City Place in West Palm Beach is once again facing foreclosure. I predict that it will continue to experience problems now and in the future. I am basing this on my nearly 45 years in the commercial real estate business. There are several reasons why repeated threats of and/or foreclosures will continue. Though we in Stuart will never see a development anywhere near this size, there are lessons we can learn.
City Place does have bustling crowds. However, crowds do not translate into economic success for the myriad of businesses located there. The overwhelming majority of retail establishments are composed of chain stores. There is no differentiation in product from any other enclosed or outdoor mall. A Macy’s is a Macy’s is a Macy’s.
Restaurants are also chains with rather high prices for the average person. How far does one drive to go to a Ruth’s Chris Steakhouse or Brio’s Tuscan Grill? There are less expensive alternatives at City Place such as Auntie Anne’s pretzels or Moe’s Southwest Grill, but these are not destination restaurants. This is a “Potemkin Downtown”. There is nothing organic in its design or makeup to entice continued repeat visitors that will actually buy the goods and services offered by the merchants.
A Hilton Convention Hotel has opened. My question would be is there enough convention business to fill this hotel? Why would someone stay there? This entire project is a 1970’s concept trying to fit into the world of the 21st century. It is outmoded and not what people, especially millennials, want in a downtown.
Unlike Stuart’s downtown, there is nothing original in City Place’s mix of retail shops. While we have two chain restaurants, the others are all unique and distinct eating establishments that have loyal followings. Stuart’s downtown area is a magnet for visitors because of this originality that cannot be found elsewhere. Our rejuvenated downtown grew out of a “place” where bricks and mortar already existed. The question going forward is how do we expand on Stuart’s success and not become a failed “City Place?”
One of the keys to continued vibrancy is to expand the residential component of historic downtown, the Colorado corridor, Ocean Avenue and Dixie Highway. We have made a tentative start by the proposed Triangle residential development. For Stuart to be a city with a promising future, residents must live throughout every neighborhood. With people comes the need for other commercial activity from dry cleaners to bagel shops. Stuart’s current downtown merchants will do better because there are more customers within walking distance. The entire city will be enhanced because of more tax dollars being generated without much additional municipal cost since the infrastructure is already in place.
A mistake that we can make and have made in the past is to not allow the market to dictate outcomes. The city commission and staff too often decide what the project should be and then look for the private sector to carry out its wishes. Is there any wonder why so many conceptual plans amount to nothing? Government is not an expert. The best that can be hoped is that government does not impede the private sector. The government should not play “Sim City.”
Our governmental responsibility should be to help the necessary and continual development of an expanded downtown through good policy. Through our zoning and development code, Stuart can have height limits and other important elements that will allow for us to control density and maintain our “Old Florida Charm.” Another important point to remember is that we should not let any single developer amass so much property that we end up making the same mistake as West Palm Beach made with City Place.
The Jefferson’s and other downtown stalwarts had it right. Allow redevelopment through as organic a process as possible. Let the private sector decide what will work and what will not. Government is a facilitator not a partner. Let the people actually investing their money decide on the desired outcome.