Columbus City Center
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| Columbus City Center | |
| Facts and statistics | |
|---|---|
| Location | Columbus, Ohio |
| Opening date | 1989 |
| Developer | Taubman Centers |
| Owner | City of Columbus |
| Total retail floor area | 1.2 million square feet |
| No. of floors | 3 |
Columbus City Center (known locally as City Center) is a 1.2 million-square-foot, three-level shopping center in Columbus, Ohio. It is located in the city's downtown, directly across from the Ohio State Capitol, next to the Ohio Theatre, and connected to a Hyatt hotel. The mall has a large parking structure attached that is used extensively by downtown workers.
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[edit] History
Columbus City Center was developed by the city as part of the Capitol South development, opening in 1989. Lazarus, already open since 1851, was made one of the original anchor stores by connecting it with the mall via an enclosed bridge across High Street. The Lazarus store by City Center was the first Lazarus store ever opened[1]. The other original anchor stores were Marshall Field's and Jacobson's. Taubman Company leased and managed the building until control was later taken over by Mills Corporation, discussed later on. Early leasing efforts were substantially enhanced when Limited Brands, a locally-based dominant specialty retailer, announced that all of its brands would have a presence at the center[2].
During the past decade, City Center’s positioning as the premier shopping destination in Columbus has been eliminated, due primarily to the opening of the three shopping centers across the northern end of Columbus, and the closing of its key anchor tenants.
[edit] Competition from new shopping centers
In July 1997, The Mall at Tuttle Crossing opened on the northwest side of Columbus. It is interesting to note that the developers of City Center built Tuttle[3]. Though its opening had a much more devastating effect on the nearby Westland Mall, Tuttle presented an attractive alternative for upscale shoppers in the surrounding area who would have otherwise shopped at City Center. However, Tuttle alone did not have the capacity to decimate City Center, as City Center was still a convenient destination for wealthy residents in eastside suburbs such as Bexley, Pickerington, New Albany, and others.
The opening of Easton Town Center in June 1999 dramatically changed the outlook on shopping centers in Columbus. Located near the intersection of I-270, I-670, and SR-161 on the northeast side of Columbus, Easton presented a unique mixed-use format that was instantly successful. The combination of Easton and Tuttle gave nearly all wealthy suburban shoppers throughout Columbus more convenient shopping options. In conjunction to driving significant retail traffic away from downtown, Easton also hastened the downfall of nearby Northland Mall.
To make matters worse for City Center, Glimcher Realty Trust opened Polaris Fashion Place in October 2001. The mall was built on the far northern end of Columbus to capture the corridor of suburban development in the Columbus suburbs of Powell and Westerville, as well as the rapid population growth in nearby Delaware and Union counties. With this trifecta of new shopping centers across the wealthy northern end of Columbus, tenants fled City Center and Northland Mall (closed 2003).
[edit] Loss of anchor tenants
In the face of competition from new shopping centers, City Center lost two key anchor tenants over the next few years due to causes unrelated to the new malls. Jacobson’s went bankrupt in 2002 and closed all of its stores, creating the first hole in City Center’s anchor lineup. However, the real shock was the announcement that Lazarus, after 153 years of tenancy in downtown Columbus, was closing in the summer of 2004. Having lost its claim to a historical landmark, and with Jacobson’s closing its sole Columbus store, City Center had very little left to offer in terms of uniqueness, and tenants continued to leave the center as leases rolled over.
The mall's final Anchor, Macy's, which had originally been Marshall Fields, closed in late November 2007.[4]
[edit] Current status
Shortly after the Lazarus closing, Mills Corporation, through a 50/50 partnership with General Motors, purchased a large portion of Taubman’s holdings, including Tuttle and City Center[5]. Mills, with extensive experience in converting aged malls into revitalized structures emphasizing fresh entertainment and dining options, was seen by many to be the new hope for City Center’s future. However, excitement quickly faded as Mills announced significant financial difficulties in 2006, including accounting irregularities and earnings restatements going back several years. Many of its new and redevelopment projects were either put on hold or discontinued. By February 2007, a bidding war developed between Brookfield Asset Management and Simon Property Group, in conjunction with Farallon Capital Management, for control of Mills' assets. Simon won and assumed ownership of Mills' assets in Columbus, including City Center.
Around this time, the development arm of Nationwide Insurance (parent company of Nationwide Realty Investors, both based in Columbus, and responsible for much of the Arena District development) stepped up on behalf of the City of Columbus to put together a plan for the mall's future if Simon were to abandon the center. [6]
On July 31, 2007 the City of Columbus filed a lawsuit to evict the management company, Simon Property Group, which held the lease on the underlying land, to gain control of the mall. The city alleges that mall management grossly neglected the property, allowed it to fall into disrepair, did not pay real estate taxes for some time, and failed to make a rent payment for the land in excess of $200,000. Columbus Mayor Michael Coleman said of possible redevelopment for the property, "I have many, many ideas, I want to see some retail back in it, offices as well. We have thousands of people moving downtown and there's a great need for retail activity. Our downtown is on the move. This is the only thing holding us back."[7]. In the last minutes before eviction was to take place, the city was able to negotiate a purchase agreement to buy the property from Simon and take over full control.[8]
Two recent developments have set the stage for what could potentially revitalize the area surrounding City Center. First is the pronounced downtown housing boom, which has brought many young professionals back to the city. Several vacant buildings have been converted into condos, and the nearby German Village continues to show strong growth. Second, and more immediate, is the substantial redevelopment of the vacant Lazarus building. The redevelopment, now mostly complete, converted the building to a format suitable for office space, academic research, arts, and dining[9]. It's still unclear to what extent these developments have improved the outlook for City Center.
[edit] References
- ^ "History Works Ohio timeline" Retrieved February 13, 2007.
- ^ "Taubman still plans fourth anchor for City Center mall" Retrieved February 7, 2007.
- ^ "Taubman Realty Group Ltd Partnership Form 8-k, filed 12/8/97 with the SEC" Retrieved February 13, 2007.
- ^ "Macy's to leave Columbus City Center" Retrieved December 26, 2007.
- ^ "Mills Corp. to be acquired" Retrieved February 13, 2007.
- ^ "2007 may be the year when City Center questions resolved - at last" Retrieved February 7, 2007.
- ^ "Lawsuit filed against Columbus City Center owner" Retrieved July 31, 2007.
- ^ "City Center might close once Macy's leaves" Retrieved December 26, 2007.
- ^ "Downtown Lazarus Redevelopment" Retrieved December 26, 2007.
[edit] External links
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