Not feeling the love
Some of those guys at the city of East Grand Forks are way too sensitive about the Riverwalk Centre mall. So a guy reports how the mall is losing money and some of its tenants didn't pay rent, and suddenly he's getting hate.
Anyway, the City Beat was trying to report that the Buffet House had closed under pretty mysterious circumstances. I called Jim Richter, the economic development chief who's also the mall manager. The conversation isn't verbatim but here's what it came out to:
I had to ask the interim city administrator and finance director Wayne Oberg. He said he didn't know either because Richter reports the numbers to him at the end of the month. But he did know that the Buffet House paid $21,100 in rent last year and has paid $7,700 so far this year. He also though the restaurant hadn't taken out a loan with the city. Bottomline: Not a huge amount owed.
I know where Jim's coming from. A city owned mall operates at a disadvantage to a private business because anybody can ask for its finances. Also, reports of tenants leaving doesn't help the mall get more tenants. I'm not making his job easy.
Some may say the city ought never have gotten into the mall business and to that city officials would say they had to. They bought the mall after the flood and used it to house businesses that would've otherwise left town or gone under without subsidized rent.
Still, I wish it were easier to get info out of some of these guys. They're public servants and I'm a member of the public, ergo...
Anyway, the City Beat was trying to report that the Buffet House had closed under pretty mysterious circumstances. I called Jim Richter, the economic development chief who's also the mall manager. The conversation isn't verbatim but here's what it came out to:
Me: So, Jim, I'm just following up on that conversation we had (at City Council) about the Buffet House closing. So how much did they owe the city?Anyway, no, I still have no idea how much the restaurant owes.
Jim: Tu-Uyen, that's not a story.
Me: Why?
Jim: Because it's sad. It's a sad story.
Me: Um, so what? We do sad stories all the time.
Jim: It's sad. "They walked. They packed their bags and they left."
Me: What do they owe the city?
Jim: They owe a lot of people money. They owe us rent money.
Me: How much?
Jim: I don't know. I'd have to look that up.
Me: Could you?
Jim: [brief pause] I could.
Me: Would you?
Jim: [5-10 second pause] I don't have time right now.
Me: Could you get the numbers to me later this week?
Jim: [I forget the answer, I recall it was something like "I'll try."]
I had to ask the interim city administrator and finance director Wayne Oberg. He said he didn't know either because Richter reports the numbers to him at the end of the month. But he did know that the Buffet House paid $21,100 in rent last year and has paid $7,700 so far this year. He also though the restaurant hadn't taken out a loan with the city. Bottomline: Not a huge amount owed.
I know where Jim's coming from. A city owned mall operates at a disadvantage to a private business because anybody can ask for its finances. Also, reports of tenants leaving doesn't help the mall get more tenants. I'm not making his job easy.
Some may say the city ought never have gotten into the mall business and to that city officials would say they had to. They bought the mall after the flood and used it to house businesses that would've otherwise left town or gone under without subsidized rent.
Still, I wish it were easier to get info out of some of these guys. They're public servants and I'm a member of the public, ergo...
posted by Tu-Uyen at 9:46 PM
32 Comments:
I can understand the government purchasing the mall during the flood as a way to keep businesses in town. What I don't understand is why this is an excuse to still own the property?
Why not dump it? The government shouldn't be engaged in business ventures. As you point out, government just isn't structured to do that sort of thing.
Anyway, this is just another example of why these economic development efforts never work. If Grand Forks wants more businesses in town maybe they should cut back on their sales tax, which is the highest (next to Fargo, if I'm remembering correction) in the state.
I just hope the city has the sense to try to sell the mall. If I'm not mistaken, 2007 would be the earliest it could be sold due to the use of federal funds to purchase the mall...right Tu-Uyen? Is it 2007?
The mall seems to be getting a little quieter every day.
The mix of retail at Riverwalk Centre is pathetic...always has been. It's lack of success should come as a surprise to no one. It's reminiscent of the old enclosed mall in downtown GF: no natural light, no appealing stores, no traffic. It's going to take a huge amount of creativity among civic leaders-and sweetheart deals with merchants-to make that place thrive.
Unlike some, I don't think downtown EGF itself is the problem. Just look at the successful restaurant row.
How about tearing down the indoor portion of the mall (not the stores themselves) and replacing it with a landscaped fountained garden?
As for merchant mix, how about an outlet mall, Costco or more of what we already know works in that location, bars and restaurants? It could become the "Entertainment District".
Just an idea...
GFG: You're right. Hot damn good memory. It is 2007. But to sell the mall, it has to be profitable. An insane catch-22.
Dave: Note that Cabela's only came because the city gave it very generous incentives: $7.1 million in federal funds and $600,000 in other incentives.
Anyway, the City Council thinks the problem is lack of management. Jim Richter is only mall manager because he's head of economic development. Running the mall isn't his main job. Once they get that professional manager, council members think they'll have better luck getting new tenants. Cross your fingers.
Ben Franklin does appear to be in a major slowdown mode. Aisle after aisle is becoming sparser and sparser. Also, the Seasonal Discount Room (the old Home of Economy furniture store) was shut down several months ago, but this wasn't reported in the local media.
From what I have heard (please take note that I can't verify this...this is just what I have heard), there are a string of unpaid vendors that aren't very happy with the craft store. As it is, the store doesn't seem to be getting any new merchandise...a bad sign. There was no new Christmas merchandise last year, there was no new spring merchandise this past spring, and now there is no new summer or fall merchandise.
I personally don't think Ben Franklin will be around this time next year. That would leave the mall with a very large vacant space with no prospective tenants.
I'm curious...are you able to see which tenants are behind in their rent, Tu-Uyen, or is that info confidential?
Wasn't there something in the news about a past employee that stole a bunch of money from Ben Franklin. If that's so, if they get any back at all, it will take some time. Not a good deal.
Yes, a former employee stole tens of thousands from the store over a period of time. This led to a lengthy ordeal for the store's owner. The former employee blew it all gambling and I doubt the store owner will see much if any of the money back again. That certainly didn't help a small business owner who was likely already struggling to some extent.
GFG: No, the info on who's behind and who isn't is not confidential. I've not reported on the specific businesses because I don't really feel it'd be constructive.
My reasoning is that, as a reporter, I'm sort of a representative of the public (No one elected me but there's a government watchdog expectation.). Does it serve the public if I scrutinize the businesses in the mall, making the mall less attractive to prospective tenants? Probably not. But how the mall does over all is a matter of public interest because that's your tax dollars at work.
This rationale didn't apply to the Buffet House because we'd normally report on significant business closures whether it's a public or private mall. And the restaurant is a significant tenant for the Riverwalk Centre.
Let me get this straight, the city is desperate for tenants and successful businesses. They cut deals on commercial space for the businesses, competing with the private sector. And people complain about how the downtown areas of G.F.-E.G.F. suck.
Anyone see a connection here?
I was in Ben Franklin a couple weeks ago and asked the clerk why the shelves were so empty and if the rumor were true that they were going to close. She said the shelves were empty-ish because they had cut back on ordering to save money and that they were not going to close. Struggling, but going forward. I would hate to see Michaels as the only craft/art supply store around here. Michaels lies about discounts, did you know that? They tell you a price, like on a picture frame, and then say this is with the 50% or 40% discount, and it is close to the same price as the other locally owned frame stores charge with no discount! I've comparison shopped and I found this out!
I'm sorry, but since we're talking about empty space in EGF I'd like to know how that monument of government waste that they call a City Hall was paid for in EGF. I get a little sick in my stomach everytime I drive down DeMers. I imagine Whistler or Dave Miller has a good story about this one...
While that building was going up, and a school, I was amazed at how overbuilt they were. All I could think of was...one winter of high heating bills and it's going to be rough. Two years in a row and it may be REAL bad.
Didn't the State come in and bail out E.G.F. this year, or last, when they couldn't pay to heat their buildings?
Dadinggf: That's your federal dollars at work, not property taxes.
Anonymous: Didn't the State come in and bail out E.G.F. this year, or last, when they couldn't pay to heat their buildings?
I haven't heard that, no. They got enough money in reserves for that sort of thing, I would think.
Actually, the state pays the city every single year. Minnesota has this centralize government system where cities don't collect sales taxes at all but send them to the state. The state then redistributes it as something called "local government aid" or LGA for short. So a big portion of the city budget is made up of LGA every year. That's normal for many Minnesota cities.
I wouldn't necessarily believe what a sales clerk in Ben Franklin tells me. First, I doubt sales clerks really know where the business is headed. Second, if a business is having major troubles and is in danger of closing, do you think they would readily announce this to a random customer who asks? As far as "cutting back" to save money...from what I've heard (emphasis on "heard") they are no longer getting merchandise because they haven't paid bills to several vendors for quite some time.
"I've not reported on the specific businesses because I don't really feel it'd be constructive."
The Herald has had this philosophy for some time now; not so much journalism anymore, but happy news. 'Accentuate the positive'. I'm not sure what university communications department teaches this, instead of simply reporting what is happening in a community, whether it be amenable or not. Are you afraid of alienating potential advertisers?
Not at all. I don't honestly even know who our customers are other than, say, Hugo's and Target. You'd be amazed by how little the reporting staff knows about the advertising side of the business. I'm not exaggerating when I say that most of us don't even know the names of the advertising staff. (We're on the second floor. They're on the first. We rarely cross paths and almost never socialize. Not by design. It just works out that way.)
Anyway, it's not about accentuating the positive. Reporting about losses at the mall and tenants moving out or closing is not in the least positive. In the same way, reporting about losses at the Alerus Center or reporting about the conflict between the EGF City Council and the water and light department over funding Civic Center renovation is not positive.
But, you tell me if it serves the public interest to put every business that goes in the Riverwalk Centre under the microscope. If I chase away all the businesses, will that help taxpayers or hurt them?
Frankly, I'm sometimes amazed by the lack of empathy among readers. People see things from only their own perspective. I've got guys like you demanding me to be tougher on city governments. Then I've got other people complaining that I do nothing but report bad news. Honestly, there have been letters to the editor where readers wonder if I've got anything nice to say about the Alerus Center. The only way to avoid being influenced is to develop an independent ethical framework, which I explained in the previous comment.
I disagree on the Riverwalk point. You make a deal with the Gov (city, state, or fed) as a private business, and EVERY aspect should be painstakingly observed and reported on. Even if it curtails businesses from taking advantage of the programs. Why? They're funded by tax dollars and also because, this is a free market and somewhere out there there's a competitor without the same advantages, doin' it on their own dime, payin' taxes, creating jobs, and hopefully enough's left over to take care of their family. In most cases these are people who know and understand their industry, work the shop, and make it happen. Instead of investors.
I'll give an example...it's '98 and you own and operate a flower shop. Someone walks into your store and says..."There a new florist opening downtown". "Oh really" the shop owner adds, "What's the deal, who's the owner?, said the shop guy.
"It's a beautiful historic building downtown on what may be the best location down there, the owner got it for a buck, and a quarter mill to open the place".
"Who's the owner"...
"A farmer".
Now, you're the shop owner in a small market, how would that make you feel? I know...
I'm a naysayer and that's rebuilding the tax base.
(Nothing against farmers...love 'em!)
It has nothing to do with "empathy" nor being tougher, it has to do with journalism. You seem to adhere to the NY Times motto "All the news that's fit to print," and you decide what that news is. Jacobs' philosophy appears to be 'Don't print anything negative that will cast a shadow on GF businesses.' A case in point is Lola's. The owner had a gold mine there; the place was full almost every night. What the Herald never reported was that he was so far in arrears to his suppliers that they were threatening not to make deliveries. It never reported that his original partner, Kim Holmes, sold out to him to get away from the mess. It never reported a bench warrant was issued for non-appearance at a court proceeding dealing with his unpaid debts(this last tidbit was carried by KCNN). Just where does one go to get this and other information about the business community of GF? The men's lockerroom of the YMCA, where the movers and shakers congregrate.
Tu-uyen,
Just to set the record straight most cities in Minnesota do not receive LGA (local Government Aide). In fact most Metro area cities regardless of size do not receive LGA while East Grand Forks recieves over $2.7 million. Most of the Metro cities must either charge fees for services or tax their residents to get the money needed to provide programs that East Grand Forks provides for free (e.g. Ice Time for Hockey and Figure skating). It cost more to live in the cities because there are no free rides for those taxpayers...just the responsibility to support the non-producing cities like East Grand Forks.Let's be honest the people in East Grand Forks have received a wonderful gift in the levee and reconstruction funds...think they would be grateful! Ever check the community giving of the East Grand Forks leadership? Check the United Way etc.
Hmmm, I don't know where you're doing your research.
Go to this Coalition of Greater Minnesota Cities Web site. Click on "Computer Simulations and Graphics" and then select "Rep. Marquart Property Tax Relief Amendment." Scroll down to where it says "Metro."
What do you see? Minneapolis is projected to get $84 million this year under current funding formulas and St. Paul $61 million. Pretty nice chunk of change, huh?
Given the lengthy list, I'd wager every Minnesota city is included.
somewhere out there there's a competitor without the same advantages
I'd concede your point if it weren't for the fact that darn near anyone with a buck would be welcomed at the Riverwalk Centre. There's plenty of space available if anyone wants to take the "advantage."
It has nothing to do with "empathy" nor being tougher, it has to do with journalism.
What, did you get a degree in journalism? Thanks for the expert advice. I was talking about ethics.
My point about empathy is that you lack it. You fail to understand that there are an equal number of people grousing about our coverage but from the opposite perspective (too negative). Reporters like to joke that when you piss everybody off, you must've done something right.
Anyway, we've covered the problems at Lola's before, though not in detail. It's just not that big of a deal in the big picture (no major job loss).
Just where does one go to get this and other information about the business community of GF? The men's lockerroom of the YMCA, where the movers and shakers congregrate.
More advice from the journalism expert. Getting the news from locker room gossip is a sure way to a libel suit. Yeah, you can get tips but a lot of business information is private so you follow up and hit a dead end. Either that or you find out the gossip is inaccurate as it is 90 percent of the time.
My point is that there is next to no real investigative reporting by the Herald. During the Clifford era, I was acquainted with the reporter who covered UND. He always had lots of information, not always complementary, about happenings out there, which never got published. When asked why, he said anything negative written would cause the administration to cut him off. If you ever see Juan Pedraza, ask him the result of his unflattering characterization of the then cable tv company serving GF which appeared in his column, a company which advertised in the Herald.
Ah, why didn't you say so?
The reason there hasn't been much investigative reporting is because we don't have enough people. We had just enough to cover the basics but not much more. We are in the process of hiring additional reporters so this will change.
I'd say your only "investigative reporter" at present writes insipid restaurant reviews.
Pickin' on an innocent old woman is tacky. I'm sure you're better than that.
I'm just aware of all the real journalists let go or forced out of the Herald over the last decade and a half, while she was retained. All for Jack's sake?
"Pickin' on an innocent old woman is tacky. I'm sure you're better than that."
And I don't believe I said anything critical of her, just her contributions to the Herald. So please don't play the sympathy card.
Don't be too mean to Marilyn. She may not be the world's greatest restaurant reviewer and goodness knows she loves dropping a name now and then, but she has been a fixture in the community for years.
I'm just aware of all the real journalists let go or forced out of the Herald over the last decade and a half, while she was retained. All for Jack's sake?
Marilyn is pretty much a freelancer. She writes the columns for us but is not a regular employee. Same with the Prairie Gardener and Naomi Dunavan.
And I don't believe I said anything critical of her, just her contributions to the Herald. So please don't play the sympathy card.
No sympathy requested. I wouldn't talk about my grandma's writing that way even if she sucked.
We aren't talking about your grandmother, but someone whose byline appears in the Herald on a regular basis, whether freelancer or regular employee. Therefore some writing standard should apply. Does she have a copy editor?
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