phase II.

The updated designs, presented at a commercial real estate conference at the Radisson Plaza in Minneapolis, have drawn mixed reviews from retail consultants and real estate brokers.

But will they deliver?

Formal plans for the expansion have not been presented to Bloomington city officials, who would need to approve any plan. And the mall's managing general partner, the Ghermezian family of West Edmonton, Alberta, has a history of not delivering on earlier, equally flamboyant promises. An ice rink, for example, was included in its original design for the Mall of America.

Some real estate experts questioned whether one of the nation's largest malls -- primarily known for its 520 shops and family theme park -- could become a place where people attend a ballet performance, view a touring art exhibit or live.

"The Mall of America has proven that it can attract retailers," said Ned Rukavina, a developer and retail vice president with United Properties. "But a museum? A performing arts center? That's going to take some convincing."

An expansion of the mall has been in the works since the Ghermezian family won a court battle with its partner, Simon Property Group, and resumed a more active role in the management of the mall.

In February, developer Nader Ghermezian said the expansion would include an Italian canal with gondolas surrounded by dancing fountains. It would resemble a European-style cityscape, with corridors designed to model elegant boulevards such as the Champs d'Elysee in Paris.

None of that, however, appeared on Tuesday's renderings. Now, Phase II is designed to resemble an urban parkway lined with a meandering stream and a waterfall. Instead of Paris or Venice, the final version will more closely resemble Minnehaha Falls lined with shops.

Gone, too, are plans for a casino, at one point considered a cornerstone to the whole expansion. Because the Legislature never approved plans for a state-sponsored casino, the Ghermezians decided it was too risky to include in its latest designs. In its place they have pencilled in space for an eight-story office tower.

Given the multiple changes, some industry observers were reluctant to get too excited about the mall's latest designs. "It doesn't seem like they have a plan, that they really know what they want," said Richard Grones, founder of Cambridge Commercial Real Estate in Edina.

Willing to adapt

But one of the mall's strengths always has been its owners' willingness to test new ideas and discard them, quickly, when they don't work. The General Mills "Cereal Adventure," a 16,000-square-foot attraction that educated visitors on the production of cereal, closed after it proved a bit too heavy for mallgoers. And nighttime entertainment always has been a big gamble at the mall. With the exception of the Hooters restaurant, all of the mall's fourth-floor clubs have closed.

"This mall is constantly changing and expanding, like a life form," said Maureen Bausch, the mall's vice president of business development.

While expansion plans may undergo multiple changes in the coming months, retail analysts said they agree with the overall concept of focusing on entertainment and recreation rather than shopping. Less than half of Phase II will consist of retail space; excluding the Camp Snoopy theme park, about 80 percent of the existing mall is retail, Bausch said.

With huge "lifestyle" centers sprouting up in Maple Grove and Woodbury, along with expansions at local malls, consumer demand for another shopping complex is limited, said Mike Sims, vice president of retail at United Properties.

"To add 5.6 million square feet of retail space -- even for a mall as dynamic and successful as the Mall of America -- would have been quite a big mountain to climb."

2 comments:

  1. It's important for malls to assume different functions. I applaud the Ghermezians's ambitious plans; Victor Gruen would be proud.

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  2. Victor Gruen would be estatic. One thing MOA has always missed, in my opinion, is the ablity to sustain enthusiasm. It's big and impressive, but not very interesting.

    I want to go once just to see it, but it's doubtful that the current mall would be more a one-time thing for me, and I'm a mall fantic.

    The expansion turns it into more of a destination and I can see making multiple visits to a place that offers more than just shopping and rides.

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